It looks like they're becoming simpler tools with an AI chat bolted on — and that might be fine, but I'd at least expect them to keep functioning as an IDE (with a file tree, file viewer, and chat, at minimum).
With the increase of work with AI tools, I see myself using work trees a hell of a lot more compared to before the AI agents. And I think having too many work trees in a single repo is just choking VS Code. As it's not really built for such use cases.And looks like They don't want to optimize it for dealing with more work trees and being an editor like it always have been but they want to move closer to Claude/Codex.