Huh, what?
I see in your link that that image has support for KasmVNC, which is great and you could use to make Emacs work...
But the whole point of VS Code is that it can run in a browser and not use a remote desktop solution- which is always going to be a worse experience than a locally-rendered UI.
I kinda expect someone to package Emacs with a JS terminal, or with a browser-friendly frontend, but I'm always very surprised that this does not exist. (It would be pretty cool to have a Git forge that can spawn an Emacs with my configuration on a browser to edit a repository.)
I see some CPU and memory usage on my setup... but I don't even see any IO!
Literally, the IO chart for "week (maximum)" on Proxmox for my Nextcloud LXC container is 0, except for two bursts, of 3 hours of less each. (Maybe package updates?)
The PostgreSQL LXC container has some more activity (but not much), but that's backing Nextcloud and four other applications (one being Miniflux, which has much more data churn).