Microsoft has released VS Code 1.121 with remote AI agents, Mermaid rendering, HTML previews, and terminal optimizations.
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.
This hands-on build shows how Agent Mode in Visual Studio 2026 -- Insiders now, stable soon --can create and operationalize a custom Copilot skill that automates feature-parity tracking with practical ...