Continue executes commands locally instead of in the remote ssh system

[truejcrive]

Continue + VS Code Remote SSH using local filesystem instead of remote

When using Continue with VS Code Remote SSH, the extension seems to partially use the local machine context instead of the remote host.

Setup

• Tested on Windows and Arch Linux
• VS Code and VSCodium
• Remote Linux server via SSH
• Continue installed

Issue

• Continue correctly reads the current remote file (@Current File)
• But filesystem queries (e.g. asking what is inside /home or any other directory) behave incorrectly
• Instead of accessing the remote filesystem, it asks for permission and then tries to read files locally
• If I point it to a project directory on the remote machine, it says it does not exist because it is checking the local filesystem
• Tool execution appears to run in the local environment instead of the remote SSH host

Expected

All filesystem/tool operations should run on the remote SSH host.

Actual

File content is correctly read from the remote host, but filesystem/tools behave as if running in a local environment.

Notes

• VS Code Remote SSH terminal works correctly (fully remote)
• Issue affects Continue only
• Worked correctly previously without configuration changes
• Using a local Continue config file
• DeepSeek API model is used; API calls work correctly

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If this is a known limitation, or if I just got lucky previously with correct behavior, please let me know. Any help is appreciated.

[omni-front]

This is a bigger topic but the short version is: check that continue.dev is configured to recognize when VS Code Remote SSH is active, passing the correct context to ensure operations run on the remote system, not locally. Verify your config.yaml settings and ensure no local overrides are prioritizing local paths over remote ones.