KeyBindings not working on macOS

Hi, I installed the latest version of VSCode vim on my MacBook, running macOS Catalina and when I start VSCode, it enters in --NORMAL-- mode, and no matter what I do, it doesn't into INSERT mode. I have the following settings.json file:

// Theme color Classes can be found here!!!
//https://code.visualstudio.com/api/references/theme-color
{
  "workbench.startupEditor": "newUntitledFile",
  "editor.formatOnSave": true,
  "terminal.integrated.shell.osx": "/usr/local/bin/fish",
  "editor.fontSize": 17.5,
  "explorer.confirmDelete": false,
  "editor.suggestSelection": "first",
  "vsintellicode.modify.editor.suggestSelection": "automaticallyOverrodeDefaultValue",
  "explorer.confirmDragAndDrop": false,
  "editor.fontFamily": "Menlo, Monaco, 'Courier New', monospace, Menlo",
  "liveServer.settings.donotVerifyTags": true,
  "java.semanticHighlighting.enabled": true,
  "java.configuration.checkProjectSettingsExclusions": false,
  "C_Cpp.updateChannel": "Insiders",
  "[html]": {
    "editor.defaultFormatter": "HookyQR.beautify"
  },
  "editor.minimap.enabled": false,
  "workbench.editorAssociations": [
    {
      "viewType": "jupyter.notebook.ipynb",
      "filenamePattern": "*.ipynb"
    }
  ],
  "typescript.updateImportsOnFileMove.enabled": "always",
  "terminal.integrated.fontSize": 16,
  "editor.defaultFormatter": "esbenp.prettier-vscode",
  "editor.cursorStyle": "line",
  "editor.insertSpaces": false,
  "editor.lineNumbers": "on",
  "editor.wordSeparators": "/\\()\"':,.;<>~!@#$%^&*|+=[]{}`?-",
  "editor.wordWrap": "off",
  "editor.tabSize": 8
}

Reproduce the report in VSCode on macOS Catalina using the provided settings.json, checking whether startup remains in NORMAL mode and key presses can enter INSERT mode. Compare the behavior with keybindings enabled and disabled; done means the reported macOS setup can switch modes normally without losing keybindings.