diff --git a/.devcontainer/03-azure-01-04-ai-03-inventory-planning-agentic/devcontainer.json b/.devcontainer/03-azure-01-04-ai-03-inventory-planning-agentic/devcontainer.json
index 71d4fe68d..06d4c0828 100644
--- a/.devcontainer/03-azure-01-04-ai-03-inventory-planning-agentic/devcontainer.json
+++ b/.devcontainer/03-azure-01-04-ai-03-inventory-planning-agentic/devcontainer.json
@@ -29,7 +29,30 @@
       "settings": {
         "terminal.integrated.defaultProfile.linux": "bash",
         "python.defaultInterpreterPath": "${containerWorkspaceFolder}/src/.venv/bin/python",
-        "python.terminal.activateEnvironment": true
+        "python.terminal.activateEnvironment": true,
+        // Scope Pylance to the hack's code so it never indexes the whole repo or the venv
+        // (avoids the "large number of source files" prompt). Relative to the open folder.
+        "python.analysis.include": ["src"],
+        "python.analysis.exclude": ["**/.venv", "**/node_modules", "**/__pycache__", "**/.*"],
+        // Hide facilitator/authoring/container folders from attendees in the Explorer (container only;
+        // local VS Code windows are unaffected). VS Code defaults are repeated because this
+        // object replaces them.
+        "files.exclude": {
+          "**/.git": true,
+          "**/.svn": true,
+          "**/.hg": true,
+          "**/.DS_Store": true,
+          "**/Thumbs.db": true,
+          "labautomation": true,
+          ".github": true,
+          "docs": true,
+          ".devcontainer": true
+        },
+        // Open Markdown (README, challenges) rendered by default in the container.
+        // To edit one: right-click the tab > Reopen Editor With... > Text Editor.
+        "workbench.editorAssociations": {
+          "*.md": "vscode.markdown.preview.editor"
+        }
       }
     }
   },
diff --git a/03-Azure/01-04-AI/03_Inventory_Planning_Agentic/.devcontainer/devcontainer.json b/03-Azure/01-04-AI/03_Inventory_Planning_Agentic/.devcontainer/devcontainer.json
index 528c4606c..56564744e 100644
--- a/03-Azure/01-04-AI/03_Inventory_Planning_Agentic/.devcontainer/devcontainer.json
+++ b/03-Azure/01-04-AI/03_Inventory_Planning_Agentic/.devcontainer/devcontainer.json
@@ -34,7 +34,23 @@
       ],
       "settings": {
         "python.defaultInterpreterPath": "${containerWorkspaceFolder}/src/.venv/bin/python",
-        "python.terminal.activateEnvironment": true
+        "python.terminal.activateEnvironment": true,
+        "python.analysis.include": ["src"],
+        "python.analysis.exclude": ["**/.venv", "**/node_modules", "**/__pycache__", "**/.*"],
+        "files.exclude": {
+          "**/.git": true,
+          "**/.svn": true,
+          "**/.hg": true,
+          "**/.DS_Store": true,
+          "**/Thumbs.db": true,
+          "labautomation": true,
+          ".github": true,
+          "docs": true,
+          ".devcontainer": true
+        },
+        "workbench.editorAssociations": {
+          "*.md": "vscode.markdown.preview.editor"
+        }
       }
     }
   },
diff --git a/03-Azure/01-04-AI/03_Inventory_Planning_Agentic/challenges/challenge-01.md b/03-Azure/01-04-AI/03_Inventory_Planning_Agentic/challenges/challenge-01.md
index cc935dd2c..c725a4abf 100644
--- a/03-Azure/01-04-AI/03_Inventory_Planning_Agentic/challenges/challenge-01.md
+++ b/03-Azure/01-04-AI/03_Inventory_Planning_Agentic/challenges/challenge-01.md
@@ -87,12 +87,23 @@ subscription, resource group, GitHub organization, and repository.
    ![Create a GitHub Codespace with options](../images/setup-github-codespaces.png)
 
