Microsoft has released Visual Studio Code 1.132, solidifying its transition from a simple code editor to an AI agent orchestration platform with four key features. The update introduces the Agent Host architecture for running AI models like Copilot and Claude in isolated processes, and includes a new side chat command for contextual conversations without losing context. Additionally, on-device multilingual dictation now utilizes the Nemotron 3.5 model, ensuring audio data remains local, and element-level browser annotations enhance debugging by allowing direct commenting on web page elements. The release also addresses various performance issues with memory leaks and marks the Python Environments extension reaching full rollout, all while emphasizing a shift toward AI workflow integration within the editor
Visual Studio Code 1.132 Ships: Agent Host, Browser Annotations, and On-Device Dictation
Microsoft has released Visual Studio Code 1.132, doubling down on its transformation from a code editor into an AI agent orchestration platform with four headline features. The update brings the long-awaited Agent Host architecture to a smoother stable rollout, allowing Copilot, Claude, and Codex to run in isolated processes while /btw side chats and element-level browser annotations redefine how developers interact with AI workflows. On-device multilingual dictation now leverages Microsoft's open-source Nemotron 3.5 model, keeping audio data local and adapting to shell syntax in real time. Meanwhile, seven community pull requests address persistent memory leaks, and the Python Environments extension finally reaches 100% default rollout.
