Visual Studio Code 1.102.1 has been released, addressing several issues related to the chat mode, prompt and instruction files, and general VS Code workbench layout. The team identified several probable bugs for fixing in the next release, including the issue with the chat mode not correctly applying tools after a window reload, the issue with the settings editor searching for AI results even when the toggle is hidden, the issue with the terminal size not keeping maximum after switching to the editor and switching back, the issue with the chat mode without tools always overriding disabled tools, the issue with the chat-prompts file not picking up specified MCP tools when using the *.prompt.md file, and the issue with the chat-tools file not being picked up when using the *.prompt.md file.
VS Code Release June 2025 Recovery 1
The update addresses these issues.
For the complete release notes go to Updates on code.visualstudio.com.
