The Visual Studio Code team has delivered the June 2025 release (version 1.102), a pivotal update that solidifies VS Code’s position as the leading IDE for AI-driven development. This release introduces open-source advancements, comprehensive MCP support, and refined editor features designed to empower developers with unmatched precision and efficiency. Below is a detailed overview of the key updates and their significance.
Critical Updates in VS Code Version 1.102
1. GitHub Copilot is Now Open Source
The GitHub Copilot Chat extension is now open source under the MIT license, hosted at microsoft/vscode-copilot-chat. This strategic move enables:
- Direct community contributions to AI-powered chat functionalities.
- Transparent access to implementations of chat modes, custom instructions, and AI integrations.
- Opportunities to build advanced AI developer tools on a collaborative foundation.
Developers are encouraged to explore the repository and contribute to shaping the future of AI-assisted coding. For a comprehensive analysis, refer to the official blog post.
2. Advanced Chat Capabilities
This release enhances the Copilot Chat experience with sophisticated features:
- Custom Chat Modes: Define tailored chat modes with specific instructions and tools for tasks like project planning or code research. Specify language models via the
modelmetadata property inchatmode.mdfiles, with IntelliSense support for seamless configuration. - Generated Instructions: The
Chat: Generate Instructionscommand analyzes your codebase to produce custom instructions, stored incopilot-instructions.md, ensuring AI suggestions align with project conventions. - Editable Chat Requests (Experimental): Modify previous chat requests (text, context, mode, or model) to refine AI interactions iteratively. Configurable via the
chat.editRequestssetting with options for inline, hover, or input-based editing. - Terminal Auto-Approval (Experimental): Automate trusted terminal commands (e.g.,
npm run test,git status) using allow/deny lists, with safeguards against chained or unsafe commands. Default allow list includes safe commands likeechoandls, whilermandcurlare blocked by default.
These advancements ensure precise, context-aware AI interactions, streamlining complex workflows.
3. MCP Support: Fully Integrated and Enterprise-Ready
Managed Compute Platform (MCP) support is now generally available, marking a significant milestone:
- MCP Servers View and Gallery: Install and manage MCP servers effortlessly through a dedicated view, with curated server options available on the MCP Servers page.
- First-Class Resource Integration: MCP servers are stored in profile-specific
mcp.jsonfiles, ensuring clean separation from user settings and seamless synchronization via Settings Sync. - Elicitation Support: MCP servers can now request user input, enhancing interactivity per the latest MCP specification.
- Enterprise Policy Control: Organizations can manage MCP server availability via GitHub Copilot policies, as detailed in the GitHub Copilot documentation.
Developers can build custom MCP servers using the MCP developer guide, unlocking powerful extensibility.
4. Enhanced Editor Functionality
The editor experience has been refined for efficiency:
- Copilot Task Delegation: Assign tasks to the Copilot coding agent for background processing, minimizing manual intervention.
- Middle-Click Scrolling: Enable smooth scrolling with the middle mouse button (
editor.scrollOnMiddleClick). Note potential conflicts with column selection or clipboard pasting on Linux. - Snooze Suggestions: Temporarily disable inline suggestions and Next Edit Suggestions (NES) via the Copilot dashboard or
editor.action.inlineSuggest.snoozecommand, supporting focused coding sessions.
5. Terminal and Task Enhancements
- Terminal Suggest (Preview): Supports multi-command lines (e.g.,
git commit && git push) with improved sorting for relevant suggestions (e.g., prioritizingmainandmasterbranches). Git Bash now includes path completions and built-in command suggestions. - Task Management: The
Tasks: Rerun All Running Taskscommand simplifies restarting multiple tasks, whileRestart Tasknow respects updatedtasks.jsonconfigurations.
6. Accessibility Improvements
- Editor-Based Edits: Accept all Copilot suggestions from the editor with
Ctrl+Alt+Y. - Action Alerts: Screen readers now signal when chat requires user input, configurable via
accessibility.signals.chatUserActionRequired. - Error Notifications: Rendering errors in chat are now announced to screen reader users, with keyboard-accessible focus.
Strategic Importance
The June 2025 release positions VS Code as a cornerstone of modern development, blending open-source collaboration with enterprise-grade tools. The open-sourcing of Copilot Chat fosters community innovation, while MCP integration and enhanced AI capabilities deliver unmatched flexibility for individual developers and organizations. These updates reduce friction, enhance automation, and empower developers to focus on what matters: building exceptional software.
Get Started Today
Download Visual Studio Code v1.102 to experience these advancements, or opt for the nightly Insiders build for early access to cutting-edge features. Review the complete release notes for technical details.
