So was IE, back in the day, when they first "embraced" the web.
Today's "embrace" is of the web dev ecosystem, which before VSCode's dominance consisted of Jetbrains, other IDEs, text editors, etc.
Now with VScode and Github, they control much of the dev ecosystem, shrink competitors' marketshares by making them free to end-users (subsidized by other Microsoft businesses), expand them with new capabilities (even before secret APIs), etc.
Today's "embrace" is of the web dev ecosystem, which before VSCode's dominance consisted of Jetbrains, other IDEs, text editors, etc.
Now with VScode and Github, they control much of the dev ecosystem, shrink competitors' marketshares by making them free to end-users (subsidized by other Microsoft businesses), expand them with new capabilities (even before secret APIs), etc.