The agent is supposed to run on a remote dev box. The purpose is to make the remote machine an extension of your local one, to run extensions, containers, install packages, test deployments, forward ports and tons more. Tunneling is part of the feature set. If you are installing it on production servers and are surprised by its behavior that’s on you.
It also makes your local client an extension of the remote box. That is going directly against expectations for remote access.