Even though discarding untracked changes presets a modal dialog making it clear that the operation is irreversible and the data will be permanently deleted we continue to get reports from users that end up deleting their files. We are making changes so that by default, discarding untracked files will move the files to the Recycle Bin/Trash instead of deleting them. This behaviour can be disabled by toggling the git.untrackedChangesSoftDelete setting.