Visual Studio Code 1.120 has been released, moving the Agents window into stable status and enhancing session management and remote execution capabilities. The update improves token tracking for Bring Your Own Key models and introduces AI risk badges for terminal commands, as well as automatic output compression to optimize context window usage. Additionally, a new Markdown diff renderer is included, providing a more user-friendly experience when reviewing changes, while older preview features have been retired to streamline the interface. Extension developers will benefit from new APIs that enable better customization and integration of diff interfaces, making it easier to create tailored editing experiences
Visual Studio Code 1.120.0 released
Visual Studio Code 1.120 moves the Agents window into stable release with tighter session management and remote execution support. Bring Your Own Key models finally display accurate token counts and let developers adjust thinking effort directly from the chat interface. Terminal workflows get practical upgrades including AI risk badges for commands and automatic output compression that saves precious context window space. The update also ships a proper Markdown diff renderer, drops outdated preview behaviors, and introduces new APIs to help extension authors build cleaner custom editors.
