Agents window: SSH password prompt loops and connection never establishes while regular Remote-SSH works

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

- VS Code Version:
- OS Version:

Steps to Reproduce:

1. Use the latest VS Code and open the Agents window.
2. From the Agents window, attempt to connect to a remote host via SSH (the same host that successfully connects using the regular Remote‑SSH UI).
3. When prompted for the SSH password, enter the correct password.

Observed behavior:

- The SSH password prompt repeats continuously and the connection never completes.
- The Agents UI does not show an explicit error message explaining the failure.
- Connecting to the same host via the regular (non-Agents) Remote‑SSH workflow succeeds with the same credentials.

Expected behavior:

- The Agents window should establish the SSH connection the same as the regular Remote‑SSH flow, or show a clear error explaining the failure.

Notes:

- Relevant logs that may help triage: Remote‑SSH output, Developer Tools Console, and SSH client debug output (-vvv). I can attach these if requested.