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 used Build 2026 to position Windows as a platform for building and running AI agents, expanding its developer focus beyond AI-assisted apps and into agents that can act across local devices, ...
A VS Code exploit for github.dev can steal GitHub OAuth tokens after one malicious link, exposing private repositories while teams await a patch.