Clearing all outputs in the notebook via VS Code's "Clear All Outputs" button (see the image below), and making sure there are no long/heavy outputs did the trick for me.

Clearing all outputs in the notebook via VS Code's "Clear All Outputs" button (see the image below), and making sure there are no long/heavy outputs did the trick for me.

I also have the same issue with VScode and Jupyter notebook, in my case it only happens when the overall size of the notebook is large (more than 150 MB) which caused by keeping the output of the cells (in my case the high quality figures), this causes the notebook to crash and grey out all the outputs. The solution that I found so far is to clear the output, it won't crash again, there is also some solution suggested by the developers here, which suggests to remove the Code cash. I would suggest to break long notebooks to smaller notebooks, or clear the output.
Update
I frequently had this issue with my notebooks of any size. One of the solutions was to remove the code Cache on my Windows machine (for mac users you have to find the equivalent app data on your system and remove the Cache).
The easiest way to access the Cache folder is to open a run window and search the following line and delete the Cache as much as you can:
%APPDATA%\Code - Insiders\Code Cache
It helped me so far. Please let me know if it worked for you guys too or you found any other solutions.
Suddenly not seeing cell output
VS Code Jupyter Notebooks are not working, background is turning grey, and I cannot see the output - Stack Overflow
The background of main interface became grey.
My Cell Output in VS Code while using Jupyter Notebooks has turned gray, but my code is still visible.
Videos
I was coding in VSC using Jupyter and I dropped my phone on my keyboard and all of my cells became gray. I'm not sure how to fix it.
I don't know if my file size is too big, or If there are too many plotly graphics in my notebook, but I can't find a way to fix it.
I've tried re-installing the regular/stable version of VSC, installing VSC-Insiders, clearing my cache (I believe I did this correctly via stack posts).
Here's a link to a screenshot of what I am seeing: https://imgur.com/a/fkfHw9r
Is this possibly because I am using plotly for all of my visuals instead of png's?
I have a similar, larger file with roughly the same number of visuals where this problem isn't occurring
Generally, the output box will be grayed out only when your jupyter cache is large.
According to this issue on github, the easiest to get out of this is to delete the Cache folder.
Windows %APPDATA%\Code - Insiders\Code Cache
macOS $HOME/Library/Application Support/Code - Insiders/Code Cache
Linux $HOME/.config/Code - Insiders/Code Cache
You can also try to clear output.

Looks like you're using a formatting extention. Try turning it off or uninstalling it.

I was coding in VSC using Jupyter and I dropped my phone on my keyboard and all of my cells became gray. I'm not sure how to fix it.
I don't know if my file size is too big, or If there are too many plotly graphics in my notebook, but I can't find a way to fix it.
I've tried re-installing the regular/stable version of VSC, installing VSC-Insiders, clearing my cache (I believe I did this correctly via stack posts).
Here's a link to a screenshot of what I am seeing: https://imgur.com/a/fkfHw9r
Is this possibly because I am using plotly for all of my visuals instead of png's?
I have a similar, larger file with roughly the same number of visuals where this problem isn't occurring
Hi , i recently installed anaconda 3 (python3.6), and then opened the jupyter notebook , i try to run the code but only new cells are created. I tried uninstalling and reinstalling doesnt work.tried anaconda 2(python 2.6) doesnt work either.