In some ways it makes sense to pave the way for Claude to protect the brand of VS Code. On the other hand, it’s a bit of a head-scratcher since it seems like VS code was built as a loss-leader to sell Microsoft cloud products. Perhaps enterprise ChatGPT, co-pilot and GitHub can make up the difference even if the community tier favors Claude.

Edit: maybe Cursor forced this and Microsoft is taking its choice to open license VS code on the chin. Will be interesting to see the strategy with Visual Studio going forward.