This is nothing new, people expect religion not to be part of the "professional" environment. Dunno if VS code applies.
At the office (big corp) they don't call it the "Christmas Party", it's "the holiday party". They put lights and stuff up but no more Christmas trees/stars etc.. not everyone celebrates christmas so that's fine by me. If Microsoft wants to put a little santa hat on their product that's fine by me too. If I was using some service based in Mexico and they put a little hat on a product for cinco de mayo i wouldn't care. Christmas has other implications so it might be different, dunno
Back in the mid-80s, when I got an email from HR about the Christmas Party at the local office, I sent a reply to the district HR manager complaining that not everyone in the company celebrated Christmas. Later that day, another email came out announcing the Holiday Party. So glad I had a hand in educating HR.
Company's used email to that extent in the 80s? I get that tech jobs, unis, and research groups used it, but there was a company using it widely enough that HR used it?
Personally, I'd rather we started celebrating everyone's religious holidays instead of tiptoeing around Christmas. More parties and we get to learn about different cultures.