Remote-SSH extension never initiates connection - stuck at "Selected host"

Environment:

• VS Code: 1.107.1 (stable) and 1.108.0-insider
• Remote-SSH: 0.122.0
• OS: Windows 11
• Remote: Ubuntu 24.04

SSH Config:
Host myserver
HostName
Port
User myuser
IdentityFile C:\Users\myuser.ssh\id_rsa

Symptoms:

• ssh myserver works perfectly from PowerShell
• ssh myserver works from VS Code integrated terminal
• Remote-SSH extension shows "Selected myserver" in logs but never attempts connection
• No error messages, no SSH process spawned
• No .vscode-server directory created on remote (connection never attempted)

Troubleshooting attempted:

• Both VS Code stable and Insiders
• Set remote.SSH.path to C:\Windows\System32\OpenSSH\ssh.exe
• Set remote.SSH.configFile explicitly
• Disabled useLocalServer
• Disabled enableDynamicForwarding
• Enabled lockfilesInTmp
• Set remotePlatform to linux
• Reinstalled extension
• Ran VS Code as Administrator
• Removed ~/.vscode-server on remote
• Used direct connection string instead of config alias
• code --remote ssh-remote+myserver from command line

Log output (always the same):
[09:59:04.767] Picking SSH host
[09:59:05.844] Selected myserver
Nothing after "Selected" - no connection attempt logged.

Start by reproducing the issue with VS Code Remote-SSH on Windows 11 and compare the logs through the point where they show “Selected myserver.” Check why no SSH process is spawned after host selection, using the listed SSH path, config, and remotePlatform settings. Done means the extension initiates the SSH connection and creates the remote .vscode-server directory.