https://docs.microsoft.com/en-us/dynamics365/business-central/ui-extensions
The upload of per-tenant extensions and the installation of AppSource extensions is not supported through the Extension Management page for on-premise installations. You cannot install AppSource extensions on-premises, including in Docker-based deployments.
Comments
VSC deployment should only be used for development IMHO
Oh, and you should also read up on these powershell commands as you'll need them: Sync-NAVApp, Install-NAVApp, Start-NAVAppDataUpgrade and Unpublish-NAVApp