They are certainly still trying. I used vscode a while ago. Some of the best and most essential extensions like LiveShare and Remote are proprietary and worked only on the proprietary build of vscode (the last time I checked) and wouldn't work on OSS builds like vscodium (why though?). Both these extensions and the proprietary build of vscode come with telemetry that's either opt-out or always enabled. They nudge you ever so slightly and gradually towards the proprietary build. I left vscode since I don't like such manipulations.
It's not lock-in, it's feature differentiation. Other platforms are free to develop their alternatives of these plugins. There's nothing preventing the community to develop a fully OSS Liveshare or Remote extension (and they are!)
