Microsoft's June 2026 VS Code update turns on Autopilot by default and adds background sending for agent sessions.
Visual Studio Code 1.124 brings more autonomous AI agents, cross-device session support, browser history, and new enterprise controls.
VS Code 1.123 adds a two-hour delay before extensions auto-update to newer versions when automatic updates are enabled.
The agent is doing the actual work, and VS Code is just a window.
Developers can now continue VS Code chats started on other devices, and OpenAI and Anthropic models get an enlarged context window.