The latest update to CodeRabbit's VS Code extension enhances the coding and review process by integrating AI-assisted coding tools that allow developers to maintain their workflow within their IDE. Key features include the ability to send prompts to AI coding assistants, receive intelligent reviews from CodeRabbit, and apply suggested changes with a single click, all while maintaining full context awareness for Pro account users. The extension also supports multiple integrations, such as Codex CLI and Roo, and allows users to provide feedback on suggestions, improving the iteration loop and ensuring cleaner pull requests. Additionally, future developments aim to introduce user-level Learnings, web queries for context enhancement, and the ability to create Docstrings during IDE reviews, all while maintaining free access with rate limits.