Microsoft's June 2026 VS Code update turns on Autopilot by default and adds background sending for agent sessions.

Microsoft released Visual Studio Code 1.123 on June 3, adding agent-focused features, larger model context support, integrated browser updates and a new delay for some automatic extension updates.

VS Code 1.123 adds a two-hour delay before extensions auto-update to newer versions when automatic updates are enabled.

Visual Studio Code 1.124 brings more autonomous AI agents, cross-device session support, browser history, and new enterprise controls.