Remote ssh hangs indefinitely when trying to open a folder if the terminal is not wide enough

• VSCode Version: 1.61.2
• Local OS Version: Windows 10
• Remote OS Version: Ubuntu 20.04
• Remote Extension/Connection Type: SSH
• Logs:

Steps to Reproduce:

1. Move the terminal pane to the left and narrow it so it's only about 40 chars wide
2. Open remote folder with ssh
3. Wait indefinitely at "setting up ssh tunnel"
4. Widen the terminal pane
5. Success

OR

1. Move the terminal pane to the left and narrow it so it's only about 40 chars wide
2. Open remote ssh
3. Success
4. Open folder on the remote
5. Wait indefinitely at "setting up ssh tunnel"
6. Widen the terminal pane
7. Success

Problem Description

• Most times opening a remote folder via ssh-remote hangs indefinitely while the notification dialog says "setting up ssh tunnel".
• This is not a deterministic problem but I can reproduce it about 90% of the time
• It is related to the width of the terminal(!). If I resize the terminal or move it to the bottom it works
• Opening the remote machine (i.e. not a folder on the machine but the machine directly) works fine, it's only when I try to open a folder on the remote it fails again

Best regards,
Stefan