How to Display VS Code output window to side rather than below
as of version 1.51.1 right click in the right corner on the output panel. then select option 'move panel right'
This feature is not available yet in VS Code. However as of today (March 30, 2017) it's on 6 months roadmap so it should be done in a near feature.
I don't believe you can detach/move the output windows in Visual Studio Code. You can move the side bar to the left/right side, but that's it. There is no config option, sorry.
You could try posting a feature request on the GitHub page: https://github.com/Microsoft/vscode
EDIT: This was changed in VS Code 0.10.8, it was once on the side but was moved to the bottom. See this GitHub issue: https://github.com/Microsoft/vscode/issues/2806
This feature is available from version 1.18.0+
Simply click this icon to dock to the right: