Instead of that version, I recommend Code OSS from the community repositories:
$ pamac search code
[...]
code [Installed] 1.64.2-1 community
The Open Source build of Visual Studio Code (vscode) editor
But this one is forked from the original and doesn’t contain all the Microsoft telemetry stuff from the other one. And since it’s in the community repositories, it can be installed with:
pamac install code
If you wish to access the Marketplace, also install code-marketplace:
pamac install code-marketplace
Try it, it might just help/fix your issues, seeing as I don’t have it.
Na, I forgot about the exact error report, but basically saying that extension of remote-ssh was not supported, using the AUR one instead… It can be installed, but not working…