Visual Studio Code 1.129 Overhauls AI Architecture with New Agent Host and Redesigned Agents Panel

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Visual Studio Code 1.129 introduces a significant overhaul of its AI architecture by shifting agent sessions to a dedicated background process, enhancing stability and preventing crashes from affecting the entire editor. The release features a redesigned Agents window with integrated output and diff views, along with the ability to execute terminal commands directly from the chat interface. Additionally, the update supports Bring Your Own Key (BYOK) models for Copilot, improving flexibility for organizations that prefer their own API keys. While the stable build is now available across all platforms, users may encounter configuration challenges as they navigate the new features and tools still in development



Visual Studio Code 1.129 Overhauls AI Architecture with New Agent Host and Redesigned Agents Panel

Visual Studio Code 1.129 shifts AI agent sessions to a dedicated background process, which stops model crashes from taking down your entire editor. The release also debuts a redesigned Agents window with a docked diff panel, adds ! terminal command execution in chat, and finally brings BYOK model support to the Copilot harness. Microsoft is quietly previewing a modernized workbench in Insiders while extending GitHub Enterprise Copilot sign-in through the new architecture. The stable build drops today across all platforms, though the underlying agent host and prompt migration tools still need a bit of real-world polishing.

Visual Studio Code 1.129 Overhauls AI Architecture with New Agent Host and Redesigned Agents Panel @ NT Compatible