Latest VS Code Update Is Out With Faster AI Agent Sessions & Remote Dev Container Support

Just last week, Microsoft released Visual Studio Code 1.138, and now the stable version 1.139 is officially out. The latest stable version improves how VS Code handles large agent session lists, adds support for running agent sessions inside Dev Containers on remote projects, and brings several smaller improvements to the everyday editor experience.

VS Code 1.139 makes AI agent sessions much faster

One of the biggest additions is Faster Session List Loading. Instead of opening every conversation database whenever the list is built, the agent host now keeps lightweight session and chat metadata in a central catalog.

Microsoft says the difference can be substantial for users with hundreds of sessions. In testing with around 645 sessions, the first session listing dropped from 1.3 seconds to 0.1 seconds, while refreshing the list went from 0.6 seconds to 0.15 seconds.

The update also introduces Compact Sessions List, allowing users to fit more sessions on screen. Empty session groups can now be hidden, while sessions and nested chats can be renamed directly from the list. Another useful addition is Single or Multiple Chat presentation. Users can choose whether multiple chats inside a session appear as individual tabs or only show the currently active chat.

Remote Dev Containers join the agent workflow

VS Code 1.139 also lets agents run inside a project’s Dev Container on SSH, Tunnel and WSL hosts. This means agents can build and test remote projects using the correct tools and dependencies without requiring the same setup on the local machine.

The feature is available through the chat.agentHost.devContainer.enabled setting and is still rolling out gradually. Outside the agent experience, the update adds Word Wrap Indicators, making wrapped lines easier to spot, while improved bracket auto-closing prevents VS Code from inserting duplicate closing brackets when a matching bracket already exists.

Not to forget, Microsoft has also closed its VS Code pet naming contest and says the winner and the pet’s new name will be announced soon.