Why does Visual Studio package manager not respect "no_proxy" configuration?

[kosa-gyula-77]

The Windows proxy credentials dialog always pops up when I try to browse a package source in Visual Studio for which I set no_proxy in C:\Users\me\AppData\Roaming\NuGet\NuGet.Config:

<configuration>
  <config>
    <add key="no_proxy" value="https://artifactory.mycompany.net" />

The package source

• is hosted by Artifactory
• requires authentication
• packageSourceCredentials is set in NuGet.Config using an Identity Token for Artifactory as password.

Windows proxy settings:

• Automatically detect settings OFF
• Use setup script ON
• The script sets DIRECT for *.mycompany.net

Microsoft Visual Studio

• Professional 2022 (64-bit)
• Version 17.8.6

Additional info

• May be related to Embedded version of NuGet client does not respect "no_proxy" configuration dotnet/sdk#22942

[kosa-gyula-77]

Raised as issue at #13227