Yeh. We use DevPod to work in cloud dev environments in our AWS cloud. I hate it. DevPod brings its own SSH implementation that injects itself into your server and munges CRLF, making ssh sessions to your workspace fraught with difficulty except for basic command line applications. The only terminal that seems to work is the one built in to Visual Studio Code. Maybe Microsoft Windows Terminal also works, I dunno.

If you have editor attachments and want to work this way, suck it up and learn your VS Code. That's what all the tooling supports first class. Second class is JetBrains. Vim and Emacs aren't even considered. I'd say just run them from inside the container, but then you run into things like custom SSH that munges CRLF. When you look at who actually authored the devcontainer standard, it makes sense.