No, it’s pretty clear. Some extensions are NOT open source. It’s not ambiguous, and there’s nothing wrong with that as long as these extensions don’t have superpowers (ie. access to unexposed VSCode APIs)
But they do. Microsoft extensions are the only ones whitelisted in the VS Code marketplace to request experimental ("proposed") APIs in their manifest. Remoting, notebooks and now Copilot have all been using experimental APIs, verboten to anyone else in the marketplace until they become stable a long time later.