Because /bin/edit normally assumed to be user-configurable symlink/alias. Although indeed in Arch Linux it's owned by `vi` package and I guess would be overwritten every time you update the package.

So from my opinion neither Microsoft's Edit, nor VIM packages should be overwriting /usr/bin/edit.
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to quote Gemini:

>>>In a Unix system, /bin/edit typically refers to the "edit" command, which is an alias for a text editor, often vi or vim. This command allows users to edit files directly from the command line. 
Here's a more detailed explanation:
  • Purpose:
    The /bin/edit command, when used, will open a text editor for the specified file or create a new one if the file does not exist. 


  • Text Editors:
    The default text editor associated with /bin/edit can vary depending on the system, but it's commonly vi or vim.