I even worked on a team where one engineer loved the idea and championed doing it as early as 2013. Most of these IDE extensions didn't exist back then. He ended up picking a buddy, and they moved to the same office, hooked 2 keyboards and 2 mice into the same PC and spend literally the entire day alternating who's writing code in the same IDE.
I think the concept was supposed to be about helping developers share their skills. Every developer has an experience of looking over somebody's shoulder and having an "oh shit, I didn't realize there is a shortcut/tool/command for that" moment. And the idea with multi-player programming is to get you to see that and learn from it more. But. It. Doesn't. Work.