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VScode is free, so not really money on the line. Easy decision. Things get complicated when money gets involved.

If you think that just because VSCode is free there's no money on the line, you're not thinking about things the way others do. As I said, reputation alone definitely has a cost and Microsoft has partnerships where VSCode is strategic. They probably just made a calculation that there's not enough users and/or the users using that private API were strategically misaligned with their direction.

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