VS Code 1.104 adds auto chat model selection & enhanced agent features

Visual Studio Code 1.104 adds preview support for automatic chat model selection, letting the editor choose between Claude Sonnet 4, GPT-5, GPT-5 mini, or GPT-4.1. The feature applies organization access rules, displays the chosen model and multiplier, and gives paid users a 10% discount.

Agents are now safer, as edits to sensitive files require confirmation, while AGENTS.md files in the workspace root are automatically used to provide context. The changed files list in agent mode is collapsed by default, shows added and removed lines per file, and accepts changes automatically when staging or committing from Source Control. Coding agents gain improved delegation with TODO code actions, richer context forwarding, and real-time progress in a dedicated chat editor.

Terminal interactions now support stricter auto-approve rules, visible configuration links, and warnings for web-fetch commands. Copilot supports Google sign-in, while Pylance introduces AI hover summaries and an in-memory code snippet runner for Python. Other updates improve semantic code search, expand terminal IntelliSense, and add a setting to disable Copilot features per profile or workspace.