Install the extension from the Visual Studio Code Marketplace.
Open the command palette (Cmd/Ctrl + Shift + P) and run Preferences: File Icon Theme.
Pick Squirrelppuccin Icons Light.
Updating icons from upstream
The SVG icons and the file/folder association map are generated from the upstream catppuccin/vscode-icons project. To regenerate them, run from the repository root:
npm run prepare-vscode-icons
The script downloads the upstream main branch, dynamically imports its file/folder mapping definitions, and recolors each SVG using the Squirrelsong Light palette.