"Debugging Language Service in VS Code" documentation is weird

The "Debugging Language Service in VS Code" wiki is vague and sometimes confusing.

Update your user settings to use your development version of typescript, located in the .../TypeScript/built/local directory. The corresponding setting/path is

{
  "typescript.tsdk": "/path/to/repo/TypeScript/built/local"
}

User settings are stored per folder and it's not clear which folder should be used. Both typescript and vscode have been downloaded. There have been no instructions to open either version of code yet.

Debugging tsserver (server-side)
...
2. Update launch.json with an option to attach to the node instance, with sourcemaps from your built/local folder.

Again, which launch.json is being spoken about?

3. Launch an instance of development vs code, and open a ts file.
4. Launch an instance of stable vs code.
5. Attach the stable vs code instance to the development instance.

Wouldn't it be easier to open an instance of code, change the launch.json and then open a .ts file or attach to the other instance?

It would be helpful to list the steps in order and with more detail, perhaps with an example path so that it's clear which instance of code is being opened, which folder said instance is opening (if any) and which files are being edited.

Given that there aren't too many steps, it should be quite reasonable to list all steps for each debugging excercise.