How to properly run Rust applications using the Visual Studio Code runner plugin?

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Full disclosure: complete newbie to rust and vscode here and maybe I am asking the obvious.

Problem: I have a Rust application that runs properly with vscode if I use the "run" option above the main function, but when I try to use Ctrl-Alt-N with vscoderunner extension the console will see a ton of complaints about missing cargo crates. Example: enter image description here

The way I solved it is to change the command in vscode settings file from rustc to cargo run but this feels like something that should be native. Also fiddling with the default settings file really leaves a bad taste in my mouth and I think I am missing something obvious... am I?

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