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[TECHNOLOGY] · United States · 2 sources

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Microsoft releases Visual Studio Code 1.132 with AI Agent Host and on‑device dictation

Microsoft rolled out Visual Studio Code version 1.132 on August 5, adding a suite of AI‑focused capabilities. The update introduces a dedicated Agent Host process that runs Copilot, Claude and Codex in isolated processes, enabling remote connections over SSH or a dev tunnel and preventing a hung AI SDK from freezing the editor.

New developer interactions include side chats that let users ask follow‑up questions without interrupting the main AI turn, and browser‑based element annotation that lets agents comment on selected web‑page elements. Built‑in multilingual dictation now runs on the on‑device Nemotron 3.5 model, converting speech to text across chat inputs, editors and terminals, with shell‑aware cleanup preserving command syntax. Additional enhancements cover hybrid markdown diff viewing, expanded terminal output that reflows with window size, and various refinements to improve stability and performance.

Entities

Claude · GitHub Copilot · Microsoft · Nemotron 3.5 · Visual Studio Code

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