Exclude Gitignored Files from VS Code Sidebar

Open Command Palette (Ctrl + Shift + P) → Preferences: Open Settings (UI).
In the search box type gitignore.
Check Explorer: Exclude Git Ignore. (How can I show .gitignored / .ignored files in visual studio code?)
If editing settings.json directly, add "explorer.excludeGitIgnore": true. (Default settings reference - Visual Studio Code)

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