With a downloaded and installed version of Visual Studio Code 1.2.1, and a 64bit version of node.exe msi placed in my working directory (I am assuming that is correct), how
Do not launch the VS code from the start menu separately. Use
$Code .
command to launch VS code. Now, create your file with the extension .js and Start debugging (F5) it. It will be executed.
Otherwise, restart your system and follow the same process.