chore: update README.md

examples/vscode-playground/README.md

@@ -1,5 +1,7 @@
 # Pygls Playground
 
+![Screenshot of the vscode-playground extension in action](https://user-images.githubusercontent.com/2675694/260591942-b7001a7b-3081-439d-b702-5f8a489856db.png)
+
 This VSCode extension aims to serve two purposes.
 
 - Provide an environment in which you can easily experiment with the pygls framework by trying some of our example servers - or by writing your own
@@ -43,5 +45,19 @@ Open terminal in the same directory as this file and execute following commands:
 ### Run Extension
 
 1. Open this directory in VS Code
-1. Open debug view (`ctrl + shift + D`)
-1. Select `Launch Client` and press `F5`
+
+1. The playground relies on the [Python extension for VSCode](https://marketplace.visualstudio.com/items?itemName=ms-python.python) for choosing the appropriate Python environment in which to run the example language servers.
+   If you haven't already, you will need to install it and reload the window.
+
+1. Open the Run and Debug view (`ctrl + shift + D`)
+
+1. Select `Launch Client` and press `F5`, this will open a second VSCode window with the `vscode-playground` extension enabled.
+
+1. You will need to make sure that VSCode ia using a virtual environment that contains an installation of `pygls`. 
+   The `Python: Select Interpreter` command can be used to pick the correct one
+
+   If you see a window like the following
+
+   ![Screenshot of the VSCode workspace folder selection dialog](https://user-images.githubusercontent.com/2675694/262779751-367c568e-37d7-490a-b83e-910da1596298.png)
+
+   be sure to select the one corresponding with the `pygls/examples/workspace` folder.