The August 2025 update to GitHub Copilot in Visual Studio Code (v1.104) brings greater flexibility, security, and productivity to AI-powered development workflows.

Highlights

  • Auto model selection in Copilot Chat: Copilot can now automatically select AI models for you based on model availability, improving performance and reliability. Auto is now available to all Copilot Free, Pro, and Pro+ subscribers, and coming soon to both Copilot Business and Enterprise. Auto will be billed at a discounted rate for those with Copilot Pro and Pro+ plans.
  • Confirm edits to sensitive files: As an additional layer of safety, agent mode now explicitly asks for your confirmation prior to making changes to certain files. With the setting(chat.tools.edits.autoApprove) setting, you can configure file patterns that indicate which files require confirmation.
  • Improved chat and coding agent workflows: Try the updated experience, complete with collapsed changed files list, contextual prompt file suggestions, and reliability improvements.
  • Support for AGENTS.md files: Provide additional context and instructions to the agent to guide it towards best practices that are suited for your team’s workflows.
  • Collaborate with GitHub Copilot coding agent: Stay in your flow while delegating tasks to GitHub Copilot coding agent. Monitor progress and iterate with the agent all from VS Code.
  • Enhanced terminal auto approve: Organizations and individuals can enable or disable terminal auto approve via chat.tools.terminal.enableAutoApprove, with improved UI for rules and security warnings.

This is just a sample of the updates in v1.104. For the full list of new features, fixes, and extension improvements, visit the full VS Code release notes.

Happy coding!