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.
The agent is doing the actual work, and VS Code is just a window.
Microsoft's May 2026 VS Code update makes BYOK usable in restricted environments while adding agent, browser and issue-reporting updates.
Developers can now continue VS Code chats started on other devices, and OpenAI and Anthropic models get an enlarged context window.
Visual Studio Code has switched to weekly updates, so new features and bug fixes are now arriving at a rapid pace. The new version 1.112 update is now available, with a significant upgrade for web ...
Microsoft has released VS Code 1.123 with a new Research Agent, AI session syncing, Chronicle search, browser upgrades, and ...
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