I was surprised but it was simple as others suggested:
# To install Server Proxy Extension for Lab
sudo /usr/local/anaconda3/bin/python3 -m pip install jupyter-server-proxy
# To Install VSCode code-server for proxying
sudo /usr/local/anaconda3/bin/python3 -m pip install jupyter-vscode-proxy
# Restart the hub for changes to apply
sudo systemctl restart jupyterhub.service
On login I see the VSCode icon next to iPython notebook 
… Concerns for myself include sudo for pip and also I am not running Hub at container, so the ports are exposed for other users I think… for test & dev this worked nicely, glad to run VSCode on the same remote host as Python kernel 