Just installed Visual Studio Code 1.1.1 on a Windows 7 machine. When I right-click on a folder, \"Open With Code\" does not appear.
Paste the code below and save with .reg extension
Windows Registry Editor Version 5.00 ; Open files
[HKEY_CURRENT_USER\Software\Classes\*\shell\Open with VS Code] @="Edit with VS Code"
"Icon"="C:\Users\hp\AppData\Local\Programs\Microsoft VS Code\Code.exe,0"
[HKEY_CURRENT_USER\Software\Classes\*\shell\Open with VS Code\command]
@="\"C:\Users\hp\AppData\Local\Programs\Microsoft VS Code\Code.exe" \"%1\""
; This will make it appear when you right click ON a folder
; The "Icon" line can be removed if you don't want the icon to appear
[HKEY_CURRENT_USER\Software\Classes\Directory\shell\vscode]
@="Open Folder as VS Code Project"
"Icon"="\"C:\Users\hp\AppData\Local\Programs\Microsoft VS Code\Code.exe",0"
[HKEY_CURRENT_USER\Software\Classes\Directory\shell\vscode\command]
@="\"C:\Users\hp\AppData\Local\Programs\Microsoft VS Code\Code.exe" \"%1\""
; This will make it appear when you right click INSIDE a folder ; The "Icon" line can be removed if you don't want the icon to appear
[HKEY_CURRENT_USER\Software\Classes\Directory\Background\shell\vscode]
@="Open Folder as VS Code Project"
"Icon"="\"C:\Users\hp\AppData\Local\Programs\Microsoft VS Code\Code.exe",0
[HKEY_CURRENT_USER\Software\Classes\Directory\Background\shell\vscode\command]
@="\"C:\Users\hp\AppData\Local\Programs\Microsoft VS Code\Code.exe" \"%V\""
Then press the Windows key, locate Visual Studio Code, then right click and open file the location:

Right click and click Properties, then copy the file path.

Open regedit:

For each of the following, double click on the icon, and paste the file path you copied from above:
[HKEY_CURRENT_USER\Software\Classes\*\shell\Open with VS Code]
[HKEY_CURRENT_USER\Software\Classes\*\shell\Open with VS Code\command]
[HKEY_CURRENT_USER\Software\Classes\Directory\shell\vscode]
[HKEY_CURRENT_USER\Software\Classes\Directory\shell\vscode\command]
[HKEY_CURRENT_USER\Software\Classes\Directory\Background\shell\vscode]
[HKEY_CURRENT_USER\Software\Classes\Directory\Background\shell\vscode\command]
