Steps to Reproduce:
.ssh/config with multiple hostsHost host
HostName host.name.tld
User XXX
Host host1
Hostname host1.name.tld
User XXX
Host host2
Hostname host2.name.tld
User XXX
Host host1-host
Hostname host1.name.tld
User XXX
ProxyJump host
Host host2-host
Hostname host2.name.tld
User XXX
ProxyJump host
credits: TomFrost
keyword HostName ignored when written as Hostname.
According manpage, keywords are case-insensitive there in ssh_config.
all hosts from .ssh/known_hosts will be shown in 'connections'.

edit: it seems that in the bottom left remote button all hosts are included, so perhaps it would be enough to clarify what's the role of the menu "CONNECTIONS" and what one should expect to see there.
Experiencing the same issue/confusion.
@jose-d I'm not on the VSCode team, but this looks like a syntax error in your file. The first entry has HostName with a capital N, the rest do not. I just tested this-- Hostname with a lowercase N does not appear in the list, but uppercase it and it does.
The first entry has
HostNamewith a capital N, the rest do not.
@TomFrost, nice, you found the trigger!
in man ssh_config they say:
The possible keywords and their meanings are as follows (note that keywords are case-insensitive and arguments are case-sensitive)
So both variants are acceptable.
EDIT: for standard ssh, scp, etc. both variants with 'H' and 'h' works.
TIL-- I thought they were case sensitive! Great catch.
Most helpful comment
@jose-d I'm not on the VSCode team, but this looks like a syntax error in your file. The first entry has
HostNamewith a capital N, the rest do not. I just tested this--Hostnamewith a lowercase N does not appear in the list, but uppercase it and it does.