I meant that it's open source with a mix of a number of OSS projects that would all need to arranged and accepted to be packaged in an app to be able to come to the App Store.
There has been interest in doing something to have VSCode in some way or shape on the iPad for a long time [0].
I see a lot of "you just need to" iPad on VSCode tricks that basically describe running a part of the UI locally and the rest hosted somewhere else (most fantastic setup I saw was to stick a RPi 0 on the side of the iPad connected through USB-C and VNC/SSH to it).
Codespacets is to me a variation of that, I'd want an actual node runtime powering a full native app with command line, native code execution etc. (a la Pythonista), and not just a reduced interface. I still prefer using Coda or Textastic for instance than coding in Safari.
I completely fault Apple for this, still doesn't change it looks like a dead end for now)
[0] https://github.com/microsoft/vscode/issues/70764