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VS Code 1.107 (November 2025 Update) Expands Multi-Agent Orchestration, Model Management
The latest monthly update to Visual Studio Code, version 1.107 (the November 2025 release), continues Microsoft's focus on AI-assisted workflows with expanded multi-agent orchestration across local, background and cloud environments, along with new chat, model management, security, TypeScript and enterprise features.
Microsoft summarizes the release's AI goodies:
- Agent HQ gives you one place to manage all your agents, letting Copilot and custom agents collaborate across tasks.
- Background agents run in isolated workspaces to not interfere with your active work, and enabling multiple background tasks at once.
- Delegate work across local, background, or cloud agents to keep your workflow moving without interruptions.
[Click on image for larger view.] Visual Studio Code 1.107. (source: Microsoft).
Multi-Agent Orchestration, Agent HQ and Background Agents
On the agents front, the release ties together GitHub Copilot and custom agents by integrating agent sessions directly into the Chat view. A new session list shows status, progress and file change statistics at a glance, with archive and unarchive options to keep long-running work manageable. Sessions scoped to the current workspace appear when a folder is open, while an empty window shows sessions across all workspaces. Selecting a session reopens the full conversation in the Chat view, or as an editor tab or separate window via the context menu.
The sessions list layout adapts to the available space: a compact view surfaces only the three most recent unarchived sessions when the Chat view is narrow, and a side-by-side view appears automatically once the pane is wide enough. A new orientation setting lets developers choose whether sessions appear stacked above chats, side-by-side when possible, or hidden when space is constrained.
Local agent sessions now remain active after the associated chat window is closed, addressing earlier behavior where closing a chat cancelled the in-progress request. Running local agents continue in the background, with their status visible in the sessions list and the option to jump back into the detailed progress view at any time.
Handoffs between local, background and cloud agents are streamlined through a new Continue in option that appears throughout the UI. After collaborating with a local agent to plan or explore a task, developers can move the work to a background or cloud agent, which receives the current chat context while the original session is archived. The option shows up in the Chat view, in the Plan agent flow and in untitled prompt files.
Background agents (formerly CLI agents) gain isolated execution using Git worktrees. When creating a background agent, users can choose to run it either against the current workspace or in a dedicated worktree. In the latter case, VS Code spins up a separate Git worktree per session so file changes live in an isolated folder, allowing multiple background agents to run without conflicting edits. The release adds actions to review and merge those worktree changes back into the main workspace, or apply them directly when the agent completes.
To support more precise prompts, background agents now accept multiple kinds of attached context, including selections, problems, symbols, search results and Git commits. That lets an agent operate on a specific error report or symbol set without manually entering file paths or line numbers.
Custom agent capabilities also expand. An experimental feature lets organizations define custom agents at the GitHub organization level and surface them alongside personal agents via a setting, while another experimental option allows those same custom agents to participate in Background Agents. A tooling reorganization is intended to align agent tool definitions with GitHub custom agents, with Code Actions offered to bring existing agent files in line with the updated schema. A separate experimental feature allows custom agents to be used as subagents, delegating parts of a complex task to specialized personas while the main chat stays focused on the overall goal.
The update also adds experimental support for reusing Claude Code skills in VS Code by pointing the editor at local or workspace skill definitions and enabling a setting that lets agents discover and use those skills as part of their context.
Chat Experience, Language Models Editor and Safety Controls
Inline chat continues to be tuned for quick, single-file edits. The inline chat experience is now explicitly optimized for code changes in the current file, with prompts it cannot handle automatically replayed in the full Chat view using the same model and context. A preview setting controls how the extension routes prompts but no longer affects the chat UI itself.
A new Language Models editor centralizes management of all chat-capable language models available in VS Code, whether they come from GitHub Copilot, third-party extensions or bring-your-own-key providers. The editor, which can be opened from the model picker or via the Chat: Manage Language Models command, lists models with details such as capabilities, context size, billing and visibility. It supports text search plus filters by provider, capabilities and visibility, and provides controls to toggle which models appear in the model picker. An Add Models... flow lists installed providers and guides configuration of additional models without leaving the editor.
On the safety side, URL and domain auto approval for the fetch tool now uses a two-step process. When the model proposes fetching a URL that the user did not explicitly request, VS Code first asks for approval to contact that URL or domain, with options for one-time or future approvals and integration with the Trusted Domains feature. A second approval step controls whether fetched content is incorporated into the chat or passed to tools, with Microsoft positioning this as a way to mitigate prompt injection risks from user-generated content on sites like GitHub.
