You need to use the Jupyter extension. Then you can use a notebook or interactive window to run IPython code, including magics as well as shell commands.

You can also keep your IPython code in a script and run it in an interactive window with the Jupyter extension, but it'll still be flagged as invalid syntax by the linter, so to avoid that, you can enable the setting magicCommandsAsComments "Uncomment shell assignments (#!), line magic (#!%) and cell magic (#!%%) when parsing code cells", for example:

Copy# %%
# ! %cd
# ! %pwd

# %%
import time

# %%
# ! %%timeit
time.sleep(1)

# %%
# ! echo hello world!

• Note: # %% is the cell delimiter