Not just VSCode, but other pieces of software I always use, not sure if that's related to AI, but this genuinely upsets me.
I would expect things to be better as AI helps accelerate development and bug reports and whatnot, but it looks like the opposite is actually happening... which is concerning.
I have a similar impression. I think it's because the workflow isn't fully refined, and the IDE interfaces don't match that undefined flow. These are strange times; for a moment, I felt Antigravity was what I needed, but it was just a stripped-down VSCode. I simply don't understand the new VSCode Agents window. The impact is so vast that many of us are returning to the simplicity and power of the terminal.
The future of VSCode is quite uncertain, as newer "IDEs" are moving-on toward not seeing any code, and soon not even seeing the filetree as we are going toward the path of full automation.
VSCode might retain old-school developers but it will keep shrinking.