The fetch tool itself now handles dynamic web content by waiting for JavaScript execution before capturing a page, which is aimed at sites such as single-page applications, modern documentation portals and issue trackers. The Text Search agent tool gains the ability to search files and folders that would normally be ignored by files.exclude, search.exclude or .gitignore, returning hints when no results are found so agents can adjust search scopes.
Within chat, terminal integration is expanded. Running commands via chat can now render a full, read-only xterm.js terminal inside the conversation, preserving command output even after the underlying terminal exits and adopting the integrated terminal theme for ANSI color contrast. Status information such as start time, duration and exit code appears on hover of command decorations, and there is a new option to allow all terminal commands for the current session after an initial approval. Keyboard shortcuts let users focus the most recent chat terminal or toggle its expanded state, and each custom agent now gets its own command that can be bound to shortcuts.
Additional chat refinements include Entra ID as the default authentication method for Azure-hosted Bring-Your-Own-Key models, appearance tweaks such as a configurable chat title, welcome banner visibility and session restore behavior, diffs instead of raw edits when chat proposes changes to sensitive files, and experimental support for collapsing tool output and reasoning sections with summarized titles.
MCP, TypeScript 7 Preview and Enterprise/Engineering Changes
For the Model Context Protocol (MCP), VS Code 1.107 now supports the 2025-11-25 revision of the specification, including features such as URL mode elicitation and task support for long-running, resilient tool calls. The release notes also point to updates for enum elicitation and mention earlier 2025-11-25 draft features like WWW-Authenticate scope consent, a Client ID Metadata Document flow and icons for tools, resources and servers.
A new built-in GitHub MCP Server is provided by the GitHub Copilot Chat extension. When enabled via a setting, it appears as a tool source for agents and uses the existing GitHub authentication state, aligning VS Code with other Copilot agent harnesses such as Copilot CLI and Copilot Cloud Agent. Administrators can configure which toolsets are available, force read-only operation or apply additional lockdown controls, with documentation pointing to GitHub resources for advanced configuration.
Editor experience refinements include indicators in the Open Recent picker and window picker to show which workspaces are already open and which window is active, a three-finger swipe gesture on macOS to navigate across recently used editors when a corresponding setting is enabled, and a new onKeyboardModifier option for editor hover behavior that only shows hover information when a modifier key is held, reducing visual noise during selection.
Code editing changes center on TypeScript. Rename suggestions for TypeScript now predict when a symbol rename is more appropriate than a simple text completion, surfacing a separate suggestion that can be applied with a shortcut and propagating related renames across parameters and properties. A new model for next edit suggestions is described as more responsive to recent edits, and suggestions that would apply outside the current viewport can now be previewed near the cursor to avoid losing context while scrolling.
In parallel, VS Code continues its work with the TypeScript team on a TypeScript 7.0 preview. The release notes describe TypeScript 7 as a complete rewrite in native code aimed at better performance, with the preview already offering nearly complete type checking support and editor features such as auto import completions, rename support and references code lenses. Developers can try it today by installing the TypeScript (Native Preview) extension and enabling it via a command, while Microsoft indicates a longer-term plan to make TypeScript 7 the default JavaScript and TypeScript IntelliSense engine while still supporting older versions for scenarios that require them.
Elsewhere, the update brings a stashes node to the Source Control Repositories view, a new ability to attach variables, scopes and expressions from the debugger to chat as context, the rollout of Terminal Suggest to the stable channel, and expanded cross-platform native broker support for Microsoft authentication, along with removal of the legacy classic authentication mode.
Enterprise-focused changes include a setting to control which agent tools are eligible for auto-approval, allowing organizations to require explicit consent for tools that can perform destructive actions or access sensitive data, along with clearer messaging when agents are disabled by policy and support for GitHub Enterprise policies in Codespaces, such as configuring an MCP registry URL that applies automatically when developers open a Codespace.
Finally, engineering updates note that Insiders builds are now rolled out over a four-hour window and the November 2025 stable release over 24 hours, that VS Code's website search is now backed by an open-sourced docfind library, that build scripts have been consolidated on modern TypeScript using Node's ability to run .ts files directly, and that inline suggestions are now fully served from the GitHub Copilot Chat extension as part of a plan to deprecate the standalone GitHub Copilot extension in early 2026.
More information is available in a release video.
About the Author
David Ramel is an editor and writer at Converge 360.