vscode-extension-samples/multi-diagnostics-sample/.vscode/settings.json

// Place your settings in this file to overwrite default and user settings.
{
    "files.exclude": {
        "out": false // set this to true to hide the "out" folder with the compiled JS files
    },
    "search.exclude": {
        "out": true // set this to false to include "out" folder in search results
    }
}