I don't think this is a fair assessment.

This post is about two plugins (`LiveShare` and `Remote`), both by Microsoft, not being open source. None of these plugins are even mentioned on Microsoft's Visual Studio Code homepage [0]. At least LiveShare is marketed as a separate tool for which a Visual Studio Code plugin exists (as well as a Visual Studio plugin).

[0] https://code.visualstudio.com/ [1] https://visualstudio.microsoft.com/de/services/live-share/

Microsoft's Python support just went closed source(pylance vs python language server) the closed sourceness is creeping in on multiple sides. IntelliCode is another closed source aspect.

More precisely, the Python extension is open source but the Pylance language server is not:

https://github.com/Microsoft/vscode-python https://github.com/microsoft/pylance-release