Thank you for the detailed explanation. Based on what you described, here are clear answers.
1.Live Server showing a directory listing instead of your page
This behavior is not caused by a VS Code setting. It is how Live Server works when it cannot resolve a default document.Common causes of the issue is you opened a parent folder instead of the folder that actually contains index.html. The file is named Index.html, index.htm, or index.html.txt
Select the folder that directly contains index.html. Right-click inside the file and open with Live Server.
If index.html is present and Live Server still shows a directory listing, then Live Server is pointing at the wrong folder. No additional settings need to be changed.
2.Colorful Comments extension not changing colors
Copying extension settings into settings.json will not work unless, the extension is enabled or the file type is supported and the color theme allows token color overrides. Clarification for this If colors still do not change, the most common reason is that your current theme overrides comment token colors. This is expected behavior, not a bug.
3.Dark horizontal band (the “ruler”) in the editor
We can remove by setting editor rules to an empty value.This completely removes the vertical guide. No restart required.