Microsoft has released Visual Studio Code 1.122, and this update delivers meaningful improvements for developers working in restricted environments and web development workflows. The three headline features are offline AI support via BYOK without GitHub sign-in, integrated browser device emulation, and an improved issue reporting wizard.
Use AI in VS Code Without Signing In to GitHub
The biggest change in VS Code 1.122 is that Bring Your Own Key (BYOK) now works without a GitHub sign-in. Previously, you had to authenticate with GitHub before you could use your own language model API key in VS Code.
This change matters most for developers working in air-gapped or restricted environments where GitHub sign-in is not possible. It also enables fully offline AI workflows using local models like Ollama.
To get started:
- Open the Command Palette with Ctrl+Shift+P.
- Run Manage Language Models.
- Add a provider such as Anthropic, Azure, Gemini, OpenAI, Ollama, OpenRouter, or a custom endpoint.
Once you configure at least one BYOK model, the Chat view becomes available and VS Code suppresses sign-in prompts automatically. Built-in tools and any configured MCP servers continue to work. Requests go directly to your provider without routing through GitHub.
Note: Inline suggestions and next edit suggestions (NES) still require a GitHub sign-in. BYOK powers chat, tools, and MCP servers only.
Utility Model Notification
When you use BYOK while signed out, the default utility models become unreachable. VS Code uses these smaller models for chat title generation, commit message generation, and feedback. The editor will show a notification in the chat input prompting you to configure a BYOK model for these features.
You have two options:
- Select Configure to open settings and pick a BYOK model for
chat.utilityModelandchat.utilitySmallModel. This unlocks the full set of AI features using your own language model. - Dismiss the notification if you only need basic chat. Utility-driven features stay inactive until you configure a model.
The notification hides automatically once you configure both utility settings, sign in to GitHub, or remove all BYOK models.
Custom Endpoint Provider Now in Stable
The Custom Endpoint provider lets you connect models that implement Chat Completions, Responses, or Messages APIs. This means you can connect self-hosted, enterprise, or other compatible AI endpoints directly from your stable VS Code install. This provider was previously only available in VS Code Insiders.
To set it up, run Manage Language Models from the Command Palette and select Custom Endpoint as your provider type.
Test Web Apps Across Devices Without Leaving VS Code
VS Code 1.122 adds built-in device emulation to the integrated browser. You can now test screen sizes, mobile and touch emulation, custom user-agents, and more without switching to an external browser or tool.
To enable it:
- Open a browser tab inside VS Code.
- Open the overflow menu.
- Select Show Emulation Toolbar.
Agents can also trigger device emulation via Playwright code. This is useful for catching mobile responsiveness issues during automated testing workflows without any manual browser switching.
Add Browser Screenshots Directly to Chat
A related addition is the Add Screenshot to Chat feature. You can attach a screenshot of the current browser viewport directly to the chat as context. This is particularly useful for UI debugging tasks like diagnosing layout issues in a web app.
Improved Issue Reporting Wizard
VS Code 1.122 introduces a new issue reporting wizard to improve the quality of bug reports you send to Microsoft. The wizard guides you through creating issues directly from VS Code, and it helps you include relevant details, screenshots, and video recordings automatically.
To opt in, enable the issueReporter.wizard.enabled setting in your VS Code preferences.
What Is New in the VS Code 1.122 Agents Window
The Agents window is the dedicated companion window for exploring and reviewing agent sessions across projects, harnesses, and machines. This release brings several updates to it.
Session Hover Details
Hover over a session in the session list to see its details at a glance. The hover panel shows the session title with an icon indicating the harness used, along with the project, worktree, and files changed.
Manage Language Models From the Agents Window
You can now run Chat: Manage Language Models directly from the Agents window. Model configuration is shared with the editor window, so changes you make in either place reflect in both. This also works with local sessions, and you can use BYOK models through the same flow.
Granular BYOK Provider Actions
The Language Model editor now exposes targeted actions for supported provider groups: Update API Key, Add Model, Rename Group, and Delete. Previously, making small updates like rotating an API key required manually editing the full JSON configuration. These targeted actions make routine provider maintenance faster.
Sandboxing Behavior Change
Terminal sandboxing now only applies when you use Default Approvals mode. Previously, commands run with Bypass Approvals or Autopilot mode were attempted in the sandbox first, then automatically retried outside the sandbox if they failed with a non-zero exit code. Microsoft has removed this behavior based on feedback from Insiders users, since the retry approach did not provide a meaningful safety benefit and made behavior harder to reason about.
Local VS Code Harness (Insiders Only)
The Agents window continues to iterate on the local VS Code harness feature, including improvements to the custom agent picker. This feature is experimental and only available in VS Code Insiders. To try it, enable the sessions.chat.localAgent.enabled setting in Insiders.
OpenTelemetry Signals for Agent Sessions
Local agent sessions now emit a canonical github.copilot.* attribute namespace to OpenTelemetry, matching the GitHub Copilot CLI OpenTelemetry conventions. New signals add repository context, agent type, structured tool parameters, and hook outcomes to each session. This gives teams better observability into how agents operate across their workflows.
How to Install VS Code 1.122
If you already use Visual Studio Code, your editor will notify you about the update automatically. Follow the on-screen instructions to install it.
If you have not installed VS Code on Windows yet, follow the setup guide to get started before applying this update.
For the full list of changes in this release, visit the official VS Code 1.122 release notes.
Related Tech Guides
- How to Download and Install VS Code on Windows
- Kilo Code vs GitHub Copilot: Which VS Code AI Tool Is Better for Developers?
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