Difference between User and System Installer of Visual Studio Code

I installed the user version side-by-side with the system version with no problems. The basic differences between the two is that the system version installs on the file system like every other app. The user install is basically a click-once (or web installer) version that installs in the User folder of the machine.

The settings made to VS Code in the system version save for Everybody on the computer and the user version the settings are only for the user. I find that the behavior of the user version is a bit annoying for me because I have reasons to want to open multiple copies of VS Code at the same time and the user version only allows one instance. Otherwise, there's not really anything different between the two as far as I can tell.

User setup for Windows

Announced last release, the user setup package for Windows is now available on stable. Installing the user setup does not require Administrator privileges as the location will be under your user Local AppData (LOCALAPPDATA) folder. User setup also provides a smoother background update experience.

Download User Setup

If you are a current user of the system-wide Windows setup, you will be prompted to install user setup, which we recommend using from now on. Don't worry, all your settings and extensions will be kept during the transition. During installation, you will also be prompted to uninstall the system-wide setup.

Reference: https://code.visualstudio.com/updates/v1_26#_user-setup-for-windows