Yes and no. The complaint is that some widely used extensions are proprietary. If these extensions require MS servers, then they have every reason to be. Even if they don't, there's nothing wrong with a company holding back some stuff they consider strategic, they're not obligated to release them.
If we're debating the OSS credentials of VSCode, it'll need to be based on the code already released (which makes it a pretty great OSS editor) and the current team of people the company has devoted to maintaining that OSS section of the product (also pretty great).
Arguing that there are some extensions that are closed source and that's bad is a bit weird, especially when we can just make an open sourced extension that does the same thing.
If we're debating the OSS credentials of VSCode, it'll need to be based on the code already released (which makes it a pretty great OSS editor) and the current team of people the company has devoted to maintaining that OSS section of the product (also pretty great).
Arguing that there are some extensions that are closed source and that's bad is a bit weird, especially when we can just make an open sourced extension that does the same thing.