I was able to create a project in VS code. Also able to authenticate the org. In the package.xml when i right click & click on "SFDX : Retrieve source in Manifest from Org" - i'm getting the following error message :-
UNC paths are not supported. Defaulting to Windows directory. ERROR running force:source:retrieve: This command is required to run from within an SFDX project.
It ended with exit code 1.
Any pointers to resolve this will be really helpful.