Run Claude Code in YOLO mode in VS Code sidepanel

• Updated on February 11, 2026
• 2 min read

• claude
• coding

I like using Claude Code inside VS Code in the side panel more than using it in the CLI, because I can type shift + enter for adding new lines instead of using ctrl + j shortcut. But If you want to start Claude Code in the YOLO mode or --dangerously-skip-permissions mode in the VS Code side panel, then you have to change the following settings:

Here are the steps:

1. Go to VS Code Settings and search for @ext:Anthropic.claude-code
2. Enable the "Allow Dangerously Skip Permissions" checkbox, and done!

But if you also want to start the side panel new chat in the YOLO mode by default, also set the Initial Permission Mode to bypassPermissions, and you'd be good to go. When you now go open a new chat, by default Bypass Permissions mode will be selected.

Instead of searching inside the Settings, you can also go to VS Code extensions, and select the Settings icon next to the Claude Code extension and you will land on the page shown in the above screenshot.

Can you run multiple Claude Code instances in the VS Code extension?

Yes, you can.

Press cmd + shift + p (on macOS) or ctrl + shift + p (on Windows) to open the command palette, search for "Claude" and then select Claude Code: Open in New Tab option. And it opens a new tab in the side panel itself.

Or, the best approach will be to directly press the keyboard shortcut cmd + shift + esc on macOS or ctrl + shift + esc on Windows and a new Claude Code tab will automatically open.

Update:

I used Claude Code via the VS Code extension, but I didn't like it so much. I would still prefer the CLI.