env vars docs update

Author: sungchun12

docs/guides/vscode.md

@@ -55,7 +55,7 @@ If you are using Tobiko Cloud, the `tcloud` library will install SQLMesh for you
 First, follow the [Python setup](#python-setup) steps above to create and activate a Python environment. Next, install `tcloud`:
 
 ```bash
-pip install tcloud
+pip install tcloud # always make sure to install the latest version of tcloud
 ```
 
 Finally, add the `lsp` extra to your `tcloud.yml` configuration file, as described [here](../cloud/tcloud_getting_started.md#connect-tobiko-cloud-to-data-warehouse).
@@ -155,11 +155,32 @@ The VSCode extension is based on a [language server](https://en.wikipedia.org/wi
 
 If you have environment variables that are needed by the context and the language server, you can use one of these approaches to pass variables to the language server:
 
-- Open VSCode from a terminal that has the variables set
-- Use environment variables pulled from somewhere else dynamically (e.g. a `.env` file) in your config 
+- Open VSCode from a terminal that has the variables set (e.g. `.zshrc` or `.bashrc`). This will automatically be picked up by the language server only if you have `export ENV_VAR=value` in your shell configuration file when initializing the terminal.
+- Use environment variables pulled from somewhere else dynamically (e.g. a `.env` file) in your root project directory. This will automatically be picked up by the language server.
 - Set the environment variables in the python environment that the extension uses. You can find detailed instructions [here](https://code.visualstudio.com/docs/python/environments#_environment-variables)
 
-### Python environment woes
+#### Troubleshooting Environment Variables
+
+You can verify that the environment variables are being passed to the language server by printing them in your terminal. 
+
+1. `Cmd +Shift + P` (`Ctrl + Shift + P` in case of Windows) to start the VSCode command bar
+   ![print_env_vars](./vscode/print_env_vars.png)
+2. Select the option: `SQLMesh: Print Environment Variables`
+3. You should see the environment variables printed in the terminal.
+   ![terminal_env_vars](./vscode/terminal_env_vars.png)
+
+If you change your environment variables in the terminal during development(e.g. `export DATABASE_PASSWORD='XYZ'`), you must restart the language server for the changes to take effect. You can do this by running the following command in the terminal:
+
+1. `Cmd +Shift + P` (`Ctrl + Shift + P` in case of Windows) to start the VSCode command bar
+2. Select the option: `SQLMesh: Restart Servers`
+   ![restart_servers](./vscode/restart_servers.png)
+   ![loaded](./vscode/loaded.png)
+
+   > This loaded message will appear in the lower left corner of the VSCode window.
+
+3. Print the environment variables based on the instructions above to verify the changes have taken effect.
+
+### Python environment troubleshooting
 
 The most common problem is the extension not using the correct Python interpreter.