VS Code has introduced local port forwarding, allowing developers to make their locally running applications accessible to the public internet, making it easier to test webhooks from services like Twilio. To use this feature, developers need VS Code installed, a free Twilio account, and a GitHub account. They can then forward a specific port of their application to the internet using VS Code's command palette. The forwarded address is made publicly available by default, but this must be changed to allow it to be accessed through webhooks from services like Twilio. Once set up, developers can test their applications with a Twilio number and interact with them in real-time. This feature provides an easy-to-use solution for testing webhooks without requiring additional software or accounts.