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

Microsoft's AI Toolkit extension for VS Code now includes a Tool Catalog that can scaffold a Python or TypeScript MCP server with the core transport and registration plumbing already set up. In ...

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 1.122 with BYOK support without sign-in, mobile device emulation, and a new issue reporting ...