Microsoft VS Code 1.140 introduces AI multi-agent workflows

Microsoft has released Visual Studio Code version 1.140, a stable update that emphasizes AI-driven agent workflows and multi-folder coordination.

A primary experimental feature is the introduction of multi-folder sessions. This allows individual chats within a single session to point to different folders, repositories, or isolated worktrees. Each chat maintains its own terminal, task tracking, file changes, and pull request state. This functionality is designed to assist developers when a single feature requires changes across multiple repositories or when testing different approaches side-by-side in separate worktrees.

The update also introduces HydraFusion for model-level coordination and enhances the Copilot harness, focusing on how developers manage the interaction between agents, repositories, and models.