GitHub Copilot for VS Code's July Releases (v1.127-v1.131) Overhaul the Agents Window and Add Multi-Chat Sessions

GitHub has published a changelog covering GitHub Copilot for VS Code’s July 2026 releases, spanning v1.127 through v1.131. The batch includes a redesigned Agents window, the ability to run multiple chats within a single agent session, and general availability of Copilot Vision, among many other changes.

Details

• Redesigned Agents window: A new layout opens files and diffs next to the conversation with unified tab management. Faster review workflows show file addition/deletion counts, a compact diff view, and switching between inline and side-by-side diffs
• Git worktree support: Launch isolated sessions using Copilot, Claude, or Codex in separate copies of the repository
• Quick chat: Ask questions without opening a workspace, kept separate from project sessions
• Session management: Group related conversations and reorder them by drag-and-drop. Subagent activity can be tracked for model, elapsed time, and active tool calls
• Faster PR handling: Act on failed CI checks and new review comments directly from banner notifications
• Multi-chat sessions: A single agent session now supports multiple related chats, each with independent history and titles. A new “peer chat forking” feature lets you explore an alternative approach from any point in a conversation while preserving the original context. Individual chats can be hidden, reopened, or permanently deleted, and keyboard navigation lets you move between chats without a mouse
• Chat and model updates: Copilot Vision is now generally available for pasting, dragging, or importing files via the context menu. Business/Enterprise users can view current billing-cycle usage from the status menu. BYOK (bring-your-own-key) model support extends to the Agents window (it’s been available in the editor since March 2025). Prefixing a chat message with ! runs it as a terminal command
• Editor, terminal, and browser: An experimental modernized UI is in preview on Stable (default on Insiders); terminal diff output lets you click a file path to open it directly, recognizing Git prefixes like i/ and w/; integrated browser tab placement is now configurable; OS-level keyboard shortcuts can trigger VS Code commands even when it’s in the background; existing prompt files can be migrated into reusable skills; you can switch editor types from the toolbar; and Markdown can be edited in-place within the Agents window with agent-actionable comments
• Accessibility: Enable dictation.enabled for speech input across chat, the editor, and the integrated terminal. The experimental dictation.experimental.llmCleanup setting lets Copilot clean up and format spoken text. The terminal’s Accessible View now keeps cursor position stable as output arrives and can be read independently

How to try it

• Update VS Code to v1.131 or later on the Stable channel and check out the new Agents window layout and multi-chat features
• Enable dictation.enabled in settings to try voice input
• Drag a file into Copilot Chat to try the now generally available Copilot Vision
• Prefix a chat message with ! to run it directly as a terminal command