Visual Studio Code 1.126 introduces session cost tracking, multi-chat agents, and stricter trust defaults
Microsoft's June 24 update brings AI credit transparency, a unified Agents window, and a new restricted-mode-first policy for workspaces.
Microsoft has released Visual Studio Code 1.126 today, which brings a mix of wallet-saving features and stricter security defaults. If you've been burning through Copilot credits during late-night coding marathons, this release finally gives you visibility into exactly where those credits vanish. The update also expands the Agents window, streamlines model tuning, and sandboxes new folders by default.
Session costs and multi-chat agents
The headline addition for most users is session-level cost information. You can now see the total credit consumption for an entire chat session, not just the cost of individual turns. This transparency helps you spot expensive conversations before they drain your quota.
Next, the Agents window moves into the spotlight with multi-chat support. You can now run multiple agent chats side-by-side within a single Copilot session. The chats share the same working context, but each maintains its own conversation thread. Keep in mind that these sessions persist across window reloads. Step away and come back to pick up exactly where you left off.
You can rename chat tabs directly in the UI by double-clicking the tab or using the context menu. The tab title stays independent of the session title, so renaming one won't overwrite the other. It's a small detail that saves time when you're juggling a feature implementation, a test draft, and documentation in the same workspace.
Model tuning and workspace trust
Microsoft simplified model configuration by merging context size and reasoning effort controls into a single picker. You adjust both settings in one place now. The model hover tooltip got a cleanup, too. It shows a one-word descriptor of capabilities and includes deep links to the relevant settings.
Workspace trust took a harder line. New folders now open in Restricted Mode by default. The security.workspace.trust.startupPrompt setting flipped from once to never. If you want the old prompt behavior, you'll need to manually change the value back to once.
The team also removed the Trust Parent button from the workspace trust editor. It looked too similar to the Trust button and was easy to click by mistake. To trust a parent folder, you have to add the path to the Trusted Folders & Workspaces list. This reduces the risk of accidentally trusting a broad directory hierarchy.
Docs, blog, and feedback
The VS Code website got some love, too. The blog section now has a landing page that highlights recent posts instead of dumping you into the latest entry. There's a blog archive for the full history. The documentation table of contents was restructured. Agents content is grouped under "Agents," and editor configuration falls under "Editor." Languages and extensions moved to their own buckets.
It's a rather comprehensive update for a patch release, though the restricted mode shift might annoy users who rely on automatic trust for local projects. However, at the same time, the session cost feature is arguably essential now that AI coding assistants can consume credits at alarming rates. The multi-chat capability is useful, too, for keeping complex workflows organized without losing context.
Downloads are available now for Windows ( x64, Arm64), Mac ( Universal, Intel, Apple Silicon), and Linux ( deb, rpm, tarball, Arm snap). Head here to check the release notes for the full changelog. Happy coding.
