The source code version of vscode (ie, your own binary) is incompatible with one of the extensions microsoft developed (pylance?), which is AI powered python code completion.
Microsoft did not open source this extension. Therefore, the fact that it does not work with a non-microsoft build of vscode is not surprising - and in fact, should be perfectly acceptable. To claim that microsoft _should_ be releasing this proprietary extension as open source and free is to claim that a user is entitled to it, without paying the cost (presumably, that being the telemetry that the microsoft build of vscode collects).
Microsoft did not open source this extension. Therefore, the fact that it does not work with a non-microsoft build of vscode is not surprising - and in fact, should be perfectly acceptable. To claim that microsoft _should_ be releasing this proprietary extension as open source and free is to claim that a user is entitled to it, without paying the cost (presumably, that being the telemetry that the microsoft build of vscode collects).