It was explicitly said to not use this outside of VSCode, so, I’m not sure where the surprise comes from.

The problem is that they’re killing competition.

So, they pay to develop a product, for themselves, explicitly says “it’s only for us, shoo shoo”, and when they decide that their product, that they pay for, and provide for free to their user, should not be used by other, it kills the competition that did not do anything except take the product for free despite being told not to?

I’m not on the side of Microsoft for most things. But if doing nothing but taking someone else’s free product qualifies to be competition that should be protected, we’re having problems.