Github may have more value as the largest software training corpus in the world than as a paid VCS, and Microsoft gets to uniquely utilize that as they will have non rate limited internal APIs and/or dumps to train on.

I assume they already had those APIs - Github was already owned by Microsoft. By prioritizing AI feature over the core experience it's possible that Github stops being the largest software training corpus in the future.

I assume they would make other major company to have an github integration out of the box

so it would be feeding off itself from "vibe coder" an have an singularity generated corpus around AI tooling

This -- Github's future is as a training source for Microsoft's AI products, and as a honeypot for collecting more training data.

You're looking at it from a developer's POV. Your goals are a quality product that helps you with your work.

Microsoft's goal is to make money by making software or ~~selling~~ renting services. You are a cost center.

And what do managers do to cost centers? They outsource them, either to artificial "intelligence" or actual Indians.

By plagiarizing stolen code, disregarding its original license, they hope to make the former actually work.