Visual Studio Code beefs up AI coding features

Visual Studio Code 1.100, the latest release of Microsoft’s code editor, has arrived with several upgrades to its AI chat and AI code editing capabilities. Highlighting the list are support for Markdown-based instructions and prompt files, faster code editing in agent mode, and more speed and accuracy in Next Edit Suggestions.

Released May 8, Visual Studio Code 1.100, also known as the April 2025 release, can be downloaded for Windows, macOS, and Linux at code.visualstudio.com.

VS Code 1.100 allows developers to tailor their AI chat experience in the code editor to their specific coding practices and technology stack, by using Markdown-based files. Instructions files are used to define coding practices, preferred technologies, project requirements, and other custom instructions, while prompt files are used to create reusable chat requests for common tasks, according to Microsoft. Developers could create different instructions files for different programming languages or project types. A prompt file might be used to create a front-end component, Microsoft said.

The new VS Code release also brings faster AI-powered code editing in agent mode, especially in large files, due to the addition of support for OpenAI’s apply patch editing format and Anthropic’s replace string tool. The update for OpenAI is on by default in VS Code Insiders and gradually rolling out to Stable, Microsoft said, while the update for Anthropic is available for all users.

Visual Studio Code 1.100 introduces a new model for powering Next Edit Suggestions, intended to offer faster and more contextually relevant code recommendations. This updated model delivers suggestions with reduced latency and aligns more closely with recent edits, according to Microsoft. NES also now automatically can suggest adding missing import statements in JavaScript and TypeScript files.

With VS Code 1.100, the editor now provides links to additional information that explains why an extension identified as malicious was flagged. These “Learn More” links connect users to GitHub issues or documentation with details about the security concerns, helping users better understand potential risks. In addition, extension signature verification now is required on all platforms, i.e., Windows, macOS, and Linux. Previously, this verification was mandatory only on Windows and macOS. With this release, Linux now also enforces extension signature verification, ensuring that all extensions are properly validated before installation.

VS Code also features two new modes for floating windows. Floating windows in VS Code allow developers to move editors and certain views out of the main window into a smaller window for lightweight multi-window setups. The two new modes include Compact, in which certain UI elements are hidden to make more room for the actual content, and Always-on-top, in which the window stays on top of all other windows until a developer leaves this mode.

For source control, VS Code 1.100 adds quick diff editor decorations for staged changes. Developers now can view staged changes directly from the editor, without needing to open the Source Control view. For debugging, VS 1.100 features a context menu in the disassembly view.  

VS Code 1.100 follows VS Code 1.99, which was released April 3 with improvements for Copilot Chat and Copilot agent mode, along with the introduction of Next Edit Suggestions. VS Code 1.99 was followed by three point releases that addressed various bugs and security issues.