Ok after running:
sudo snap set lxd shiftfs.enable=true
sudo systemctl reload snap.lxd.daemon
I ran lxc profile device set omar home
and it worked!
I also ran from the link you shared:
lxc config set hexr security.privileged true
lxc restart hexr
lxc config unset hexr security.privileged
lxc restart hexr
But sadly I still get the same error in vscode