Microsoft has released VS Code 1.121 with remote AI agents, Mermaid rendering, HTML previews, and terminal optimizations.

Visual Studio Code 1.121 focuses on agent workflows, model configuration, terminal behavior and built-in preview features -- and features another update to Claude Code functionality.

VS Code 1.120 brings the Agents window to Stable preview, giving AI agent sessions and customizations a dedicated workspace.

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Vibe coding is legit enough that enterprises need to start experimenting. Finding the right tool for your users and use cases is the first step.

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