Code cells from Python scripts by default will still be executed in a same interactive window, but developers can now configure the Python extension to run separate files in separate interactive ...

The popular Python for VS Code extension now has almost 15 million installs from Microsoft's VS Code extension marketplace, making it by far the most popular extension distributed on the site.

VS Code supports code highlighting for Python without this extension. However, if you will be working with Python, you should install this extension.