After creating a cloud Linux compute instance, configuring a Docker Daemon, and connecting. Visual Studio Code tries to mount a directory in user home directory to a container instance, but fails because this source directory does not exist. Visual Studio Code should copy the local working directory to the target if it does not exist.
The error is the following:
[152951 ms] Start: Run: docker ps -q -a --filter label=vsch.local.folder=/home/kuser1/Development/decs_eventd --filter label=vsch.quality=stable
[155127 ms] Command failed: docker run -a STDOUT -a STDERR --mount type=bind,source=/home/kuser1/Development/decs_eventd,target=/workspaces/decs_eventd -l vsch.quality=stable -l vsch.remote.devPort=0 -l vsch.local.folder=/home/kuser1/Development/decs_eventd --entrypoint /bin/sh vsc-decs_eventd-ccfeddf76903785db303674a7d997dfd-uid -c echo Container started ; trap "exit 0" 15; while sleep 1 & wait $!; do :; done

Steps to Reproduce:
Does this issue occur when you try this locally?: No
Does this issue occur when you try this locally and all extensions are disabled?: No
You could use F1 > Remote-Containers: Clone Repository in Container Volume....
This feature request is now a candidate for our backlog. The community has 60 days to upvote the issue. If it receives 10 upvotes we will move it to our backlog. If not, we will close it. To learn more about how we handle feature requests, please see our documentation.
Happy Coding!
I am assuming this is the issue to "upvote":
https://github.com/microsoft/vscode-remote-release/issues/4093
I placed my upvote for it.
https://github.com/MechWarriorOnline/issue-tracker/wiki/How-To-Upvote-An-Issue
Most helpful comment
This feature request is now a candidate for our backlog. The community has 60 days to upvote the issue. If it receives 10 upvotes we will move it to our backlog. If not, we will close it. To learn more about how we handle feature requests, please see our documentation.
Happy Coding!