According to this page webviews can be "rendered in the sidebar or panel areas". The examples show how to render as editor panels...
vscode.window.createWebviewPanel(
'catCoding', // Identifies the type of the webview. Used internally
'Cat Coding', // Title of the panel displayed to the user
vscode.ViewColumn.One, // Editor column to show the new webview panel in.
{} // Webview options..
);
I'm trying to render the webview as an additional panel in the sidebar under explorer.
I'm assuming some kind of change to the 3rd arg vscode.ViewColumn.One?