Visual Studio Code 1.108, the latest version of Microsoft’s popular code editor, introduces support for Agent Skills, a new feature that allows users to teach the GitHub Copilot coding agent new capabilities and provide domain-specific knowledge.

VS Code 1.108, also known as the December 2025 release, arrived January 8. Developers can access it for Windows, Linux, and Mac from code.visualstudio.com.

An experimental feature, Agent Skills are folders of scripts, instructions, and resources that GitHub Copilot can load when relevant to perform specialized tasks, according to Microsoft. Skills are stored in directories with a SKILL.md file that defines the skill’s behavior and automatically detected from the .github/skills folder. They are then loaded on-demand into the chat context when relevant for the developer’s request.

Also featured in VS Code 1.108 are improvements in the Agent Sessions view. These enhancements include keyboard access support for actions such as archives, read state, and opening a session, as well as support for archiving multiple sessions at once from the new group sections. VS Code also now bases Quick Pick for chat sessions on the same information that drives the Agent Sessions view. Developers can access any previous chat sessions from there and perform actions such as archiving, renaming, or deletion.

VS Code 1.108 follows the December 10, 2025, release of VS Code 1.107, which introduced multi-agent orchestration. Other improvements in VS Code 1.108 include the following:

• Due to negative feedback from terminal power users, Microsoft has reworked the defaults for the recently rolled out terminal IntelliSense. The feature is still enabled by default, but instead of the control being shown automatically when typing, it must be explicitly triggered via Ctrl+Space. The status bar on the bottom and discoverability in general have also been improved.
• A new setting, chat.tools.terminal.preventShellHistory, allows users to prevent commands run by the terminal tool from being included in shell history for bash, zsh, pwsh, and fish.
• For debugging, breakpoints now can be shown as a tree, grouped by their file.
• The Accessible View now dynamically streams chat responses as they are generated.
• Users now can import a settings profile by dragging and dropping a .code-profile file into VS Code. This makes it easier to share profiles with teammates or quickly set up a new environment.