Hello Omar,
As suggested by Sander in his response, we tested the Sql container to see if it's running and it is as expected.
"createOptions": "{\"Env\":[\"ACCEPT_EULA=Y\",\"MSSQL_SA_PASSWORD=StrongPassw0rd\"],\"HostConfig\":{\"Mounts\":[{\"Target\":\"/var/opt/mssql\",\"Source\":\"sqlVolume\",\"Type\":\"volume\"}],\"PortBindings\":{\"1433/tcp\":[{\"HostPort\":\"1401\"}]}}}"
Could you please let us know if the same setup worked on your side?
Please check the SQL server module image container being used, along with the SQL Server version which is supported on the Host OS.
Some other observation: thought it might be useful to add here
One thing which i observed is the Image pull URL, looks like we are not able to pull the right URL which is generated from the VS Code templates.
]5
So better edit or fix the image pull URL as shown in the below image: