Hello, please check out my VSCode extension - Blockman, it’s free, took me 6 months to build. It’s a visual helper, it helps developers to read code more easily. You can customize colors, depth, focus… Please help me promote/share/rate if you like it.
It’s personal preference I’d say and personally I wouldn’t say that it increases the readability.
For such cases, I’m using Bracket Pair Colorizer 2 and indent-rainbow, which are more subtle.
Maybe you can try changing colors on your taste. Also you can hide all backgrounds and keep only the borders (Just go to Blockman settings and type “none” in all color-depth field).