Microsoft's fifth July update expands agent monitoring, adds offline speech transcription and changes Python environment management.

For the last few years, Visual Studio Code has delivered new major updates each month. Now, those updates will arrive once a week, and the first weekly update has some helpful changes to AI agents.

Some of the big updates in this update pertain to accessibility. If you’re a screen reader user, Microsoft has made the editor and terminal more compatible with readers. Additionally, Microsoft has ...

Visual Studio Code 1.130 adds a dedicated agent host, assisted permissions, compact diffs, worktree isolation, and smarter ...

The July 2025 update to Visual Studio Code, taking it to version 1.103, adds support for chat checkpoints, allowing developers to restore their workspace and conversation to earlier states during AI ...

Visual Studio Code 1.129 adds a Modern UI preview, a redesigned Agents editor panel, and support for running terminal commands through chat.