Microsoft Adds Offline AI Support and Device Emulation to VS Code

Microsoft has announced Visual Studio Code 1.122, just one week after the release of VS Code 1.121. The new update focuses on agent improvements, Bring Your Own Key flexibility, web app testing features, and a redesigned issue reporting experience.

One of the biggest additions in this release is expanded Bring Your Own Key support without requiring users to sign in with a GitHub account. Microsoft says developers can now access chat features, tools, and MCP servers entirely through configured models without authentication prompts.

The change targets enterprise, restricted, and air-gapped environments where external sign-ins may not be allowed. It also enables fully offline AI workflows using local models such as Ollama.

VS Code 1.122 removes GitHub sign-in requirement for BYOK

With the new update, developers can configure their own AI providers directly inside VS Code and start using chat features immediately after setup.

To enable the feature, users simply need to open the Command Palette, run the Manage Language Models option, add a provider, and configure at least one BYOK model.

Once configured, the Chat view becomes available automatically and VS Code suppresses sign-in prompts.

Microsoft says the feature is designed for developers and organizations that require isolated or offline development environments.

Integrated browser now supports device emulation

VS Code 1.122 also improves web application testing through new device emulation support inside the integrated browser.

Developers can now test different screen sizes, mobile layouts, touch input, and custom user agents directly from VS Code.

The feature can be accessed from the browser tab through Show Emulation Toolbar.

Microsoft also says agents can trigger device emulation automatically through Playwright code. This can help developers catch mobile responsiveness problems during automated testing workflows.

New issue reporting wizard improves bug submissions

Another major addition in VS Code 1.122 is the redesigned issue reporting flow.

Microsoft has added a new issue reporting wizard directly inside the editor. The wizard helps users create more complete bug reports by automatically collecting useful diagnostic information.

The reporting process can also include screenshots and video recordings, making it easier for developers to demonstrate bugs and UI issues without manually attaching files.

Microsoft says the improved reporting flow should help maintainers reproduce issues faster and improve the quality of submitted bug reports.

Update rollout now underway

Microsoft says VS Code users should receive update notifications automatically inside the editor once the release becomes available for their installation channel.

Users can install the update directly through the built-in update prompt.

The release arrives shortly after GitHub confirmed a security breach linked to a malicious Visual Studio Code extension that reportedly exposed thousands of repositories, putting additional focus on VS Code ecosystem security and extension safety.