settings.json

This is my suggested project's settings which you can modify by your own preferences and put into your project's directory in .vscode/settings.json or change global settings of VSCode.

{
    // language-specific settings to change native behaviour of VSCode
    "[z80-macroasm]": {
        "editor.tabSize": 8,
        "editor.insertSpaces": false,
        "editor.rulers": [80],
        "files.eol": "\n",

        // disables color swatches or "pigments" on minimap because
        // hex-values starting with `#` are common number format in asm
        "editor.colorDecorators": false,
        // formatting while typing a code (disable if you find it intrusive)
        "editor.formatOnType": true,
    },

    "z80-macroasm.files.include": "**/*.{a80,asm,inc}",
    // enable seekSymbolsThroughWorkspace on non-modular projects without imports
    "z80-macroasm.seekSymbolsThroughWorkspace": false,
    "z80-macroasm.format.enabled": true,
    "z80-macroasm.format.baseIndent": 2,
    "z80-macroasm.format.controlIndent": 1,
    "z80-macroasm.format.whitespaceAfterInstruction": "auto",
    "z80-macroasm.format.spaceAfterArgument": false,
    "z80-macroasm.format.spaceAfterInstruction": true,
    "z80-macroasm.format.spacesAroundOperators": false,
    "z80-macroasm.format.uppercaseKeywords": "auto",
    "z80-macroasm.format.bracketType": "no-change",
    "z80-macroasm.format.colonAfterLabels": "no-change",
    "z80-macroasm.format.hexaNumberStyle": "no-change",
    "z80-macroasm.format.hexaNumberCase": "no-change",
    "z80-macroasm.format.splitInstructionsByColon": true,
    "z80-macroasm.suggestOnInstructions": false,

    // overrides associations for another assembly language
    // parsers and extensions to prevent from mismatches
    "files.associations": {
        "*.{a80,asm,inc}": "z80-macroasm"
    },
}