This is true, but there is a huge drawback to using the OSS version instead of the version provided by Microsoft. If you build VSCode from scratch, it appears you cannot access the VSCode Marketplace which allows you to install extensions.

So it appears there are indeed two versions:

- VSCode (OSS) from GitHub (unable to access the Extension Marketplace.)

- VSCode from Microsoft (able to access the Extension Marketplace BUT you must agree to their terms here https://code.visualstudio.com/license.)

I did not know there were two versions. So I think the issue still remains for using Remote Development under the VSCode from Microsoft. You break their license by using it since I think VSCode Server runs when you use Remote - SSH.

Honestly, this seems like a fair compromise from Microsoft. VSCode and VSCode Server is fully open source but you must develop your own Extension Marketplace or install extensions on-behalf of your users... they need a business moat somewhere, others may disagree tho.

I guess for my own usage of Remote SSH, I should build everything from source (which seems a bit silly considering everyone else is using Remote SSH.) but seems silly to also open yourself to legal trouble.