Run AI-generated code in VS Code as if it came from an unknown contributor: start in Restricted Mode, inspect every project-controlled execution path, limit an agent’s file-system and network reach, require approval for consequential actions, and review the complete diff before you integrate it. These controls reduce the blast radius; they do not prove that the code is safe. A command that already ran, sent data, deployed a service, or changed an external account cannot be undone simply by restoring your workspace.
This workflow follows VS Code’s guidance on Workspace Trust, secure AI-assisted development, agent trust and safety, and approvals and permissions.
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What “safe” means when an AI writes the code
AI-generated source is not automatically trustworthy because it compiles, passes a test, or came from a familiar chat interface. The safety question is broader: what can the project, its dependencies, its extensions, and the agent running its commands read, write, execute, or contact?
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Use five boundaries to answer that question:
- File-system boundary: which files and directories the process can read or modify.
- Network boundary: whether it can make outbound connections, and which destinations are allowed.
- Approval boundary: which commands or tool calls run automatically and which require your confirmation.
- Project-trust boundary: whether workspace tasks, settings, extensions, debugging, terminals, and agents are active.
- External-effects boundary: whether a command can alter deployments, services, accounts, databases, or data outside the local folder.
These boundaries address different failure modes. Approval can stop an unexpected command before it starts, while sandboxing can limit what an approved command reaches. Neither replaces reading the command and the generated code.
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1. Start every unfamiliar project in Restricted Mode
VS Code opens new unfamiliar folders in Restricted Mode. In that state, features that could execute or activate project-controlled content are disabled or limited, including agents, the integrated terminal, tasks, debugging, workspace settings, and some extensions. Leave the folder untrusted while you inspect it; trust is an escalation, not a prerequisite for reading files.
VS Code’s own Workspace Trust documentation gives the practical rule: “When in doubt, leave a folder in Restricted Mode. You can always enable trust later.” — Visual Studio Code, “Workspace Trust”
Open and inspect without granting trust
- Open the repository or extracted archive in VS Code.
- When VS Code asks whether you trust the authors, choose the option that keeps the folder in Restricted Mode. If no prompt appears, check the workspace’s trust indicator before enabling anything.
- Read the source, manifests, lockfiles, documentation, and configuration as text. Do not run the project’s setup command merely to see whether it works.
- Do not click “trust” because the code was generated by an AI, because the repository has a polished README, or because the first files look harmless.
- Keep Restricted Mode until you can explain what the project will execute, what it needs to access, and why each extension or service is required.
Restricted Mode is a guardrail around project-controlled behavior, not a malware scanner. It does not establish that the source is benign, and it cannot protect you from every extension you install.
Workspace Trust has an important limit
VS Code warns that Workspace Trust cannot prevent a malicious extension from executing code and ignoring Restricted Mode. Review an extension’s publisher, requested capabilities, update history, and behavior before installing or enabling it. Treat an extension as software with its own access, not as a passive editor theme.
2. Map the project’s execution surfaces before trusting it
Generated projects often hide their most consequential behavior in configuration rather than in the file you asked the model to write. Inspect these areas while the folder remains restricted.
Workspace configuration
Read the .vscode directory, especially task and debug configuration and workspace settings. A task definition is repository-controlled and can invoke scripts, interpreters, package managers, or tool binaries. Debug configurations can select executable paths, arguments, environment variables, and pre-launch tasks. Workspace settings can name programs, alter language tooling, or change which files an extension treats as input.
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Look for commands that download or execute code, write outside the repository, alter permissions, remove files, start servers, or pass secrets through environment variables. Pay attention to shell operators such as pipes, command substitution, redirects, and chained commands; the readable part of a task label may conceal a very different command.
Package manifests, scripts, and install hooks
Read the manifest and lockfile for the language ecosystem before installing dependencies. Inspect lifecycle scripts and build, test, post-install, pre-commit, and code-generation commands. A dependency installation can execute package-provided hooks, so “install first, inspect later” reverses the safe order.
