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Duration	Level	Prerequisites
10 min	Beginner	Lab 01 complete (PowerShell 7+, Node 22+, copilot); Lab 02 complete (VS Code extension installed)

Overview

The agent YAML lives on disk in a folder you control. Pick a path you trust, open it in VS Code, then launch copilot from VS Code’s integrated terminal. Using the integrated terminal keeps every editor command, file diff, and CLI prompt in one window — exactly the experience that VS Code Copilot Chat would offer if issue #116 were resolved. Until then, the integrated terminal is the supported in-editor path.

Learning objectives

• Create a parent folder for all Copilot Studio agent workspaces.
• Open that folder in VS Code and trust it.
• Launch copilot in the integrated terminal and complete /login.

Exercise 4.1 — Create the workspace folder and open it

1. Open PowerShell 7+ and run:

    New-Item -ItemType Directory -Path C:\src\copilot-studio-work -Force | Out-Null
    Set-Location C:\src\copilot-studio-work
    code .
   

2. VS Code launches into the new folder. If prompted, choose Yes, I trust the authors when the workspace trust dialog appears.

Exercise 4.2 — Launch Copilot CLI from the integrated terminal

1. In VS Code, open the integrated terminal with Ctrl+`.
2. Confirm the terminal is running PowerShell 7+ (the shell name appears in the terminal’s title bar; if it reads powershell.exe, use the terminal-profile dropdown to pick PowerShell instead).

3. In the integrated terminal, run:

    copilot
   

4. On first launch, copilot asks you to confirm you trust the folder. Choose Yes.

Exercise 4.3 — Sign in with /login

1. Inside the copilot session, run:

    /login
   

2. Follow the browser or device-code flow copilot prints. Once authentication succeeds, the session reports you as signed in and the prompt returns ready for input.

Verification Checkpoint

Before proceeding, verify:

• C:\src\copilot-studio-work exists and is your current working folder.
• VS Code is open with the folder trusted.
• The integrated terminal shows an interactive copilot session waiting for input.
• /login completed successfully (no error banner visible).

Next Steps

Proceed to Lab 05 — Install the skills-for-copilot-studio plugin.