Earlier quoted context omitted.
To be completely fair to Gitlab: reimplementing the same thing but worse isn't exactly fun; gitpods is already doing this basically. VSCode, as much as I don't personally use it: does have a completely free and open source version in vscodium: https://vscodium.com/ Isn't it better to consolidate efforts on a vscode fork in the event of hostile tactics by Microsoft?
a fork developed by who? OP is literally Gitlab admitting they can't build a competitive web editor.
Or they've just decided it's not a good use of their finite resources?