Confirm the declared versions, registries, optional native components, and scripts that contact remote services. If the project needs a generated file, identify the exact command that creates it and the output path before running it. Keep a copy of the original lockfile so that an AI tool cannot silently rewrite your dependency graph without your noticing.
Extensions and MCP servers
Extensions and Model Context Protocol (MCP) servers deserve separate trust decisions. VS Code notes that they can access local files, execute code, interact with system resources, and communicate with external services. A workspace-configured MCP server may inherit Workspace Trust, so do not assume that keeping source files in Restricted Mode makes every configured tool harmless.
Before enabling one, determine who publishes it, what permissions it requests, where its executable comes from, what data it sends, and whether the project actually needs it. Remove or disable unneeded entries instead of accepting a broad tool set for convenience.
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3. Bound an AI agent’s commands with sandboxing
When an agent needs to run terminal commands, enable agent sandboxing where your VS Code setup supports it. VS Code describes OS-level sandboxing as a way to constrain terminal commands and their child processes. Configure both the file-system and network boundaries for the particular task; a sandbox that protects the repository but allows unrestricted access to your home directory or the public internet is not a narrow boundary.
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Choose the smallest useful file-system scope
- Allow read access to the project files the agent must understand.
- Allow writes only to the working tree or a disposable copy, not to personal documents, credential stores, SSH keys, cloud configuration, or unrelated repositories.
- Use a temporary output directory for generated artifacts when possible.
- Keep secrets outside the workspace and out of environment variables exposed to commands unless a specific, reviewed step requires them.
- After a task, inspect newly created files and permission changes, not just edits to tracked source.
Choose the smallest useful network scope
- Block outbound network access for tasks that only compile or test local code.
- If downloads are necessary, allow only the package registries, artifact stores, or service endpoints that the task genuinely needs.
- Do not allow an agent to contact production APIs, payment systems, customer data stores, or deployment endpoints during an exploratory run.
- Remember that a build tool, test, dependency, or child process can make a request even when the top-level command looks innocuous.
VS Code’s security guidance recommends configuring network access as part of the boundary: Secure AI-assisted development in VS Code.
Understand approvals and sandboxing as separate controls
| Control | What it decides | What it does not decide | Use it for |
|---|---|---|---|
| Approval settings | Whether an action or tool call runs automatically or waits for your confirmation. | They do not limit the files, processes, or network destinations an approved command can reach. | Pausing before installs, deletes, network calls, deployments, and other consequential actions. |
| Agent sandboxing | Which resources terminal commands and their child processes can access. | It does not tell you whether the command’s logic is appropriate or whether a permitted destination is safe. | Constraining file-system and network reach after a command is allowed to run. |
| Restricted Mode | Whether project-controlled workspace features are active. | It is not a guarantee against malicious extensions or unsafe code you run yourself. | Inspecting an unfamiliar project before enabling its tasks, settings, agents, and extensions. |
VS Code documents the distinction between asking for permission and limiting access in Manage approvals and permissions. Keep approvals enabled for actions whose effects you need to inspect, and do not treat an approval prompt as a security review.
4. Use a staged workflow instead of “run everything”
The following sequence keeps each escalation visible. Stop at any step if the requested access is broader than the task requires.
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- Stay restricted during reconnaissance. Read the project tree, manifests, lockfiles,
.vscodeconfiguration, scripts, and documentation. List every executable, download, service endpoint, and credential reference you find. - Remove unnecessary trust surfaces. Disable unneeded extensions and MCP servers, delete unexplained tasks from the disposable copy, and separate generated output from valuable data.
- Define the first command on paper. Write down the exact executable, arguments, working directory, expected files, expected network destinations, and expected duration. If you cannot predict those items, do not approve the command yet.
- Configure the narrowest sandbox. Grant only the project directory and a temporary output path, and block or narrowly allow network access. Keep personal and production credentials unavailable.
