Microsoft updates Visual Studio Code with new AI agent protocol

Microsoft has released Visual Studio Code 1.136, introducing a significant architectural shift in how the editor manages AI coding agents. The update features a dedicated Agent Host process that separates AI agents from the extension host. This allows agent sessions to persist even after editor windows are closed and enables multiple windows to connect to a single host.

To support this new structure, Microsoft introduced the Agent Host Protocol (AHP), an open, agent-agnostic protocol based on JSON-RPC. AHP allows developers to integrate custom agent clients into the VS Code orchestration layer using a state-first design. The protocol is compatible with various SDKs, including Microsoft Copilot and Anthropic’s Claude Agent SDK.

Additionally, Microsoft has released a documentary titled ‘The Story of VS Code’. The film chronicles the development of the code editor, beginning with the hiring of Erich Gamma in 2011 to create the web-based ‘Monaco’ editor, which served as the foundation for VS Code. The documentary explores the platform's evolution from its 2015 announcement to its current status as a widely used tool within the open-source community.