Microsoft has released VS Code 1.121 with remote AI agents, Mermaid rendering, HTML previews, and terminal optimizations.
VS Code 1.115 introduced a preview Agents app in VS Code Insiders. VS Code 1.116 added persistent debug logs for current and past agent sessions. Both releases expanded how agents work with terminals, ...
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.