I use a lot LaTeX workshop and it would be nice if some feature from this (very) popular extension would be also supported:
{, which adds a pair of curly brackets around the word instead of replacing the word by {I think theses little tricks really help to write faster, which IMHO is quite important for this extension because I see markdown+LaTeX as a nice way to take notes during seminars.
add autoclosing
brackets/curlybracket/dollar sign
How about using the "toggle math" command we provide?

As for the curly braces (autoclosing, surrounding), it is defined here (VSCode repo).
surrounding:
It might be a good idea to change there, for example, adding { to the surrounding pairs.
autoclosing:
Sometimes { doesn't auto-close because it is right before some characters. I'm not sure whether we can make some changes to that.
Sorry, you are right autoclosing works for brackets, I do not remember why I thought it did not.
In LaTeX-Workshop, they managed to add surrounding by {, [ and $. May be we can look how they did it ? May be this can help: https://github.com/James-Yu/LaTeX-Workshop/issues/1530#issuecomment-514523815
It looks like they make use of the VSCode "language configuration" as I mentioned above (see the link).

So I suggested that we add { to the surrounding pairs in VSCode repo (otherwise we need to override the "language configuration").
Most helpful comment
How about using the "toggle math" command we provide?
As for the curly braces (autoclosing, surrounding), it is defined here (VSCode repo).
surrounding:
It might be a good idea to change there, for example, adding
{to the surrounding pairs.autoclosing:
Sometimes
{doesn't auto-close because it is right before some characters. I'm not sure whether we can make some changes to that.