Claude Code: A Practitioner's ApproachHow Product Builders Use Claude Code to Ship Faster Than Engineers
Chapter 1 · Claude Code: A Practitioner's Approach

A New Starting Point for Further Builds

Open Claude Code in VS Code and Run Your First Command

The Dissolute Household, Jan Steen, c. 1663-64
The Dissolute Household, Jan Steen, c. 1663-64. Metropolitan Museum of Art. Public domain.

On the cover: Jan Steen's Dissolute Household (1663), paired with Proust on the impossibility of arriving anywhere final. Picked because every PM has a Steen household of half-installed AI tools, and this chapter is the start that doesn't compound the mess.


"There can be no peace of mind in love, since what one has obtained is never anything but a new starting point for further desires." Marcel Proust, Within a Budding Grove


Every Level of Claude Code Explained in 21 Minutes, Nate Herk
Watch first (or skip and come back): Every Level of Claude Code Explained in 21 Minutes, Nate Herk. Twenty-one minutes, beginner-friendly, walks the same install-to-first-run arc this chapter does. Most of what's coming clicks faster after you've seen Claude Code in motion once.

The Dutch built a phrase around the Steen above. Een huishouden van Jan Steen, a Jan Steen household, is still what Dutch parents call a kid's room that has gone too long without supervision. Look at why. Steen sits in the middle of his own painting with a sly smirk, his fingers entwined with the maid's hand while she pours his wife another generous glass of wine. The wife reclines and reaches for it anyway. Broken glass lies at their feet. A cat works through what's left on the table. Two boys romp on a sleeping woman in the corner, untroubled by the noise. Suspended in a basket directly overhead, the household carries its own warning: a beggar's crutch, a pair of plague clappers, the jack of spades. Steen's joke, four hundred years old, is that the people in the painting can see the warnings hanging above their heads and have decided to deal with that tomorrow.

Every PM reading this chapter has a Steen household of AI tools. Things tried once and half installed. Tabs opened in good faith and never returned to. Subscriptions paid for and forgotten. Each new tool starts at a small handicap because of the residue of every previous one, and the impulse to start fresh dies a little each time.

Proust named the feeling. "What one has obtained is never anything but a new starting point for further desires." This chapter is the start you don't put off. Ten minutes from now, Claude Code is running inside VS Code on your machine, and the first file it generated for you is sitting in your project tree. You will have spent zero time on the command line getting there.

No coding background required. No terminal. No shortcuts. Let's start.


In This Chapter


1.1 What Claude Code Is (and What It Is Not)

You got the high-level in the introduction: Claude Code is an AI agent that lives inside your editor, reads your project files, and executes tasks end-to-end. Before you install anything, it's worth locking in one mental model for the rest of the chapter. The model is this: Claude Code is a contractor working inside your project folder. You brief them in plain English in a chat panel. They go off, do the work, hit errors, figure them out, and keep going until they're done.

That's the whole game. Claude Code is not a chatbot, not autocomplete, and not a web app you visit. When Claude writes code, the code appears in your folder. When Claude runs a command, the command actually runs against your system. When Claude hits an error, it reads the error and fixes it without asking you to copy and paste the trace.

The chat panel sits docked in your VS Code sidebar. You type what you want; you watch Claude work; files appear and change in your file tree as it goes. That is the entire loop, and the rest of this chapter is just about getting you running so you can feel it for yourself.

Deeper read: Claude Code for Product Managers: Complete Setup Guide + Real PM Workflows (2026), Mohit Aggarwal (Medium)

A PM walks through his actual setup and the prototypes he built with it. Read once now to see what's possible after this chapter.


1.2 Install: VS Code + the Claude Code Extension

Two downloads, roughly five minutes total. There's no terminal step in either of them.

Step 1: Install VS Code

If you already have VS Code installed, skip this step. Otherwise download it from code.visualstudio.com. It's free, it runs on Mac, Windows, and Linux, and the installer is a single click. There's nothing to configure during install.

