Yes, it has. I've used it for years as well, and I think I know the bugginess you're referring to. Some time back, it required Neovim 0.5.0 or 0.5.1, and that wasn't yet in the official Neovim homebrew package. This was actually documented on the vscode-neovim homepage, but it was easy to miss.
Back then, I used a custom homebrew tap to get the proper Neovim version installed, and the plugin mostly worked. Occasionally the editing context would get messed up, and still does. I've found that changing tabs inside VSCode resets the neovim context, and that's a nearly-instant fix for most issues I see now.
It also works with the default version of Neovim from homebrew. No more custom tap needed.
I think I actually built neovim from source when I was testing it out. Either 0.4 or 0.5, yeah. I think the lost context was frustrating IIRC and I didn't know that switching tabs fixed it. I just got frustrated and opened up real nvim when that happened.
Back then, I used a custom homebrew tap to get the proper Neovim version installed, and the plugin mostly worked. Occasionally the editing context would get messed up, and still does. I've found that changing tabs inside VSCode resets the neovim context, and that's a nearly-instant fix for most issues I see now.
It also works with the default version of Neovim from homebrew. No more custom tap needed.