Thank you for the detailed reply, @Retired_mod and the great question @pernilak!

I would also like to code and debug in VS Code while all the code in my Jupyter notebooks can be executed on a databricks cluster cell by cell with access to the data in our Unity Catalog. As described in this Azure Databricks Documentation, Databricks Connect runs only "code involving DataFrame operations on the cluster". Therefore, it seems not to address the original request or I'm missing something?

Is it possible to configure a databricks cluster as a remote python interpreter so that all local code accessed through VS Code is executed on the remote databricks cluster as I would have executed the code from a databricks notebook?

Thank you very much in advance and best regards, 

Rustam