diff --git a/setup/README.md b/setup/README.md
index a91a7486..65b46be5 100644
--- a/setup/README.md
+++ b/setup/README.md
@@ -47,7 +47,9 @@ There are many good options for code editors. My preferred choice is the popular
 
 ## VSCode Extensions
 
-If you are using Visual Studio Code (VSCode) as your primary code editor, you can find recommended extensions in the `.vscode` subfolder. To install these, open the `extensions.json` file in VSCode and click the "Install" button in the pop-up menu on the lower right.
+If you are using Visual Studio Code (VSCode) as your primary code editor, you can find recommended extensions in the `.vscode` subfolder. To install these, open this "setup" folder in VSCode (File -> Open Folder...) and then click the "Install" button in the pop-up menu on the lower right.
+
+<img src="https://sebastianraschka.com/images/LLMs-from-scratch-images/setup/README/vs-code-extensions.webp?1" alt="1" width="700">
 
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