What’s New in Visual Studio Code: March 2026 Update Highlights

See the official VS Code updates page

The March 2026 release of Visual Studio Code (version 1.113) brings a host of new features and improvements for developers and AI agent users alike. Here’s a quick look at the most important updates:

Key New Features

1. Chat Customizations

Manage all chat-related settings from a single, unified interface. This makes it easier to personalize your chat experience and streamline agent interactions.

2. Configurable Thinking Effort

You can now control a model’s reasoning level directly from the UI, allowing for more flexible and efficient AI-powered coding sessions.

3. Nested Subagents

Subagents can now invoke other subagents, enabling complex, multi-step workflows. This is a big step forward for automation and agent orchestration.

4. CLI Agent Capabilities

• MCP Server Support: MCP servers registered in VS Code are now available to Copilot CLI and Claude agents, not just local agents.
• Fork Sessions: You can fork chat sessions in Copilot CLI and Claude agents, letting you explore different ideas without losing your original context.
• Agent Debug Logs: The Agent Debug Log panel is now available for Copilot CLI and Claude agent sessions, making it easier to troubleshoot and understand agent behavior.

5. Images Preview for Chat Attachments

Preview images from chat with a full-featured image viewer, making it easier to share and review visual content during coding sessions.

6. Default Themes Refresh

Enjoy a fresh new look with updated default light and dark themes, giving VS Code a modern and polished appearance.

Why These Updates Matter

These improvements make Visual Studio Code even more powerful for both traditional development and AI-driven workflows. Whether you’re customizing your chat experience, orchestrating complex agent workflows, or just enjoying the new look, there’s something for everyone in this release.

For the full list of changes and more details, visit the VS Code updates page.