Microsoft has just released Visual Studio Code 1.123 ahead of its annual developer conference, Build 2026. The release focuses on deep integration of advanced AI agents and improved stability of the built-in browser. In particular, the update brings major changes to synchronization, ensuring that AI agents work seamlessly across sessions.
Microsoft has just released Visual Studio Code 1.123 ahead of its annual developer conference, Build 2026. The release focuses on deep integration of advanced AI agents and improved stability of the built-in browser. In particular, the update brings major changes to synchronization, ensuring that AI agents work seamlessly across sessions.
With this update, VS Code now supports cross-device synchronization for chat history, recently opened files, repository contexts, and related pull requests (PRs) via GitHub accounts, further tying users to the Microsoft development ecosystem. The update also introduces a new /chronicle command that allows you to query past sessions in plain language, instantly generate reports for standups, and gain insights into your personal productivity, Neowin writes .
Microsoft has also improved the way network-dependent operations work. The company explains: “If a terminal command that is run by a local agent requires access to domains that are not on the allowed list, it is automatically restarted inside the sandbox with unrestricted network access. If the command still fails after this, it is returned to running outside the sandbox. This allows network-dependent operations such as git fetch to complete while maintaining file system protection.”
Microsoft didn't stop there: in this update, the company also allowed developers to drag, drop, and dock multiple agent sessions side-by-side for convenient real-time code comparison.
Additionally, there’s a new Research Agent, which can be invoked with the /research command. It’s a read-only, optimized deep learning tool that collects data from the web, your local codebase, and GitHub to provide you with a ready-made Markdown report on complex APIs or unfamiliar code.
VS Code 1.123 introduces improved screenshot tools that allow you to take snapshots of a selected area or the entire page to instantly share interface context with AI chat. The update also touches on the address bar, which now supports bookmarking and tab management. Finally, for security reasons, this update introduces a two-hour safety delay for automatic updates of third-party extensions, which helps protect against broken or buggy releases.
This release is available now for Windows, Mac, and Linux. If you already have VS Code installed, keep an eye out for a notification when the update is available. If you're not using VS Code yet, you can download it from this link .
