Extensions Auto Update enterprise policy is overridden by user settings

[mudman1986]

Does this issue occur when all extensions are disabled?:
This is about extension behaviour, it occurs also with only one extension enabled.

• VS Code Version: 1.128.1
• OS Version: Windows server 2022, version 21H2, build 20348.5386

Steps to Reproduce:

1. Create registry entry "HKEY_LOCAL_MACHINE\SOFTWARE\Policies\Microsoft\VSCode\ExtensionsAutoUpdate" (DWORD, value "on"). Or use the GPO, same result.

2. Restart vscode, confirm in the UI that auto update is "Managed by organization" (settitings > extensions.autoUpdate)

3. Go to the extension widget on the left side, click on a installed extension and uncheck the auto update checkbox

3b. Click on "Disable Auto Update for Extensions" and you will see that the "Auto Update" checkbox on each individual extension is cleared

Expected behaviour

When the ExtensionsAutoUpdate setting is set/managed by the organization, the setting can't be overwritten on individual extensions / disabled for all extensions on user level. Otherwise it is not actually managed by the organization, we are only setting a default.

• The Auto Update checkbox should be checked on each extension and grayed out to show that it is activated and can't be changed.
• The "Disable Auto Update for Extensions" option should be removed from the menu or grayed out or something.