[paulgb]

It looks like this will be MIT-licensed, like VS Code itself is.

https://code.visualstudio.com/license/server

Edit: although they also say you may not “share, publish, rent or lease the software” the software which contradicts to MIT. IANAL but I think the intent is that that applies to binaries published by Microsoft, but not binaries you compile yourself from the codebase?

[icegreentea2]

Yes, the linked license is for the Microsoft published binaries (there's a similar page for vscode itself). As the fine print carefully says, the source code is MIT licensed.