VSCode really does improve with each release, and the monthly cycle is just about the perfect pace. This is a great example of how to run an OSS project. I wonder how much Microsoft spends on it each month, and what value they see in it? Is it just a marketing expense? e.g. They fund VSCode in order to gain the good will of developers which they hope will turn into Azure or maybe Windows sales in the future?
I think they are just trying to make Windows (and Microsoft) more relevant among web/foss developers by making sure that top-notch tools exist with first-class Windows support, so this falls to same category as Windows Subsystem for Linux.