No, the only reason you can't run vscode is that no one has put in the effort to port it. It's a problem of financial incentives and not a problem of "fences."
Edit: so it is indeed similar/same; cannot run normal desktop software even though desktop cpu.
Edit: Desktop software can be ported to other operating systems. Just because an operating system can't run a different, desktop operating system's software that doesn't mean it can't run desktop software. The CPU is used in iPads too. It is used between 3 different form factors.
At the end of the day what's possible under the current rules aren't that different from just running it in Safari, so why bother ?
Probably what they do and it's most likely more marketing than a really new OS with breaking changes to how apps run, but I haven't looked into it.
It helps that I have optimised a great part of my workflow due to me liking tablets.
Like others have said, AVP is like strapping an iPad on your head - I happen to like my iPad, too.
You can tell by the icon floating at the top right of the windows, which appears for "compatible apps" aka iPad apps.
So it's not multiple desktop screens it's multiple windows from locally running apps.