Cannot clone repository in container volume with ssh on podman

Version: 1.101.1 (user setup)
Commit: 18e3a1ec544e6907be1e944a94c496e302073435
Date: 2025-06-18T13:35:12.605Z
Electron: 35.5.1
ElectronBuildId: 11727614
Chromium: 134.0.6998.205
Node.js: 22.15.1
V8: 13.4.114.21-electron.0
OS: Windows_NT x64 10.0.26100

• Remote Extension/Connection Type: Dev Containers
• Logs: remoteContainers-2025-06-23T03-32-57.602Z.log

Steps to Reproduce:

1. Set up SSH key with ssh-keygen -t ed25519, and add it to GitHub
2. Install podman desktop with winget install --id RedHat.Podman-Desktop, then follow the instructions to set up the podman machine in WSL.
3. Change the following settings to reference Podman, instead of Docker, in VSCode (otherwise it will search for Docker):
   • "dev.containers.dockerComposePath": "podman compose"
   • "dev.containers.dockerPath": "podman"
4. Attempt to clone a repo (any repo, including a public one) with ssh in a container volume

When VSCode attempts to perform the clone, it errors out with git@github.com: Permission denied (publickey). Copying the private key into a created-from-new container does reveal the key ends up with -rw-r--r-- permissions (and requires changing); however this isn't a barrier with Docker Desktop (and following the instructions in troubleshooting to restrict permissions produces no change).
That being said, I wouldn't normally anticipate this being a problem, because I would have assumed any permissions would have been handled by the git credential helper/ssh session helper that's supposed to get forwarded into the container....?

Does this issue occur when you try this locally?: Yes
Does this issue occur when you try this locally and all extensions are disabled?: Yes