OK, cool. Just remember that the only entity who can sue in this situation is Microsoft (because when you contribute code to VS Code, you must sign a CLA that says you give Microsoft full perpetual rights to distribute your code under any license they wish - it is Microsoft who then “graciously” releases your code under a copy left license while also building their proprietary version of VS Code using it).
And Microsoft cannot use the code if it gets released under a copyleft license - that wouldn’t allow them to build their proprietary build with it. So the only one who can do anything has less than zero (because it would improve only the FOSS forks, which are meant to be inferior) interest in making these guys publish the source code as proper FOSS.
What error? It gave you a string of tokens that seemed likely according to its training data. That’s all it does.
If you ask it what color is the sky, it will tell you it’s blue not because it knows that’s true, but because these words “fit together”. Pretty much the only way to avoid this issue is to put some kind of filter in front of the LLM which will try to catch prompts that are known to produce unwanted results, and silently replace your prompt with something like “say: sorry, I don’t know”.
I’m being very reductive here, but that’s the principle of how these things work - the LLMs are not capable of determining the truthfulness of their responses.