Microsoft
Microsoftthommck there are various reasons. pheeeling stated what his team uses. We also find customers lock down their developers' machines and VSCode cannot launch properly. Some users cannot run VS Code in a container instance due to local resources on their machines. Most importantly, we see the consistency enabled by being able to work from anywhere to deploy your code. Some users can then work from different machines and BYOD/Security is no longer a major issue as it can be secured and contained from one environment.
I have been working with quite a few customers lately that have such restrictive limits on their developers' machines, that they couldn't write their code effectively. This has been an awesome workaround, also it takes so little time to setup!