Failure midway project download from remote

[kkrzyzaniak]

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Describe the bug
During project download i get midway error "Failure". In server logs there is no issues. Connection works with ssh keys.
I get only downloaded folders, no files. I can manually click on folder and download - then those files are downloaded from server.
I didn't have any other sftp extension installed ever.
I read about adding "limitOpenFilesOnRemote" with number or true value. It fails with "TypeError: Cannot read properties of undefined (reading 'open')" after handshake.
It doesn't look like file permissions.

To Reproduce
VS Code Command Palette: SFTP: Download Project

Expected behavior
all files and folder are downloaded from server

Screenshots
If applicable, add screenshots to help explain your problem.

Desktop (please complete the following information):

• OS: Linux
• VSCode Version 1.91.1
• Extension Version v1.16.3

Log (parts):

[08-21 13:00:13] [info] config at /home/user/git/sandboxh {"remotePath":"/opt/vhosts/ss/www","uploadOnSave":true,"useTempFile":false,"openSsh":true,"downloadOnOpen":false,"ignore":[],"concurrency":4,"protocol":"sftp","connectTimeout":10000,"interactiveAuth":false,"secure":false,"remoteTimeOffsetInHours":0,"remoteExplorer":{"order":0},"name":"kk-100284","host":"10.12.4.100","port":22,"username":"******","privateKeyPath":"/home/user/.ssh/id_rsa","debug":true}
[08-21 13:00:23] [trace] run command 'Download Project'
[08-21 13:00:25] [warn] ENOENT: no such file or directory, open '/home/user/.ssh/config' load /home/user/.ssh/config failed
[08-21 13:00:25] [trace] handle download folder for /home/user/git/sandboxh
...
[08-21 13:00:34] [debug] SFTP: Inbound: Received STATUS (id:3086, 4, "Failure")
[08-21 13:00:34] [debug] Inbound: CHANNEL_DATA (r:0, 28)
[08-21 13:00:34] [debug] SFTP: Inbound: Received STATUS (id:3087, 4, "Failure")
[08-21 13:00:34] [debug] Inbound: CHANNEL_DATA (r:0, 28)
[08-21 13:00:34] [debug] SFTP: Inbound: Received STATUS (id:3088, 4, "Failure")
[08-21 13:00:34] [error] Error: Failure
at 101 (/home/kk/.vscode/extensions/natizyskunk.sftp-1.16.3/node_modules/ssh2/lib/protocol/SFTP.js:2854:19)
at SFTP.push (/home/kk/.vscode/extensions/natizyskunk.sftp-1.16.3/node_modules/ssh2/lib/protocol/SFTP.js:278:11)
at CHANNEL_DATA (/home/kk/.vscode/extensions/natizyskunk.sftp-1.16.3/node_modules/ssh2/lib/client.js:587:23)
at 94 (/home/kk/.vscode/extensions/natizyskunk.sftp-1.16.3/node_modules/ssh2/lib/protocol/handlers.misc.js:930:16)
at Protocol.onPayload (/home/kk/.vscode/extensions/natizyskunk.sftp-1.16.3/node_modules/ssh2/lib/protocol/Protocol.js:2052:10)
at GenericDecipherNative.decrypt (/home/kk/.vscode/extensions/natizyskunk.sftp-1.16.3/node_modules/ssh2/lib/protocol/crypto.js:1269:26)
at Protocol.parsePacket [as _parse] (/home/kk/.vscode/extensions/natizyskunk.sftp-1.16.3/node_modules/ssh2/lib/protocol/Protocol.js:2021:25)
at Protocol.parse (/home/kk/.vscode/extensions/natizyskunk.sftp-1.16.3/node_modules/ssh2/lib/protocol/Protocol.js:306:16)
at Socket. (/home/kk/.vscode/extensions/natizyskunk.sftp-1.16.3/node_modules/ssh2/lib/client.js:775:21)
at Socket.emit (node:events:514:28)
at addChunk (node:internal/streams/readable:376:12)
at readableAddChunk (node:internal/streams/readable:349:9)
at Readable.push (node:internal/streams/readable:286:10)
at TCP.onStreamRead (node:internal/stream_base_commons:190:23)
[08-21 13:00:34] [debug] Inbound: CHANNEL_DATA (r:0, 28)
[08-21 13:00:34] [debug] SFTP: Inbound: Received STATUS (id:3089, 4, "Failure")
[08-21 13:00:34] [debug] Inbound: CHANNEL_DATA (r:0, 28)
[08-21 13:00:34] [debug] SFTP: Inbound: Received STATUS (id:3090, 4, "Failure")
[08-21 13:00:34] [debug] Inbound: CHANNEL_DATA (r:0, 28)
[08-21 13:00:34] [debug] SFTP: Inbound: Received STATUS (id:3091, 4, "Failure")
[08-21 13:00:34] [debug] Inbound: CHANNEL_DATA (r:0, 28)
[08-21 13:00:34] [debug] SFTP: Inbound: Received STATUS (id:3092, 4, "Failure")
[08-21 13:00:34] [debug] Inbound: CHANNEL_DATA (r:0, 28)

...
[08-21 13:00:34] [debug] SFTP: Inbound: Received STATUS (id:3263, 4, "Failure")
[08-21 13:00:34] [debug] Inbound: CHANNEL_DATA (r:0, 317)
[08-21 13:00:34] [debug] SFTP: Inbound: Received NAME (id:3264, 3)
[08-21 13:00:34] [debug] Outbound: Sending CHANNEL_DATA (r:0, 17)
[08-21 13:00:34] [debug] SFTP: Outbound: Buffered READDIR
...