Make sure you have Azure Storage Emulator installed and running. TIP: The 'Terminal' panel should pop up automatically and you know your project is running if you see output Follow the specified instructions, or skip to the 'Deploy' step if you would rather deploy without running locally. If you do not have the Azure Functions Core Tools installed, you will be automatically prompted to install. To start your project, press F5 or the 'play' button This extension integrates with the Azure Functions Core Tools to let you run your project locally before publishing to Azure. If the selected folder is not already open, select 'Open in current window' to open it Select 'Stateful' for your project's first function Select a new, empty folder to contain your project Select the button to create a new project in the Azure Logic Apps explorer Sign up today for your free Azure account and receive 12 months of free popular services, $200 free credit and 25+ always free services 👉 Start Free. Use the Azure Logic Apps (Standard) extension to quickly create, debug, manage, and deploy Logic Apps directly from VS Code. Azure Logic Apps for Visual Studio Code (Standard)