As I remember it, VS code was Microsoft’s response to Sublime.
Sublime was exceptionally popular for web developers throughout the 2010s.
Sublime was maintained by a single person as far as I know.
VS code was pretty much a copy of Sublime but with a much better extensions system and relatively quickly there were some great plugins that made VS code the de-facto editor for web development.
Let's also not forget one big reason VSCode took over and Sublime lost: VSCode is gratis and (mostly) open-source, while Sublime is proprietary.
Nope it started as a Web IDE, going against Atom was their pivot to win market share, there are a few talks from the team if you search for VSCode history.
Wasn’t it a copy of Atom?