Earlier quoted context omitted.
> " From a marketing/developer relations perspective, developers think they are using open-source tools. But in actuality, developers are investing in workflows where MS is a critical link in the chain. " There's plenty of open core software that's the same, like Gitlab. I don't see any big outcry over open core in general so presumably very few people care.
it could have something to do with the fact that microsoft has a history of bad behavior and abuse of their market dominance, perhaps?
Can you provide a plausible scenario for abuse is likely to happen with VSCode? Does VSCode even have any kind of market dominance? As others have pointed out, the open parts of VSCode could probably survive on their own as a community supported project, minus the proprietary plug-ins.