Hello @Jayadev,
Just for double check, could you please check that the SDK you are trying to import/add to VS Code is for ARM GCC/MCUXpresso for VS Code instead of MCUXpresso IDE?
You could download the ARM GCC/MCUXpresso for VS Code SDK here. In the Build SDK section choose Toolchain/IDE as ARM GCC/MCUxpresso for VS Code before clicking on Download SDK.

[Build SDK for EVK-MIMXRT1064]
Warm regards, Raul.