Until now, the AI agent in the editor was a guest in the room - it lived inside the window itself and died with it. The new version takes it out into its own process. A change that looks small at first glance but says something big about the direction.
Fact
The facts: VS Code 1.129 (15.07.2026) introduces 'Agent Host' - a separate process that runs agent harnesses (GitHub Copilot, Claude, Codex), letting one session run across several windows and several agent sessions be managed at once, including handing off a subtask between them. The Agents panel has been redesigned - review and chat in one combined place. A '!' prefix has been added for running terminal commands directly through chat. Source: Visual Studio Code, v1.129 release notes.
The mechanics are simple, but the direction isn't small. By moving the agent into a separate process, you stop treating it as a feature of the editor and start treating it as a worker with a life of its own - you can move it, hand it several tasks, watch it from the side. That's exactly the difference between 'a button that writes code' and 'something you orchestrate'. The tools are rearranging themselves around the second idea.
For anyone building with agents, this is good news - more control over parallel work, less waiting for one agent to finish. But that same freedom means more things running at once without you watching them. Orchestration comes as convenience and responsibility in one package.
Official primary sources
Visual Studio Code - v1.129 release notesThe visual is generated code-art, no third-party images.