Microsoft's redesigned Copilot app adds a Code tab for natural-language app building, a persistent Autopilot agent with its own directory identity, Office apps built in, and FinOps controls for AI spend.
The September 9 release lets you talk to agents while they code, schedule recurring tasks, and introduces an open spec that decouples agent sessions from the editor entirely.
The September 2 release adds Agent Merge preview — a loop where an agent addresses review comments, fixes failed checks, resolves conflicts, and reruns workflows until the PR is ready to merge.
The August 26 VS Code release adds cross-app agent session continuity, an experimental rubber-duck second-opinion command, and per-model token usage breakdowns in chat.
Microsoft's August release pulls autonomous agent work out of the extension host and into its own process, while also adding grouped side-by-side chats, a prompt timeline gutter, and in-conversation search.
Microsoft's latest release decouples AI agents from the editor, publishes the Agent Host Protocol under MIT, and lets Claude users skip GitHub authentication entirely.
Two new models landed in GitHub Copilot this week: Kimi K3 from Moonshot AI at $3 per million tokens, and MAI-Code-1.1-Flash, Microsoft's own code model with native image understanding. Agent Plugins 1.0 also went generally available.
VS Code 1.132 released August 5 with Agent Host Protocol support, a dedicated Agents Window for running multiple concurrent agent sessions, side chats via /btw, and multilingual dictation using an on-device model.
GitHub stopped accepting new Spark users on August 4 and will fully retire the AI app builder by month's end. The shutdown follows GitHub Models going dark July 30, and lands the same week Copilot got comment-triggered automations and reasoning-level controls.
VS Code 1.131 brings offline voice dictation across chat, editors, and terminals; live subagent monitoring showing model, elapsed time, and active tool; and a new hybrid Markdown editor inside the Agents window.
VS Code 1.130 extends the agent host architecture to Claude and Codex agents, adds AI-assisted tool approvals, compact multi-file diffs in the Agents window, credit usage visibility for Copilot Business users, and bundles TypeScript 7.
VS Code 1.129 ships a dedicated agent host that runs AI sessions in their own process, a new editor panel in the Agents window for reviewing diffs inline, a ! shortcut for running terminal commands from chat, and an experimental modern UI with floating cards.
MDASH, Microsoft's multi-model agentic security system, found 16 Windows vulnerabilities including four critical RCEs. Now Microsoft is commercializing it as Project Perception, targeting enterprises that can't afford Anthropic's Mythos.
VS Code 1.128 ships Copilot Vision as generally available, adds full keyboard navigation for multi-chat Claude agent sessions, lets you start a chat in the Agents window without opening a project first, and brings OS-level keyboard shortcuts so VS Code commands work even when the app isn't focused.
GitHub has set July 30, 2026 as the hard shutdown date for GitHub Models. The playground, model catalog, inference API, and BYOK endpoints will all go dark. GitHub is pointing users toward Azure AI Foundry and GitHub Copilot.
VS Code 1.127 ships multi-chat support inside agent sessions, macOS terminal sandboxing, per-site browser permissions, and a hover showing how many AI credits your subagents burned.
Microsoft's 5B-parameter in-house coding model MAI-Code-1-Flash reached general availability for GitHub Copilot Business and Copilot Enterprise on June 26, with admin policy controls required before users can access it.
Released June 24, VS Code 1.126 adds session-level cost tracking for Copilot, multiple concurrent chats per agent session, agentic code feedback tools, and Restricted Mode as the default for new folders.
Two weeks of VS Code's weekly cadence bring Autopilot enabled by default with a smarter loop-termination model in 1.124, and remote browser proxying through SSH, Edit Mode removal, and a Copilot credits dashboard in 1.125.
Two model changes hit GitHub Copilot on June 18: Microsoft's MAI-Code-1-Flash expanded from VS Code to eight more surfaces, and GitHub announced Opus 4.6 (fast) will be deprecated across all Copilot experiences on June 29.
GitHub moved the Copilot App out of technical preview on June 17, making it generally available for Pro, Pro+, Business, and Enterprise customers. The standalone desktop app for agent-driven development is now production-ready, with Canvases, cloud automations, and per-session model selection included.
Today's Claude Code update adds a detailed usage attribution breakdown to the VS Code /usage dialog, showing cache misses, long context sessions, subagent use, and per-skill, per-MCP token consumption over the last 24 hours or 7 days.
GitHub switched Copilot to usage-based AI Credits billing on June 1. A week in, developers are reporting that agentic workflows eat through monthly allowances in hours. The community backlash thread has nearly 1,000 thumbs-down reactions.
MAI-Code-1-Flash is Microsoft's first coding AI trained entirely in-house, without OpenAI's data or technology. It's rolling out to all Copilot plans now, and its benchmark numbers suggest it was built for token efficiency rather than headline scores.
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