Its only "user" is the business that made it; they have full access to the source (unless they deleted it; whoops!), are not bound by its copyright (since they're the owners), etc. The FSF has no problem with that.
Although my first job was working on FOSS, all the ones since have been working on such bespoke, in-house software. To be honest, I don't think I've ever seen a job ad for proprietary software (as in, closed-source software that runs on end-user machines).
A few subtleties:
- Javascript is probably a glaring exception. Opinions differ on whether it should count as shipping proprietary software (the FSF think it is, many HNers probably consider it less clear-cut). For what it's worth, the little JS I've written professionally has always been of a progressive, site-still-works-without-it form.
- Some of that never-released software may be accessible to others, e.g. Google's search software can be accessed via google.com. The AGPL has an interesting take on that particular niche.
- Sometimes the human end-users of this software have very limited access/control over it, e.g. if Walmart maintains its own checkout software, those operating the checkouts probably can't access the source, etc. However, that's nothing to do with copyright, FOSS, etc. it's just a business decision, presumably covered by employment contracts (e.g. "in the course of your work you may be given access to computer systems; these are confidential, and you must not hack/compromise/etc.").
But you yourself bought up convenience in your original comment. If your argument is a purely moral one then no need to specify how little fiddling is required to get LSP working. But I do think if your only argument is yelling at people about it being immoral to use VSCode you ain't going to get far. Why not talk about the cool things Emacs has while acknowledging the things it still has that could be improved?
VSCode is open source by the way, MIT not GPL but you can go compile it yourself (or use VSCodium).
The extensions marketplace requires you to use the closed source version. Quite a few of VS Code's best extensions are also completely closed source. VS Code is already on the same path that Google took with "Open Source" Android.
