Maybe it's misdetecting something? I used to use Remote Desktop for game development sometimes, as weather could make the journey to the office impossible, and the performance was always pretty ok, even with UE5 stuff making heavy use of Nanite running at 1440p.

And if it was actually software emulated, which I can't believe for a moment, though I admit I never checked (I just always assumed the window contents were transmitted via some kind of video encoder) - then I can't imagine that a text editor would be a problem.

The input latency might not be as good as you'd like.