diff --git a/apps/vscode/CHANGELOG.md b/apps/vscode/CHANGELOG.md
index 59cf766e..dec41cd9 100644
--- a/apps/vscode/CHANGELOG.md
+++ b/apps/vscode/CHANGELOG.md
@@ -1,5 +1,7 @@
 # Changelog
 
+## 1.125.0 (Unreleased)
+
 ## 1.124.0 (Release on 2025-08-20)
 
 - Fix Base64 leak when no empty line between text and code block (<https://github.com/quarto-dev/quarto/pull/780>).
diff --git a/apps/vscode/package.json b/apps/vscode/package.json
index eff662ea..e5a881c3 100644
--- a/apps/vscode/package.json
+++ b/apps/vscode/package.json
@@ -11,7 +11,7 @@
     "pandoc",
     "quarto"
   ],
-  "version": "1.124.0",
+  "version": "1.125.0",
   "repository": {
     "type": "git",
     "url": "https://github.com/quarto-dev/quarto/tree/main/apps/vscode"