This is the only thing I wish emacs would do for me, I love the idea of having a collection of dev vms on my big homeserver that I could connect to from whatever.

While tramp exists and is cool, it doesnt make for an overly great developer experience -- lsp isnt super pleasant over tramp and it sometimes causes crashes for me.

While not a Microsoft offering, code-server[1] already exists and works pretty well.

[1] https://github.com/coder/code-server