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.
Developer complaints about GitHub Copilot's new usage-based billing model have centered on unexpectedly rapid AI credit consumption, and neither GitHub nor Microsoft has responded directly to the backlash, though they have previously published guidance to lessen model usage costs.
GitHub's brand-new Copilot desktop app, in technical preview, handled a small Blazor issue from planning through pull request creation, but the hands-on test also showed why developers still need to verify agent work in the running app before merging.
Microsoft's Build 2026 Windows developer announcements point to a broader platform strategy for agentic AI, spanning terminal workflows, local models, app-building skills, Cloud PCs and operating system-level containment.