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Can I use visual studio code to create and develop c# based WPF windows applications ?
If so, what else do I need to install alongside visual studio code and how?
I want to create .net 4.7 windows apps.
Also, isn't there a plugin called PSSCRIPT to see the XAML in window ? Or am I getting it wrong ?
In regards to a plugin PSSCRIPT, that should be easy for you to find in VS Code extensions tab. For 4.7 see Supported target frameworks which has 4.7. Now here is another thought, why are you not using Microsoft Visual Studio community edition? Life is easier with what Visual Studio provides from document map to hot reloading and more which VS Code does not have. If you are an expert with XAMAL then by all means using VS Code otherwise best to go with Visual Studio.
Me, VS Code for web coding, otherwise Visual Studio or Jetbrains Rider.
Now here is another thought, why are you not using Microsoft Visual Studio community edition?
Bcoz, I want a lightweight solution, earlier there used to be sharpdevelop for developing WPF/Winforms which was extremely lightweight and didn't eat too much resources and disk space but unfortunately it has been discontinued. So, I was hoping there would be an alternative for that.
For lightweight look at Rider for $149 with XAML Preview. IMHO this is the best product even though it's not free. I use it and found it very fast and is always having new features added.
See also JetBrains Rider .NET Watch Run Configuration Plugin
Most WinForms/WPF users (many from big enterprises) are still fine with Visual Studio for Windows (the .NET Core based WinForms/WPF designers are much better), so there isn't enough push to add such support to VS Code by Microsoft. So, I don't think there is any hope for alternatives (Rider is not free and also a monster of its own).
If you are eager to get something in this field, you can write your own VS Code extension to wrap over SharpDevelop's legacy, but likely you are just a few who need that.
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If I'm not mistaken there is a way using PowerShell Pro Tools, as documented here: https://blog.ironmansoftware.com/wpf-vs-code-powershell/
Note that the extension requires a license (although it has a 14 days trial period)