Visual Studio Code 1.120: Agents Window, BYOK enhancements & markdown diff preview

Visual Studio Code 1.120 introduces the Agents window to the Stable release, bringing agents-first workflows to all projects.

Users also gain greater visibility and control over BYOK models, with options to track token usage and configure model thinking effort.

The update adds command risk assessment and further improves working with Markdown files using a new preview for diffs.