Latest VS Code update introduces prepackaged bundles of chat customizations that can include skills, commands, agents, MCP servers, and hooks.

In the AI developer boom, some of the most important battlegrounds are not glamorous models or splashy chatbots. They are the quiet pipes that keep modern coding tools fed and up to date.

Visual Studio Code 1.110 (February 2026) adds new agent extensibility, browser-driving chat tools, and expanded chat accessibility.

VS Code's AI Toolkit and Microsoft Foundry can speed up agent development, but real-world success often depends on picking the right runtime and region, keeping tool-driven context under control, and ...