I currently use VS Code as a desktop app. It works well, I have no issues with it.
My NAS (TrueNAS SCALE) has a well-supported Open VS Code Server docker/kubernetes application and I am considering trying it.
One benefit I see is that I am occasionally out and about with only an Android tablet (with VPN back to the TrueNAS server), so being able to work in VS Code from that tablet’s browser seems convenient.
Other than the fact that it runs in a browser versus a desktop application, are there are benefits over the desktop version?