Visual Studio Code 1.121 focuses on agent workflows, model configuration, terminal behavior and built-in preview features -- and features another update to Claude Code functionality.

Microsoft has released VS Code 1.121 with remote AI agents, Mermaid rendering, HTML previews, and terminal optimizations.

VS Code 1.120 brings the Agents window to Stable preview, giving AI agent sessions and customizations a dedicated workspace.

Thanks to cloud agents, remote coding sessions can now be started from within the IDE, and the C++ code editing tools are generally available.

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Visual Studio Code 1.119 adds browser-aware AI agents, token optimization, OpenTelemetry tracing, and Markdown usability ...

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