This video demonstrates setting up a Python virtual environment on macOS using the command `python3 -m venv venv`. The tutorial emphasizes using VS Code's integrated terminal and selecting the virtual environment's interpreter to avoid global package installations. Activating the environment via `source venv/bin/activate` is also shown, noting that this needs to be repeated after terminal restarts. This segment details the crucial steps of creating a virtual environment using the `python3 -m venv` command, explaining the naming convention and its significance for project organization and Git ignore files. It then guides viewers through selecting the correct interpreter within the VS Code environment, emphasizing the importance of switching from the global interpreter to the virtual environment's interpreter to avoid conflicts and ensure proper package installation within the isolated environment.