Visual Studio Code 1.129 introduces dedicated agent host
Microsoft has released Visual Studio Code 1.129, an update to its free, popular code editor that features a dedicated agent host and an editor panel in the Agents window. The updated editor also allows users to run terminal commands from chat prompts with a !prefix and offers a preview of a modern UI for the workbench.
Released July 15, VS Code 1.129 can be downloaded from code.visualstudio.com for Windows, Linux, and Mac.
Microsoft is rearchitecting how agent sessions work in VS Code around the agent host — a dedicated process that runs agent harnesses such as Claude, Copilot, and Codex, based on the Agent Host Protocol (AHP). Since a session lives in its own process, the same session can be connected to and rendered from multiple VS Code windows at once. The agent host’s Copilot agent is powered by the Copilot SDK, which means that its behavior and functionality is aligned with the Copilot CLI, the standalone GitHub Copilot app, and other Copilot products. The agent host is being rolled out to users in the editor window and the Agents window. It’s enabled through the chat.agentHost.enabled setting.
