VS Code 1.116 Ships Agent Companion App, Native Copilot Chat, and Agent Debug Logging

Visual Studio Magazine·high signal

Microsoft's VS Code 1.116 (April 15) integrates Copilot Chat natively — no extension required — and ships a new Agent Companion App that lets developers run parallel agent sessions across repos, each isolated in its own worktree, with inline diff review and PR creation. Agent debug logging exposes full prompt traces, reasoning chains, and decision paths in a dedicated output channel, and terminal AI now reads console output to suggest fixes.