Degraded Codespaces experience

Update timeline

1. investigating Mar 12, 2026, 01:06 PM UTC

   We are investigating reports of degraded performance for Codespaces

2. investigating Mar 12, 2026, 01:07 PM UTC

   We're investigating an issue where extensions fail to install in newly created Codespaces. Users can still create and access Codespaces, but extensions will not be operational, resulting in a degraded development experience. Our team is actively working to identify and resolve the root cause. We'll post another update by 14:00 UTC.

3. investigating Mar 12, 2026, 01:50 PM UTC

   We are continuing to investigate an issue where extensions fail to install in newly created Codespaces. Users can create and access Codespaces, but extensions will not be operational, resulting in a degraded experience. The team is working on a fix. All newly created Codespaces are affected. We'll post another update by 15:00 UTC.

4. investigating Mar 12, 2026, 02:29 PM UTC

   We have deployed a fix for the issue affecting extension installation in newly created Codespaces. New Codespaces are now being created with working extensions. We'll post another update by 15:30 UTC.

5. investigating Mar 12, 2026, 03:08 PM UTC

   We're seeing partial recovery for the issue affecting extension installation in newly created Codespaces. Some users may still experience degraded functionality where extensions hit errors. The team continues to investigate the root cause while monitoring the recovery.

6. investigating Mar 12, 2026, 04:09 PM UTC

   We're seeing intermittent failures downloading from the extension marketplace from codespaces and are investigating.

7. investigating Mar 12, 2026, 05:20 PM UTC

   We're seeing intermittent failures downloading from the extension marketplace from codespaces, caused by IP blocks for some codespaces. We're working to remove those blocks.

8. investigating Mar 12, 2026, 05:59 PM UTC

   Codespaces IPs are no longer being blocked from Visual Studio Marketplace operations and we are monitoring for full recovery

9. resolved Mar 12, 2026, 06:53 PM UTC

   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. 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.