 2. Set **Dev container configuration** to
-   **Azure / AI / Inventory Planning Agentic**, keep the **2-core** machine type, and
-   select **Create codespace**.
+   **Azure / AI / Inventory Planning Agentic** (scroll the list — configurations are
+   grouped by MicroHack area).
+
+   ![Dev container configuration list with Azure / AI / Inventory Planning Agentic highlighted](../images/setup-dev-container-list.png)
+
+   Keep the **2-core** machine type and select **Create codespace**.
+
+   ![Create codespace with the Azure / AI / Inventory Planning Agentic configuration selected](../images/setup-select-dev-container.png)
+
 3. GitHub opens the Codespace in a new tab. The first build takes a few minutes: the
    container installs Python 3.12, `uv`, the Azure CLI, and `azd`, then
    `.devcontainer/post-create.sh` runs `uv sync` and seeds `src/.env`. The Explorer
-   opens directly on the `03_Inventory_Planning_Agentic` folder.
+   opens directly on the `03_Inventory_Planning_Agentic` folder, the README opens as a
+   rendered preview, and new terminals start in the project's Python environment
+   (`(agentic-inventory-hack)` in the prompt):
+
+   ![Codespace ready: Explorer on the 03_Inventory_Planning_Agentic folder, README rendered, terminal in the agentic-inventory-hack environment](../images/setup-codespace-ready.png)
 
    > [!IMPORTANT]
    > When VS Code asks whether to open the git repository found in the parent folders,
@@ -100,6 +111,13 @@ subscription, resource group, GitHub organization, and repository.
    >
    > ![Select Never when asked to open the repository](../images/setup-never-open-repository.png)
 
+   > [!IMPORTANT]
+   > If VS Code asks **Do you trust the authors of the files in this folder?** (for
+   > example when you open a terminal), select **Trust Folder & Continue** — otherwise
+   > the terminal and the Python extension stay in Restricted Mode.
+   >
+   > ![Select Trust Folder & Continue in the workspace trust dialog](../images/setup-trust-folder.png)
+
 **Option 2 — Local VS Code Dev Containers**
 
 Prerequisites: [Docker Desktop](https://www.docker.com/products/docker-desktop/) (running)
diff --git a/03-Azure/01-04-AI/03_Inventory_Planning_Agentic/images/README.md b/03-Azure/01-04-AI/03_Inventory_Planning_Agentic/images/README.md
index e44eb7942..11769e9fc 100644
--- a/03-Azure/01-04-AI/03_Inventory_Planning_Agentic/images/README.md
+++ b/03-Azure/01-04-AI/03_Inventory_Planning_Agentic/images/README.md
@@ -32,4 +32,8 @@ The `setup-*.png` files illustrate the generic MicroHack lab sign-in and Codespa
 flow: Azure portal sign-in and resource
 groups, GitHub sign-in via the identity provider, the lab organization, forking the
 `microhack` repository under a unique name, **Code → Codespaces → New with options**,
+selecting the **Azure / AI / Inventory Planning Agentic** dev container
+(`setup-dev-container-list.png`, `setup-select-dev-container.png`), the ready
+Codespace (`setup-codespace-ready.png`), the workspace trust dialog
+(`setup-trust-folder.png`),
 and the *Never* answer to VS Code's "open the parent repository" prompt.
diff --git a/03-Azure/01-04-AI/03_Inventory_Planning_Agentic/images/setup-codespace-ready.png b/03-Azure/01-04-AI/03_Inventory_Planning_Agentic/images/setup-codespace-ready.png
new file mode 100644
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diff --git a/03-Azure/01-04-AI/03_Inventory_Planning_Agentic/images/setup-dev-container-list.png b/03-Azure/01-04-AI/03_Inventory_Planning_Agentic/images/setup-dev-container-list.png
new file mode 100644
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diff --git a/03-Azure/01-04-AI/03_Inventory_Planning_Agentic/images/setup-select-dev-container.png b/03-Azure/01-04-AI/03_Inventory_Planning_Agentic/images/setup-select-dev-container.png
new file mode 100644
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diff --git a/03-Azure/01-04-AI/03_Inventory_Planning_Agentic/images/setup-trust-folder.png b/03-Azure/01-04-AI/03_Inventory_Planning_Agentic/images/setup-trust-folder.png
new file mode 100644
index 000000000..1c5c81026
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