The key highlights include:
Merge editor improvements - Easier transition between text and merge editors.
Expanded codecs support - To help display embedded audio and video in notebooks and webviews.
File rename selection - Pressing F2 selects filename, whole name, or file extension.
New Code Action UI - Quickly find the Code Action you're looking for.
Terminal updates - Shell integration for fish and Git Bash, new smooth scrolling.
Jupyter notebook image pasting - Paste and preview image files in notebook Markdown cells.
TypeScript livestreams - Watch TS "Crash Course" or "Tips and Tricks" on YouTube.
Live Preview extension - Live Preview now supports multi-root web projects.
Markdown Language Server blog post - Learn how Markdown support moved to a Language Server.
The new version of the editor can be downloaded here.