VS Code 1.125's most practically notable change is to auto-update behavior: only enabled extensions now update automatically, and you can set a delay before updates install. That second part is quietly the most useful thing in the release — teams that have been burned by silent extension updates mid-sprint now have a knob to turn. The proxied browsing feature, still in preview, routes HTTP(S) traffic through the remote machine so you can reach services that aren't exposed outside the dev environment. On the AI tooling side, a new "Install Model Providers" button in the Language Models editor replaces the manual Marketplace hunt for extensions that wire up additional models. Copilot's status dashboard also gains a spend-percentage indicator, showing how much of the additional budget has been consumed before overages kick in. Extension authors get LSP v3.18 client and server packages to adopt at their own pace.