Azure Data Studio fails to docker container SQL server 2019 but it works with SSMS 18.5?

Question

Is it an associated service that is disable for Azure Data Studio?

Azure Data Studio message.

Microsoft.Data.SqlClient.SqlException (0x80131904): A network-related or instance-specific error occurred while establishing a connection to SQL Server. The server was not found or was not accessible. Verify that the instance name is correct and that SQL Server is configured to allow remote connections. (provider: TCP Provider, error: 0 - A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)
---> System.ComponentModel.Win32Exception (10060): A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.
at Microsoft.Data.SqlClient.SqlInternalConnection.OnError(SqlException exception, Boolean breakConnection, Action1 wrapCloseInAction) at Microsoft.Data.SqlClient.TdsParser.ThrowExceptionAndWarning(TdsParserStateObject stateObj, Boolean callerHasConnectionLock, Boolean asyncClose) at Microsoft.Data.SqlClient.TdsParser.Connect(ServerInfo serverInfo, SqlInternalConnectionTds connHandler, Boolean ignoreSniOpenTimeout, Int64 timerExpire, Boolean encrypt, Boolean trustServerCert, Boolean integratedSecurity, Boolean withFailover, SqlAuthenticationMethod authType) at Microsoft.Data.SqlClient.SqlInternalConnectionTds.AttemptOneLogin(ServerInfo serverInfo, String newPassword, SecureString newSecurePassword, Boolean ignoreSniOpenTimeout, TimeoutTimer timeout, Boolean withFailover) at Microsoft.Data.SqlClient.SqlInternalConnectionTds.LoginNoFailover(ServerInfo serverInfo, String newPassword, SecureString newSecurePassword, Boolean redirectedUserInstance, SqlConnectionString connectionOptions, SqlCredential credential, TimeoutTimer timeout) at Microsoft.Data.SqlClient.SqlInternalConnectionTds.OpenLoginEnlist(TimeoutTimer timeout, SqlConnectionString connectionOptions, SqlCredential credential, String newPassword, SecureString newSecurePassword, Boolean redirectedUserInstance) at Microsoft.Data.SqlClient.SqlInternalConnectionTds..ctor(DbConnectionPoolIdentity identity, SqlConnectionString connectionOptions, SqlCredential credential, Object providerInfo, String newPassword, SecureString newSecurePassword, Boolean redirectedUserInstance, SqlConnectionString userConnectionOptions, SessionData reconnectSessionData, Boolean applyTransientFaultHandling, String accessToken, DbConnectionPool pool) at Microsoft.Data.SqlClient.SqlConnectionFactory.CreateConnection(DbConnectionOptions options, DbConnectionPoolKey poolKey, Object poolGroupProviderInfo, DbConnectionPool pool, DbConnection owningConnection, DbConnectionOptions userOptions) at Microsoft.Data.ProviderBase.DbConnectionFactory.CreateNonPooledConnection(DbConnection owningConnection, DbConnectionPoolGroup poolGroup, DbConnectionOptions userOptions) at Microsoft.Data.ProviderBase.DbConnectionFactory.<>c__DisplayClass45_0.<TryGetConnection>b__1(Task1 _)
at System.Threading.Tasks.ContinuationResultTaskFromResultTask`2.InnerInvoke()
at System.Threading.Tasks.Task.<>c.<.cctor>b__274_0(Object obj)
at System.Threading.ExecutionContext.RunInternal(ExecutionContext executionContext, ContextCallback callback, Object state)
--- End of stack trace from previous location where exception was thrown ---
at System.Threading.Tasks.Task.ExecuteWithThreadLocal(Task& currentTaskSlot, Thread threadPoolThread)
--- End of stack trace from previous location where exception was thrown ---
at Microsoft.SqlTools.ServiceLayer.Connection.ReliableConnection.ReliableSqlConnection.<>c__DisplayClass30_0.<<OpenAsync>b__0>d.MoveNext() in D:\a\1\s\src\Microsoft.SqlTools.ManagedBatchParser\ReliableConnection\ReliableSqlConnection.cs:line 314
--- End of stack trace from previous location where exception was thrown ---
at Microsoft.SqlTools.ServiceLayer.Connection.ConnectionService.TryOpenConnection(ConnectionInfo connectionInfo, ConnectParams connectionParams) in D:\a\1\s\src\Microsoft.SqlTools.ServiceLayer\Connection\ConnectionService.cs:line 549
ClientConnectionId:00000000-0000-0000-0000-000000000000
Error Number:10060,State:0,Class:20

Answer 1

There are no restrictions connecting to a docker container with SQL authentication using SSMS versus ADS.

Look closely at the server name specification in your ADS connection. You will see you've misspelled localhost.