If you have not installed .NET SDK and Runtime when installing Visual Studio IDE, everything will break from here on.
You need to go into Visual Code Installer → Modify → Individual components and select .NET Framework 4.8SDK and .NET Core 3.1 Runtime (LTS) to be able to create C++ files.
For more advanced users, feel free from downloading installer and downloading separate packages yourselves.
Update - After creating the file, you might fail building the project. Navigate to paths specified in log and change version from 1.2 to 1.0