What is the difference between .vscode/settings.json and .code-workspace

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could you please explain me what is the difference between .vscode/settings.json and [project_name].code-workspace?

I assume I can save setting for the specific project/workspace there. When I create a new workspace, file [project_name].code-workspace is automatically created and I can define project specific settings in there.

But what is then the difference to .vscode/settings.json and how can I use that? If I create that manually in a workspace, it just does not seem to work and settings inside are not applied.

Thank you

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