They are different products, different teams, different target markets - I've been using VSCode since it was first released, and they haven't done any anything scummy in that time, or given me any reason to distrust them or their motives. All they've done is provide a great product that I
love.
The VSCode team is responsive on GitHub, and are driving development based on the feedback and telemetry they receive. I really am a staunch privacy advocate, but I'm not dogmatic about it - telemetry has it's place.
It can also easily be disabled if you don't want to send it.
Honestly, I don't see the point of this 'fork'.