Workspaces are handy because you can create one of them for each project and change any setting or extension in VS Code at the Workspace level.
Creating a workspace
Open what you are working on
File > Save workspace as
This creates a *.code-workspace file that you can use to open your Workspace again in the future, and also serves as a config file that can be handy.
Adding other folders to a workspace
File > Add folder to workspace
For full details see: https://code.visualstudio.com/docs/editor/multi-root-workspaces
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