VS Code 1.121 (Insiders) release notes covering changes from May 11–13, 2026. Key updates include pinning favorite models in the language model picker, a VSCODE_AGENT environment variable for Copilot Chat terminal commands, an 'Add to Chat' context menu option in the integrated browser, automatic disposal of background chat agent terminals, expanded terminal tool output compression for test runners (pytest, jest, cargo test), build tools, linters, Docker, and package managers. Also includes an idle-silence timer for the run_in_terminal tool, multi-line shell command fixes in the Agent Host terminal, a bundled newer ConPTY version on Windows, and keyboard-interactive SSH authentication support for Agent Host connections.
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