Completely, it is Electron based and focus is being a programmer text editor, not a full blown IDE.
Even though there is there are Microsoft plugins for Visual Studio like capabilities, they are only a subset of everything that Visual Studio is capable of.
VS Code and Visual Studio IDE are fundamentally different products. One is a lightweight editor, the other is a full IDE with different architecture and capabilities. Chrome and Chromium are the same product type (browsers) where Chrome is built from Chromium source with proprietary additions[1].
A better analogy would be VS Code vs VSCodium, which actually mirrors Chrome vs Chromium: same codebase, one with Microsoft's proprietary bits removed, or Fedora vs RHEL.
[1] Both Google Chrome and Chromium are maintained by Google.