Not the OP, but what I assume they are referring to is the ability to work on a remote host. For example if I have a Mac but I am working on a remote Linux box, VSCode will allow me to easily work sync with a repo on the remote host. It will also seamlessly handle port-forwarding for web dev.
It installs and runs a server stub over SSH (or into docker, or WSL), which lets it act as if you're working on a local project. Stuff like the built-in terminal is remote, building, debugging, etc all work remote.
IMO this is the best feature of VSCode.