Remote-SSH using PKI card on Windows: vscode-server download fails

• VSCode Version: 1.47.2 (user setup)
• Local OS Version: Windows 10 1809
• Remote OS Version: Ubuntu 20.04
• Remote Extension/Connection Type: SSH

Steps to Reproduce:

1. Use OpenSSH from https://github.com/PowerShell/Win32-OpenSSH/releases/tag/v8.1.0.0p1-Beta
2. Use OpenSC from https://github.com/OpenSC/OpenSC/releases/tag/0.20.0
3. Set up SSH client config:

Host vm
  HostName 127.0.0.1
  Port 10022
  User XXX
  ForwardAgent yes
  PKCS11Provider "C:\Users\XXX\AppData\Local\Programs\OpenSC\PFiles\OpenSC Project\OpenSC\pkcs11\opensc-pkcs11.dll"
  PreferredAuthentications publickey
  PubkeyAuthentication yes

4. Set up VScode Rermote-SSH to use downloaded ssh.exe
5. Try to connect to that host
6. Choose Linux and wait for Card PIN prompt in terminal window
7. Enter PIN and press enter

The console prints:

Enter PIN for 'XXX PKI Card (Card PIN)':
621a7101c3b4: running
Acquiring lock on /home/XXX/.vscode-server/bin/17299e413d5590b14ab0340ea477cdd86ff13daf/vscode-remote-lock.XXX.17299e413d5590b14ab0340ea477cdd86ff13daf
\ln /home/XXX/.vscode-server/bin/17299e413d5590b14ab0340ea477cdd86ff13daf/vscode-remote-lock.XXX.17299e413d5590b14ab0340ea477cdd86ff13daf.target /home/XXX/.vscode-server/bin/17299e413d5590b14ab0340ea477cdd86ff13daf/vscode-remote-lock.XXX.17299e413d5590b14ab0340ea477cdd86ff13daf
Installing to /home/XXX/.vscode-server/bin/17299e413d5590b14ab0340ea477cdd86ff13daf...
621a7101c3b4%%1%%
Downloading with wget
wget download failed
wget: unable to resolve host address ‘update.code.visualstudio.com’
SHELL=/bin/bash
LC_ADDRESS=de_DE.UTF-8
LC_NAME=de_DE.UTF-8
LC_MONETARY=de_DE.UTF-8
PWD=/home/XXX/.vscode-server/bin/17299e413d5590b14ab0340ea477cdd86ff13daf
LOGNAME=XXX
XDG_SESSION_TYPE=tty
MOTD_SHOWN=pam
HOME=/home/XXX
LANG=en_US.UTF-8
LC_PAPER=de_DE.UTF-8
VSCODE_AGENT_FOLDER=/home/XXX/.vscode-server
SSH_CONNECTION=10.0.2.2 53584 10.0.2.15 22
XDG_SESSION_CLASS=user
LC_IDENTIFICATION=de_DE.UTF-8
USER=XXX
SHLVL=1
LC_TELEPHONE=de_DE.UTF-8
LC_MEASUREMENT=de_DE.UTF-8
XDG_SESSION_ID=19
XDG_RUNTIME_DIR=/run/user/1000
SSH_CLIENT=10.0.2.2 53584 22
LC_TIME=de_DE.UTF-8
PATH=/usr/local/sbin:/usr/local/bin:/usr/sbin:/usr/bin:/sbin:/bin:/usr/games:/usr/local/games
DBUS_SESSION_BUS_ADDRESS=unix:path=/run/user/1000/bus
LC_NUMERIC=de_DE.UTF-8
_=/usr/bin/printenv
OLDPWD=/home/XXX
Trigger client server download
621a7101c3b4:trigger_server_download
platform==linux==
vscodeArch==x64==
destFolder==/home/XXX/.vscode-server/bin/17299e413d5590b14ab0340ea477cdd86ff13daf==
621a7101c3b4:trigger_server_download_end
Waiting for client to transfer server archive...
Waiting for /home/XXX/.vscode-server/bin/17299e413d5590b14ab0340ea477cdd86ff13daf/vscode-scp-done.flag and vscode-server.tar.gz to exist

The process runs into an infinite loop of checking if vscode-scp-done.flag exists, prints " ", sleeps for 3s and continues.