For Java at least, the language server built into IntelliJ is comically further ahead than VS Code + extensions.
It's not a solution to a problem, it's a problem searching for a solution.
The reality is that Java at this point is a mature platform broadly supported by many, many stakeholders. Its benefits and issues are, in general, decently well known and understood.
Billions (likely even trillions) of lines of Java are running in production today and those applications will need to be maintained moving forward. IDEs make Java development a much more pleasant experience and so there will be a place for IDEs.