Note that developers starting the collaboration session (hosts) do not have this limitation. It is specific to guests joining a session.
A number of Visual Studio extensions use standard interface specifications and extension points and do not directly access the local filesystem (via native file APIs). These along with colorization, theming, key maps, snippets, etc will "just work" for guests that have joined a collaboration session.
However, there are extensions that use features that either:
In some cases these extensions just go to the file system for a configuration file and otherwise function. Others will error out. There are a number of potential solutions to these problems that we are investigating.
Note that the person that initiated the collaboration session (host) will not run into any of these limitations.
Sound off in the comments below with any critical extensions you need that are not working as expected.
Big one for us is definitely ReSharper
Closing this general issue in favor of us tracking specific extension support (e.g. ReSharper).
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Big one for us is definitely ReSharper