This is no different than Chrome and Chromium. The product most people download and install has extra proprietary features and code, but is based upon a truly open source code base. If you have a problem with this, then you should have a problem with Chrome too.
Your point is correct and well taken. This is actually why I use chromium instead of chrome. Since reading this article, I've replaced VS Code with Codium and was able to remove the only Microsoft repository on my system, which felt good. Checking add-ons now. Thanks to the author!
Just like to note that even chromium still includes proprietary code, you need ungoogled chromium for that.
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