Microsoft has had a VS Code extension for a long time, and it finally came back to bite them.
The agent is doing the actual work, and VS Code is just a window.
Microsoft's May 2026 VS Code update makes BYOK usable in restricted environments while adding agent, browser and issue-reporting updates.
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VS Code 1.115 introduced a preview Agents app in VS Code Insiders. VS Code 1.116 added persistent debug logs for current and past agent sessions. Both releases expanded how agents work with terminals, ...
A VS Code vulnerability in GitHub.dev lets attackers steal full GitHub OAuth tokens via a single malicious link, exposing all private repositories.