mcp: add a section on user/remote setting differences (#8750)

Author: connor4312

docs/copilot/chat/mcp-servers.md

@@ -75,11 +75,13 @@ You have multiple options to add an MCP server in VS Code:
 
 * **Direct installation**: visit the [curated list of MCP servers](https://code.visualstudio.com/mcp) and select **Install** on any MCP server to automatically add it to your VS Code instance.
 * **Workspace settings**: add a `.vscode/mcp.json` file in your workspace to configure MCP servers scoped to a workspace.
-* **User settings**: specify the server in your user configuration (**MCP: Open User Configuration**) to enable the MCP server across all workspaces, synchronized via [Settings Sync](/docs/configure/settings-sync.md).
+* **User or Remote settings**: specify the server in your user configuration (**MCP: Open User Configuration** or **MCP: Open Remote User Configuration**) to enable the MCP server across all workspaces. MCP servers in your user settings can be synchronized via [Settings Sync](/docs/configure/settings-sync.md).
 * **Automatic discovery**: enable autodiscovery (`setting(chat.mcp.discovery.enabled)`) of MCP servers defined in other tools, such as Claude Desktop.
 
 To view and manage the list of configured MCP servers, run the **MCP: Show Installed Servers** command from the Command Palette or visit the **MCP SERVERS - INSTALLED** section in the Extensions view.
 
+MCP servers are executed wherever they're configured. If you're connected to a [remote](/docs/remote/remote-overview.md) and want a server to run on the remote machine, it should be defined in your remote settings (**MCP: Open Remote User Configuration**) or in the workspace's settings. MCP servers defined in your user settings are always executed locally.
+
 When VS Code starts the MCP server for the first time, it discovers the server's capabilities and tools. You can then [use these tools in agent mode](#use-mcp-tools-in-agent-mode). VS Code caches the list of tools for an MCP server. To clear the cached tools, use the **MCP: Reset Cached Tools** command in the Command Palette.
 
 > [!CAUTION]