Opening Files with VS Code remotely via remote-SSH connection in shared hosting not working

Question

I have connected to a remote shared hosting server via remote-SSH extension in VS Code. The connection is successful and I can navigate through files and folders. I can create, edit and delete files using VS Code terminal but when I try to open any folder/file using VS Code using "code ." command I get the error below

Unable to connect to VS Code server: Error in request.
Error: connect ENOENT /run/user/1255/vscode-ipc-0711f139-5098-493d-8150-f3fc4cf3755c.sock
    at PipeConnectWrap.afterConnect [as oncomplete] (node:net:1247:16) {
  errno: -2,
  code: 'ENOENT',
  syscall: 'connect',
  address: '/run/user/1255/vscode-ipc-0711f139-5098-493d-8150-f3fc4cf3755c.sock'
}

Note this is happening only in shared hosting servers. On other non-shared servers it works well without have any issues.

Following are some solutions I have tried but did not work;

1. Deleting .vscode-server folder from the remote host and connecting again.
2. Copied .vscode-server folder from another server where it is working to the remote shared server

I want to be able to open project files hosted in the shared server using VS Code when connected to the host server via remote-SSH