This is, frankly, absurd. I have literally never, in my entire time using VSCode with Remote-SSH, wanted the repository or an extension or anything at all in the whole IDE to have any sort of access to my client machine with the possible exception of reading my VSCode config. No files in my home directory, no network, no anything.

(Some people may like VSCode to forward a port to get a local web browser to target the remote machine. Fine, make that an option. I, personally, prefer to forward the port myself.)