VS Code 1.123 (Insiders) release notes covering updates from May 26–29, 2026. Key changes include: chat session handoff from VS Code to the standalone Agents window, area screenshot context in the integrated browser, attachment-only chat requests, Copilot Cloud tasks rendering parity with local CLI sessions, threaded replies for agent feedback, batched terminal completion notifications in parallel agent mode, and an update to Electron 42 with Chromium 148 and Node.js 22.x. Several bug fixes are included, such as correcting Python docstring placement by /doc and resolving HTTP 400 errors with BYOK reasoning models from OpenRouter and DeepSeek.
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