Pydantic AI Updates: October 28, 2026

1. Pydantic AI 2.63.0 Adds IPython Code Mode, Loop Detection and AG-UI 1.0 Support

Pydantic AI released v2.63.0. A new IPythonCodeMode runs alongside the Monty-based CodeMode, and CodeMode now defaults to dynamic_catalog=True, so a newly revealed tool is appended rather than rewriting the cached prompt. A DetectLoops capability interrupts agents stuck repeating the same action, and a PostgresSpendStore lets harness SpendLimits budgets be shared through PostgreSQL. The release supports ag-ui-protocol 1.0, adds OpenAI gpt-6.1-terra, adds a task_timeout option to Dataset.evaluate, and adds manage_message_history to UI adapters so a server-held history is not sent to the model twice. Strict output schemas are now kept within Anthropic’s and OpenAI’s complexity limits, falling back to non-strict output when no mode was chosen. Compatibility notes include the new CodeMode default, a default interval=10 for the harness LLMReminder, and a keyword-only replay argument for Gemini Live reconnects. Source