[SMAAART]

VS code: https://code.visualstudio.com/docs/intelligentapps/models

> Models downloaded locally from repositories like Ollama and ONNX.

[verdverm]

This, a simple search like "vs code copilot ollama" will find you the answer

tl;dr - OP is wrong, you can use local models with setups like Copilot in VS Code out-of-the-box

https://code.visualstudio.com/docs/copilot/customization/lan...

[locallyHosted2]

"Currently, you cannot connect to a local model for code completions", and "Currently, using a locally hosted models still requires the Copilot service for some tasks. Therefore, your GitHub account needs to have access to a Copilot plan (for example, Copilot Free) and you need to be online. This requirement might change in a future release." - from the page you linked.