Visual Studio Code Adds Side Chats and Local Voice Dictation

Visual Studio Code 1.132 is now available with multilingual voice dictation, secondary AI chats, browser element feedback, and an experimental Markdown comparison mode.

Microsoft released Visual Studio Code version 1.132 through its weekly update schedule. Existing users should receive it automatically after opening the editor, while the full installer remains available from the official website.

Voice dictation now runs locally

VS Code now handles voice dictation locally by default through the multilingual Nemotron 3.5 model.

The editor selects the operating system or browser language when the model supports that locale. When it does not, the model can automatically detect the language being spoken.

Developers working in environments that block automatic model downloads can manually import an official Foundry Local model package.

Side chats avoid interrupting agent tasks

Users can enter /btw to open a secondary conversation while an agent continues working on its existing task.

This allows developers to ask related questions without changing the main conversation or disrupting ongoing work.

VS Code also lets users reference another conversation by entering #chat:. They can drag a chat tab directly into the prompt field to add its context.

Browser feedback targets page elements

The built-in browser now supports feedback linked to individual webpage elements.

Developers can select a button, image, menu, or another interface object and attach a comment for the coding agent. A keyboard shortcut activates the selection tool.

This gives agents more precise context when developers request interface changes or report visual problems.

Markdown files gain rendered comparisons

The hybrid Markdown editor now includes an experimental rendered diff mode.

VS Code highlights added, changed, and removed content inside the rendered document rather than limiting comparisons to the source text. Users can continue editing the file while viewing those differences.

The feature combines a formatted Markdown preview with a clearer overview of recent revisions.

In other news, Microsoft unveiled ETW MCP for AI-powered trace analysis and pulled Copilot Domain Exclusion shortly after launch.