Comment by IshKebab

Because generally they don't add anything that couldn't have just been a VSCode extension... in which case it would really be better for users if it was a VSCode extension. The only reason they don't do that is for branding & control purposes.

There are exceptions. E.g. Theia actually does enough stuff differently that I think it warrants being its own thing. At least it did. Looks like they have jumped on the AI bandwagon too.

Maybe this is the same; I haven't looked at it in detail. But "we have an IDE! (don't tell them it's vscode)" feels a lot like "we have an app! (don't tell them its a webview)".