VS Code 1.129 ships an 'agent host' — a separate process running Copilot, Claude, and Codex that lets agents manage other agents

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Released July 16, 2026, the VS Code agent host runs coding agents in their own process via the new Agent Host Protocol, so a session lives independently and can render across multiple windows at once. Agents gain tools to list sessions, read conversations, spawn sub-task sessions, and send steering messages to each other — with inter-session messages requiring user confirmation and burst rate-limiting as guardrails. It's gated behind chat.agentHost.enabled (admin-controlled), supports GitHub Enterprise sign-in and BYOK, and adds a Git worktree checkbox for isolated changes.