Microsoft Visual Studio Code 1.119 Adds AI Agent Browser Sharing and Token Optimization

Microsoft has released version 1.119 of Visual Studio Code. The update introduces new features for AI agent interactions and developer tooling.

New agent-browser interaction and token optimization features

The release adds agent-browser interaction, allowing users to share tabs with an agent. It also includes optimized token usage through background agents. Developers can now use OpenTelemetry tracing support. A new network domain blocking setting is available for the sandbox. Markdown preview toggle buttons have been added.

The update is available worldwide as of May 9, 2025.

This release continues Microsoft's focus on integrating AI capabilities into its development tools. The new features aim to improve productivity and debugging workflows for developers using Visual Studio Code.