To be honest, I don't know what this overlaps with before investing the time using it. As far as I know they already have Google AI Studio, Vertex AI Studio, Project IDX (which I suppose this replaces), Firebase Studio and each individual tool also has their own AI features/plugins (Android Studio w/ Gemini, etc)
This is renamed Project IDX. And that is something like GitHub Codespaces. Only instead of VS Code it uses a laundered version of VS Code called theia running in browser or Android studio remote video streamed as frontend and backed by a nix configured docker container.