Code Execution Permission Error in latest vscode

Does this issue occur when all extensions are disabled?: Yes

- VS Code Version: 1.129
- OS Version: windows 11

Steps to Reproduce:

1. update to the latest vscode
2. Connect to a remote linux server

```bash
2026-07-16 10:32:13.703 [error] [Window] CodeError(ServerNotExecutable("/home/zzz/.vscode-server/cli/servers/Stable-125df4672b8a6a34975303c6b0baa124e560a4f7/server/bin/code-server is not executable and permissions could not be restored: No such file or directory (os error 2)")): Error: CodeError(ServerNotExecutable("/home/zzz/.vscode-server/cli/servers/Stable-125df4672b8a6a34975303c6b0baa124e560a4f7/server/bin/code-server is not executable and permissions could not be restored: No such file or directory (os error 2)"))
at Object.resolve (c:\Users\essaltaol\.vscode\extensions\ms-vscode-remote.remote-ssh-0.124.0\out\extension.js:2:291663)
at c:\Users\essaltaol\.vscode\extensions\ms-vscode-remote.remote-ssh-0.124.0\out\extension.js:2:290377
at process.processTicksAndRejections (node:internal/process/task_queues:104:5)
2026-07-16 10:33:30.501 [error] [Window] CodeExpectedError
at pde.withProvider (vscode-file://vscode-app/c:/Program%20Files/Microsoft%20VS%20Code/125df4672b/resources/app/out/vs/workbench/workbench.desktop.main.js:5177:86146)
at async pde.withReadProvider (vscode-file://vscode-app/c:/Program%20Files/Microsoft%20VS%20Code/125df4672b/resources/app/out/vs/workbench/workbench.desktop.main.js:5177:86238)
at async pde.readFileStream (vscode-file://vscode-app/c:/Program%20Files/Microsoft%20VS%20Code/125df4672b/resources/app/out/vs/workbench/workbench.desktop.main.js:5177:91326)
at async jyt.doRead (vscode-file://vscode-app/c:/Program%20Files/Microsoft%20VS%20Code/125df4672b/resources/app/out/vs/workbench/workbench.desktop.main.js:5182:13632)
at async jyt.readStream (vscode-file://vscode-app/c:/Program%20Files/Microsoft%20VS%20Code/125df4672b/resources/app/out/vs/workbench/workbench.desktop.main.js:5182:13396)
at async OB.resolveFromFile (vscode-file://vscode-app/c:/Program%20Files/Microsoft%20VS%20Code/125df4672b/resources/app/out/vs/workbench/workbench.desktop.main.js:1883:16619)
at async OB.resolve (vscode-file://vscode-app/c:/Program%20Files/Microsoft%20VS%20Code/125df4672b/resources/app/out/vs/workbench/workbench.desktop.main.js:1883:14774)
at async V3e.doResolve (vscode-file://vscode-app/c:/Program%20Files/Microsoft%20VS%20Code/125df4672b/resources/app/out/vs/workbench/workbench.desktop.main.js:5182:8863)
at async $I.doResolveAsText (vscode-file://vscode-app/c:/Program%20Files/Microsoft%20VS%20Code/125df4672b/resources/app/out/vs/workbench/workbench.desktop.main.js:2588:20247)
at async VY.setInput (vscode-file://vscode-app/c:/Program%20Files/Microsoft%20VS%20Code/125df4672b/resources/app/out/vs/workbench/workbench.desktop.main.js:3976:91003)
at async HOe.doSetInput (vscode-file://vscode-app/c:/Program%20Files/Microsoft%20VS%20Code/125df4672b/resources/app/out/vs/workbench/workbench.desktop.main.js:1285:34930)
at async HOe.doOpenEditor (vscode-file://vscode-app/c:/Program%20Files/Microsoft%20VS%20Code/125df4672b/resources/app/out/vs/workbench/workbench.desktop.main.js:1285:32716)
at async HOe.openEditor (vscode-file://vscode-app/c:/Program%20Files/Microsoft%20VS%20Code/125df4672b/resources/app/out/vs/workbench/workbench.desktop.main.js:1285:31664)
at async vscode-file://vscode-app/c:/Program%20Files/Microsoft%20VS%20Code/125df4672b/resources/app/out/vs/workbench/workbench.desktop.main.js:1398:32001
2026-07-16 10:35:29.390 [info] [Cloud Changes] Prompting to enable cloud changes, has application previously launched from Continue On flow: false
2026-07-16 10:35:41.180 [info] [Cloud Changes] Prompting to enable cloud changes, has application previously launched from Continue On flow: false
2026-07-16 10:36:03.777 [error] [Window] CodeError(ServerNotExecutable("/home/zzz/.vscode-server/cli/servers/Stable-125df4672b8a6a34975303c6b0baa124e560a4f7/server/bin/code-server is not executable and permissions could not be restored: No such file or directory (os error 2)")): Error: CodeError(ServerNotExecutable("/home/zzz/.vscode-server/cli/servers/Stable-125df4672b8a6a34975303c6b0baa124e560a4f7/server/bin/code-server is not executable and permissions could not be restored: No such file or directory (os error 2)"))
at Object.resolve (c:\Users\essaltaol\.vscode\extensions\ms-vscode-remote.remote-ssh-0.124.0\out\extension.js:2:291663)
at c:\Users\essaltaol\.vscode\extensions\ms-vscode-remote.remote-ssh-0.124.0\out\extension.js:2:290377
at process.processTicksAndRejections (node:internal/process/task_queues:104:5)
```

Reproduce by updating VS Code on Windows 11 and connecting to the remote Linux server. Start with the Remote-SSH extension entry in the reported extension.js stack and the remote path /home/zzz/.vscode-server/cli/servers/.../server/bin/code-server. Done means the remote server is executable and the connection no longer reports ServerNotExecutable.

Written by the indexing model from the issue text.