diff --git a/README.md b/README.md
index d4e68e7..c8c8fd2 100644
--- a/README.md
+++ b/README.md
@@ -30,7 +30,7 @@ or
 
 Another option to execute commands is to use your host shell in the integrated terminal instead of the sandbox one.
 
-For that go to `File -> Preferences -> Settings` and find `Terminal > Integrated > Profiles`, then click on `Edit in settings.json` (The important thing here is to open settings.json)
+For that go to `File -> Preferences -> Settings` and find `Features > Terminal > Integrated > Profiles`, then click on `Edit in settings.json` (The important thing here is to open settings.json)
 
 And make sure that you have the following lines there:
 
@@ -53,13 +53,17 @@ And make sure that you have the following lines there:
 `host-spawn`
 
 ```
-    "terminal.integrated.defaultProfile.linux": "bash",
+{
+  "terminal.integrated.defaultProfile.linux": "bash",
+  "terminal.integrated.profiles.linux": {
     "bash": {
       "path": "/app/bin/host-spawn",
       "args": ["bash"],
       "icon": "terminal-bash",
       "overrideName": true
-    },
+    }
+  }
+}
 ```
 
 - You can change **bash** to any terminal you are using: zsh, fish, sh.
diff --git a/com.visualstudio.code.metainfo.xml b/com.visualstudio.code.metainfo.xml
index 4a3bf23..ce77204 100644
--- a/com.visualstudio.code.metainfo.xml
+++ b/com.visualstudio.code.metainfo.xml
@@ -24,6 +24,7 @@
     <content_attribute id="social-info">moderate</content_attribute>
   </content_rating>
   <releases>
+    <release version="1.86.2-1707854558" date="2024-02-15"/>
     <release version="1.86.1-1707298119" date="2024-02-08"/>
     <release version="1.85.2-1705561292" date="2024-01-18"/>
     <release version="1.85.1-1702462158" date="2023-12-13"/>
diff --git a/com.visualstudio.code.yaml b/com.visualstudio.code.yaml
index df3014d..c276b61 100644
--- a/com.visualstudio.code.yaml
+++ b/com.visualstudio.code.yaml
@@ -20,6 +20,8 @@ finish-args:
   - --filesystem=host
   - --env=NPM_CONFIG_GLOBALCONFIG=/app/etc/npmrc
   - --env=LD_LIBRARY_PATH=/app/lib
+  # required to fix cursor scaling on wayland
+  - --env=XCURSOR_PATH=/run/host/user-share/icons:/run/host/share/icons
   - --system-talk-name=org.freedesktop.login1
   - --talk-name=org.freedesktop.Notifications
   - --talk-name=org.freedesktop.secrets
@@ -97,9 +99,9 @@ modules:
       - type: extra-data
         filename: code.deb
         only-arches: [x86_64]
-        url: https://packages.microsoft.com/repos/code/pool/main/c/code/code_1.86.1-1707298119_amd64.deb
-        sha256: cf049ac17201ad73a3f6a94c0602a3e1dfead53dc124eb1315a7721a6aeb3e95
-        size: 99761918
+        url: https://packages.microsoft.com/repos/code/pool/main/c/code/code_1.86.2-1707854558_amd64.deb
+        sha256: 7874c27e80e9bb1902502b8b90906ac830251f57f8e247b39d298d3809c76bf6
+        size: 99776494
         x-checker-data:
           type: debian-repo
           package-name: code
@@ -111,9 +113,9 @@ modules:
       - type: extra-data
         filename: code.deb
         only-arches: [aarch64]
-        url: https://packages.microsoft.com/repos/code/pool/main/c/code/code_1.86.1-1707296902_arm64.deb
-        sha256: d230c29d9280978e7e65ce3deec0475e1e6d821a348ed46e033886425843b82f
-        size: 92864122
+        url: https://packages.microsoft.com/repos/code/pool/main/c/code/code_1.86.2-1707853305_arm64.deb
+        sha256: eca39b791b53fa1a6ce97cafbcd425a3f8ff77f59ebab33bfd1797d7babe1553
+        size: 92860238
         x-checker-data:
           type: debian-repo
           package-name: code