... how did that replace vscode?

Do you never open a code editor?

Kind of. I'm finding that my terminal window in VSCode went from being at the bottom 1/3rd of my screen to filling the whole screen a lot of the time, replacing the code editor window. If AI is writing all of your code for you based on your chat session, a lot of editing capabilities aren't needed as much. While I wouldn't want to get rid of it entirely, I'd say an AI-native IDE would deemphasize code editing in favor of higher-level controls.