- Run a harmless inspection first. Prefer commands that print versions, list files, validate syntax, or run a single local test. Avoid install hooks, migrations, deployment commands, and scripts that modify external systems on the first pass.
- Review output as input. An agent may quote a README, issue, web page, fixture, or tool response that contains instructions aimed at changing its behavior. Treat those instructions as untrusted data, not authority.
- Expand one permission at a time. If a dependency download or service call is necessary, allow only that operation, observe the result, and then reassess. Do not grant broad access simply because the previous command appeared successful.
- Inspect the complete diff and filesystem. Review tracked and untracked files, generated configuration, lockfile changes, permissions, and logs. Compare against the recorded starting point.
- Integrate only after human review. Commit or merge the changes only when you understand their behavior, their dependencies, and their security consequences.
5. Review the generated code before you run or commit it
Check behavior, not just syntax
- Trace inputs from files, HTTP requests, command-line arguments, environment variables, and user forms to storage, shell calls, templates, and responses.
- Look for missing authentication and authorization checks, insecure defaults, unsafe deserialization, path traversal, command injection, SQL injection, cross-site scripting, and secrets written to logs.
- Check error paths, retries, timeouts, concurrency, cleanup, and handling of empty, oversized, malformed, or hostile input.
- Verify that a “temporary” file, cache, debug endpoint, or test fixture cannot expose real data.
- Confirm that generated code does not silently disable certificate checks, access controls, auditing, or validation to make a test pass.
Check dependency and build behavior
- Compare every manifest and lockfile change with the requested feature.
- Investigate new packages, native binaries, install scripts, post-install hooks, and tools fetched from unfamiliar registries.
- Check whether a build or test command executes generated code, downloads additional code, launches a server, or writes outside the repository.
- Run tests in a disposable environment first, and inspect the test code itself; tests can contain destructive setup or network calls.
Check secrets and data movement
- Search generated files and logs for API keys, tokens, passwords, private keys, connection strings, and personal data.
- Confirm that telemetry, analytics, upload, webhook, and error-reporting code sends only approved data to approved destinations.
- Use synthetic values for local tests. Do not place production credentials in a workspace merely to satisfy an agent’s request.
- Review ignore files and generated artifacts so secrets cannot be committed accidentally.
Check for prompt injection and context contamination
AI agents process files, web content, and tool output as context. VS Code identifies prompt injection and context contamination as risks: an instruction embedded in a README, issue, fixture, or command result may attempt to make the agent reveal secrets, weaken safeguards, or run an unrelated command.
When an agent says that a file “requires” a privileged action, verify that requirement independently. Never treat text found inside the project as an authorization message.
6. Know what rollback can and cannot fix
Version control is essential for reviewing workspace edits, but it is not a time machine. VS Code’s trust-and-safety guidance warns that restoring files does not reverse completed terminal commands, network requests, deployments, or changes to external services: Understand trust and safety for AI agents.
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| Event | What a workspace reset may restore | What you must handle separately |
|---|---|---|
| Edited source file | The previous file contents, if they were tracked or otherwise backed up. | Untracked copies, generated artifacts, changed permissions, and data written elsewhere. |
| Dependency or lockfile change | The previous manifest or lockfile version. | Packages already downloaded, install scripts already executed, and caches or binaries written outside the repository. |
| Local command | Usually nothing about the command’s effects. | Deleted files, modified databases, created users, changed permissions, processes left running, and secrets exposed in logs. |
| Network request | Nothing about the remote request. | Uploaded data, created records, sent messages, issued tokens, triggered webhooks, and third-party logs. |
| Deployment or migration | Only local files, not the deployed state. | Rollback through the service’s own procedures, with a record of what changed and when. |
Before allowing a command with external reach, identify the service’s audit trail and recovery procedure. If you cannot name how to revoke a token, restore a database, or undo a deployment, do not run the command with real credentials.
