I use VSCode's remote/ssh functionality all the time, particularly when I need to develop code on an environment that's more capable than my local machine (or when my internet is weak). Still use Git, no reason why you'd change that when working on a remote machine.
I mean rather than work off a remote machine for the convenience of having files you can deploy to a compute cluster use git (or maybe scp) to work local and then deploy them when needed. For a lower latency editing experience.
Honest question. Do you experience subjectively observable latencty differences when editing local vs over the lan?