diff --git a/.vscode/launch.json b/.vscode/launch.json
index 0294e27ed47..591331e9956 100644
--- a/.vscode/launch.json
+++ b/.vscode/launch.json
@@ -41,12 +41,17 @@
       "localRoot": "${workspaceFolder}/packages"
     },
     {
+      "name": "CLI: Run Current File",
       "type": "node",
       "request": "launch",
-      "name": "Launch Program",
-      "skipFiles": ["<node_internals>/**"],
       "program": "${file}",
-      "outFiles": ["${workspaceFolder}/**/*.js"]
+      "runtimeArgs": ["--import", "tsx"],
+      "cwd": "${workspaceFolder}",
+      "console": "integratedTerminal",
+      "skipFiles": ["<node_internals>/**"],
+      "env": {
+        "NODE_ENV": "development"
+      }
     },
     {
       "type": "node",
diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 84e6bc483e5..647984fd042 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -372,8 +372,8 @@ npm run lint
 2.  In VS Code, use the "Attach" launch configuration (found in
     `.vscode/launch.json`).
 
-Alternatively, you can use the "Launch Program" configuration in VS Code if you
-prefer to launch the currently open file directly, but 'F5' is generally
+Alternatively, you can use the "CLI: Run Current File" configuration in VS Code
+if you prefer to launch the currently open file directly, but 'F5' is generally
 recommended.
 
 To hit a breakpoint inside the sandbox container run: