I had a little trouble getting the plugin to work. Since I am new to VSCode as well, this is not necessarily a problem with vscode-hie-server per se, though.
After playing around with the editor, I came to the conclusion that not only do you have to be inside a stack or cabal project directory, but the directory has to be added to a VSCode Workspace as well. Only then will hie-related stuff happen, including output showing up in the console.
Is this assumption correct? Should this be documented more clearly?