Yes you have to setup SCSS to be able to use it. What you do is transpile the SCSS files into CSS, so the browser can understand it.
Take a look at the VS Code documentation, specifically, the section that explains how to transpile SCSS into CSS.
An easy option is to use the Live Sass Compiler extension.
You have to put the SCSS in a separate file and link to the compiled CSS in the HTML. As an added bonus you also get the Live Server extension installed at the same time because it is a dependency.
unfortunately, I seem to have missed something. I have installed both Live Sass and Live Server but the page is not displaying the SCSS. I have also linked to the css folder as described in the video…still not working. Just displaying the html.