Please look up "Embrace, extend, extinguish". VScode is open-source for now, but all the microsoft extensions you need to turn it into an IDE have DRM on them and microsoft puts work into trying to make those extensions not work with VScode forks.
WSL is the same thing. They start by embracing linux and soon they'll start installing MS crap into the guest system or shipping their own distro that's filled with it. This is the extend part. The final goal is to extinguish desktop linux and make everything WSL to be able to track it all and harvest shitloads of data.
Make sure that the addons can only be used by VScode. There's vscodium for now, but microsoft could easily shut that down.