Microsoft has released VS Code 1.121 with remote AI agents, Mermaid rendering, HTML previews, and terminal optimizations.
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.
VS Code set a bar others haven't cleared.
VS Code 1.120 brings the Agents window to Stable preview, giving AI agent sessions and customizations a dedicated workspace.
The Copilot Studio extension lets developers use any VS Code-compatible AI assistant to develop AI agents, then sync with Copilot Studio for testing and iteration. Microsoft is offering a Microsoft ...