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Today, we explore painting inside VS Code with an extension called Lunapane. This image editor created by Daniel Iams is still in preview but supports editing PNG, BMP, JPEG, and ICO images. Despite some missing features in this early stage, Lunapane uses WebGL for performance, offers layers with blending modes, and includes standard tools like pen, eraser, and zoom. It also supports hot exit for unsaved changes. Keep in mind that ICO support is read-only for now, with editing capabilities coming soon. The extension is actively developed, so expect occasional bugs and missing features.