For a solo developer or small team looking for flexibility and a vast feature set, Visual Studio Code is the better choice. Its extensive extension ecosystem allows you to customize your setup for nearly any language or workflow, and it offers powerful built-in tools like Git and debugging. However, be aware of its heavier memory usage due to its Electron framework, which could be an issue if you're seeking efficiency.
On the other hand, if you prioritize performance and real-time collaboration, Zed shines with its speed and collaborative capabilities. It’s ideal for performance-sensitive developers who can work within its smaller extension system. However, since Zed is still maturing on Windows, avoid it if you need immediate Windows support, or if you're heavily reliant on specific VS Code extensions.