I had similar issues, mine turned out to be an HDR issue. I went into Display Settings and turned off Play HDR Games and Apps and the boxes went away.
It looks like you are running into this bug: https://github.com/Microsoft/vscode/issues/12473
We're looking into the root cause of this issue. As a workaround, try changing your color profile as documented here: https://github.com/Microsoft/vscode/issues/12473#issuecomment-269024219
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