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.
Microsoft has released VS Code 1.121 with remote AI agents, Mermaid rendering, HTML previews, and terminal optimizations.
Microsoft's May 2026 VS Code update makes BYOK usable in restricted environments while adding agent, browser and issue-reporting updates.
Microsoft delivered fixes for issues affecting everything from Windows to Office, .NET, and SQL Server, and several patches that should be deployed ASAP.
️ Text editors Sublime Text - is a lightweight, cross-platform code editor known for its speed, ease of use. Visual Studio Code - an open-source and free source code editor developed by Microsoft.