Installation and setup: VS Code, Claude Code, first launch

Module: 2. Quick start | Time: ~20 min theory + 30 min practice

The gist

A craftsman's workshop has to be properly equipped before the work starts. This lesson equips yours: a code editor, a connected agent, the right subscription. Set it up once, and from then on you just work.

Key concepts

• VS Code (a popular code editor from Microsoft): why this editor, and how it's laid out
• Claude Code as an extension inside VS Code
• Choosing a subscription: what Pro includes and when you need Max
• Workspace structure: folder = project

Theory

VS Code: a free, world-class IDE (Integrated Development Environment)

🎨 Picture this: VS Code is like a carpenter's workbench. It isn't the tool itself, it's the workspace where every tool is within reach: saws (the terminal, a program for working with the command line), rulers (search), a drawer of blueprints (the file explorer). Claude Code is the smart assistant you've put next to the workbench.

Visual Studio Code is a code editor from Microsoft. Free. Runs on Mac, Windows and Linux. One of the most popular code editors in the world.

Why VS Code and not Cursor, Devin Desktop (the name of the former Windsurf since June 2026) or other AI editors?

• Free: no extra subscription for the editor itself
• Standard: examples and tutorials are written for VS Code
• Extensible: Claude Code plugs in as an extension without losing any features
• Stable: a tool proven over years, not a startup that might shut down

Download: code.visualstudio.com → the Download button for your operating system.

💡 You don't have to use an editor. As of October 2026, Claude Code runs in more places than VS Code: the terminal, extensions for VS Code, Cursor and JetBrains, the Claude desktop app (the Code tab, no terminal), the browser at claude.ai/code, and your phone. This lesson uses VS Code because it's easy for a beginner to see what's going on. For the app without a terminal, see the Claude Code Desktop lesson.

The layout of VS Code

After installing, you'll see a few key areas:

Sidebar (left):

• Sheet-of-paper icon: the file explorer. Shows every file in the open folder
• Magnifying glass icon: search across all files
• Puzzle-piece icon: extensions (this is where you'll install Claude Code)
• Git icon (Git is a version control system for code): managing versions (you'll need it later)

Main area (center): The code and file editor. When you open any file, it shows up here.

Panel (bottom): The terminal: a command line right inside VS Code. Very handy, since you don't have to open a separate terminal.

Claude Code panel (right): After you install the extension, a chat with the agent appears here (an agent is an autonomous program that carries out tasks). This is where you'll give Claude Code its assignments.

Installing Claude Code

1. Open VS Code
2. Click the puzzle-piece icon in the left panel (Extensions), or press Ctrl+Shift+X (Win) / Cmd+Shift+X (Mac)
3. Type in the search bar: Claude Code
4. Find the extension from Anthropic, with the Anthropic logo (you need VS Code version 1.94 or newer)
5. Click Install
6. After installation, a new icon appears in the left panel: the Claude Code button

Authentication: connecting to Claude

The first time you open Claude Code, it will ask you to sign in to your Anthropic account.

1. Click Sign In
2. A browser opens with claude.ai
3. Sign in to your account (or create a new one)
4. Approve the permission, and Claude Code connects to your account
5. Go back to VS Code. The agent is ready to work

To sign in, you need a paid Claude plan (Pro, Max, Team or Enterprise) or an Anthropic Console account with pay-per-token billing. Claude Code isn't available on the free plan. Also check that your country is on Anthropic's official list of supported countries (more on this in the lesson Your first 30 minutes with AI).

Subscription: Pro vs. Max, which to choose

🎨 Picture this: Pro vs. Max is like choosing between a scooter and a motorcycle for a delivery job. A scooter gets you there, but if you ride from morning to night, the motorcycle is more comfortable. If you work with the agent several hours a day, Pro's limits may cut you off at the worst possible moment.

This is an important decision because it directly affects how long you can work without breaks.

The Fable 5.1 model for the hardest tasks is switched on manually with the /model fable command; on subscriptions it may be charged to usage credits (Claude Code will ask for your consent). For the current list of models and prices: What's current and claude.com/pricing.

Recommendation for this course:

Start with Pro to work through the lessons. Max makes sense when you regularly hit the limits and it gets in the way of your work.

An honest caveat: a subscription is an expense, not a guaranteed return. Before paying more, check /usage to see how much you actually use.

Opening a project: folder = project

🎨 Picture this: A project folder for the agent is like a room for a worker. They see everything in the room and can work with everything in it. They don't go out the door (that's the security part). Don't mix projects in one folder. It's like putting two different clients in the same room: chaos.

In Claude Code (and in VS Code in general), one folder = one project. The agent works in the context (context is the conversation content the AI can see) of the folder you've opened.

