Can't transfer small files and can't have multiple connection with visual studio

What is the name of the domain?

example.xyz

What is the error message?

client_loop: send disconnect: Broken pipe Connection closed. Connection closed

What is the issue you’re encountering

I can’t transfer even small files throught ssh. Also in virual studio code if I connect via cloudflare tunnel ssh I get “Failed to setu up dynamic port forwarding connection over SSH” and I can’t have any of the plugins working (RAM load, GPU etc etc)

What steps have you taken to resolve the issue?

tried multiple ssh configurations on client and server side.
With Vpn to the machine using same openssh server this doesn’t happen.