VS Code 1.132 has been released with several notable improvements. Built-in multilingual dictation now uses the Nemotron 3.5 on-device model, supporting automatic language detection across chat inputs, editors, and terminals, with shell-aware cleanup for terminal commands. A new side chat feature lets developers open a parallel chat session (via /bt) that shares context with the primary chat without interrupting ongoing agent turns. The integrated browser gains support for annotating web page elements with agent feedback. Active development continues on the agent host, which allows connecting to the same agent session from multiple VS Code windows and runs Copilot, Claude, and Codex in a dedicated process via the Agent Host Protocol. Markdown diffs can now be opened in the hybrid Markdown editor introduced in the previous release.
