Earlier quoted context omitted.
So we talk the Installer, the brand/icon (which is good that it is strictly owned by one entity) and literally settings. These do not make the product less open source (I do not dare to use the term free). Linux is free software, however RedHat is not. You can do everything with the OSS version you can with the VS Code. However, there are extensions delivered in the Brand VS Code (Remote Server SSH/Docker/WSL) which…
For adopters, i.e. organizations that want to invent something new on top of existing open-source code, there is a huge difference between the VS Code-kind of open-source where the project is still fully controlled by a single vendor and vendor neutral open-source. E.g. Kubernetes wouldn't be where it is if Google hadn't put it into a vendor neutral open-source foundation. You can tell from the many adopters of Theia…
PS: I think it is a pity that they prevent this. The branding and leadership alone will make VS Code the dominant player completely independent of what derived product ever be. The lack of open sourced vscode-server makes me really unhappy.