The delete key no longer works in VS Code (Version 1.98.2). I found one post saying that the issue was fixed by reinstalling V. 1.88.n. I’m certain that I was running a newer version than that and the delete key worked.
After further searching, I found that there were dozens of extensions installed in the same file path as VS Code. I used Windows File Explorer to delete all of them, even though VS Code showed none installed in its Explorer window.
That did the trick. On reloading VS Code, the delete key was again functional. I have no idea which, if any, of those deleted extensions caused the problem. I can only state that the problem left with the extensions.
I rely on only 2 extensions, Live Server and Prettier. I reinstalled them and there is no delete key issue.