Visual Studio Code 1.139.1 was released on September 25, 2026, as a patch to address issues with managed settings that were previously dropped during server refresh failures. The main fix prevents enterprise policy controls from disappearing when a refresh fails, ensuring that restrictions remain in effect even during issues such as 401 or 403 errors. Although the release includes general housekeeping tasks, the significant change stabilizes managed settings for organizations that enforce policies, notably improving Copilot telemetry configuration. Overall, while the patch may seem minor, it effectively resolves a critical issue without disrupting other features introduced in the previous version
Visual Studio Code 1.139.1 Release Fix: Managed Settings No Longer Drop on Refresh Failure
VS Code 1.139.1 shipped on September 25, 2026 as a patch release, so the remote agent sessions and faster session lists you may have seen advertised had already arrived in 1.139. Only one of its four commits changes product behavior, fixing how managed settings behave when a server refresh fails. Before the patch, a failed refresh silently dropped enterprise policy controls for as long as the gap lasted, leaving restrictions quietly lifted every hour. The remaining three commits are release housekeeping: a version bump, a merge, and a skip for a flaky Linux test whose real fix sits on main.
