I verified this fix using ubuntu-release-upgrader 1:25.04.15 from
plucky-proposed:

root@o:~# cat > /etc/apt/sources.list.d/code.sources << EOF
Types: deb
URIs: https://packages.microsoft.com/repos/code
Suites: stable
Components: main
Signed-By: .
 -----BEGIN PGP PUBLIC KEY BLOCK-----
 Version: GnuPG v1.4.7 (GNU/Linux)
 .
 mQENBFYxWIwBCADAKoZhZlJxGNGWzqV+1OG1xiQeoowKhssGAKvd+buXCGISZJwT
 LXZqIcIiLP7pqdcZWtE9bSc7yBY2MalDp9Liu0KekywQ6VVX1T72NPf5Ev6x6DLV
 7aVWsCzUAF+eb7DC9fPuFLEdxmOEYoPjzrQ7cCnSV4JQxAqhU4T6OjbvRazGl3ag
 OeizPXmRljMtUUttHQZnRhtlzkmwIrUivbfFPD+fEoHJ1+uIdfOzZX8/oKHKLe2j
 H632kvsNzJFlROVvGLYAk2WRcLu+RjjggixhwiB+Mu/A8Tf4V6b+YppS44q8EvVr
 M+QvY7LNSOffSO6Slsy9oisGTdfE39nC7pVRABEBAAG0N01pY3Jvc29mdCAoUmVs
 ZWFzZSBzaWduaW5nKSA8Z3Bnc2VjdXJpdHlAbWljcm9zb2Z0LmNvbT6JATUEEwEC
 AB8FAlYxWIwCGwMGCwkIBwMCBBUCCAMDFgIBAh4BAheAAAoJEOs+lK2+EinPGpsH
 /32vKy29Hg51H9dfFJMx0/a/F+5vKeCeVqimvyTM04C+XENNuSbYZ3eRPHGHFLqe
 MNGxsfb7C7ZxEeW7J/vSzRgHxm7ZvESisUYRFq2sgkJ+HFERNrqfci45bdhmrUsy
 7SWw9ybxdFOkuQoyKD3tBmiGfONQMlBaOMWdAsic965rvJsd5zYaZZFI1UwTkFXV
 KJt3bp3Ngn1vEYXwijGTa+FXz6GLHueJwF0I7ug34DgUkAFvAs8Hacr2DRYxL5RJ
 XdNgj4Jd2/g6T9InmWT0hASljur+dJnzNiNCkbn9KbX7J/qK1IbR8y560yRmFsU+
 NdCFTW7wY0Fb1fWJ+/KTsC4=
 =J6gs
 -----END PGP PUBLIC KEY BLOCK-----
EOF
root@o:~# apt update && apt upgrade -y
Hit:1 http://security.ubuntu.com/ubuntu oracular-security InRelease
Hit:2 http://archive.ubuntu.com/ubuntu oracular InRelease                       
             
Get:3 https://packages.microsoft.com/repos/code stable InRelease [3590 B]     
Hit:4 http://archive.ubuntu.com/ubuntu oracular-updates InRelease
Get:5 https://packages.microsoft.com/repos/code stable/main amd64 Packages 
[19.3 kB]
Hit:6 http://archive.ubuntu.com/ubuntu oracular-backports InRelease
Fetched 22.9 kB in 0s (52.3 kB/s)
53 packages can be upgraded. Run 'apt list --upgradable' to see them.
Upgrading:                      
  apport                    gnupg-l10n      gpgconf          libdw1t64       
libplymouth5    openssh-sftp-server  plymouth                    
python3-problem-report       sosreport                     vim-runtime
  apport-core-dump-handler  gnupg-utils     gpgsm            libelf1t64      
libxslt1.1      pci.ids              plymouth-theme-ubuntu-text  
python3-software-properties  tzdata                        vim-tiny
  cloud-init                gpg             gpgv             libexpat1       
linux-base      perl                 python3-apport              rsyslog        
              ubuntu-release-upgrader-core  xxd
  dirmngr                   gpg-agent       keyboxd          liblzma5        
openssh-client  perl-base            python3-distupgrade         snapd          
              vim                           xz-utils
  gnupg                     gpg-wks-client  libarchive13t64  libperl5.38t64  
openssh-server  perl-modules-5.38    python3-jinja2              
software-properties-common   vim-common

Not upgrading yet due to phasing:
  libnetplan1  netplan-generator  netplan.io  python3-netplan

Summary:
  Upgrading: 49, Installing: 0, Removing: 0, Not Upgrading: 4
32 standard LTS security updates
  Download size: 60.5 MB
  Space needed: 708 kB / 33.0 GB available

