Visual Studio Code 1.118.1 Fixes the GitHub Copilot CLI Breakage from Version 1.118
The latest patch for Visual Studio Code 1.118.1 drops straight to fixing a regression that broke the GitHub Copilot CLI in version 1.118. Developers who upgraded and suddenly watched their terminal spit errors instead of running AI commands will finally get back to work without hunting through issue trackers. This release swaps out the faulty update logic and restores normal command execution for anyone relying on inline AI assistance during coding sessions.
What Actually Broke in Version 1.118
The regression slipped through testing when the extension host updated its terminal integration layer without properly validating how external CLI tools handshake with the editor. Anyone who ran into a sudden command not found error or a silent failure after typing slash commands probably noticed the Copilot interface still looked normal while the backend completely refused to execute requests. Microsoft caught the mismatch quickly and rolled out 1.118.1 as a targeted hotfix rather than waiting for the next monthly feature drop, which is exactly what happens when QA skips terminal integration tests on release day. The fix targets the exact path resolution logic that caused the CLI wrapper to lose its connection to the active workspace directory.
How to Apply Visual Studio Code 1.118.1 Without Losing Settings
Updating through the built-in installer handles all background file replacements while preserving user configurations and installed extensions. The process runs silently in the background and triggers a full window reload once the archive finishes unpacking, which ensures the old broken binaries get completely replaced before any new commands execute. Anyone who prefers manual updates can download the standalone package from the official releases page and replace the existing installation folder after closing all running editor instances. Skipping the automatic update prompt will leave the faulty CLI wrapper active until the next scheduled maintenance cycle, so checking for available patches early saves time during tight deadlines.
Users can grab the update when it appears in the notification bar and let the editor restart itself. The terminal should behave normally once the window reloads, and slash commands will route back to Copilot without throwing cryptic errors. Keeping an eye on the release notes for any follow-up tweaks helps catch broken extensions before they pile up in the next cycle.
