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Yes, the official VSCode binaries from Microsoft come with a binary blob to implement DRM. From the documentation (https://github.com/microsoft/vscode/wiki/Differences-between...): "The distribution includes a native node module that allows the extension to use a "handshake" to adhere to the license by ensuring it is being used from Visual Studio Code"

How is building proprietary plugins for the editor they themselves created and maintain at all part of EEE? Unless it's someway to extinguish LSP, which they also created?

"strategic product strategy businesses feature decision" as literally said by their PM.