[...SNIP...]

root@o:~# apt install code -y
Installing:                     
  code

Installing dependencies:
  adwaita-icon-theme         libasound2-data        libdrm-intel1              
libgl1-amber-dri      libhttp-date-perl           libnet-dbus-perl      
liburi-perl             libxcb-shm0              libxt6t64
  alsa-topology-conf         libasound2t64          libdrm-nouveau2            
libgl1-mesa-dri       libhttp-message-perl        libnet-http-perl      
libvulkan1              libxcb-sync1             libxtst6
  alsa-ucm-conf              libatk-bridge2.0-0t64  libdrm-radeon1             
libglapi-mesa         libhttp-negotiate-perl      libnet-smtp-ssl-perl  
libwayland-client0      libxcb-xfixes0           libxv1
  at-spi2-common             libatk1.0-0t64         libegl-mesa0               
libgles2              libice6                     libnet-ssleay-perl    
libwayland-cursor0      libxcomposite1           libxxf86dga1
  at-spi2-core               libatspi2.0-0t64       libegl1                    
libglvnd0             libio-html-perl             libpango-1.0-0        
libwayland-egl1         libxcursor1              libxxf86vm1
  cpp                        libauthen-sasl-perl    libencode-locale-perl      
libglx-mesa0          libio-socket-ssl-perl       libpangocairo-1.0-0   
libwayland-server0      libxdamage1              luit
  cpp-14                     libavahi-client3       libepoxy0                  
libglx0               libio-stringy-perl          libpangoft2-1.0-0     
libwebp7                libxfixes3               mesa-libgallium
  cpp-14-x86-64-linux-gnu    libavahi-common-data   libfile-basedir-perl       
libgraphite2-3        libipc-system-simple-perl   libpciaccess0         
libwww-perl             libxft2                  mesa-vulkan-drivers
  cpp-x86-64-linux-gnu       libavahi-common3       libfile-desktopentry-perl  
libgtk-3-0t64         libisl23                    libpixman-1-0         
libwww-robotrules-perl  libxi6                   perl-openssl-defaults
  dconf-gsettings-backend    libcairo-gobject2      libfile-listing-perl       
libgtk-3-bin          libjbig0                    librsvg2-2            
libx11-protocol-perl    libxinerama1             ubuntu-mono
  dconf-service              libcairo2              libfile-mimeinfo-perl      
libgtk-3-common       libjpeg-turbo8              librsvg2-common       
libx11-xcb1             libxkbfile1              x11-common
  fontconfig                 libclone-perl          libfont-afm-perl           
libharfbuzz0b         libjpeg8                    libsharpyuv0          libxaw7 
                libxml-parser-perl       x11-utils
  fontconfig-config          libcolord2             libfontconfig1             
libhtml-form-perl     liblcms2-2                  libsm6                
libxcb-dri2-0           libxml-twig-perl         x11-xserver-utils
  fonts-dejavu-core          libcups2t64            libfreetype6               
libhtml-format-perl   liblerc4                    libthai-data          
libxcb-dri3-0           libxml-xpathengine-perl  xdg-utils
  fonts-dejavu-mono          libdata-dump-perl      libgbm1                    
libhtml-parser-perl   libllvm19                   libthai0              
libxcb-glx0             libxmu6                  zutty
  gsettings-desktop-schemas  libdatrie1             libgdk-pixbuf-2.0-0        
libhtml-tagset-perl   liblwp-mediatypes-perl      libtie-ixhash-perl    
libxcb-present0         libxpm4
  gtk-update-icon-cache      libdconf1              libgdk-pixbuf2.0-bin       
libhtml-tree-perl     liblwp-protocol-https-perl  libtiff6              
libxcb-randr0           libxrandr2
  hicolor-icon-theme         libdeflate0            libgdk-pixbuf2.0-common    
libhttp-cookies-perl  libmailtools-perl           libtimedate-perl      
libxcb-render0          libxrender1
  humanity-icon-theme        libdrm-amdgpu1         libgl1                     
libhttp-daemon-perl   libmpc3                     libtry-tiny-perl      
libxcb-shape0           libxshmfence1

Suggested packages:
  cpp-doc         alsa-utils           libgssapi-perl  gvfs                     
   libcrypt-ssleay-perl  libbusiness-isbn-perl  libunicode-map8-perl    
debhelper   cairo-5c
  gcc-14-locales  libasound2-plugins   colord          
libio-compress-brotli-perl  librsvg2-bin          libregexp-ipv6-perl    
libunicode-string-perl  mesa-utils  xorg-docs-core
  cpp-14-doc      libdigest-hmac-perl  cups-common     liblcms2-utils           
   libsub-name-perl      libauthen-ntlm-perl    xml-twig-tools          nickle

Summary:
  Upgrading: 0, Installing: 168, Removing: 0, Not Upgrading: 4
  Download size: 195 MB
  Space needed: 825 MB / 33.0 GB available

[...SNIP...]


