The VSCode (or VSCodium) Timeline (under the File Explorer sidebar) can still restore a file even if it’s been moved and no longer exists at its current location: Create a new, blank file it the location it should exist, named exactly the same as it was before, and then open the timeline. The timeline history will then reappear. I did a full test of this just to be sure. Just make sure the filter selection includes “Local History”. Select the last change and apply.
As to the larger issue of checkpoints making a user feel they have “automated Git” - that is most certainly not what that is for (at least, I’ve never thought of it that way, ever). It’s for being able to quickly iterate over an AI chat or composer session, and help steer the conversation in the right direction if the AI gets lost. I would never use it as a replacement for Git by any means.