How to Fix VS Code Remote SSH on Cloudways (And the SSHFS Workaround That Actually Works)

If you are trying to connect Visual Studio Code to a Cloudways server using the Microsoft Remote – SSH extension, you have probably run into one of these errors:

Failed to create the remote server's install directory

or:

administratively prohibited: open failed
AllowTcpForwardingDisabled

This guide explains why VS Code Remote SSH often fails on Cloudways hosting and shows the workaround that actually works reliably.

The Root Problem

Cloudways restricts SSH access in several ways:

• VS Code cannot install its remote server into the default $HOME location
• TCP forwarding is often disabled
• The SSH user is jailed into a restricted application environment
• The SFTP root differs from the interactive SSH shell path

The result is that standard VS Code Remote SSH setups fail even when normal SSH access works perfectly.

Step 1 — Verify Normal SSH Access Works

Before touching VS Code, test SSH manually.

Example SSH config:

Host myserver
    HostName YOUR_SERVER_IP
    User YOUR_SSH_USER

Test it:

ssh myserver

If this does not work, VS Code will never work.

Step 2 — Find the Actual Application Path

After connecting through SSH:

pwd

Example output:

/home/ACCOUNT_ID.cloudwaysapps.com/APPLICATION_USER/public_html

This path is important later.

Step 3 — Configure VS Code Remote SSH Properly

Open VS Code User Settings JSON:

Ctrl + Shift + P
Preferences: Open User Settings (JSON)

Add:

{
    "remote.SSH.useLocalServer": false,
    "remote.SSH.useExecServer": false,
    "remote.SSH.lockfilesInTmp": true,

    "remote.SSH.serverInstallPath": {
        "myserver": "/home/ACCOUNT_ID.cloudwaysapps.com/APPLICATION_USER/public_html/.vscode-server"
    }
}

Important:

• The key "myserver" MUST match the SSH alias in ~/.ssh/config
• Use the FULL path returned by pwd

Step 4 — Create the VS Code Server Folder

SSH into the server and run:

mkdir -p ~/public_html/.vscode-server

Then:

rm -rf ~/public_html/.vscode-server
mkdir ~/public_html/.vscode-server

This clears broken installs.

Step 5 — Try VS Code Remote SSH

In VS Code:

Remote-SSH: Connect to Host

Select:

myserver

At this point one of two things happens:

Option A — It Works

Great. You are done.

Option B — You Get This Error

administratively prohibited: open failed
AllowTcpForwardingDisabled

or:

TCP port forwarding appears to be disabled

This means Cloudways has disabled SSH forwarding on the server.

At this point, there is nothing more to fix locally.

Why VS Code Remote SSH Fails on Cloudways

VS Code Remote SSH depends on SSH TCP forwarding.

Cloudways often disables:

AllowTcpForwarding
AllowStreamLocalForwarding

Without these options enabled in sshd_config, VS Code Remote SSH cannot function.

Option 1 — Contact Cloudways Support

You can ask Cloudways support to enable forwarding.

Message example:

Hi,

I am trying to use Visual Studio Code Remote SSH with my Cloudways application user.

The SSH connection itself works correctly, but VS Code fails because TCP forwarding appears to be disabled.

Could you please enable:

AllowTcpForwarding yes
AllowStreamLocalForwarding yes

for my server/application user?

Thanks.

Some users report Cloudways enabling this manually.

Option 2 — The Workaround That Actually Works (SSHFS)

This ended up being the most stable solution.

Instead of using VS Code Remote SSH, mount the Cloudways filesystem locally using SSHFS.

This gives you:

• live editing
• instant save
• local VS Code performance
• Git support
• extensions
• file explorer
• no Remote SSH dependency

Step 6 — Install SSHFS

On Ubuntu, Pop!_OS, or Debian:

sudo apt install sshfs

Step 7 — Create a Local Mount Folder

Example:

mkdir ~/myproject

Step 8 — Mount the Cloudways Filesystem

THIS is the important part.

Do NOT use the full /home/... path.

Cloudways uses jailed environments, so SSHFS only sees the restricted root.

Use:

sshfs YOUR_SSH_USER@YOUR_SERVER_IP:public_html ~/myproject

Example:

sshfs sshuser@123.123.123.123:public_html ~/myproject

If successful:

ls ~/myproject

You should now see your website files locally.

Step 9 — Open the Mounted Folder in VS Code

code ~/myproject

You now have direct remote editing without VS Code Remote SSH.

Recommended SSHFS Command

For better stability and performance:

sshfs -o reconnect -o cache=yes -o kernel_cache YOUR_SSH_USER@YOUR_SERVER_IP:public_html ~/myproject

Example:

sshfs -o reconnect -o cache=yes -o kernel_cache sshuser@123.123.123.123:public_html ~/myproject

How to Unmount Later

fusermount -u ~/myproject

Optional: Use SSH Keys Instead of Passwords

Generate a key:

ssh-keygen -t ed25519

Copy it:

ssh-copy-id YOUR_SSH_USER@YOUR_SERVER_IP

Then SSH and SSHFS work without passwords.

Final Thoughts

After testing multiple approaches, SSHFS ended up being a cleaner and more stable solution than VS Code Remote SSH for Cloudways servers.

The issue is not VS Code itself — it is Cloudways disabling TCP forwarding and heavily restricting the SSH environment.

If Cloudways eventually enables forwarding for your server, the Remote SSH approach can work. Until then, SSHFS is a reliable workaround that gives almost the same workflow experience.

Hopefully this saves someone else several hours of debugging.