Step 2: Install the Claude Code Extension

Open VS Code. On the left sidebar, click the Extensions icon, it looks like four squares with one floating out of place, usually near the top. In the search bar at the top of the panel that opens, type Claude Code. The first result should be the one published by Anthropic. Click it, then click Install. The whole step takes about thirty seconds.

The Claude Code for VS Code listing on the Visual Studio Marketplace, published by Anthropic.
The Marketplace listing you're looking for: "Claude Code for VS Code" by Anthropic. The in-editor Extensions panel shows the same entry. Source: marketplace.visualstudio.com.

Step 3: Authenticate

Once the extension is installed, a new Claude Code icon appears in the VS Code sidebar. Click it. The first time you do, the extension prompts you to log in, and your browser opens to an Anthropic page. Log in with your Anthropic account, or create one at claude.ai if you don't have one yet, account creation takes about a minute.

Click Approve in the browser tab. You're redirected back to VS Code, authenticated, and ready to go.

Step 4: Open a Project Folder

Claude Code reads the folder VS Code has open, so the last setup step is to actually open one. Go to File → Open Folder. Pick an existing folder if you have one in mind, or create a new one, my-first-project is fine, and select that. VS Code opens the folder, and the Claude Code chat panel slides into the right side of your editor. Type in it. You're in.

VS Code with a project folder open on the left and the Claude Code chat panel docked on the right, showing a conversation with Claude.
What success looks like: project files on the left, the Claude Code chat panel on the right. Source: Anthropic's VS Code integration docs.

Community signal, r/ClaudeAI: Claude Code creator Boris shares his setup with 13 detailed steps

Boris is the creator of Claude Code at Anthropic. Skim his setup once you're installed. Closest thing to a best-practices cheat sheet from the source.


1.3 Your First Session

At this point you have VS Code open with a project folder, and the Claude Code chat panel parked on the right. The fastest way to feel what's different about Claude Code is to type something simple and watch what happens. In the chat panel, type:

Hello. What can you help me with in this folder?

Claude Code scans your project and tells you what it sees. If the folder is empty, it asks what you want to build. If the folder has existing files, it describes them. Either way, the response is grounded in the actual contents of your machine, not in some generic answer about what AI tools can do.

Your First Real Task

Now give Claude something concrete:

Create a file called hello.md with a brief description of what
Claude Code is in plain English, in 3 bullet points.

Claude Code will acknowledge the task, create hello.md in your folder, write the three bullets, and tell you what it did. Look at VS Code's file tree on the left, the file is there. Click it to read what Claude wrote. You just executed code without writing a single line, and the result is a real file you can edit, rename, or commit.

Code companion (optional, but recommended for everything after this chapter): clone the course repo and try the same exercise inside a real project structure rather than an empty folder.

In VS Code, open the command palette (Cmd+Shift+P on Mac, Ctrl+Shift+P on Windows). Type Git: Clone and pick the option that appears. Paste:

https://github.com/hamzafarooq/claude-code-starter.git

Pick a destination on your machine. When VS Code asks whether to open the cloned repo, click "Open." You're now inside hamzafarooq/claude-code-starter, which ships with a working CLAUDE.md, a primer, and four modules of apps and skills. Read primer.md first for navigation, then come back here.

The Core Behavior

Conversations in Claude Code feel like chat. You message it, it responds and acts, you follow up. The only thing that's different from regular chat is that the actions are real: files actually get created, commands actually run, errors actually get caught and fixed.

There are two control moves to learn now and you'll pick up the rest naturally as you work:

  • /clear wipes the current conversation and starts fresh. Use it when you switch to a new task, old context can confuse Claude on the new one.
  • Click the X on Claude's working message to interrupt mid-task if Claude is heading somewhere wrong.

That's the entire user manual for the chat panel for now.


1.4 The Chat Panel: What You're Looking At

The Claude Code panel is intentionally minimal: a stream of chat messages flowing top to bottom, and an input box at the bottom where you type. Your messages line up on the right; Claude's responses line up on the left. There's no menu of options, no settings clutter, no AI-tool flourish.

