I mean, I can definitely see “all other apps” being collected as a way to check if there are apps conflicting with or interfering with VSCode. Maybe it’s only collected for a small subset of users with particular issues - but it would still be tempting for a dev to try and collect.

I can also see them collecting code searches done within the app as a way to check if their search system is working well for real use-cases.

Neither is outside the realm of possibility - you just have to put yourself in the mindset of a dev who is assigned to track down a rare crash or to “improve the search experience” who might want a little more data to work with.

Not saying I agree with any of this collection - it’s terrible and definitely falls under “the road to hell is paved with good intentions”. Companies should be extremely clear about what they will and won’t collect - and never cross the line even if it would be useful.