Microsoft Awards $4,000 for Critical VS Code Workspace Trust Bypass
Security researcher Sam Chen earned a $4,000 bounty for finding a critical flaw in Visual Studio Code that allows attackers to bypass workspace trust protections.
Key points
- CVE-2026-81376 is a critical security feature bypass with a CVSS score of 9.6.
- The vulnerability affects Visual Studio Code versions prior to 1.136.2.
- Microsoft has released a patch in version 1.136.2 to address the issue.
Microsoft paid security researcher Sam Chen US$4,000 for reporting a critical vulnerability in Visual Studio Code that enables attackers to bypass Workspace Trust protections. The flaw, identified as CVE-2026-81376, allows malicious code to execute with user permissions, compromising the editor’s security boundary.
The vulnerability affects all versions of Visual Studio Code earlier than 1.136.2. Microsoft has addressed the issue by releasing version 1.136.2, which patches the defect. According to GBHackers, the bug carries a critical CVSS score of 9.6 and is classified as a security feature bypass that can be triggered over a network.
Understanding the Vulnerability
The issue stems from an incomplete comparison within the Workspace Trust mechanism, according to Microsoft’s advisory. Workspace Trust is designed to limit actions when users open unreviewed projects by enforcing Restricted Mode, which blocks potentially dangerous features. However, this flaw allowed specially prepared workspaces to connect to attacker-controlled services, effectively circumventing those restrictions.
Chen, who publishes under the name Samchen, noted that the defect was hidden within the trust logic and could lead to remote code execution. The National Vulnerability Database lists the issue as requiring user interaction, meaning the victim must take an action to trigger the exploit. The potential impact on confidentiality, integrity, and availability is rated as high.
Who Is Affected
Developers using Visual Studio Code versions prior to 1.136.2 are at risk if they open untrusted workspaces. The flaw matters because it weakens the safety boundary meant to protect local data. If exploited, an attacker could run code in the context of the logged-in user, potentially accessing credentials, cloud tools, and source code stored on the same machine.
The advisory does not confirm that every workspace can exploit the issue, nor does the public write-up provide a complete proof of concept. No malware campaign was identified in the report; this is a standard vulnerability disclosure. Readers should avoid treating unconfirmed exploit details as established facts.
What should you do?
Users of Visual Studio Code should immediately update to version 1.136.2 or later to mitigate the risk. Those who cannot update right away should exercise extreme caution when opening projects from untrusted sources. Developers should review their workspace trust settings to ensure Restricted Mode is active for unfamiliar folders.
What to do and how to stay safe: Microsoft
- Update Visual Studio Code to version 1.136.2 or later to apply the official fix.
- Enable Workspace Trust restrictions for all untrusted folders and files.
- Avoid opening projects or extensions from unverified or suspicious sources.
- Monitor Microsoft security advisories for further updates on this vulnerability.
Step-by-step guide: Risk-Based Vulnerability Management: Prioritize Fixes by Actual Danger
General security guidance from the Threat Times newsroom. It is not confirmed advice from the organisations named in this story.
Frequently asked questions
What is CVE-2026-81376?
CVE-2026-81376 is a critical security feature bypass in Visual Studio Code that allows attackers to circumvent Workspace Trust protections and potentially execute remote code.
Which versions of Visual Studio Code are affected?
All versions of Visual Studio Code earlier than 1.136.2 are affected by this vulnerability.
Is there a fix available?
Yes, Microsoft has released version 1.136.2, which includes a patch for the flaw.
