The tool picker has been enhanced with a new component named Quick Tree, which allows for the collapsing and expanding of nodes. A limit has been established on the number of tools that can be utilized for a single chat request. Additionally, an experimental mode for tool-calling has been activated when this limit is surpassed.
Improvements have been implemented for terminal auto-approval, consolidating the allowList and denyList settings into the chat.tools.terminal.autoApprove setting. Regular expression matchers now include support for flags, enabling case insensitivity, and the auto-approval reasoning is documented in the Terminal Output channel.
A task and to-do list feature has been implemented in chat to assist users in monitoring their progress with tasks. The agent mode enables users to assign a high-level task and facilitates its implementation, thereby enhancing the ability to monitor progress. The chat provider API has undergone significant improvements, enabling users to choose the models that are displayed in their model picker.
Azure DevOps repositories now provide remote index support, allowing the codebase tool to efficiently search for relevant snippets almost instantly without requiring initialization. Remote indexes are utilized automatically when operating within a workspace connected to Azure DevOps via git. The implementation of this feature is being progressively introduced on the services side, with the expectation that it will be accessible to a wide range of organizations.
The recent update to Microsoft VS Code has enhanced the reliability and performance of the run in terminal and task tools by integrating them into the core Microsoft/vscode repository from the Copilot extension. This migration facilitates access to more advanced and comprehensive APIs, resolving numerous terminal hanging issues and streamlining feature implementation.
The agent is currently awaiting completion of tasks and background terminals through the implementation of output polling before moving forward. This enhances dependability when executing lengthy or potentially erroneous commands in chat. TThe agent is now equipped to monitor and evaluate the results of both ongoing and concluded tasks, including those that have encountered failures or successfully completed execution.
The test runner tool has undergone significant improvements, now displaying progress inline within the chat and effectively addressing various bugs. Users now have the capability to edit prior requests, maximize the chat window upon opening, and receive a prompt when attempting to exit VS Code or close its window while a chat response is being processed.
Math support in chat is now activated, enabling the rendering of mathematical equations in responses during conversations. TThe integration of Context7 for project scaffolding is now available, allowing users to create new projects in chat using #new and the latest documentation and APIs from Context7.
The MCP server autostart and trust features are now enabled, enabling users to configure the autostart behavior for MCP servers without the need for manual restarts. It is essential to place trust in these servers, especially with autostart enabled, to avoid the inadvertent execution of unwanted commands.
Visual Studio Code July 2025
Welcome to the July 2025 release of Visual Studio Code. There are many updates in this version that we hope you'll like, some of the key highlights include:
MCP Chat Productivity Revamped tool picker experience
Show moreUse GPT-5 in VS Code
Show moreCheck out multiple branches simultaneously with Git worktrees
Show moreEnable more than 128 tools per agent request
Show moreRestore to a previous good state with chat checkpoints
Show moreManage coding agent sessions in a dedicated view
Show more
