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.
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.
The report notes that Claude Code quickly became popular within Microsoft over the past six months. However, that popularity ...