Comparison · 2026-08-21

Claude Code in the terminal
vs the VS Code extension

Short answer: VS Code is a programmer’s editor. If you already work in it all day, the extension is the better home, and it shows changes right next to your code. If you do not write code and have no reason to install an editor, the terminal is far less to set up, and it is the one that can keep working without you.

Terminal, with Launchpad

Best for: anyone who does not want a programmer’s editor, and jobs that run without you

github.com/noambrand/launchpad-cli

The VS Code extension

Best for: developers already working inside VS Code

Anthropic docs: VS Code

Count what you have to install

The extension is good, and if VS Code is already open all day it is the obvious choice. The catch is everything underneath it. You need VS Code itself, then the extension, then a paid plan, and a second install on top if you want to type commands inside it. It also refuses to run in folders VS Code has not been told to trust, which is a five second fix if you know the setting exists and a dead end if you do not. None of that troubles a developer. It is a wall for someone in finance with a folder of spreadsheets.

“If your editor can’t install the extension, install the CLI and run claude in its integrated terminal instead. The CLI works in any terminal.”

Anthropic, Claude Code documentation

Side-by-side

CriterionTerminal
(with Launchpad)		VS Code extension
The AI itselfThe official Claude CodeExactly the same
What you installOne installer, and it sets up the restVS Code, then the extension, then a second install for commands
Works without a programmer’s editor
✓
✕
Folders your PC has not been told to trustWorksRefuses to run
Shows changes next to your code
✕
✓
Point it at exact lines in a file
✕
✓
Can be started automatically
✓
Only through the separate install
Carries on after the 5 hour limit
✓if you switch it on
✕
Tells you out loud when it needs you
✓
✕
Suits someone who does not code
✓that is who it is for
Not really
What you needA paid Claude planA paid Claude plan
Cost of this toolFree, open sourceFree, from Anthropic

What the launcher adds

  • Auto-continueWaits out the 5 hour limit, then resumes. Off by default.
  • Voice alertsA sound when it needs a decision, another when it is done.
  • Profiles per projectFolder, model, flags and env saved as one click.
  • Live usage barModel, context, session and weekly limits with countdowns.
  • A tab per projectOne window, each tab named after its folder.
  • Sets itself upOne installer puts everything in place. Nothing to configure.

Free, open source, and it runs Anthropic's official Claude Code unmodified.

Frequently asked

Is the extension better?

For a developer already in VS Code, usually yes. Seeing changes next to your code beats reading them in a terminal. The terminal wins if you do not want an editor at all, or the job has to run without you.

Do I need to install anything else with it?

For the chat panel, no. If you also want to type commands inside VS Code, Anthropic notes you need a second, separate install.

I do not write code. Which one?

The terminal, opened by a folder picker. Installing a programmer’s editor is a lot of ceremony just to ask a question about your own spreadsheets.

Get it

Download for Windows All download options

vs Claude Code Desktopvs Claude CoworkClaude Code alone vs with LaunchpadLaunchpad vs Kivun (RTL)

Every claim about the VS Code extension comes from Anthropic's documentation: Use Claude Code in VS Code. For developers: it requires VS Code 1.94+, bundles its own CLI for the chat panel but needs the standalone CLI for the integrated terminal, and does not run in Restricted Mode.