Tried VS Code several times, and failed to set it up correctly, so that I would be able to edit files over SSH and see a tree of files (without syncing, downloading entire projects, etc...). I just want to connect, browse to the needed file, double click on it, edit, save and close it. May be someone who has similar needs can point me to the right plugin/tutorial, I would try VS Code again?

But for now, using Atom as my primary editor, and was able to set it up the way I described above. Plugin which I use to edit files over SSH is Remote FTP (https://github.com/icetee/remote-ftp), if someone is interested.

Would something like sshfs work for you?

https://github.com/libfuse/sshfs