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What about this clause: "The above copyright notice and this permission notice shall be included in all copies or substantial portions of the Software"

It sounds like they went out of the way to remove that copyright notice. Am I misinterpreting that part?

Genuinely curious since this stuff affects me....

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As the original Copyright holder, you can do that. It just doesn't make the old Apache licensed version disappear.

Only if they do hold all the copyrights. If they've removed the notices from other people's open-source contributions (and don't have a CLA or similar that permits them to do so) then that's copyright infringement.

I thought the MIT license was the original one?

It was Apache2, see this (preserved) fork.

https://github.com/Dramaga11/vsc-material-theme/blob/main/LI...

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