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VS Code 1.129

Release Date: July 15, 2026

VS Code 1.129 has been released — and it's a BIG one. Agent Host architecture, terminal commands from chat, and bring-your-own-key models. Let's dive in!

Agent Host: A Whole New Architecture

OK HEAR ME OUT. VS Code is rearchitecting how agent sessions work around the Agent Host — a dedicated process that runs agent harnesses like Copilot, Claude, and Codex. Based on the Agent Host Protocol (AHP). Sessions now live in their own process, which means the SAME session can be connected to and rendered from MULTIPLE VS Code windows at once. Period.

The Copilot agent on the Agent Host is powered by the Copilot SDK, so behavior is aligned with the Copilot CLI and standalone GitHub Copilot apps. This is the future of AI in VS Code period.

! Run Terminal Commands from Chat

YES. You can now prefix chat messages with ! to run terminal commands directly from chat prompts. Works in Agent Host sessions both in the editor and the Agents window. This is game-changing for workflow speed.

BYOK Models with Copilot Agent Harness

Bring Your Own Key is here. You can now use your own model provider with the Copilot agent harness. More flexibility, more choices, more power.

Other Highlights

  • View prompt files from both workspace (.github/prompts/) and user data locations
  • Improved settings search with better categorization
  • Accessibility improvements across the board
  • Debugger enhancements for better breakpoint management

VS Code 1.129 is available now. Go update rn 🔗

What is New?

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