Cannot SSH to Remote on VSCode - linux

Question

My SSH setup was working fine for the past 3-4 months, until a few days back when it decided to stop working on vscode. I can still ssh to remote via powershell without any issues.
The Issue: Once I enter my passphrase and 2fa authentication, something runs in the background (The output from Remote-SSH stream is dumped below). After which, it asks for my passphrase again, 2fa and so on, and this keeps repeating on a loop.
Methods Tried:
First I tried "Remote: Kill VScode on Remote Host" - The first time I tried this, it worked, I could SSH. But after that session ended, I faced the same issue again. But this time when I executed "Remote: Kill VScode on Remote Host" again it didn't work like the last time.
Manually deleted the .vscode on the remote host - It didn't work
Uninstalled and reinstalled VScode, similar to method 1, It worked for the first SSH session, but failed with some issues for consequent sessions.
Toggled remote.SSH.useFlock setting - didn't work
Toggled remote.SSH.useLocalServer - didn't work
How can I fix this?(preferred)
Is there any alternative to using Remote - SSH extension on vscode if nothing works?
Any other alternative as good as vscode without the requirement of downloading the remote file locally?
[12:09:32.264] > Passcode or option (1-6): 1
[12:09:32.551] >
>
[12:09:37.009] > aae6d4629bbb: running
[12:09:37.050] >
> Acquiring lock on /home1/<user>/.vscode-server/bin/da47g5wf6ef856477bf6f4fb29ba1b7af717770d/vscode-remote-lock.<user>.da47g5wf6ef856477bf6f4fb29ba1b
> 7af717770d
> Installation already in progress...
> If you continue to see this message, you can try toggling the remote.SSH.useFlock setting
> aae6d4629bbb: start
> exitCode==24==
> listeningOn====
> osReleaseId==centos==
> arch==x86_64==
> tmpDir==/run/user/601613==
> platform==linux==
> unpackResult====
> didLocalDownload==0==
> downloadTime====
> installTime====
> extInstallTime====
> serverStartTime====
> aae6d4629bbb: end
>
[12:09:37.050] Received install output:
exitCode==24==
listeningOn====
osReleaseId==centos==
arch==x86_64==
tmpDir==/run/user/601613==
platform==linux==
unpackResult====
didLocalDownload==0==
downloadTime====
installTime====
extInstallTime====
serverStartTime====
[12:09:37.051] Server installation process already in progress - waiting and retrying
[12:09:37.406] "install" terminal command done
[12:09:37.406] Install terminal quit with output:
[12:09:38.055] Running script with connection command: ssh -T -D 55819 "<host>" bash
[12:09:38.056] Terminal shell path: C:\WINDOWS\System32\cmd.exe
[12:09:38.289] >
[12:09:38.289] Got some output, clearing connection timeout
[12:09:38.752] > two-factor login for <user>
>
> Enter a passcode or select one of the following options:
> Passcode or option (1-6):
This keeps repeating without end