Microsoft's May 2026 VS Code update makes BYOK usable in restricted environments while adding agent, browser and issue-reporting updates.

Visual Studio Code has switched to weekly updates, so new features and bug fixes are now arriving at a rapid pace. The new version 1.112 update is now available, with a significant upgrade for web ...

Visual Studio Code 1.121 focuses on agent workflows, model configuration, terminal behavior and built-in preview features -- and features another update to Claude Code functionality.