vscode Docker extension does not show the remote containers after updaing vscode to v1.55: vscode error connect econnrefused 127.0.0.1:80

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After updating vscode to version 1.55 (March 2021), the remote-docker extension does not show the remote containers anymore and instead shows this error: vscode error connect econnrefused 127.0.0.1:80 It is worth noting that the remote containers were shown before the update in vscode 1.54.3.

Failed temporary solution: By disabling the update.mod and downgrading vscode to version 1.54.3, the containers appear again in the remote-docker extension. However, the "Attach Visual Studio Code" option gets disappeared (apparently caused by disabling the auto-update).

For the record, I did find the following solution but it did not help as I do not have tcp:// in my docker.host. https://stackoverflow.com/a/56709857/9570993

The error I get in the Docker extension after updating vscode to version 1.55

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