They learned their lesson with the old Visual Studio. Spending all of that money to maintain an IDE where the core 90% of it was no better than any open source or shareware alternative.
The only reasons people needed VS specifically were all features that could easily be turned into self-contained plugins.
And with everything turning into cloud services, there’s pretty much no point in trying to sell installable local apps that are impossible to fully DRM and have no justifiable subscription fees.
And when an enterprise goes to pick a cloud repo service, cloud code workspace, cloud hosting, devops system, AI development assistant, etc… Who are they gonna pick? Maybe the one from the same company that makes “that one app all our devs rave about”?