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Remote as a general term means "controlling from a distance". From that perspective it can work with either hydraulic or mechanical lockout. It is a separate entity to the lockout and is just a way of controlling it from, say the handlebars.
As far as I'm aware, remote lockout is only compatible with a hydraulic lockout system. A mechanical lockout requires the fork to be completely extended in order to lock it, which is generally not the case when you're on the bike.
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