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Solves #773 and partially addresses #573.
Somehow a sequence of cursorMove commands is causing a bug in vscode. Removing them and directly setting the cursor location solves this issue. We don't need cursorMove vscode commands in this case anyways as less than one line move does not seem to get registered in jumplist.
Since the extension is getting highlights from redraw notifications, which is limited by window size, and neovim did not make the starting column of the current viewport in buffer available in the drawing notifications, the visual mode still displays incorrectly in vscode. However, it seems like the actual editing itself is working properly. There is no good fix to this other than implementing the display part of visual mode in the extension.