publish vscode extension with bundled in images/gif

its by default vscode expect a public git repository for referring the code and even images to be shown in the markdown.

an alternative, workable solution to enable for the bundled in images is through publish a pre-packaged vsix.

You can override that behavior and/or set it by using the –baseContentUrl and –baseImagesUrl flags when running vsce package. Then publish the extension by passing the path to the packaged .vsix file as an argument to vsce publish.

https://code.visualstudio.com/api/working-with-extensions/publishing-extension