I have created one new file in an otherwise empty directory using VS Code. I went to version control and chose initialising this directory as a git repository. Now, a blue strip is moving around and a blue clock sign appeared on the git icon.
What does it wait for? With command line, git init is a no-brainer and lasts for a fraction of a second.
If you click on the 3 dots up top, you can toggle Show Git Output. It will give you information on what commands VS Code is running in the background.