Earlier quoted context omitted.
Young people thought M$ was changing, the old folks knew it was just another cycle of embrace, extend, extinguish.
Young people were… right? VS Code is open source. (Cursor is built on it!) GitHub didn’t embrace, extend, extinguish git. You can git push to a different company (e.g. Gitlab) and you’ve migrated. The biggest problems with GitHub are scaling and availability, not lock-in. Microsoft today is nothing like it was 30 or 20 years ago. Fifteen years ago we were writing HTML and JavaScript specifically for Internet Explorer…
Open core at best. It's proprietary software built on top of an open source base. The remote coding feature is proprietary and you need to run proprietary software on the remote server / container to use it. People maintaining forks (like Codium and the Theia IDE) are not allowed to use VS Code's marketplace. Many of their flagship VS Code extensions are proprietary. Why would they do this if they believed in open source?
The distinction is quite important. VS Code aims to get control of the development process of those who are not using Visual Studio. That's the only reason why VS Code exists. VS Code is not a gift no strings attached.
By the way the title of https://code.visualstudio.com/ is a lie that says "The open source AI code editor". Three lines under, there's "By using VS Code, you agree to its license and privacy statement.". The license is https://code.visualstudio.com/license, which is very much like your usual horrible Microsoft EULA, including tracking and forbidden reverse engineering, decompiling or disassembling. Really, the only thing missing there is the license key field at first run.
GitHub is still proprietary SaaS also aiming to control the whole open source ecosystem. With GitHub, a big chunk of the open source (and free software! Which is even sadder) world relies on proprietary infra. That's as close as Extinguish as you can get (it's just that git is not the thing that's Extinguished). GitHub is actually a pretty good example of lock-in, see what other commenters wrote on this.
30 years later, Microsoft, still the same lying company trying to control its users and the world with proprietary software. With the twist that they try a bit harder to look cool and open source (since the moment they realized open source wasn't going to disappear, not before). They really are not, especially for end-user facing software, including when the end-users are developers.
The only thing that dramatically changed is that they don't publicly claim Linux is cancer anymore, and that's probably because they are coerced into dealing with Linux. Exactly like the Web against their failed attempt to privatize it with MSN (MicroSoft Network) (the current MSN news frontpage and the memory of their messenger are only shadows of the original ambitions behind MSN).
At least the stability and consistency is comforting… or not.
Don't fall for their open washing. They just play along and attempt to get control on what they didn't manage to extinguish. Only forced changes happened, the spirit seems intact.