VS Code 1.129 ships a dedicated agent host and an editor panel inside the Agents window

VS Code's July release (1.129, out July 15) adds a dedicated agent host, a new editor panel in the Agents window, running terminal commands with '!', and a preview of a modernized UI.

What it means The editor most developers use keeps reorganizing itself around agents — worth ten minutes to learn the new agent host before your team asks about it.