The typical ceiling for these is around a minute.
I've seen this happen multiple times. Someone designs some clever backoff strategy without considering how it fits in the context of the rest of the system. Hilarity ensues.
If you have something taking an entire minute on a computer, please ensure you implement it in such a way that no connections are actually held open for that entire minute.
I'm not proposing doing any exponential backoff retries, or even retries at all for internal services.
In my mind, the retries with exponential backoff and jitter belong only on the end-client(VSCode in this case). Everything else -> fail fast.
On that note, one of the more memorable incidents of my career was when a 10M+ node client decided to retry as hard as possible on 4xx. That was fun x_x.
[edit] that is to say, for this mechanism to be robust your retry-after enforcement mechanism needs to be capable of withstanding almost every single one of your users attempting to illegally retry as fast as they physically can without negatively impacting that one user requesting legitimate traffic. https://media.tenor.com/p3mss3YI6TcAAAAM/wat.gif