It's a known fact that out of the box vscode uses KaTex and doesn't render some LaTeX formula in Jupyter notebooks while colabs or jupyterlab do render them.
from my understanding MathJax does the job but I am yet to find a solution for this issue or how to substitute KaTex to MathJax in vscode. Changing to alternative LaTeX formulation is not a valid option as they're given from a third party.