Thanks all. Between this and some thought I came to this conclusion.
For them to ask for the code they are saying "your work is awesome and we want it"... but at the same time they are saying "we don't feel you are the person we want to continue to move forward with your own work, we like this other person better". In my own opinion, a proper statement to me would have been "we are impressed with the work you've done and we want to stand by you to pursue it more". I realized how incredibly dehumanizing it was for them to marginalize both my effort and me to a point they are asking to simply step aside from my own work and hand it to someone else. Obviously they choose to not stand by me as I pursue my own efforts, so off to alternative work I think, they can figure it out by themselves, where I say good luck, 20 years was hard, and the amount of code I've written can fill at least a novel, if not two. They have a lot of work ahead of them.