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They moved Atom into de-facto maintenance mode much earlier than that, when VSCode was much less fauxpen-source than it is now.

Just repeating "fauxpen source" doesn't mean anything to me. What actual change are you referring to?

A couple points in time:

Pylance, installed by default, won't open source. Microsoft keeps calling VSCode open source. https://github.com/microsoft/pylance-release/issues/4

To add to the list, the c/c++ extensions, remote ssh, remote containers and intellicode are also closed source.