I'm sure other software companies faced similar fates (no one paying for services, only using freely available services) but I can't think of any ATM.
I think Facebook helps answer that question a bit: just because someone is a user doesn't mean they're not the product.
Giving out one product if it helps other ulterior motives is still profit. Vertical integration also plays a part in this. Especially if the paid product re-invents something in a non-standard way, and then the free product only supports than.
What sort of advertising can you honestly inject into something like VS Code to keep users from leaving?
I do agree about vertical integration, another user mentioned using VS Code and Github as a means to introduce Azure. That makes more sense to me and I neglected the thought.