Linux users need to add their user to the dialout group or equivalent and reboot (really reboot, for once logging out and in again is not enough). The equivalent on Arch is uucp.
Open VSC in an empty folder and hit Ctrl + Shift + P and type Create new project from Basic template. Then enter your project name.
You can now run the default program in SimServer by opening SimServer, then going to the debugging tab, selecting your project and hitting the green arrow.
You can also run the default program on Hardware by going to the MD407 Config tab (added by the extension), selecting the port under the ports section and then hitting Interactive, Compile and Load in order and then typing go in the now opened terminal. Remember to reset the MD407 between runs. MacOS requires resets between load and go.
Required packages for Linux users (bundled for Windows/Mac)
Debian based systems
Arch based systems
arm-none-eabi-gdb (needs to be aliased to gdb-multiarch or have .vscode/launch.json changed)