When Claude reads a file or runs a command, the action shows up as a collapsed box inline with the chat, what Anthropic calls a "tool execution box." Click any box to expand it and see the full input and output of that action. Most of the time you don't need to. The boxes are there for when something looks wrong and you want to inspect what Claude actually saw.

Your project files stay visible in the file tree on the left of VS Code. As Claude works, files appear, change, and sometimes disappear in real time. You can click any of them to view or edit while the chat keeps going. The chat panel and the file tree are two windows into the same project, not two separate workspaces.

Slash Commands

Anything you type that starts with / is a Claude Code built-in command rather than a normal message. There are a handful worth knowing from day one:

CommandWhat it does
/initScans your project and generates a starter CLAUDE.md
/helpLists all available commands
/clearClears conversation context. Use when starting a new task
/planClaude shows you its plan before it executes
/configOpens settings (theme, model, defaults)
/costCurrent session token count and estimated cost

1.5 Permissions and Billing

Two things tend to trip people up in their first week with Claude Code: what Claude Code is allowed to do on their machine, and what it costs to run. Both are simpler than they look.


Permissions

Claude Code operates on a trust-but-verify model. It reads files and writes new code automatically, because those are reversible actions inside the folder you opened. For anything higher-impact, it stops and asks for confirmation before doing the thing.

By default, Claude Code asks permission before:

  • Running shell commands
  • Deleting files
  • Making network requests
  • Modifying files outside your project folder

For most PM work, that default is exactly what you want. You'll see permission prompts maybe a few times a session, and almost always when something interesting is about to happen.

The golden rule: if Claude is about to do something that feels wrong, click X to interrupt and give a more specific instruction. You're always in control of the loop, even when it's running fast.


Billing

Claude Code runs against your Anthropic account credits. There are three ways to pay for those credits, and most students end up on one of the first two.

Claude Pro ($20/month)

  • Generous monthly usage limit for Claude Code
  • Covers most casual to moderate use
  • The plan most students in our Maven cohorts use

Claude Max ($100/month)

  • For heavy daily use, multiple long sessions, full applications
  • No usage caps
  • Worth it if you're using Claude Code several hours a day

Pay-as-you-go (API)

  • Set up an API key at console.anthropic.com
  • You pay per token (roughly per word) consumed
  • Good for starting small and cheap
  • Required if you eventually deploy Claude Code-powered features to production

Typical costs. A one-hour working session, landing page, PRD, user stories, typically costs between $0.20 and $2.00 in raw usage. On Pro, that's covered by the subscription. On API credits, it's cheap for what you get back. You can check your current session's spend at any time by typing /cost in the chat panel.


Which Model?

Claude Code can be backed by different Claude models. The default is Claude Sonnet, which balances speed and quality well enough that most students never change it.

  • Sonnet is the default and the right choice for everyday work.
  • Opus is the maximum-capability model, slower and more expensive, but the one you reach for when a problem is genuinely hard.
  • Haiku is the fastest and cheapest of the three; useful for simple, throwaway tasks.

For this book, Sonnet is the only model you'll need to think about. You don't need to change anything.


1.6 Troubleshooting

Installation usually works on the first try. The handful of issues that do come up tend to be the same handful for everyone, so here's the cheat sheet.


Claude Code extension doesn't appear in VS Code

What's happening: The extension didn't install correctly, or VS Code hasn't picked it up yet.

Fix: Open VS Code Extensions (Cmd+Shift+X on Mac, Ctrl+Shift+X on Windows). Search Claude Code by Anthropic. Click Install. If the icon still doesn't appear in the sidebar, restart VS Code, the extension activates on launch.


Authentication loop

What's happening: The browser opened for login but something interrupted the handoff back to VS Code. The auth flow is left half-finished.

Fix: Close the browser tab. In VS Code, open the command palette and run Claude Code: Sign Out. Then click the Claude Code icon again to retry the login flow from a clean state.


Claude is not reading my project files

What's happening: You don't have a folder open in VS Code, so Claude Code has no project context to read.

Fix: File → Open Folder, and pick your project folder. Claude Code only reads the folder VS Code has open. No open folder means no project context.


