Microsoft's May 2026 VS Code update makes BYOK usable in restricted environments while adding agent, browser and issue-reporting updates.

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

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Business and enterprise users can now connect their own API keys to use LLMs via OpenRouter, Ollama, Google, OpenAI, and more in VS Code Chat. Visual Studio Code 1.117 is available for download. The ...