There's a regression in VS Code 1.135.0 (stable) that breaks Remote-SSH connections. VS Code Insiders has a fix that the stable release doesn't have yet.

Does this issue occur when all extensions are disabled?
Yes (This is a core VS Code regression, not an extension issue)

VS Code Version
1.135.0 (Stable) — Issue does NOT occur in Insiders

OS Version
macOS arm64 (Apple Silicon)

Steps to Reproduce
Install VS Code 1.135.0 (stable)
Configure Remote-SSH connection to a host (e.g., hypervisor-01)
Attempt to connect to the remote host using Remote-SSH extension (v0.126.0)
Observe connection failure with "No route to host" error
Expected Behavior
Remote-SSH connection should establish successfully, as it does in VS Code Insiders and previous stable versions.

Actual Behavior
Connection fails with error: ssh: connect to host hypervisor-01 port 2235: No route to host

The SSH command works perfectly when run manually from the terminal:

Additional Context
Regression confirmed: The same connection works in VS Code Insiders but fails in 1.135.0 stable
SSH Configuration: Using standard SSH config file, no proxy or special settings
Remote Platform: Connecting to hypervisor-01 (192.168.8.229:2235)
Remote-SSH Extension Version: 0.126.0
Full Remote-SSH Log

Workaround
Use VS Code Insiders until this regression is fixed in the next stable release (1.136.0).

Start by reproducing the failure in VS Code 1.135.0 stable with Remote-SSH 0.126.0 on macOS arm64, then compare the connection behavior with VS Code Insiders. Review the Remote-SSH connection path and the reported "No route to host" result; done means the configured host connects successfully in stable without the workaround.

Written by the indexing model from the issue text.