Microsoft released Visual Studio Code 1.123 on June 3, adding agent-focused features, larger model context support, integrated browser updates and a new delay for some automatic extension updates.
VS Code agents are now in Stable preview, and the 1.122 update removed the GitHub OAuth requirement from BYOK, letting defense, healthcare, and finance developers run fully air-gapped AI-assisted ...
The agent is doing the actual work, and VS Code is just a window.
VS Code 1.121 was released May 20, 2026, featuring yet another update to Claude Code, becoming more and more a first-class citizen in the VS Code ecosystem. Remote agents can run over SSH or dev ...