A profile configured that meets the below requirements
Once you have installed the extension, you should go to your VS Code preferences (hit F1 then enter "Preferences: Open Settings (UI)" -> Extensions -> AWS CloudShell Configuration) and specify your region and one or both of profile and/or assumeRole. Once the settings are updated, you may click the sidebar icon and then the "Start Session" (+) button.
Currently, you MUST either use a profile with a session token attached to it, or use the assumeRole property to assume a role with the necessary permissions. Alternatives may be provided in a future release.
Settings
Here is the list of all settings you can set within this extension:
Setting
Description
awscloudshell.profile
The profile name (usually as specified in ~/.aws/credentials)
awscloudshell.region
The AWS region to connect to
awscloudshell.assumeRole
The role ARN to assume
awscloudshell.enableUpload
Whether to enable an upload menu item from the Explorer view (experimental)