It's an editor with syntax highlighter, autocompletion, go-to-def, and go-to-uses that also builds the code, runs the code, runs the tests, and also allows you to run them (code & tests) under a debugger. Oh, and it also has projects/solutions/workspaces/whatever they're called.
Back in my days™ that's what they used to call an "IDE". But today that's just "glorified Notepad++", I guess? What features does it miss that stop it being a full-blown IDE?
Maybe I'm just a spoiled brat, but I came to Java from C, PHP, Visual Studio (the old one) and learned how nice programming could be before I left for .Net Core and frontend (with much TypeScript), mostly in VS Code but sometimes in Rider and Webstorm.
To me, to be a real IDE these days you need to have proper refactoring support.
And to a spoiled brat like me that excludes almost everything except Rider, Visual Studio with Resharper, NetBeans, Eclipse and IntelliJ :-)
But yes, I too am old enough to remember back when the C/Assembler program we used to program microcontrollers were considered IDEs.
And technically you are of course correct :-)
I guess a better classification would be: IDE level 1,2,...n where what I call IDEs today are really level 3 IDEs.