VS Code 1.119 landed on May 5 with several agent and AI transparency improvements. Sandbox mode now allows outbound network traffic while maintaining filesystem isolation, and agents can request access to browser tabs after explicit user approval. A new model badge in Copilot CLI responses shows which model was used along with its cost multiplier, and the language models menu surfaces actual per-model cost figures. The Git-driven Changes view in Agent Host tracks all file modifications — including those made via terminal commands — and an Action button display exposes associated skill invocations. Copilot CLI Plan Mode and external ingest indexing for virtual file systems round out the release. For teams already on VS Code's May 2026 preview features (workspace MCP config, Bring Your Own Model Key, incremental chat rendering), this is the GA release that packages those capabilities alongside the new agent-safety controls. The browser tab permission gate and model cost visibility are directly relevant to organizations managing Copilot spend under the June 1 usage-based billing switch. No breaking changes are introduced, but teams using Agent Host Platform should review the new Plan Mode behaviour before it becomes the default.