diff --git a/src/Aspire.Cli/Commands/NewCommand.cs b/src/Aspire.Cli/Commands/NewCommand.cs
index ca844097b24..3e06c963d23 100644
--- a/src/Aspire.Cli/Commands/NewCommand.cs
+++ b/src/Aspire.Cli/Commands/NewCommand.cs
@@ -276,6 +276,7 @@ protected override async Task<int> ExecuteAsync(ParseResult parseResult, Cancell
         var workspaceRoot = new DirectoryInfo(templateResult.OutputPath ?? ExecutionContext.WorkingDirectory.FullName);
         var exitCode = await _agentInitCommand.PromptAndChainAsync(_hostEnvironment, InteractionService, templateResult.ExitCode, workspaceRoot, cancellationToken);
 
+        // Editor is opened AFTER the agent init prompt since OpenEditor may trigger a workspace change, which would terminate the CLI process
         if (templateResult.OutputPath is not null && ExtensionHelper.IsExtensionHost(InteractionService, out var extensionInteractionService, out _))
         {
             extensionInteractionService.OpenEditor(templateResult.OutputPath);
diff --git a/src/Aspire.ProjectTemplates/templates/aspire-empty/.vscode/extensions.json b/src/Aspire.ProjectTemplates/templates/aspire-empty/.vscode/extensions.json
new file mode 100644
index 00000000000..3c534f6592a
--- /dev/null
+++ b/src/Aspire.ProjectTemplates/templates/aspire-empty/.vscode/extensions.json
@@ -0,0 +1,5 @@
+{
+    "recommendations": [
+        "microsoft-aspire.aspire-vscode"
+    ]
+}
diff --git a/src/Aspire.ProjectTemplates/templates/aspire-empty/.vscode/launch.json b/src/Aspire.ProjectTemplates/templates/aspire-empty/.vscode/launch.json
new file mode 100644
index 00000000000..3b101e93559
--- /dev/null
+++ b/src/Aspire.ProjectTemplates/templates/aspire-empty/.vscode/launch.json
@@ -0,0 +1,11 @@
+{
+    "version": "0.2.0",
+    "configurations": [
+        {
+            "type": "aspire",
+            "request": "launch",
+            "name": "Aspire: Launch default apphost",
+            "program": "${workspaceFolder}"
+        }
+    ]
+}
diff --git a/src/Aspire.ProjectTemplates/templates/aspire-py-starter/.vscode/extensions.json b/src/Aspire.ProjectTemplates/templates/aspire-py-starter/.vscode/extensions.json
new file mode 100644
index 00000000000..3c534f6592a
--- /dev/null
+++ b/src/Aspire.ProjectTemplates/templates/aspire-py-starter/.vscode/extensions.json
@@ -0,0 +1,5 @@
+{
+    "recommendations": [
+        "microsoft-aspire.aspire-vscode"
+    ]
+}
diff --git a/src/Aspire.ProjectTemplates/templates/aspire-py-starter/.vscode/launch.json b/src/Aspire.ProjectTemplates/templates/aspire-py-starter/.vscode/launch.json
new file mode 100644
index 00000000000..3b101e93559
--- /dev/null
+++ b/src/Aspire.ProjectTemplates/templates/aspire-py-starter/.vscode/launch.json
@@ -0,0 +1,11 @@
+{
+    "version": "0.2.0",
+    "configurations": [
+        {
+            "type": "aspire",
+            "request": "launch",
+            "name": "Aspire: Launch default apphost",
+            "program": "${workspaceFolder}"
+        }
+    ]
+}
diff --git a/src/Aspire.ProjectTemplates/templates/aspire-starter/.vscode/extensions.json b/src/Aspire.ProjectTemplates/templates/aspire-starter/.vscode/extensions.json
new file mode 100644
index 00000000000..3c534f6592a
--- /dev/null
+++ b/src/Aspire.ProjectTemplates/templates/aspire-starter/.vscode/extensions.json
@@ -0,0 +1,5 @@
+{
+    "recommendations": [
+        "microsoft-aspire.aspire-vscode"
+    ]
+}
diff --git a/src/Aspire.ProjectTemplates/templates/aspire-starter/.vscode/launch.json b/src/Aspire.ProjectTemplates/templates/aspire-starter/.vscode/launch.json
new file mode 100644
index 00000000000..3b101e93559
--- /dev/null
+++ b/src/Aspire.ProjectTemplates/templates/aspire-starter/.vscode/launch.json
@@ -0,0 +1,11 @@
+{
+    "version": "0.2.0",
+    "configurations": [
+        {
+            "type": "aspire",
+            "request": "launch",
+            "name": "Aspire: Launch default apphost",
+            "program": "${workspaceFolder}"
+        }
+    ]
+}
diff --git a/src/Aspire.ProjectTemplates/templates/aspire-ts-cs-starter/.vscode/extensions.json b/src/Aspire.ProjectTemplates/templates/aspire-ts-cs-starter/.vscode/extensions.json
new file mode 100644
index 00000000000..3c534f6592a
--- /dev/null
+++ b/src/Aspire.ProjectTemplates/templates/aspire-ts-cs-starter/.vscode/extensions.json
@@ -0,0 +1,5 @@
+{
+    "recommendations": [
+        "microsoft-aspire.aspire-vscode"
+    ]
+}
diff --git a/src/Aspire.ProjectTemplates/templates/aspire-ts-cs-starter/.vscode/launch.json b/src/Aspire.ProjectTemplates/templates/aspire-ts-cs-starter/.vscode/launch.json
new file mode 100644
index 00000000000..3b101e93559
--- /dev/null
+++ b/src/Aspire.ProjectTemplates/templates/aspire-ts-cs-starter/.vscode/launch.json
@@ -0,0 +1,11 @@
+{
+    "version": "0.2.0",
+    "configurations": [
+        {
+            "type": "aspire",
+            "request": "launch",
+            "name": "Aspire: Launch default apphost",
+            "program": "${workspaceFolder}"
+        }
+    ]
+}