Visual Studio Code v1.104 Changelog
What changed in VS Code v1.104, released 2025-08-01 — explained in plain English.
TLDR
- VS Code's AI chat can now automatically pick the smartest AI model for your task.
- New safety features stop the AI from accidentally messing up your important system files.
- The way the AI shows you code changes is cleaner and less distracting.
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This update is all about making the AI assistant inside VS Code smarter, safer, and less distracting. It matters most to developers who use AI to help write code, especially teams who want to customize how that AI behaves and keep their projects secure.
What's new
- Auto model selection: When you use the AI chat, you can pick an "Auto" option. VS Code will automatically choose the best AI brain (like Claude Sonnet 4 or GPT-5) to answer your question. This helps you get the best answer fast and can even save you money if you are a paid user.
- Safety checks for sensitive files: When the AI is working in "agent mode" (meaning it can edit code on its own), it will now pause and ask for your permission before changing important files. This stops it from accidentally breaking hidden system files or configuration files that keep your computer running smoothly.
- AGENTS.md support: You can now create a file named
AGENTS.mdin your project folder. VS Code will automatically read this file to get custom instructions and context about your project, which is super helpful for teams using AI. - Custom chat modes in prompt files: You can save reusable AI instructions in "prompt files." Now, you can tell those prompt files to run in your own custom chat modes, not just the default ones VS Code comes with.
- Prompt file suggestions: Teams can now set up specific prompt files to pop up as suggestions in the chat window exactly when they are needed most.
Improvements
- Cleaner changed files list: When the AI edits your code, the list of changed files is now collapsed by default. This gives you more room to read the chat. You can still easily see how many files were changed and how many lines were added or deleted.
- Smoother workflow: When you accept an AI's suggested change, or when you "commit" (save a snapshot of your code in version control), the file is automatically cleared from the AI's list of changes so you don't have to clean it up manually.
Fixes
- The release notes mention that a few small updates (1.104.1, 1.104.2, and 1.104.3) were sent out to fix minor issues, but they do not specify exactly which bugs were squashed.
Breaking changes
No breaking changes in this release.
This is our plain-language summary. Read the complete, official notes on the Visual Studio Code official changelog ↗.
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