I've noticed a number of moderately sized companies "standardizing" on vscode tooling. You can use other editors, but they'll have extra special support for vscode: default project format settings or special tooling for debug integration specifically in the form of vscode config, that sort of thing. Recommended plugin sets.
I also took pause at the claim that LSP was the issue. Neovim + treesitter + LSP feels... fairly solved at this point? It was definitely a bit rough 5 years ago, but it's pretty smoothed out now. Not sure where that opinion is coming from (and it feels at odds with everything else I've read from jvns, to be honest!)
When I worked with programming students we used VScode despite me, the professor, and most of the other grad students not liking it. It’s just so easy to download, has the “run” button, and, well, at least it isn’t Eclipse I guess.
Vim is better of course it’s just hopeless to get people to use it.
I think with Cursor choosing it as well, this will only continue to prevail. Professionally I've had to standardize on VSCode due to Cursor (there are a few plugins for Neovim but the experience is undoubtedly better in the first-class tool).
By the way - I actually generally think this is a good thing that companies standardize on something. I might not like the choice they standardize on, but the barrier to entry for new engineers is already high, so having an easy-to-use and familiar development setup that "just works" from the start is pretty reasonable for large companies.