RDP, XWindows and VNC have worked for quite a few decades now.

My first experience with remote XWindows was using IBM X Windows terminals in 1994.

It's nice to be able to configure a kernel without a GUI available. TUIs have their place.

Yeah like using Turbo Vision and Clipper based UIs in 1992.

What scenario are you talking about, or what does VS Code have to do with anything?

Did you mean running VS Code on a remote server and forwarding it to the local machine? X11 based forwarding?

You probably just want to use the Remote SSH extension in VS Code. That should work a lot better than X11 forwarding, and it should be a lot easier than rewriting the whole GUI to use the terminal.