I think, it's not only for improve user experience, Google steal your personal data, Apple, Microsoft too. So why with vscode Microsoft don't steal your personal data. It's no longer about Microsoft. I think it's about ethical.
(I'm sure I do some fault, I'm a french teenager sorry)
We're a place where coders share, stay up-to-date and grow their careers.
We strive for transparency and don't collect excess data.