Degraded Codespaces experience

Incident update

On March 12, 2026, between 01:00 UTC and 18:53 UTC, users saw failures downloading extensions within created or resumed codespaces. Users would see an error when attempting to use an extension within VS Code. Active codespaces with extensions already downloaded were not impacted.<br /><br />The extensions download failures were the result of a change introduced in our extension dependency and was resolved by updating the configuration of how those changes affect requests from Codespaces. We are enhancing observability and alerting of critical issues within regular codespace operations to better detect and mitigate similar issues in the future.