VS Code agents are now in Stable preview, and the 1.122 update removed the GitHub OAuth requirement from BYOK, letting defense, healthcare, and finance developers run fully air-gapped AI-assisted ...
From VS Code and Claude Code to Cursor 3.0.
The agent is doing the actual work, and VS Code is just a window.
Microsoft released Visual Studio Code 1.123 on June 3, adding agent-focused features, larger model context support, integrated browser updates and a new delay for some automatic extension updates.