From the screenshots this seems to use an X/VNC server or something, it might be good to also explore using https://github.com/coder/code-server with a native Android browser to get things like graphics acceleration (though with disadvantages like not being about to develop graphical applications)
How far away do you expect a Wayland-powered display to be? You're currently using VNC, but I'd imagine that <https://gitlab.freedesktop.org/mstoeckl/waypipe/> would also work while being smoother.
code-server can't use Microsoft's extension marketplace, but this can. Supposedly this runs the original Microsoft binary which is why things work exactly like a Linux desktop version. I know, this sucks.
