docs(vscode): improve contribution docs for VSCode Extension

src/docs/contribute/vscode.md

@@ -7,11 +7,59 @@ outline: deep
 
 ## Development
 
-Build the extension and run it inside vscode:
-
-1. `pnpm install`
-2. `pnpm --filter './editors/*' build`
-3. open vscode and run the command palette (ctrl-shift-p) "Extensions: Install from VSIX..."
-4. open `./editors/vscode/oxc_language_server.vsix`
-5. open a `.js` / `.ts` file, add `debugger;` and save
-6. see the warning `eslint(no-debugger): debugger statement is not allowed - oxc`
+Make sure you setup the `oxc` project with `just init`. Some tools are required for that.
+More information inside the `justfile` located on the root `oxc` project.
+
+After `just init` run `pnpm install` inside `editors/vscode` directory.
+
+## Building Extension and Installing it locally
+
+Inside `editors/vscode` run `pnpm build` to compile the vscode extension and build the release version of the language server.
+Run `pnpm install-extension` to install it on your VSCode Editor.
+Hit `CTRL` + `SHIFT` + `P` and the search for "Developer: Reload Window".
+You are able now to manual test your changes inside VSCode.
+
+### Building Debug Version of Server
+
+Running `pnpm build` will build the release version of the server, This can take some time.
+If you want faster feedback use the follow flow:
+
+```bash
+pnpm compile # transform TS Code
+pnpm server:build:debug # build the debug version of the language server
+pnpm package # package it as VSCode Extension
+pnpm install-extension
+```
+
+Make sure to tell the VSCode Extension to use the debug build with the env variable:
+`SERVER_PATH_DEV="/workspace/editors/vscode/target/debug/oxc_language_server"`.
+
+Or use the Extension Settings with `settings.json`:
+
+```json
+{
+  "oxc.path.server": "./editors/vscode/target/debug/oxc_language_server"
+}
+```
+
+For Windows, the `oxc_language_server` will be provided with a `exe` extension.
+
+### Use the Output Channel
+
+To understand what the Extension and the Language Server is doing, you can use the `Oxc` Output Channel inside VSCode.
+The get more information use the Extension Setting inside `settings.json`:
+
+```json
+{
+  "oxc.trace.server": "verbose"
+}
+```
+
+On `oxc_language_server` you can use the `info!` or `error!` macro to send messages to the output channel.
+
+### Writing a Test
+
+Depending on the changes, you should create a Test for it.
+Tests on the `oxc_language_server` will make sure the (Server)Linter works as expected.
+Write Tests in `vscode` when you want to test changing behavior.
+Example: expecting a lint fix to be applied, when executing a command or code action.