To setup a gitea issue tracked project you need to first select the issues tab at the activitiy bar. After that open the command palette in order to enter your crendentials:
- Authtoken
- Domain in format: "example.com"
- Repository Owner (may be an organisation): "TestOrganisation"
- Repository Name "ExampleRepository"
When you've finished you can press the refresh button in the open issues section and you'll see the issues of the first 10 pages (only open issues).
In order to get nice looking issueicons in multiple colors you need to assigne any issue a label called either "feature" or "bug". A bug is going to be represented as an red issue, while a feature will have a green icon. If the issue does not have got a label it will receive a grey icon. If the label is not know (so neither "feature" nor "bug" not case sensitive) it will also get a grey icon.