As a retired software dev, for me Windows is simply a longtime habit enforced by past work environments. I did use Linux for over a year on my main PC but went back to Windows so I could keep using my old copy of Visual Studio. My deeply conditioned shortcut keystrokes didn't work in VSCode - in fact, why did they change so much of the UI? But now that I'm used to VSCode, which I only use for hobby coding anyway, there's no excuse and I intend to go back to Linux by year end.
VS Code is an electron app, mostly likely coded by some flavour of Javascript developers, so I doubt it was ever planned to go in the same direction as Visual Studio. VS Code follows a design very close to what Sublime made popular.
no, it's still a smoother experience ootb for things like c# desktop apps. in vscode you don't get a wysiwig wpf designer and such, and xaml completion is worse to non existent.
It does seem to be a newer dev thing though, myself and my jr devs use vscode as much as we can and jump back to VS only when necessary, the older devs on my team are all 100% visual studio and will be forever