And why would they not just consolidate their efforts into improving VS code. I don't get it, VS Code is an awesome platform, no need to reinvent the wheel we just need more high quality extensions to improve it support for different technologies.
At the end of the day, after who knows how much effort, this thing looks IDENTICAL to VS Code. So what was the point of all the work, apart from Not-Invented-Here? VS Code is MIT licensed. So what exactly is the concern about one company running it? Anyone can fork it and do whatever they want.