As mprime1 replied, it's more on the lines of firing up the terminal to create the git repository. Then go back to your local system and git clone/pull the thing. Then you fire up your local VSCode and work on it and then finally push the changes. This way the whole team can work seamlessly and implement CI/CD while addressing conflicts in real time.
What you are talking about is a beautiful way to work on a remote machine (especially the headless ones) but only when you are the single dev. For a team, you gotta go the other way.