Microsoft has released a new version of Visual Studio Code, adding an exciting feature called Agent Skills. This update aims to give developers more control over how GitHub Copilot assists them by allowing custom skills tailored to specific needs. The latest version, VS Code 1.108, arrived on January 8 and is available for Windows, Linux, and Mac.

What Are Agent Skills and How Do They Work?

Agent Skills are folders containing scripts, instructions, and resources that help GitHub Copilot perform specialized tasks. Developers can create these skills and store them in specific directories, which are then automatically detected by VS Code. Each skill has a SKILL.md file that explains how it behaves. When a developer makes a request, Copilot can load relevant skills on the fly, making its assistance more domain-specific and powerful.

This system allows users to teach Copilot new capabilities without waiting for official updates. Skills are loaded only when needed, keeping the environment uncluttered and efficient. This setup is especially useful for teams working in niche fields or with custom workflows, as they can craft their own skills and integrate them seamlessly into their coding environment.

Improvements to the User Interface and Workflow

Besides Agent Skills, the new VS Code update improves the experience around managing chat sessions with Copilot. The Agent Sessions view now supports keyboard navigation for actions like archiving, reading the state, and opening sessions. Users can also archive multiple sessions at once using new group sections, making session management quicker and easier.

Quick access to chat sessions has been revamped too. Developers can now see their previous conversations directly from the Quick Pick menu, where they can archive, rename, or delete sessions. These enhancements streamline the workflow, saving time and making interactions with Copilot more intuitive.

Microsoft continues to build on previous releases, such as the December 2025 update that introduced multi-agent orchestration. The ongoing improvements aim to make VS Code a more flexible and developer-friendly environment, especially for those working with AI-assisted coding tools.

Additional Enhancements and Customization Options

The update also addresses feedback from power users of the terminal feature. Microsoft has reworked the default settings for terminal IntelliSense, making it more controllable. Now, the IntelliSense pop-up is not shown automatically but can be triggered explicitly with Ctrl+Space. This change gives users more flexibility and prevents interruptions during intense coding sessions.

Other improvements include a new setting that prevents commands from being saved in shell history, which is useful for maintaining privacy and reducing clutter. Debugging has also seen a boost, with breakpoints now able to be grouped by file in a tree view. Additionally, the Accessible View can stream chat responses dynamically as they are generated, enhancing accessibility for all users.

Finally, sharing and setting up environments has become easier with a new feature that allows users to import a settings profile by simply dragging and dropping a .code-profile file into VS Code. This helps teams quickly replicate setups and share configurations, saving time and reducing setup errors.

Inspired by

• https://www.infoworld.com/article/4115115/visual-studio-code-adds-support-for-agent-skills.html

Sources

• visualstudio.com
• visualstudio.com