I agree, lots of false statements here. "Code - OSS" is open source, and released under the MIT license. Visual Studio Code is built by combining "Code - OSS" with proprietary code, and is released under the following non-open-source license: https://code.visualstudio.com/license

From their github repo:

    Visual Studio Code is a distribution of the
    Code - OSS repository with Microsoft-specific
    customizations released under a traditional
    Microsoft product license.

Thanks for the clarification!