Remote-Containers: Clone Repository in Container Volume doesn't work behind proxy

• VSCode Version: 1.70.1

Version: 1.70.1 (user setup)
Commit: 6d9b74a70ca9c7733b29f0456fd8195364076dda
Date: 2022-08-10T06:08:33.642Z
Electron: 18.3.5
Chromium: 100.0.4896.160
Node.js: 16.13.2
V8: 10.0.139.17-electron.0
OS: Windows_NT x64 10.0.19044

• Local OS Version: Windows 10.0.19044 Build 19044
• Local chip architecture:
• Reproduces in: <Remote - Containers>
• Corporate Proxy: yes
• Name of Dev Container Definition with Issue:

Steps to Reproduce:

1. Press "F1" > Select "Remote-Containers: Clone Repository in Container Volume" > Select: "Clone a repository from GitHub in a Container Volume"
2. Select Repo and branch
   Repo contains .devcontainer folder with Dockerfile with:

...
ENV HTTP_PROXY="${http://host.docker.internal}:${3128}"
ENV HTTPS_PROXY=...
...

Expectation:

• repo should be cloned and Devcontainer with proper setup should be created.

Observation:

• creating the temporary bootstap.Dockerfile failed even early before exact cloning step.

Remote-Container Issue.log