"Claude doesn't remember what we talked about last session"

What's happening: This is expected behavior, not a bug.

Claude Code doesn't persist memory between sessions automatically. Every new session starts fresh. The way to carry context forward is the CLAUDE.md file, which you'll write in Chapter 2. That file is read automatically at the start of every session, so the things you put in it are the things Claude remembers.


The chat panel is sluggish or freezes

What's happening: Too many large files in context, or a long-running task that hasn't returned.

Fix: Run /clear to reset the conversation and drop the heavy context. If a specific task is stuck, click the X on the working message to interrupt it. Restart VS Code as a last resort.


Still stuck? Full docs at code.claude.com/docs/en/troubleshoot-install. The course Slack is also good, someone has probably already hit the same issue and posted the fix.


1.7 Summary + Quick Reference

What You Did in This Chapter

In about thirty minutes, you went from a fresh laptop to a running Claude Code environment with your first generated file already in your project tree. Concretely:

  • Learned what Claude Code is and why it eliminates the copy-paste handoff between you and a model
  • Installed VS Code and the Claude Code extension
  • Authenticated with your Anthropic account
  • Opened a folder and ran your first Claude Code session
  • Got familiar with the chat panel, prompt input, tool execution boxes, slash commands
  • Set realistic expectations on permissions and billing
  • Picked up fixes for the most common install problems

You now have a running Claude Code environment, and that's the only prerequisite for everything that follows in this book.


Quick Reference Card

Install path

  1. Download VS Code from code.visualstudio.com
  2. In VS Code: Extensions → search "Claude Code" by Anthropic → Install
  3. Click the Claude Code icon in the sidebar → log in
  4. File → Open Folder → pick or create your project folder

Starting a session

ActionHow
Open chat panelClick Claude Code icon in VS Code sidebar
Send messageType in input box, press Enter
Interrupt ClaudeClick X on the working message
See historyScroll up in chat panel
Expand tool boxClick the collapsed action

Essential slash commands

CommandWhat it does
/initScans project, creates CLAUDE.md starter
/helpLists all commands
/clearClears context when switching tasks
/planShows Claude's plan before it executes
/configSettings: theme, model, defaults
/costCurrent session token count and estimated cost

Most common fixes

ProblemFix
Claude Code icon missing in sidebarSearch "Claude Code" in Extensions, Install, restart VS Code
Auth loopCommand palette → Claude Code: Sign Out, then click icon again
No project contextFile → Open Folder before chatting
Chat panel sluggishRun /clear to reset context
Claude forgets contextWrite a CLAUDE.md file (Chapter 2)

★ Build It Now

Exercise 1.1: Confirm Your Setup Works

This is the smallest possible end-to-end test. It proves that everything is wired correctly before you move on to Chapter 2.

  1. Open VS Code
  2. File → Open Folder → pick or create a folder
  3. Click the Claude Code icon in the sidebar
  4. Type: Create a file called setup-test.txt with "Claude Code is running" and today's date
  5. Watch the chat panel execute the task
  6. Check the file tree on the left. The file is there.

If the file appears with the right content, you're set up correctly and ready for Chapter 2.


Exercise 1.2: Explore the Commands

Inside the chat panel, run each of these in order so you've seen what they do at least once:

/help

Scan the list of commands. You don't need to understand all of them yet. Just see what's available.

/cost

You'll see $0.00 or a small number. That's what the session has cost you so far.

/clear

The conversation resets. You're ready for a fresh task.


"Every PM who goes through our course says the same thing about Chapter 1: 'I was nervous about the editor and then it was just... fine.' It always is. The chat panel is just a text interface. You've been using text interfaces your whole career." Hamza Farooq


What's Next

Today: install VS Code, install the Claude Code extension, open the chat panel, and confirm Claude responds when you ask it something simple. That alone is the chapter, and it earns you the rest of the book.

Tomorrow: clone the course repo and run your first real prompt inside an actual project. The exercise is small. The shift in how you think about your job is not.


More:


Sources used in this chapter: