There are multiple ways in which you can format code in Visual Studio Code IDE (also known as VS Code),
Option 1: Using Keyboard Shortcut
For Windows:Keyboard Shortcut: Shift + Alt + F
For Mac (macOS):Keyboard Shortcut: ⌥ Shift + Option + F
For Linux:Keyboard Shortcut: ⌥ Shift + Option + I
Note the first time you use the formatting shortcut you will get a VS Code Alert saying "Formatter autopep8 is not installed. Install?" do say YES or you can install it using pip command manually.

/opt/homebrew/bin/python3 -m pip install -U autopep8
Collecting autopep8
Downloading autopep8-1.7.0-py2.py3-none-any.whl (45 kB)
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ 45.6/45.6 kB 1.1 MB/s eta 0:00:00
Collecting pycodestyle>=2.9.1
Downloading pycodestyle-2.9.1-py2.py3-none-any.whl (41 kB)
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ 41.5/41.5 kB 2.3 MB/s eta 0:00:00
Collecting toml
Downloading toml-0.10.2-py2.py3-none-any.whl (16 kB)
Installing collected packages: toml, pycodestyle, autopep8
Successfully installed autopep8-1.7.0 pycodestyle-2.9.1 toml-0.10.2
Option 2: Using Mouse:
Be on your Python code file and do a right-click and select: Format Document

You can also select a section of your code and format it by selecting "Format Section"
Option 3: Using Palette Command:
Another way is to use the Palette Command,
Open Palette,
For Windows: Control + Shift + P
For Mac: Command + Shift + P
Now search for Format Document and select to format.
Do share in the comments if you know of any other ways or tricks to format Python code in VS Code!
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