[Bug]: disable-telemetry flag does not disable extension telemetry

[code-asher]

Is there an existing issue for this?

• [X] I have searched the existing issues

OS/Web Information

any

Steps to Reproduce

Run with --disable-telemetry and install the Python extension.

Expected

Extension telemetry should be disabled.

Actual

Extension telemetry is not disabled.

Logs

No response

Screenshot/Video

No response

Does this issue happen in VS Code or GitHub Codespaces?

• [X] I cannot reproduce this in VS Code.
• [X] I cannot reproduce this in GitHub Codespaces.

Are you accessing code-server over HTTPS?

• [X] I am using HTTPS.

Notes

Probably need to set the setting as well since that is what extensions read.

This will help anyone running code-server in an air-gapped environment due to https://github.com/coder/code-server/issues/4495 (although we should also fix that timeout).