The template components should be installed in the new directory that has the same name as your extension, as shown in the following code (by default, myextension if left empty):

$ cd myextension

$ ls
    README.md
    package.json
    src
    style
    tsconfig.json

From the preceding code, we can see the following:

• README.md is a markdown file that is used for information about the project and conveying installation instructions.
• package.json stores the metadata that's relevant to the extension.
• src is where the source files are stored and notably the entry point to the extension (src/index.ts).
• style holds the project's styling and layout; this can include fonts, colors, and so on.
• tsconfig.json holds the information for using TypeScript.