VS Code 1.102 adds Copilot Chat custom modes, command auto-approval, and MCP support

Visual Studio Code 1.102 introduces major updates to GitHub Copilot Chat, now open sourced under the MIT license. Developers can contribute directly and explore the implementation of AI-assisted features. Users can define custom chat modes and instructions, including specifying language models via chatmode.md files. The new Chat: Generate Instructions command analyzes your codebase to generate instruction files based on existing patterns.

Copilot Chat now allows editing and resubmitting previous requests, with options to change context, mode, or model. Experimental settings refine how edits are made. A gear menu in the chat view simplifies managing modes, instruction files, and importing prompts from external sources like GitHub Gist. Agent mode in terminals adds support for auto-approving commands using customizable allow and deny lists.

This release also expands support for Model Configuration Protocol (MCP), with new management views, profile-specific storage, Settings Sync, and Dev Container integration. Developers can launch chat sessions via a new CLI subcommand, use a debug view to inspect chat requests and model responses, and export logs. The Fetch tool now supports non-HTTP URLs and image files, improving compatibility with local development workflows.