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The latest update to Microsoft’s code editor also expands Codex support in the agent host and previews automatic cleanup of agent sessions after their pull requests merge.
VS Code update brings info on running subagents into the Agents window and previews built-in dictation and a Markdown editor agents can act on.
VS Code update also introduces assisted permissions for agent tool calls in the agent host and clickable file links in Git diff output in the terminal.
Update to the code editor also brings an editor panel to the Agents window and the ability to run terminal commands directly from chat prompts.
Multi-chat Claude sessions allow VS Code users to run multiple related conversation threads in one Claude agent session instead of separate top-level sessions.
The IDE ruled when developers did one thing at a time. Now developers need a next-generation tool to manage multiple coding agents working on multiple tasks in parallel.
June 2026 update to Visual Studio tracks Copilot usage based on token consumption rather than by request, aligning with GitHub’s new billing model.
VS Code 1.127 enhances agent session management, introduces per-site browser permissions, and makes browser tools for agents generally available.
VS Code 1.26 prevents automatic code execution for new project folders, lets users configure whether code can be executed without explicit approval.
VS Code can use LLM models other than GitHub Copilot’s built-in providers for AI-assisted development, including local and offline models, but with some limits.
A desktop app and a new collaborative work surface could boost developer productivity, but enterprises will need stronger governance and ROI metrics as AI coding costs become increasingly consumption-based, analysts say.
Extension brings Swift language support to VS Code and compatible editors including Cursor, VSCodium, Kiro, and Antigravity.
Preview of new companion app allows developers to run multiple agent sessions in parallel across multiple repos and iterate on human and agent reviews.
How AI and Data Observability Are Transforming Manufacturing
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