To be able to use the extension, you need to specifically set up files.exclude in your settings.json. As its name implies, the extension adds a button in VSCode status bar as well as a command in the Command Palette which allows you to quickly enable/disable files.exclude flag. In that case, Toggle Excluded Files is the extension that you need. If you constantly need to show/hide files every once in a while, removing directories from VSCode Settings simply takes too many steps to be productive. git, so you need to click into its name, then select its X button. Files: Exclude will show up with a list of hidden by default folders. Type in 'settings' and select Preferences: Open Settings (UI).Open up VSCode and press Ctrl + Shift + P to open Command Palette.In order to change that, follow the steps below. VSCode uses the files.exclude in settings.json to control the list of files and directories that should be hidden. 2 Toggle hidden files on/off in VSCode Show hidden files/directories in VSCode sidebar