Current C# plugin (Omnisharp) is opensource, so they announce that it will be replaced by a closed source selector that let you choose the opensource or the proprietary plugin with the proprietary as default.
It's Embrace, Extend, Extinguish just in front of our eyes, so opensource people are pissed.
The builds are proprietary.
It’s based on an open source core but the builds can include anything that Microsoft thinks will be commercially useful to it.
Most of the heavy lifting in OmniSharp is done by Roslyn [0]. Roslyn is the open source C# compiler and code analysis library maintained by MS. You cannot overstate how much effort has gone into Roslyn, and how much money MS has invested to make it work. OmniSharp is essentially a wrapper[1] around Roslyn (before Roslyn it was Mono), and while the OmniSharp team did a nice job developing a nice intellisense UX around it all, it is not like MS is taking it all away from them. Incidentally, it is almost certain that new intellisense plugin by MS will also be built on top of Roslyn.
[0] https://github.com/dotnet/roslyn [1] https://github.com/OmniSharp/omnisharp-vscode#the-c-extensio...
By keeping the tools to them, Microsoft can try to offer the best developer experience. Hopefully (from Microsoft point of view) this pushes developers to use services from their ecosystem (Github, Azure).
It's likely that in the future more developers are actually doing the development remotely. Not checking out the code to local machine, but instead using IDE which communicates with the server component. Microsoft has Github Code Spaces [1], JetBrains has Fleet[2]
[1] https://github.com/features/codespaces [2] https://www.jetbrains.com/fleet/
Microsoft don’t need to turn the VS Code C# plugin proprietary, to give Visual Studio an edge.