CVE-2025-21264 is a high-severity vulnerability identified in Microsoft Visual Studio Code version 1.0.0, classified under CWE-552, which pertains to files or directories being accessible to external parties. This vulnerability allows an unauthorized attacker to bypass a local security feature by gaining access to files or directories that should be restricted. The CVSS 3.1 base score of 7.1 indicates a high impact, with the vector AV:L/AC:L/PR:N/UI:R/S:C/C:H/I:L/A:N/E:U/RL:O/RC:C describing the attack as requiring local access (AV:L), low attack complexity (AC:L), no privileges required (PR:N), but user interaction is necessary (UI:R). The scope is changed (S:C), meaning the vulnerability affects resources beyond the initially vulnerable component. Confidentiality impact is high (C:H), integrity impact is low (I:L), and availability impact is none (A:N). The exploitability is currently unknown in the wild, and no patches have been linked yet. The vulnerability essentially exposes sensitive files or directories to unauthorized local users, potentially allowing them to read confidential information or bypass security controls within Visual Studio Code. Given Visual Studio Code's widespread use as a development environment, this vulnerability could be leveraged by malicious local users or malware to escalate privileges or exfiltrate sensitive code or credentials stored within the IDE environment.

For European organizations, the impact of CVE-2025-21264 could be significant, especially for those heavily reliant on Visual Studio Code for software development and IT operations. Unauthorized local access to sensitive files or directories could lead to exposure of proprietary source code, credentials, or configuration files, resulting in intellectual property theft, compliance violations (e.g., GDPR if personal data is exposed), and potential lateral movement within networks. The confidentiality breach could undermine trust and cause financial and reputational damage. Since the vulnerability requires local access and user interaction, insider threats or compromised endpoints are the most likely attack vectors. Organizations in sectors with stringent data protection requirements, such as finance, healthcare, and critical infrastructure, are particularly at risk. Additionally, the scope change indicates that the vulnerability could affect other components or processes beyond Visual Studio Code itself, potentially amplifying the impact.

To mitigate CVE-2025-21264 effectively, European organizations should: 1) Immediately restrict local access to developer workstations running Visual Studio Code, enforcing strict endpoint security policies and limiting user privileges to the minimum necessary. 2) Implement application whitelisting and endpoint detection and response (EDR) solutions to monitor and block suspicious activities related to file access within the IDE environment. 3) Educate developers and users about the risk of social engineering or phishing attacks that could trigger the required user interaction for exploitation. 4) Regularly audit and harden file system permissions on developer machines to ensure sensitive directories are not accessible to unauthorized users or processes. 5) Monitor for updates from Microsoft and apply patches promptly once available, as no patch links are currently provided. 6) Consider isolating development environments using virtual machines or containers to limit the blast radius of a potential exploit. 7) Review and enhance logging and alerting mechanisms to detect anomalous file access patterns related to Visual Studio Code usage.