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

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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 ...

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