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All issuesVolume 339, Issue 2IT Vendor NewsMicrosoft

Visual Studio Code 1.123 Brings Deeper AI Integration and Smarter Agent Tools

DevOps.com, Monday, June 8th, 2026

VS Code 1.123 adds 1M-token context windows, session sync, Chronicle, and multi-session agent support.

Microsoft released Visual Studio Code 1.123 on June 3, deepening its AI-assisted, agentic development workflow. The headline addition is support for 1-million-token context windows for compatible Anthropic and OpenAI models, including Claude Opus 4.7 and GPT-5.5, enabling work across larger codebases at the cost of higher token usage.

New session sync automatically backs up chat sessions to GitHub, while the companion Chronicle feature lets developers query session history in natural language to generate standup reports and search past work. The Agents window now supports multiple open sessions side by side, with pinning and maximize actions, addressing the need to compare or review agent runs concurrently.

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