Microsoft Releases Visual Studio Code 1.129 with Modern UI Preview and AI Agent Enhancements

Microsoft has issued an update for Visual Studio Code, version 1.129, which is rolling out to stable channel users. This release features an experimental preview of a modernized user interface and includes significant enhancements to its AI agent functionalities.

The most notable change is the introduction of a modern UI, currently in an experimental preview phase. Users can enable this through settings to experience a redesigned workbench with rounded corners and increased spacing, aiming for a more consistent visual style that aligns with the new AI agent interface.

AI capabilities continue to be a priority, with the introduction of a new Agent Host architecture. This allows AI agents like Copilot and Claude to run in separate processes, enabling simultaneous access from multiple VS Code windows and providing a foundation for future AI features. The update also adds an experimental editor panel within the agent chat interface, integrating file previews and edits directly alongside conversations. Additionally, users can now execute terminal commands directly from the chat by prefixing them with an "!", streamlining workflows.

The update further enhances session management for developers working with multiple AI agents, allowing for listing, reading context, and sending messages between sessions. For enterprise users, direct login and utilization of GitHub Enterprise Copilot services within the Agent Host are now supported, improving the development experience in corporate environments.

Beyond AI, VS Code 1.129 also refines the general editing experience, including improvements to how users can switch between different editors for the same file through the toolbar.