The author of software (or generally the copyright holder) is not bound by the terms of their own license, so they can publish the same software and/or later versions under different licenses however they see fit.
This applies equally if their own license is MIT or if it's GPL/copyleft.
(From that point of view, Microsoft would be able to release VSCode as GPL while also shipping binaries under a proprietary license, if they wanted to.)
Things get more complicated when they aren't really the authors because they have merged contributions from other authors, e.g. pull requests. Then what happens depends on the license used by the other authors for their contributions. Sometimes the contribution's license is implied, or legally unclear. To avoid problems, some diligent organisations require contributors to sign or confirm something to make it clearer, before they accept contributions to be merged.