Microsoft released the stable version 1.140 of Visual Studio Code on September 30. The update focuses on enhancing GitHub Copilot Agent workflows, introducing new capabilities for multi-folder sessions, remote task delegation, and enterprise AI management.
The new multi-folder session feature allows developers to bind separate chats within a single agent session to different code repositories or Git worktrees. This isolation ensures that terminals, tasks, code changes, and pull requests remain independent, preventing accidental cross-contamination of modifications.
The update strengthens the Copilot harness, powered by the Copilot SDK. It operates within a dedicated agent host process based on the Agent Host Protocol (AHP), which standardizes agent behavior across VS Code, Copilot applications, and the Copilot CLI.
Microsoft introduced HydraFusion model orchestration as a research preview. This system automatically selects models and workflows, enabling the AI to critique and revise its own output to optimize the balance between execution speed, operational costs, and code quality.
For remote task delegation, the updated agent can now discover remote hosts. It evaluates parameters such as operating system, memory, CPU, and current load to select the most suitable host and establish a remote session for task execution.
