diff --git a/package.json b/package.json
index cf77b58c2..b2b52d7d0 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
     "name": "@databricks/databricks-vscode",
-    "version": "2.12.2",
+    "version": "2.12.3",
     "private": true,
     "workspaces": [
         "packages/*"
diff --git a/packages/databricks-vscode-types/CHANGELOG.md b/packages/databricks-vscode-types/CHANGELOG.md
index a2ed8987d..d91b0a750 100644
--- a/packages/databricks-vscode-types/CHANGELOG.md
+++ b/packages/databricks-vscode-types/CHANGELOG.md
@@ -1,3 +1,9 @@
+# Release: v2.12.3
+
+## packages/databricks-vscode-types
+
+## (2026-07-14)
+
 # Release: v2.12.2
 
 ## packages/databricks-vscode-types
diff --git a/packages/databricks-vscode-types/package.json b/packages/databricks-vscode-types/package.json
index 032501b62..673e8199c 100644
--- a/packages/databricks-vscode-types/package.json
+++ b/packages/databricks-vscode-types/package.json
@@ -1,6 +1,6 @@
 {
     "name": "@databricks/databricks-vscode-types",
-    "version": "2.12.2",
+    "version": "2.12.3",
     "description": "Package with types and interfaces to develop extensions to the Databricks VSCode plugin",
     "main": "index.js",
     "types": "index.d.ts",
diff --git a/packages/databricks-vscode/CHANGELOG.md b/packages/databricks-vscode/CHANGELOG.md
index 50521a91f..a952ea796 100644
--- a/packages/databricks-vscode/CHANGELOG.md
+++ b/packages/databricks-vscode/CHANGELOG.md
@@ -1,3 +1,12 @@
+# Release: v2.12.3
+
+## packages/databricks-vscode
+
+## (2026-07-14)
+
+-   Always pass `--host` on databricks-cli login so custom workspace hosts are not redirected to the public login page (#2009) ([d2f0518](https://github.com/databricks/databricks-vscode/commit/d2f0518)) — fixes the OAuth sign-in regression reported in [#2011](https://github.com/databricks/databricks-vscode/issues/2011)
+-   Update Databricks CLI to v1.7.0 (#1999) ([f2e56f2](https://github.com/databricks/databricks-vscode/commit/f2e56f2)) — see the [CLI release notes](https://github.com/databricks/cli/releases) for changes since v1.2.0; notably the direct deployment engine is now GA and the default for new deployments
+
 # Release: v2.12.2
 
 ## packages/databricks-vscode
diff --git a/packages/databricks-vscode/package.json b/packages/databricks-vscode/package.json
index 682c9a29c..10a0ffa86 100644
--- a/packages/databricks-vscode/package.json
+++ b/packages/databricks-vscode/package.json
@@ -4,7 +4,7 @@
     "description": "IDE support for Databricks",
     "publisher": "databricks",
     "license": "LicenseRef-LICENSE",
-    "version": "2.12.2",
+    "version": "2.12.3",
     "engines": {
         "vscode": "^1.86.0",
         "node": ">=22.0"