Microsoft's editor catches up with native AI
VS Code has improved significantly with new AI features and the ability to use sideloaded tools, making it the top choice again. Microsoft's updates introduced a dedicated agent host and support for multiple AI models. The latest versions of the code editor allow developers to run agents like GitHub Copilot and OpenAI's Codex in separate processes. This design lets users work with multiple agent sessions without any interference between them.
The improvements in recent versions of VS Code reflect a major shift in the coding landscape. The editor has not only embraced AI integration but also refined the user experience, making it more seamless and intuitive. With the introduction of the Agent Host Protocol, users can now connect to agent sessions from multiple windows, enhancing flexibility and efficiency. This has made VS Code a compelling option for developers who rely on AI-driven coding tools.
The addition of a dedicated agents window to the stable release in May is another significant enhancement. This feature replicates the functionality of the dashboards offered by forked editors, eliminating a key reason to switch. Microsoft's continued innovation has helped it stay competitive in a market where other companies are also investing heavily in AI-powered code editing tools.
Forked editors lost their edge
Competing editors like Cursor, Devin Desktop, and Antigravity had unique selling points based on exclusive features and specific AI models. However, many of these advantages are no longer distinct after Microsoft added similar capabilities to VS Code. The latest versions of Microsoft's code editor now offer the same agent dashboard, tool approvals, and multi-model support. The need to switch to a different editor is quickly disappearing, especially with the recent updates in version 1.129 and 1.130.
The 1.129 release marked a turning point by introducing the dedicated agent host, which allowed for agent sessions to be run in separate processes. Version 1.130 further improved upon this with expanded functionality and the Agent Host Protocol. These features were previously sold as unique advantages by the forked editors, but they are now standard in VS Code. As a result, the competitive edge that these alternative editors once had has faded.
Another key factor in the decline of forked editors is the availability of multi-model support. Microsoft's decision to remove the GitHub sign-in requirement for BYOK (bring-your-own-key) made it possible for users to choose their preferred AI model without being tied to Copilot or GitHub. This eliminated one of the biggest selling points of forked editors, which had marketed the ability to use custom AI models as a major benefit.
The latest versions of VS Code also include enhancements like assisted tool approvals, where the AI model evaluates the risks before prompting the user to approve an action. This streamlines the approval process and reduces the number of annoying prompts that often discouraged users from using agent mode.
Missing extensions still favor original
Forked editors cannot access Microsoft's official Marketplace, which limits their ability to use a variety of key tools. Essential extensions like Pylance and C/C++ tooling are missing from these forks. As a result, users who rely on these tools must manually sideload extensions, which often doesn't work for the most important ones. Microsoft has added runtime checks that prevent extensions like the C/C++ tooling from running in forks, creating a significant barrier for users who need these tools daily.
Extensions such as Live Share and Remote SSH also stopped working in forked editors, further diminishing their usefulness for many developers. While Open VSX provides alternatives, it cannot fully replace the tools available through Microsoft's Marketplace. For most users, the missing 10% of tools may still matter, especially if they require proprietary extensions like those developed by Microsoft itself.
Although Open VSX is a promising alternative, it still falls short for users who depend on specific tools. While it offers viable options for the majority of tools, it lacks the full set of features and extensions available in the Microsoft Marketplace. For users who need tools like Pylance or C# Dev Kit, the gap is significant. Manual sideloading of VSIX files is an option, but it no longer works for the most critical extensions due to Microsoft's runtime checks.
The inability of forked editors to access Microsoft's Marketplace and proprietary tools has made it harder for them to compete. While they may offer certain unique features, the loss of essential tools and the inconvenience of sideloading create a compelling reason to return to the original VS Code. The growing list of open-source replacements for some of these tools is a potential solution, but rebuilding tools that already work well may seem like more hassle than it's worth for many developers.
Despite the decline of forked editors, there are still a few features that they offer which VS Code hasn't yet matched. For example, Cursor's unique tab model remains a notable advantage for some users. However, for the majority of developers, the core strengths of VS Code—especially its AI features and extensive tooling—make it the preferred choice.