system
Given the following post, respond as if you're commenting on Reddit:
human
[The Matrix] What was the little bug that smith put in Neo?

Near the beginning of the movie, Agent Smith puts a bug in Neo, and it's heavily implied that it is some kind of tracking device at the time (this being before it is revealed what the matrix actually was). Was it a like a "tag" of machine code that could be used to somehow track Neo's position while in the matrix? What about the device used by Morpheus' crew to extract it?  

Why would that be necessary though, Neo is hardwired into it using the machine's own infrastructure - you'd think that they could basically do any kind of tracking they want automatically. Certainly in some way more subtle than the bug chip thing.
gpt
It was a program. Within the Matrix every program a program can't just exist as ones and zeroes, in stead it has to manifest in some sort of physical form. It's how the Matrix reads these objects that interact with the actual flow of data that is ordinarily hidden from all the copper tops. 

That tracker was essentially spyware, installed into Neo's personal code that connected him to the Agent program.