The gripe in the article is about extensions not also being MIT licensed - an argument precisely nobody would be making if it wasn't Microsoft; as someone else here pointed out, you could make the same argument about SQLite, but nobody would.
It’s important to note which code is MIT licensed, and which isn’t, as others have mentioned around components of the extension functionality itself.
I’m not making the specific claims you are arguing against, and I don’t disagree with what you say, in any case. Just as in SQL, and in this case, these licenses matter. A feature matrix clarifying features and licenses would be mice. Also, it would be nice to have a fully FOSS mode for VS Code in its settings or config. It is a distinction with a difference.
The gripe in the article is about extensions not also being MIT licensed - an argument precisely nobody would be making if it wasn't Microsoft; as someone else here pointed out, you could make the same argument about SQLite, but nobody would.