Visual Studio Code, as most know it, is an example of non-free open-source software.
The downloads are released under the following license and not the one the source code is released under: https://code.visualstudio.com/license
The source code is modified before being compiled and then released on the VSCode website. That's why it's licensed MIT and not GPLv3, otherwise this would not be legally viable.
See here: https://github.com/Microsoft/vscode/issues/60#issuecomment-161792005
Try VSCodium instead: https://github.com/VSCodium/vscodium
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