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.