How to connect local VSCode instance to VS Code HA Add-on via ssh?

Hello, FYI the issue seems to be on VS Code’s side with the 1.86.0 update.

I’ve found several issues describing the same problem on VS Code’s GitHub.
See for example:

EDIT: I found the exact description of the issue here:

Watching this specific issue will let us know when it’s resolved.

For the moment the solution seems to be to downgrade VS Code to 1.85.2.
I haven’t yet tried the downgrade so can’t comment further.