How to open a folder:

1. File → Open Folder (or Cmd+O on a Mac)
2. Pick the folder where your project will live
3. VS Code opens it as a workspace

Why this matters:

• The agent sees every file in this folder
• The agent understands the project's structure
• The agent doesn't see files outside the folder (which is good: security)
• the CLAUDE.md file (covered in the lesson CLAUDE.md: the project's system prompt) lives in the root of this folder

An organizing tip: Create a ~/Projects/ folder and make a separate folder inside it for each project. Don't mix different projects in one folder.

Example structure:

~/Projects/
  ├── newsletter-automation/    ← one project
  ├── lead-qualifier/           ← another project
  └── client-reporting/         ← one more

🎨 Picture this: Your first conversation with the agent is like a new employee's first day at the office. Let them look around: "see what's here." Then give a small first task. Then a harder one. Don't hit them right away with "sort out the customer database."

Your first conversation with the agent

Once setup is done, open the Claude Code panel (the icon in the left panel or the button in the bottom bar).

You'll see an input box. Type something simple:

Hi. I just opened this folder. What do you see in it?

The agent will look through the folder and tell you what's there. If the folder is empty, it'll say so.

Try another request:

Create a README.md file describing this as a test project for learning.

The agent will create the file. You'll see it in the file explorer on the left.

That's your first interaction with the agent as a real tool.

Key shortcuts (learn them from day one)

Practice

Assignment: Install VS Code + Claude Code and run a first test.

Step 1: Installation (10 min):

1. Download VS Code from code.visualstudio.com
2. Install it (standard install, don't change anything)
3. Install the Claude Code extension from the extensions marketplace

Step 2: Account setup (5 min):

1. Sign in to Claude Code with your Anthropic account
2. Make sure the agent responds (type "Hi")

Step 3: First project (15 min):

1. Create a my-first-agent folder somewhere convenient
2. Open it in VS Code with File → Open Folder
3. Give the agent three tasks, one at a time:
   • "Create a hello.md file with the heading 'My first agent project' and three bullet points about what I want to learn"
   • "Create a docs folder and move hello.md into it"
   • "What's in this folder right now?"
4. Look at the file explorer and make sure everything was done correctly

Common mistakes

❌ Mistake: Opening your whole home folder (~/) as a project in VS Code. ✅ Right: One folder = one project. Create a separate folder for each project. The agent sees every file in the open folder; if you open the root, it gets lost in thousands of files.

❌ Mistake: Buying the most expensive plan "to grow into" without checking whether Pro is enough. ✅ Right: Start with Pro. If you regularly hit the limits while working several hours a day, then look at Max. Limits depend on the model and the workload; the /usage command makes it easy to check.

❌ Mistake: Not using the terminal inside VS Code (opening a separate terminal instead). ✅ Right: The built-in terminal (Ctrl+`) works in the context of the open folder. Claude Code works in that context too. Everything in one window = less confusion.

Another way to install: through the terminal (CLI, the command-line interface)

You can also install Claude Code as a CLI tool right in the terminal, without VS Code. As of October 2026, the main method is the native installer, which doesn't need Node.js:

# macOS, Linux, WSL
curl -fsSL https://claude.ai/install.sh | bash

# Windows PowerShell
irm https://claude.ai/install.ps1 | iex

After installing, go to your project folder and run the claude command. There are other options too: Homebrew (brew install --cask claude-code), WinGet (winget install Anthropic.ClaudeCode), and npm (npm install -g @anthropic-ai/claude-code, which needs Node.js 22+). The native installer updates itself; Homebrew and WinGet have to be updated manually. System requirements: macOS 13+, Windows 10 version 1809+, 4 GB of RAM.

Detailed instructions: code.claude.com/docs/en/setup

This route suits people who prefer working in the terminal. For beginners, VS Code or the desktop app is recommended, since they're more visual.

Tools and resources

• VS Code: the official download site
• Claude.ai: create an Anthropic account (you need one before signing in to the extension)
• VS Code Marketplace: the extensions marketplace (search: Claude Code)
• Anthropic Pricing: compare subscription plans
• Claude Code: installation: the official install guide
• Claude Code: Getting Started: quick start
• Claude Code GitHub: issues (bug reports), the changelog (CHANGELOG), plugins and examples; the CLI's own source code isn't in this repository
• Node.js: only needed for installing through npm (version 22+)

→ See the lesson Prompting fundamentals: how to give the agent good assignments → See the lesson CLAUDE.md: the project's system prompt: the first file worth creating → See the lesson Plans and access levels: a detailed map of the plans

Key takeaways

VS Code is a free, stable IDE. One folder = one project. The agent works in the context of the open folder.

Start with Pro. You need Max when you regularly hit the limits, not "just in case."

Your first conversation with the agent doesn't require code. Just explain what you want in plain English.

Next lesson

→ Claude Code Desktop: working without a terminal (or skip straight to → Prompting fundamentals: how to give the agent tasks so you get quality results)