Scott Hanselman and Mark Russinovich discuss how agentic AI coding tools are reshaping software engineering at Microsoft Build. They share real examples of productivity gains at Microsoft teams (Project Societ, Microsoft Scout, Aspire) while cautioning against 'vibe coding' for production software. Key themes include: AI sycophancy and hallucinations (sleeping to fix race conditions, blaming benchmarks), the importance of senior engineers 'sculpting' AI output rather than blindly accepting it, a live demo of shared memory gRPC transport built in 3 months vs. an estimated 6 expert-months, and a serious concern about junior developers being harmed by AI tools they lack the experience to critically evaluate. They advocate for a nursing-style preceptorship model to mentor early-career engineers alongside AI, and argue that computer science fundamentals matter more than ever in the AI era.