Remote ssh fails: Cursor failed to install the VSC server (using classic VSC remotely works though!)

I am encountering the same issue. Trace looks identical (mv: cannot stat ‘code’ …)
Using MacOS Sonoma 14.6.1 attempting to connect to an Ubuntu 22.04 machine. Similarly, classic VS Code works fine.

It was working fine this morning before upgrading to 0.42.2. Immediately after the upgrade remote SSH stopped working.