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This extension makes use of the new FileSystemProvider, added in version 1.23.0 of Visual Studio Code. It allows "mounting" a remote folder over SSH as a local Workspace folder.
Use the command `SSH FS: Create a SSH FS configuration`, or open the Settings UI using the `SSH FS: Open settings and edit configurations` and click Add:
![Create a new configuration](./media/screenshot-create-config.png)