Hey, this is a known issue. Auto Detect Color Scheme needs you to manually set your preferred themes for Light and Dark mode.
Workaround:
- Open Settings
Cmd+, - Search for
window.autoDetectColorSchemeand make sure it’s enabled - A bit below, find
workbench.preferredDarkColorThemeandworkbench.preferredLightColorTheme, then pick the themes you want for each mode
After that, switching with the system theme should work.
More details in a similar thread: Auto Detect Color Scheme not working on MacOS
Let me know if it still doesn’t help.