Update vulnerable npm dependencies

[rzhao271]

Component Governance reports these npm dependency updates are available in the VS Code feed:

• brace-expansion: 1.1.13 -> 1.1.17
• brace-expansion: 2.0.3 -> 2.1.3
• diff: 7.0.0 -> 8.0.3
• fast-uri: 3.1.5 -> 3.1.6
• nanoid: 3.3.16 -> 3.3.18

Update the applicable dependency paths, account for breaking changes from the major diff upgrade, and validate with relevant tests, linting, and build. Do not use dependency overrides, resolutions, --force, --legacy-peer-deps, or equivalent force flags.