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).