[exasperaited]

Yeah, it would help with using the tool to access a private-to-the-remote API.

Won't immediately help with giving that tool access to the file system or Git.

For a local VM, you can have file system mounts, fast enough for Git.

SSHFS could help in some genuinely distant remotes with access to the file system (though SSHFS in the context of multiple file writers is fraught with risk of file corruption; been there, bought that T-shirt).

With properly network-remote VMs, nothing helps that much with giving the tool access to performing Git operations on changes inside your remote: Git is slow over network file systems even when they are quite local.

This is the real power of the VS Code remote after all; everything happens there.