You can use Docker with the Dev Containers extension in a few ways:

• Docker installed locally.
• Docker installed on another machine or remote environment.
  • You only need Docker installed on the remote host, rather than Docker installed locally.
• Other Docker compliant CLIs, installed locally or in a remote environment.
  • For instance, Rancher Desktop is another way to install Docker, providing container management and Kubernetes on Windows, macOS, and Linux.
  • Since Rancher Desktop supports Docker CLI via Moby, you can use Dev Containers extension with it. You may learn how to get started in Rancher Desktop's guide.
  • Dev Containers interacts with CLIs; it makes no assumptions about how a container engine works and does not interact with container engines or daemons directly.
  • Note that other Docker compliant CLIs are not officially supported.

Continue reading to learn alternate ways you can install and use Docker or a Docker compliant CLI.

• VSCode extension: Dev Containers
• GitHub - microsoft/vscode-remote-release: Visual Studio Code Remote Development: Open any folder in WSL, in a Docker container, or on a remote machine using SSH and take advantage of VS Code's full feature set.
• Visual Studio Code Remote Development
• Developing inside a Container using Visual Studio Code Remote Development