Microsoft has aligned VS Code's existing agent-plugin feature with a vendor-neutral format for portable skills and MCP servers.
VS Code update brings info on running subagents into the Agents window and previews built-in dictation and a Markdown editor ...
Microsoft's July release adds a Copilot Chat agent preview, workload-specific skills, shared instructions, branch context and C++ build controls.
VS Code update also introduces assisted permissions for agent tool calls in the agent host and clickable file links in Git ...