Image: Microsoft / code.visualstudio.com VS Code 1.131 Adds Built-In Dictation, Subagent Status, and a Hybrid Markdown Editor
VS Code 1.131 brings offline voice dictation across chat, editors, and terminals; live subagent monitoring showing model, elapsed time, and active tool; and a new hybrid Markdown editor inside the Agents window.
VS Code 1.131 shipped July 29. It continues the agent host rollout and adds two experimental features that stand out: offline dictation that works across the entire workbench, and a hybrid Markdown editor that lets agents and humans edit the same file side-by-side inside the Agents window.
Subagent visibility
When an agent spawns subagents, you can now monitor them without opening their individual conversations. The Agents window shows, for each running subagent: the model it’s using, how long it has been running, and the tool it’s currently calling.
This is especially useful when you’re running a complex agent task that spawns several parallel workers. Previously, you had to open each subagent’s session to understand what was happening. Now the status is visible inline.
Built-in dictation (experimental)
VS Code 1.131 adds native voice input using an offline Nemotron model. Dictation works in chat, standard editors, and the terminal. No internet connection required, and no Speech extension to install.
The feature supports an optional AI-powered transcript cleanup step to fix recognition errors before the text lands. Supported platforms are Windows, macOS (Apple silicon), and Linux.
Enable with: accessibility.voice.dictation.enabled.
It’s experimental, meaning behavior may change, but the basic pipeline — speak, transcribe, clean up, insert — works now.
Hybrid Markdown editor (experimental)
The Agents window can now open Markdown files in a hybrid editor: you see the rendered view but can also edit the source and add agent-actionable comments. The agent can pick up those comments and act on them without you switching back to a raw text editor.
The use case is reviewing and annotating agent-generated Markdown docs, plans, or README files inside the same Agents window where the conversation is happening.
Agent host harness dropdown
The harness dropdown in the editor now shows which harness (Copilot, Claude, Codex) is running the current session. This is a small UX improvement that reduces confusion when switching between harnesses across different sessions.
Python environments now default
Python Environments became the default experience in 1.131. The previous environment picker is replaced. Startup is faster through deferred Conda discovery, and interpreter availability is improved during refreshes. Conda scans now run consolidated rather than serially.
Terminal screen reader improvements
New settings give screen reader users control over cursor position in the terminal and let them toggle the resize dimension overlay. The resize overlay now appears only when resizing rather than continuously.
Full release notes at code.visualstudio.com/updates/v1_131.