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I have the following app.yaml + file structure:
css files keep giving me 404:
I have tried different file structures and both static_dir and static_files in the app.yaml, nothing works...
ideas?

Based on the current file structure and your app.yaml config, your css files will have to be referenced in html relative to the url handler you defined: like /css/static.css.
With that covered, the static_dir has to be defined properly and relative to the location of your app.yaml, should be code/public/css and not /code/public/css. Note the leading slash you put there
handlers:
- url: /css
static_dir: code/public/css
If you want the full path though in your html, your config file will have to be tweaked slightly:
handlers:
- url: /code/public/css
static_dir: code/public/css