Visual Studio Code 1.125 Brings Better Browser Control and Extension Management
Visual Studio Code 1.125 gives developers actual control over how extensions update and adds a working browser proxy for remote workspaces. The update also tightens enterprise Copilot management through native device management tools and streamlines the language model setup. This version focuses on practical workflow fixes rather than flashy new editor features.
Smarter Browser Handling for Remote Sessions
The integrated browser in Visual Studio Code 1.125 now supports web search directly from the address bar, which saves developers from constantly switching windows to a full browser. More importantly, the new remote proxy preview lets web traffic route securely through a remote connection. Teams frequently struggle with port forwarding and blocked endpoints when testing local services over SSH or Tailscale. Enabling the workbench.browser.enableRemoteProxy setting fixes that gap, though the preview status means occasional hiccups remain possible. Forwarded ports also get smarter URL rewriting now, so AI agents can actually open the right local addresses without guessing port numbers.
Visual Studio Code 1.125 Extension Management and Update Controls
The extension update behavior in this release finally stops silently updating disabled extensions. The extensions.autoUpdate setting now uses simple on and off values, and administrators can set a configurable delay through the extensions.autoUpdateDelay configuration. By default, the editor waits two hours before applying updates, which gives developers time to notice breaking changes before they disrupt a working environment. This delay mechanism matters because rushed extension updates routinely break language servers or theme engines, and forcing a two hour buffer stops most of those mid session crashes.
Tighter Copilot Management for Organizations
Enterprise teams get native MDM support for GitHub Copilot policies in this release, which means device management tools can now enforce settings directly on Windows and macOS without relying on per user sign in. Copilot policies delivered through MDM appear as locked in the editor, so developers cannot accidentally override compliance rules. The Copilot status dashboard also tracks additional budget usage as a percentage, which prevents surprise overage charges when agents run heavy workloads. Organizations that manage large dev fleets will appreciate the shift toward centralized control instead of scattered account files.
Easier Model Provider Discovery and LSP Updates
The Language Models editor now includes an Install Model Providers button that filters the Marketplace to show only extensions that contribute models. This removes the guesswork that used to force developers to search for the language models tag manually. Once installed, those models appear directly in the model picker alongside existing configurations. Extension authors also get LSP 3.18 support through the updated vscode language client and vscode languageserver packages, which brings protocol improvements without requiring a full framework rewrite.
Downloads
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The update rolls out through the standard update channel, so waiting for the prompt or checking the help menu will get you running the new version. Let me know if the remote proxy breaks your workflow or if the extension delay saves you from a surprise breakage.
