Install the official Microsoft Python.
VS Code is preconfigured via .vscode/settings.json to automatically format the file with black and isort on every file save.
It will also show you linting errors with flake8, type errors with mypy and `p
VS Code will automatically detect the virtual environment. But it's also possible to set it manually with Ctrl + P, "Python: Select Interpreter", and choosing the path to the Python binary in the new virtual environment.