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In this tutorial, Sarah explains how to set up Prettier in Visual Studio Code. She emphasizes that having VS Code installed is essential. The first step involves accessing the Extensions tab and searching for "Prettier" to install it. Once installed, users need to configure Prettier by opening the JSON configuration file. This can be done by pressing F1 and selecting "Open User Settings (JSON)." Users may find the file empty or pre-populated with other settings. Sarah instructs to add a comma and then set Prettier as the default formatter. The tutorial also covers adjusting indentation spaces and removing semicolons from JavaScript code.