Using Git, when you both rename and modify a file, the Source Control dropdown under the Source Control view sometimes shows your modifications as indeed renames with modifications. However, at other times, it shows your modifications as if the original file has been deleted and a completely new file has been added. This makes it difficult to understand exactly what type of modifications has been performed on the file. It would be nice if the Source Control view would always show your modifications correctly, or at least gave you an option to configure its behavior.

Upon further investigation, the behavior seems to be influenced by the similarity threshold feature in Git. If there was a way to configure this value, the user could tell VSCode when to consider a rename and modification as a rename and when to consider it as a deletion of an existing file and addition of a new file.

This issue created in GitLens is relevant.