VSC is a great product but I think it’s a bit of a stretch to call in innovative when text editors and IDEs is a saturated market and have been around for literally decades.
Language Servers could be seen as innovative I guess but they weren’t the first to attempt this sort of thing. It’s just other solutions didn’t have the weight of Microsoft to gain wider adoption.
None of this is a criticism of VSCode though. Something can be really good without being an innovation.