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Trust should be a specific decision about a specific scope, not a permanent status attached to a folder. Use this decision framework:
| Situation | Recommended posture | Reason |
|---|---|---|
| Downloaded archive or unfamiliar repository | Restricted Mode; no project tasks, agent, terminal, or unreviewed extensions. | You have not established what the project controls. |
| Source reviewed, but scripts or dependencies are unclear | Keep restricted and inspect manifests, tasks, debug settings, and extension/MCP configuration. | Execution behavior remains unknown. |
| Local experiment with no secrets | Disposable copy plus sandboxed agent, narrow file access, blocked network where possible, and approvals enabled. | The impact of a mistake is limited. |
| Project needs a package download | Permit only the required registry or artifact host, then inspect the resulting dependency and scripts. | Network and install behavior are bounded and observable. |
| Code touches production data or deployment | Do not use an exploratory agent session. Require a separately reviewed, documented release process with least-privilege credentials. | Workspace rollback cannot undo external effects. |
Trust the minimum surface that lets you complete the next verified step. A project can be trusted for reading and local tests without being trusted for deployment, database migration, or access to personal files.
8. Common failure modes and safer responses
“The terminal is disabled, so I cannot test anything.”
That is an expected Restricted Mode trade-off. Continue with static inspection, review configuration and scripts, and use a disposable environment after you understand the execution path. Do not grant trust just to remove friction.
“The agent asks for permission on every command.”
Keep the prompts while learning the project. Read each command, its working directory, arguments, redirections, and expected side effects. If the sequence is repetitive, narrow the sandbox and approval policy deliberately rather than accepting every request automatically.
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Identify the exact host, data, and operation. Prefer a local mock or fixture. If a real connection is unavoidable, allow only the required destination, use synthetic credentials or a least-privilege test account, and inspect the request and response logs.
“The generated code changed unrelated files.”
Stop and inspect the diff, untracked files, task configuration, and agent transcript. Restore only after recording what changed. Ask for a narrower task in a fresh worktree; do not merge a broad change merely because the requested feature works.
“The agent says a README or tool output told it to run a command.”
Treat that text as potentially adversarial context. Verify the instruction against the project’s documented requirements and your own plan. Files and command output can provide information, but they cannot approve privileged actions.
“I trusted the folder and now regret it.”
Revoke trust, stop running agents and terminals, disable unfamiliar extensions or MCP servers, and preserve logs and the working-tree state for review. Rotate any credential that may have been exposed. Then determine whether an external service, database, deployment, or account was changed; restoring local files is not enough.
9. Team practices that make safe execution repeatable
- Keep untrusted contributions in disposable clones or isolated worktrees until review is complete.
- Document which commands are allowed, which network destinations are required, and which files may be written for each project.
- Separate development credentials from production credentials, and grant agents neither by default.
- Require a human review of generated diffs, dependency changes, task and debug configuration, and deployment files.
- Run CI and tests with least-privilege service accounts, restricted network access, and disposable data.
- Record agent prompts, approvals, commands, outputs, and external actions for incidents and reproducibility.
- Keep extension and MCP inventories under team review; remove tools that are no longer necessary.
- Teach contributors that a green test result demonstrates only the exercised behavior, not the absence of malicious or accidental side effects.
10. A compact pre-run checklist
Before the first command, you should be able to answer “yes” to all of these:
- The project is still in Restricted Mode or in an isolated, deliberately trusted environment.
- I have read the
.vscodetasks, debug settings, workspace settings, manifests, lockfiles, and relevant scripts. - I know which extensions and MCP servers are active and why each is needed.
- The agent can access only the files and directories required for this task.
- Network access is blocked or limited to named destinations.
- Approval is required for installs, deletes, external calls, migrations, and deployments.
- No production or personal credentials are available to the process.
- I know what files and external systems the command is expected to change.
- I have a way to review the full diff and to investigate external effects separately.
If any answer is “no,” keep inspecting or reduce the scope. The safest way to run AI-generated code in VS Code is not to make the model trustworthy; it is to make the environment unable to do more than the reviewed task permits.
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