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There are many things that would be good to lock down. NPM install comes to mind.

I wonder if I will be able to integrate this with dev containers somehow, so my dev container could run in stricter isolation.

I've seen folks using the VS Code workspaces concept for this. It's a bit limited but a good step in the direction I prefer.

VS Code workspaces doesn't seem to offer any protection:

Maybe you use GitHub codespaces?

No, I did mean VS Code workspaces. Now I'm going to go down this rabbit hole to better understand the boundary limits :)

I did some reading of the docs and can't see anything in VS Code workspaces that would help.