This just started happening today after I upgraded VSCode. It connects fine to one of my AWS machines, but not to one that had been working fine for a while. It's not related to my ssh keys, because even if I remove it, it still ends up with the same outcome.
Here is what I get in the output log when trying to remote-ssh:
[15:00:18.550] Running script with connection command: ssh -T -D 57103 "DEV" bash
[15:00:18.552] Terminal shell path: C:\WINDOWS\System32\cmd.exe
[15:00:18.744] > key_load_public: invalid format
> ]0;C:\WINDOWS\System32\cmd.exe
[15:00:18.745] Got some output, clearing connection timeout
[15:00:19.441] > warning: agent returned different signature type ssh-rsa (expected rsa-sha2-512)
[15:00:20.673] > 1b2d18264e08: running
[15:00:20.707] > Acquiring lock on /home/ubuntu/.vscode-server/bin/3c4e3df9e89829dce27b7b5c245083
> 06b151f30d/vscode-remote-lock.ubuntu.3c4e3df9e89829dce27b7b5c24508306b151f30d
[15:00:20.723] > Found existing installation at /home/ubuntu/.vscode-server/bin/3c4e3df9e89829dce
> 27b7b5c24508306b151f30d...
> Checking /home/ubuntu/.vscode-server/.3c4e3df9e89829dce27b7b5c24508306b151f30d.l
> og and /home/ubuntu/.vscode-server/.3c4e3df9e89829dce27b7b5c24508306b151f30d.pid
> for a running server
[15:00:20.745] > Looking for server with pid: 1494
> Starting server with command... /home/ubuntu/.vscode-server/bin/3c4e3df9e89829dc
> e27b7b5c24508306b151f30d/server.sh --start-server --host=127.0.0.1 --enable-remo
> te-auto-shutdown --port=0 &> "/home/ubuntu/.vscode-server/.3c4e3df9e89829dce27
> b7b5c24508306b151f30d.log" < /dev/null
> printenv:
> SSH_CONNECTION=68.132.254.210 57105 172.31.46.222 22
> LANG=C.UTF-8
> XDG_SESSION_ID=6
> USER=ubuntu
> PWD=/home/ubuntu
> HOME=/home/ubuntu
> SSH_CLIENT=68.132.254.210 57105 22
> MAIL=/var/mail/ubuntu
> SHELL=/bin/bash
> SHLVL=2
> VSCODE_AGENT_FOLDER=/home/ubuntu/.vscode-server
> LOGNAME=ubuntu
> XDG_RUNTIME_DIR=/run/user/1000
> PATH=/usr/local/sbin:/usr/local/bin:/usr/sbin:/usr/bin:/sbin:/bin:/usr/games
[15:00:20.745] >
> :/usr/local/games:/snap/bin
> _=/usr/bin/printenv
> Spawned remote server: 2989
[15:00:20.753] >
> Waiting for server log...
.......
[15:00:28.621] > Waiting for server log...
[15:00:28.655] > Waiting for server log...
[15:00:28.689] > Waiting for server log...
[15:00:28.723] >
> *
> * Reminder: You may only use this software with Visual Studio family products,
> * as described in the license (https://go.microsoft.com/fwlink/?linkid=2077057)
> *
>
[15:00:28.733] >
> Server did not start successfully. Full server log at /home/ubuntu/.vscode-serve
> r/.3c4e3df9e89829dce27b7b5c24508306b151f30d.log >>>
> <<< End of server log
> 1b2d18264e08: start
> exitCode==32==
> listeningOn====
> osReleaseId==ubuntu==
> arch==x86_64==
> tmpDir==/run/user/1000==
> platform==linux==
[15:00:28.736] >
> unpackResult====
> didLocalDownload==0==
> downloadTime====
> installTime====
> extInstallTime====
> serverStartTime==7980==
> 1b2d18264e08: end
[15:00:28.736] Received install output:
exitCode==32==
listeningOn====
osReleaseId==ubuntu==
arch==x86_64==
tmpDir==/run/user/1000==
platform==linux==
unpackResult====
didLocalDownload==0==
downloadTime====
installTime====
extInstallTime====
serverStartTime==7980==
[15:00:28.742] Resolver error: Error: The VS Code Server failed to start
at Function.ServerInstallError (c:\Users\Marc Zeitouni\.vscode\extensions\ms-vscode-remote.remote-ssh-0.65.4\out\extension.js:1:64575)
at c (c:\Users\Marc Zeitouni\.vscode\extensions\ms-vscode-remote.remote-ssh-0.65.4\out\extension.js:1:58900)
at Object.t.handleInstallOutput (c:\Users\Marc Zeitouni\.vscode\extensions\ms-vscode-remote.remote-ssh-0.65.4\out\extension.js:1:63317)
at Object.t.tryInstall (c:\Users\Marc Zeitouni\.vscode\extensions\ms-vscode-remote.remote-ssh-0.65.4\out\extension.js:1:413984)
at processTicksAndRejections (internal/process/task_queues.js:97:5)
at async c:\Users\Marc Zeitouni\.vscode\extensions\ms-vscode-remote.remote-ssh-0.65.4\out\extension.js:1:294518
at async Object.t.withShowDetailsEvent (c:\Users\Marc Zeitouni\.vscode\extensions\ms-vscode-remote.remote-ssh-0.65.4\out\extension.js:1:405329)
at async Object.t.resolve (c:\Users\Marc Zeitouni\.vscode\extensions\ms-vscode-remote.remote-ssh-0.65.4\out\extension.js:1:295639)
at async c:\Users\Marc Zeitouni\.vscode\extensions\ms-vscode-remote.remote-ssh-0.65.4\out\extension.js:127:110530
[15:00:28.748] ------
[15:00:29.311] "install" terminal command done
[15:00:29.311] Install terminal quit with output: