Check out the remote SSH (https://code.visualstudio.com/docs/remote/ssh) extension. It makes everything really painless. I'm currently developing a website that resides in a docker container in a digitalocean server, and editing the code in VSCode feels literally no different at all to running it locally. If you have the SSH keys set up it's completely painless.
The other nice thing about VSCode is that you can extend it with VSCode Neovim (https://marketplace.visualstudio.com/items?itemName=asvetlia...), which runs a headless version of Neovim and allows you to do all the wonderful things that that entails, including stuff like VSCode's native multiple cursor implementation (and Lua config files!). All in all it's a great workflow, it's pretty light, and if you're paying for (or self-hosting) a beefy server it can turn any laptop into a powerhouse.