[cercatrova]

Because VSCode is under a permissive license (MIT) rather than a copyleft license (GPL), Microsoft can add any proprietary extensions it wants. "Permissive" licenses are only permissive for the creator and other developers (only sometimes), not for the end user.

[nl]

Since MS is the author, they could put it under GPL and still do this. They own the copyright.

[z3t4]

In order to contribute you have to sign away your rights, so it's only permissive to MS. It's a pervasive view on open source, cheered by sockpuppets, making people believe MS is now a open source company.