diff --git a/config/versions.yaml b/config/versions.yaml
index c07f3436..5d7f1abf 100644
--- a/config/versions.yaml
+++ b/config/versions.yaml
@@ -2,7 +2,7 @@
 # IMPORTANT
 # If you change the Rust toolchain version here, make sure to also change
 # docker-images/ubi8-rust-builder/Dockerfile & docker-images/ubi9-rust-builder/Dockerfile
-rust_version: 1.84.1
+rust_version: 1.85.0
 
 # This nightly version is only used for cargo fmt invocations, because we use nightly-only
 # rustfmt config options in rustfmt.toml. The version should be kept in line with the version
diff --git a/template/.vscode/settings.json.j2 b/template/.vscode/settings.json.j2
new file mode 100644
index 00000000..46954211
--- /dev/null
+++ b/template/.vscode/settings.json.j2
@@ -0,0 +1,7 @@
+{
+    "rust-analyzer.rustfmt.overrideCommand": [
+        "rustfmt",
+        "+{[rust_nightly_version}]",
+        "--"
+    ],
+}
diff --git a/template/rustfmt.toml b/template/rustfmt.toml
index e25d3967..07217b21 100644
--- a/template/rustfmt.toml
+++ b/template/rustfmt.toml
@@ -1,5 +1,9 @@
 # This file includes unstable features, so you need to run "cargo +nightly fmt" to format your code.
 # It's also ok to use the stable toolchain by simple running "cargo fmt", but using the nigthly formatter is prefered.
 
+# https://doc.rust-lang.org/nightly/edition-guide/rust-2024/rustfmt-style-edition.html
+style_edition = "2024"
 imports_granularity = "Crate"
-group_imports =  "StdExternalCrate"
+group_imports = "StdExternalCrate"
+reorder_impl_items = true
+use_field_init_shorthand = true