There's no formal policy since, of course, you can't force people to use it.
With many people familiar with this habit, most packages/classes are written using
<code>. And, if not, they may be edited to "conform" to this.
One advantage of using an alternative
<code>-markdown is that it clearly highlights when you're using a package rather than just mentioning something. For example,
tells me that the OP is using either an
algorithm environment (perhaps from
algorithm2e), or the
algorithm package, which provides an
algorithm environment, as opposed to some algorithm they downloaded from the InterWebz...
The context here is somewhat superficial, but I hope it relays the message.