Step 1- Tap on this devices section (bottom right section of vs code).
Step 2- Tap Here (top center section).
Step 3- If this error pops expand error (bottom right section).
Step 4- Copy command of suitable system image from here.
Step 5- Run the copied command in terminal or cmd. (Make sure sdkmanager path is set in environment variables for windows). It will take some time depending on internet speed.
Step 6- Try step 1
Step 7- Try step 2 this time no error should pop up.
Step 8- It will start creating emulator.
Step 9- New Emulator will appear in list of devices in VS Code. Just Tap to start.
Step 10- If still fails to launch. check virtualization status from Task Manager > Performance > CPU. Virtualization must be enabled unlike this.
Step 11- If virtualization is disabled (1)shut down pc, (2) go to BIOS setup of your pc, (3) enable virtualization, (4) save and start pc. Emulator will run this time.