So by default if a change is made, VSCode Source Control sets a blue marker on the file and all directories that contain the changes.
And it also colors the names, which for me in some situations, seems a bit distracting in bigger applications.
Is there a way to customize this, so the Folder and File names do not change color and only the small Markers on the right remain ?

If you use the
"explorer.decorations.colors"setting, you can turn off all colors on the text, while still maintaining the "Modified" indicator. This turns off all coloring, but I think really the only coloring I've seen so far comes from Git tracking changes, and if problems are detected in files - those are probably the most common forms of coloring at least.For example, with
"explorer.decorations.colors"set tofalse,:You can also set
"git.decorations.enabled"tofalse, but you will lose the indicator as well.