I don't use VSCode (or Cursor in this case (which I do think was malicious in the way it blindly hallucinated a policy for a paying customer)); I use vim or notepad++ depending on my mood.
I just don't have a problem with people "violating" Terms of Service or End User License Agreements and am not really convinced there's a legal argument there either.
For distribution licenses, I would assume they have. Can't put GPL software in your closed source code, can't just download Photoshop and copy it and give it out, etc. And that makes sense and you have some reasonable path to damage/penalties (GPL → your software is now open source, Photoshop → fines or whatever)
But if you download some free piece of software and use it with some other piece of free piece software even though they say "please don't" in the EULA, what could the criminal or civil penalties possibly be?
I don't know what the hypothetical penalty would be for mere use contrary to EULA, though. It would be breach of contract, and presumably the court would determine actual damages, but I don't know what cost basis there would be if the software in question was distributed freely. However, fine or no fine, I would expect the court to order the defendant to cease using software in violation of EULA, and at that point further use would be contempt of court, no?
I just don't have a problem with people "violating" Terms of Service or End User License Agreements and am not really convinced there's a legal argument there either.