Note that https://changelogs.ubuntu.com/meta-release-proposed currently has 
plucky marked Supported: 1, so we can actually use the --proposed flag to test.

root@o:~# do-release-upgrade --proposed
Checking for a new Ubuntu release

= Welcome to Ubuntu 25.04 'Plucky Puffin' =

The Ubuntu team is proud to announce Ubuntu 25.04 'Plucky Puffin'.

To see what's new in this release, visit:
  https://wiki.ubuntu.com/PluckyPuffin/ReleaseNotes

Ubuntu is a Linux distribution for your desktop or server, with a fast
and easy install, regular releases, a tight selection of excellent
applications installed by default, and almost any other software you
can imagine available through the network.

We hope you enjoy Ubuntu.

== Feedback and Helping ==

If you would like to help shape Ubuntu, take a look at the list of
ways you can participate at

  https://ubuntu.com/community/contribute

Your comments, bug reports, patches and suggestions will help ensure
that our next release is the best release of Ubuntu ever.  If you feel
that you have found a bug please read:

  https://help.ubuntu.com/community/ReportingBugs

Then report bugs using apport in Ubuntu.  For example:

  ubuntu-bug linux

will open a bug report in Launchpad regarding the linux package.

If you have a question, or if you think you may have found a bug but aren't
sure, first try to reach out on one of the communication channels. Matrix is the
go-to for instant chatting, while Discourse would be more approriate for long
discussions in a more asynchronous way. Otherwise you can still join the #ubuntu
IRC channel on Libera.Chat, send an email to the Ubuntu Users mailing list, or
find some help on the Ubuntu forums:

  https://ubuntu.com/community/communications/matrix
  https://discourse.ubuntu.com/
  https://help.ubuntu.com/community/InternetRelayChat
  https://lists.ubuntu.com/mailman/listinfo/ubuntu-users
  https://ubuntuforums.org/


== More Information ==

You can find out more about Ubuntu on our website, IRC channel and wiki.
If you're new to Ubuntu, please visit:

  https://ubuntu.com/


To sign up for future Ubuntu announcements, please subscribe to Ubuntu's
very low volume announcement list at:

  https://lists.ubuntu.com/mailman/listinfo/ubuntu-announce


Continue [yN] y

[...SNIP...]

Searching for obsolete software
Reading state information... Done

Remove obsolete packages?


27 packages are going to be removed. 

 Continue [yN]  Details [d]d
Remove (was auto installed) humanity-icon-theme libapt-pkg6.0t64 
  libassuan0 libdrm-nouveau2 libdrm-radeon1 libdw1t64 libfwupd2 
  libgl1-amber-dri libglapi-amber libgusb2 libicu74 
  libmodule-scandeps-perl libnl-genl-3-200 libnsl2 libperl5.38t64 
  libpython3.12-minimal libpython3.12-stdlib libpython3.12t64 
  libsgutils2-1.46-2 libxcb-dri2-0 perl-modules-5.38 python3-colorama 
  python3.12 python3.12-gdbm python3.12-minimal sosreport ubuntu-mono 

Continue [yN]  Details [d]

After noting that code was not going to be removed, I continued the
upgrade. At the end, I checked the following:

root@o:~# grep "Foreign.*" /var/log/dist-upgrade/main.log 
2025-04-25 14:14:49,246 DEBUG Foreign (before rewriting sources): code
2025-04-25 14:14:49,246 DEBUG Foreign (after rewriting sources):
root@o:~# apt policy code
code:
  Installed: 1.99.3-1744761595
  Candidate: 1.99.3-1744761595
  Version table:
 *** 1.99.3-1744761595 100
        100 /var/lib/dpkg/status


** Tags removed: verification-needed verification-needed-plucky
** Tags added: verification-done verification-done-plucky

-- 
You received this bug notification because you are a member of Ubuntu
Bugs, which is subscribed to Ubuntu.
https://bugs.launchpad.net/bugs/2107657

Title:
  upgrades to plucky incorrectly remove foreign packages from disabled
  sources

To manage notifications about this bug go to:
https://bugs.launchpad.net/ubuntu/+source/ubuntu-release-upgrader/+bug/2107657/+subscriptions


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