Microsoft Launches VS Code 1.124, Now Powered by Smarter AI Agents

Microsoft has unveiled Visual Studio Code 1.124, a release that prioritizes swifter agent workflows and heightened autonomous capabilities for developers.

In a significant shift, the new version activates Autopilot by default. This chat‑based permission tier empowers agents to act independently, eliminating the need for explicit user approval on every single action.

Complementing Autopilot, the update introduces Advanced Autopilot, a refined decision engine that determines when an agent should continue iterating or conclude a task. Leveraging a lightweight utility model that scans chat transcripts, it delivers more comprehensive results without the developer having to monitor loops manually.

Another notable addition is the Agents window, a dashboard that lets users effortlessly browse, tweak, and review agent sessions across multiple projects and machines. Previously, initiating a new session required waiting for it to load before composing the next one; the new background request capability dramatically improves workflow efficiency.

With the latest VS Code release, developers can now switch between sessions with unprecedented speed, thanks to streamlined navigation tools that keep your workflow fluid and uninterrupted.

The update also fixes a long‑standing annoyance: the Agents window will no longer reset its layout when you reload or reopen it, so you’ll always return to the exact configuration you left it in.

Integrated browser users will notice a host of new conveniences. The browser now preserves your browsing history, offers intelligent URL suggestions as you type, and lets you manage those suggestions with a simple Ctrl+H shortcut. Customization is easier than ever—right‑click the toolbar area beside the URL bar to tweak the controls to your liking. Plus, the text‑entry experience has been accelerated, making agentic interactions smoother.

Another significant enhancement introduces experimental enterprise‑managed Copilot plugin policies, empowering IT administrators to centrally dictate which chat plugins and marketplaces developers can access.

If you already have VS Code installed, version 1.124 will update automatically—or you’ll receive a prompt to install it. New users can download the latest build from the official website.