Hi Andy Xuan,
Thank you for sharing the detailed steps you've taken so far. Based on your description, this issue may be related to a known bug affecting the Remote-SSH extension, particularly when the VSCode Server fails to install or initialize correctly2. Since you've already removed the .vscode-server directory and confirmed terminal access, we recommend the following next steps:
Ensure the remote machine has internet access, as the VSCode Server download may silently fail without it.
Try disabling the remote.SSH.useLocalServer setting in VSCode (settings.json) and reconnect.
Manually install the VSCode Server by running the generated SSH command outside of VSCode, as outlined in the Remote-SSH troubleshooting guide.
If the issue persists, please share the full Remote-SSH log via Remote-SSH: Show Log from the Command Palette. This will help us pinpoint where the process is stalling.
Best regards,
Quinnie Quoc.