Visual Studio Code 1.116 Launches with Built‑in GitHub Copilot Chat Extension
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| Source: Mastodon | Original article
Microsoft has rolled out Visual Studio Code v1.116, the first major release that ships the GitHub Copilot Chat extension as a native component of the editor. The update, published on 15 April 2026, eliminates the need for developers to install the separate VS Code marketplace extension; Copilot Chat is now enabled out‑of‑the‑box for all supported platforms, including Windows, macOS and Linux.
The move deepens Microsoft’s strategy of embedding generative‑AI assistants directly into the development workflow. Copilot Chat, built on OpenAI’s large‑language models and fine‑tuned on billions of lines of public code, lets programmers ask natural‑language questions, request whole‑file refactors, or debug snippets without leaving the editor. By bundling the tool, Microsoft reduces friction, accelerates adoption, and gathers richer telemetry to improve model performance. For teams already using GitHub Copilot for inline completions, the chat interface adds a conversational layer that can handle higher‑level design queries, documentation generation, and test scaffolding—capabilities that were previously the domain of separate AI services such as Claude Code or OpenAI Codex, which we have covered earlier this month.
Developers should expect a smoother onboarding experience, but the integration also raises questions about data privacy and usage‑based licensing. The bundled extension continues to send anonymised usage data to Microsoft, a practice that may prompt enterprise IT to revisit consent policies. Moreover, the built‑in model version will be updated on Microsoft’s cadence, potentially limiting users’ ability to pin older, more stable releases.
What to watch next: Microsoft has hinted at tighter coupling between Copilot Chat and Azure AI services, suggesting future features like real‑time code‑base indexing and multi‑repo context. The next VS Code release, slated for June, is likely to expand the chat’s plugin ecosystem and introduce fine‑grained permission controls. Observers will also be tracking how the bundling influences the competitive landscape, especially as rivals such as Anthropic and Google roll out their own IDE‑integrated assistants.
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