How to hide directory/function path top bar in VSCode

This top bar is called "breadcrumbs". You can disable it in the visual user settings editor by unticking the checkbox or adding this line to your JSON config:

// settings.json
{
  "breadcrumbs.enabled": false,
}

It is breadcrumbs option. From Preferences -> Settings, type breadcrumb in text box until seeing the options below and uncheck the Breadcrumbs option to disable it.

From the View menu, uncheck ✔ Show Breadcrumbs.