Situation: I'm unable to connect to remote machnie via vscode + remote-SSH. I CAN though connect to that machine using SSH from any shell. Before the problem when I shut down my machine there was mandatory Windows update...
First error I get in terminal just after "You are connected to: [company-servername]" is:

After this there is never-ending error log whit most errors are similar to:

What I have already tried:
- reinstalling Remote-ssh
- killing vscode remote-server
- making additional space on remote
- running without any extensions except remote-ssh
- reinstalling vscode
- deleting all vscode config files and reinstalling
- deleting vscode config files on remote in my home
I'm a bit stuck here, and our foreign 'Support' isn't very supportive... maybe anyone had similar problem or has any idea?