The latest Visual Studio Code release introduces smarter, more contextual AI tools designed to enhance productivity and safety. With Auto Model Selection in preview, the editor now picks the best AI model for each chat, optimizing for both performance and user-specific rate limits.
Paid Copilot users enjoy discounted requests, and the chosen model is always visible for transparency. Developers can now access custom AI models through extensions, thanks to the new Language Model Chat Provider API (LanguageModelChatProviders
), granting teams greater flexibility in their AI-assisted workflows.
There are already extensions that take advantage of this API to extend chat in VS Code with additional models, including AI Toolkit for VS Code, Cerebras Inference, and Hugging Face.
Sharper Security Built In
Security takes center stage in this update. Before AI agents can modify sensitive files, users must now explicitly approve changes, preventing accidental or malicious edits. Terminal auto-approve enhancements include opt-in rules and clearer warnings, offering a balance between convenience and protection.
For teams, the introduction of AGENTS.md
files lets you provide essential context to AI agents, enabling sophisticated, multi-agent collaboration. And for those who want control, a new global setting allows users to disable or hide Copilot AI features at the workspace, profile, or device level.
Productivity Tools and Workflow Refinements
- Enhanced Chat & Prompt Experience: The updated chat interface is less intrusive and recommends the right files for AI workflows. Custom chat modes and adjustable fonts further personalize your experience.
- Coding Agents Integration: The Chat Sessions view now supports multiple sessions, status tracking, and seamless GitHub agent connections. Delegating TODOs or pull request tasks to coding agents is as easy as a chat command.
- Improved Task and Terminal Management: Agent mode now supports more complex tasks, while terminal updates deliver better reliability, discoverability, and smart completions with IntelliSense and sticky scroll features.
- Semantic Workspace Search: The codebase tool leverages a new, faster embeddings model for more relevant and accurate code searches.
- Python & Notebooks Boost: Python developers benefit from improved edit suggestions, AI-powered hover summaries, enhanced Pipenv support, and a new tool for running in-memory code snippets directly in notebooks.
Interface Customization and Accessibility
- Workspace Personalization: Customize your environment with options for window borders, editor tab indexes, and tab bar scrollbar visibility, making project navigation smoother.
- Streamlined Sign-In: GitHub Copilot now supports Google account authentication, making access easier for a wider user base.
- Accessibility & Issue Reporting: New focus commands and improved GitHub issue reporting make the editor more inclusive for users relying on assistive technologies.
Empowering Extension Authors
- API Innovations: The update finalizes APIs for language model providers, authentication flows, and secondary sidebar view containers, inviting extension authors to expand VS Code’s capabilities even further.
- Community Contributions: A host of bug fixes, new language supports, and enhanced extension samples highlight the ongoing collaboration between Microsoft and the developer community.
Takeaway: A Smarter, Safer, and More Versatile VS Code
VS Code 1.104 positions itself as a cutting-edge development platform by integrating advanced AI, strengthening security, and expanding workflow customization. Developers are empowered with tools that not only enhance efficiency but also keep their projects safe and adaptable. Explore the upgraded features to maximize your productivity and experience the next evolution in coding environments.
VS Code August Updates: Transforming Development with AI, Security, and Workflow Upgrades