Need help in connecting Remote - SSH from Dev Env to Windows

Hello everyone I am trying to do Remote SSH for quite some time and unable to make it work .

The problem :

Trying to connect to Aws Codecatalyst Dev environment Linux(remote ssh) to my local windows machine and it is in an endless loop of " Setting up SSH Host aws -exampleID".

I had tried it with my remote ubuntu aws workspace and it works flawlessly (ubuntu remote workspace to Aws codecatalyst Dev Environment) so it seems like some issue with my local machine .

Things I have tried:

When comparing the logs of failed vs successful I have noted that the remote.SSH.useLocalServer was true in my success log. So tried to add this to the settings.json but during run time it automatically changes from true to false .

Also tried clean uninstall and install couple of times (remove appData and ssh config files)

I have added an image of log of the failed Remote SSH .

Would appreciate if Remote SSH users can take a look into the logs and give their insights