Microsoft has released Visual Studio Code 1.140.0, which integrates AI agents into the editor, transforming it into a control panel for AI functionalities like opening files and running terminals. A standout feature of this release is HydraFusion, which orchestrates multiple AI models to draft and critique code, aiming to improve efficiency and reduce costs. The Copilot agent has been upgraded to operate independently in a dedicated Agent Host, allowing for a more seamless and portable user experience across sessions. Additionally, the update includes enhanced controls for IT teams, enabling better management of AI features and telemetry data within organizations

Visual Studio Code 1.140 Ships With AI Agents Front and Center

Microsoft released Visual Studio Code 1.140.0 today, folding the Copilot agent harness into a first-class role that runs on the persistent Agent Host for portable, window-independent sessions. The release's most ambitious feature is HydraFusion, a research preview that orchestrates multiple AI models to draft, critique, and revise code while cutting estimated costs compared to a Claude Opus 5 baseline. 

Visual Studio Code 1.140 Ships With AI Agents Front and Center @ NT Compatible