OK, I got this working for my Desktop VSCode environment and that works great. But I'm guessing this wasn't tested in combination with the SSH Remote extension?

I can register my local VSCode just fine. When I connect to a remote ssh connection, and try to register that environment, I get a prompt telling me "Failed to register local environment: Install the Azure Account extension". When I look up that extension, I can install it in the SSH environment, but I get the same error still.

Gotcha. I'll admit since there weren't any instructions on doing it in the online admin, and in the docs it's not listed as a subpoint, I got disheartened when I reached the docs and missed it being underneath the instructions for Cloud-hosted. I wouldn't have expected a backwards flow for the self-hosted option, but that's doable. It might be more user friendly for the article to have the headings "Create an environment (Cloud-hosted)" and "Create an environment (Self-hosted)" in the "In this article" menu on the side, or for the "Create an Environment" section to tree both on that side-menu, so it's not missed.

I looked at that page and I just wanted to clarify something for myself. Does this mean you can't do a headless server since you need VS Code and some plugins? I like the idea and it would definitely be a strong argument to go back to VS Code but I was hoping I could just run some kind of server on a terminal-only VM.

From this on the github page: https://github.com/MicrosoftDocs/vsonline/issues/41

"Presently, running the "Register" command via a full instance of VS Code is the only supported flow, but the scenario you described of hosting a server without a GUI is on the product roadmap."

Oh, great! Thank you!

Thanks! So if I understand correctly I still need an azure account for self hosting, although nothing will be billed?

Correct. Though we’d love to hear feedback on this experience.

I'm personally not a huge fan of this, since I can't see the (as in: my) benefit of this. I don't have an azure account yet (this is where the benefit for MS is I guess ;) ). I would love to just register my selfhosted environment without any hassles. Maybe this would even bring more people to register their selfhosted environment, which could bring more people to buy a hosted environment. Could potentially even benefit MS to lower the initial hurdle for new users.