After recent upgrade to 1.86.0 version of vscode, remote-ssh extension doesnt work as expected and throws "Could not establish connection to ---" error.
Some more log snippets from Output window:
[13:46:24.025] Resolver error: Error: The VS Code Server failed to start
at g.ServerInstallError (c:\Users\lpthomas\.vscode\extensions\ms-vscode-remote.remote-ssh-0.108.0\out\extension.js:2:460179)
at d (c:\Users\lpthomas\.vscode\extensions\ms-vscode-remote.remote-ssh-0.108.0\out\extension.js:2:453522)
at t.handleInstallOutput (c:\Users\lpthomas\.vscode\extensions\ms-vscode-remote.remote-ssh-0.108.0\out\extension.js:2:455792)
at t.tryInstall (c:\Users\lpthomas\.vscode\extensions\ms-vscode-remote.remote-ssh-0.108.0\out\extension.js:2:581100)
at async c:\Users\lpthomas\.vscode\extensions\ms-vscode-remote.remote-ssh-0.108.0\out\extension.js:2:540958
at async t.withShowDetailsEvent (c:\Users\lpthomas\.vscode\extensions\ms-vscode-remote.remote-ssh-0.108.0\out\extension.js:2:544264)
at async k (c:\Users\lpthomas\.vscode\extensions\ms-vscode-remote.remote-ssh-0.108.0\out\extension.js:2:537923)
at async t.resolve (c:\Users\lpthomas\.vscode\extensions\ms-vscode-remote.remote-ssh-0.108.0\out\extension.js:2:541635)
at async c:\Users\lpthomas\.vscode\extensions\ms-vscode-remote.remote-ssh-0.108.0\out\extension.js:2:807794
[13:46:24.032] ------
[13:46:25.301] "install" terminal command done
[13:46:25.301] Install terminal quit with output:


Same problem, sloved.
Solution:
Downgrade you vscode version to version 1.8.5.X, from this link vscode 1.8.5
Reason:
The version 1.8.6 updated yesterday has a bug about remote SSH. Vscode official explaniation:
See full official explaniation here github.
Reminder: Do NOT enable vscode auto-upgrade
In case it upgrade to v1.8.6 as long as you restart vscode or your OS, and it will make your remote SSH fail again.
Do it by:
In vscode, File-Preferences-Settings, search for "update", then disable "Update: Enable Windows Background Updates", change "Extensions: Autop Update" to "False", chang "Update: Mode" to "none".