Depending on the system you are in, when you first try to connect, a vscode-server will be set up and configured on your server.
In linux that can be in /Home/<user>/.vscode-server
If you are on windows, check what that is.
The first solution is to try the extension command: Remote-SSH: kill VS Code Server on Host
Open the command pallet (CTRL + SHIFT + P or COMMAND + SHIFT + P (mac) ).
And type Remote kill :
Then try to connect again! (That will kill the server on the host! Which will make it start again on the next try)
If that doesn’t work, and things are still failing:
Delete, rm
Then a good solution that can work is: to connect to your server through terminal (vscode terminal, gnome-terminal, whatever). Then go and remove /Home/<user>/.vscode-server
Try to connect after that. At the attempt the server will be re-installed completely anew, chances are it will work. (I did that and it worked for me, so whatever that was going wrong on the vscode-server: just start all over)
But again: you will lose things, config, meta data, etc. (because you start anew).
Update:
As stated by @natevw in the comments:
I found that removing only the
.vscode-server/binsubfolder helped straighten things out and afaict kept my data/settings.
Removing only vscode-server/bin seems to work well, and the config, metadata, etc. remains untouched.