The HashiCorp Terraform extension for Visual Studio Code has been updated with a new integration with Terraform Cloud, providing a read-only view of workspaces and runs to reduce context-switching. The update also includes enhancements such as the Module and Provider Explorer, which can be used regardless of whether or not you have Terraform Cloud, allowing users to access module information and provider details in the editor. Additionally, fixes have been released for performance issues with the Terraform language server, improving overall performance. Future plans include adding features to the Terraform Cloud integration, completing the Terraform language server's understanding of all Terraform language features, and moving towards Day 0 support for new language features as they come out.