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I don't see any benefit in those VC funded wrappers over open source VS Code (or better, VSCodium) extensions like Roo/Cline.

They survive through VC funding, marketing, and inertia, I suppose.

Cline is VC funded.

Please give us a source as this does not seem publically verifiable.

Thank you! Very disappointing news.

VSCode is not open source. It is proprietary. code-oss is however an MIT-licensed project. VSCodium is also an MIT-licensed project.