The recent release of Zed 0.89 introduces OnTypeFormatting support, enhancing the user experience by providing automatic formatting features such as inserting closing braces when opening ones are typed. Team members have been working on various improvements, including a new Assistant Panel that integrates with OpenAI for an enhanced AI interaction, while others focused on enhancing panic telemetry, feedback analysis, and Elixir language support. Additional developments include a rewrite of the git status system, support for inlay hints, and improving language server handling to address installation issues. These developments aim to refine Zed's functionality and user experience, with the team actively collaborating and addressing challenges across various areas.