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Muhammad Hamid Raza
Muhammad Hamid Raza

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VS Code 1.144: Cloud Sessions, Copilot Fusion, Image Generation, and More (A Friendly Guide)

You start an agent task, close your laptop, and the session stops with it. We've all been there. šŸ˜…

VS Code 1.144 (released October 28, 2026) is built around fixing that kind of friction. It makes agent work keep going across environments, helps you pick the right model, and gives you more control over what agents change.

So what actually changed, and what's worth trying first? Let's walk through it.


What Is VS Code 1.144?

VS Code 1.144 is the latest monthly-style update of Visual Studio Code, and it's mostly about agents. An agent is an AI helper that can work on a task for you: read code, edit files, run tools, and report back.

Here's a simple way to picture it. Think of an agent as a helpful teammate. Earlier, that teammate sat at your desk and left when you left. Now, that teammate can work somewhere else (like in the cloud) and you can check in from anywhere.

The release highlights are:

  • Session continuity: keep sessions and automations running, even when your computer is off
  • Copilot Fusion and model comparisons: let Copilot choose models, or compare them yourself
  • Image generation (Preview): create and edit images in chat
  • Computer use (Experimental): let agents use desktop apps
  • Working set (Experimental): keep or undo agent file edits
  • Assisted permissions: fewer interruptions, with a risk check
  • Customization marketplace and Copilot connectors (Preview): add skills, plugins, and context from services like Slack and Notion

Some of these are marked Preview or Experimental, so expect them to keep changing.


Why This Update Matters

Working with agents isn't only about writing code. It's about where the work runs, which model does it, and how much you trust it to do on its own.

Those three questions come up daily:

  • "Can I leave this running and go to lunch?"
  • "Which model is best for this task?"
  • "Do I really have to click Approve on every tiny action?"

VS Code 1.144 gives a practical answer to each one. Fewer interruptions and less guesswork means more time for the actual problem. šŸš€


Benefits With Real-Life Examples

1. Cloud sessions keep working when your laptop doesn't

Cloud sessions let you run Copilot tasks from VS Code without keeping your development machine online. Your repository and tools run in a managed environment on GitHub's infrastructure.

Example: You start a task, then head home. Later you check progress on GitHub.com or in the GitHub Mobile app, and continue in VS Code when you're back.

One thing to know: cloud sessions use a separate workspace, so local uncommitted changes aren't automatically copied. They also need a paid Copilot plan and follow your organization's policies.

2. One place to manage your remote environments

The new Remote Environments dialog brings GitHub Environments, Dev Tunnels, WSL distributions, and SSH hosts together. You can see each remote's status, connect or disconnect, and choose which remotes show up in the pickers.

Example: You have an SSH host and a WSL distro. Instead of hunting through menus, open Manage Remote Environments at the bottom of the Environment picker and handle both.

3. Cloud automations for repetitive work (Preview)

Cloud automations run on GitHub infrastructure, on a schedule or in response to repository events, even when your computer is off. You can create one from the Automations view in the Agents window, or ask an agent to set it up.

Example: Trigger an automation when you're assigned an issue with a specific label, such as triaging it automatically. You can limit the allowed tools and add filters for tighter control.

4. Copilot Fusion picks the models for you

Select Copilot Fusion in the model picker and Copilot chooses the models, reasoning effort, and execution pattern per request. A simple task might use one model. A harder one might have one model draft a solution while others review it.

You pick an effort level: Standard, High, or Max.

Example: Renaming a variable doesn't need a heavy setup. A tricky refactor might. Fusion makes that call so you don't have to.

Good to know:

  • You're billed for each model Fusion uses, at its standard rate.
  • Through November 30, 2026, paid Copilot plans get a 30% discount on Fusion.
  • Fusion High and Max are offered on Copilot Pro+, Max, Business, and Enterprise plans.

5. Model comparisons: same prompt, different models

Model comparisons run the same prompt across models (and harnesses) so you can review results side by side. They're enabled by default for eligible new sessions in the Agents window. This release expands them, so you can now compare from a folderless chat or from a local or empty repository with no commits.

Example: You're unsure which model writes better tests for your code. Run the same prompt on four and compare. Note that model comparisons aren't supported in Dev Containers.

6. Image generation in chat (Preview)

Agents can generate images with GPT Image 2.5 Flare. You can ask for an icon, a chat background, or a website wireframe, or attach an existing image and ask for changes or variations.

You control it with settings:

  • chat.copilot.imageGeneration.model: set to off to disable it
  • chat.copilot.imageGeneration.watermark: set to true to add a visible "Made with AI" watermark

It uses AI credits in addition to those used by the conversation model.

7. Assisted permissions: fewer clicks, still safe

Agents can make a lot of tool calls. Approving each one is safe but slow. Giving the agent full freedom can be risky.

Assisted permissions (now generally available for Copilot sessions) use an LLM-based risk check on each tool call. Low-risk calls are approved automatically. Higher-risk calls, or ones where the risk can't be determined, still ask you.

8. Working set: keep or undo agent edits (Experimental)

In the Copilot harness, edits made through agent tools land in a working set. You can use inline Keep and Undo controls for single changes, or manage everything from the working set above the chat input.

Example: The agent fixes your bug but also touches a file you didn't expect. Undo that one file and keep the rest. Edits made through terminal commands don't appear in the working set, so keep that in mind.

9. Computer use for desktop-app tasks (Experimental)

With Computer Use, the agent can see and control apps on your computer. It works in Copilot harness sessions on your own macOS or Windows machine. The agent asks permission to turn it on, or you can run /computer on (and /computer off to stop).

10. Connectors and a customization marketplace (Preview)

Copilot connectors are GitHub-managed MCP servers that connect your agent to services without local server setup. The release notes mention Slack, Notion, and Microsoft Learn as examples.

Browse is the new home page for Customizations, with plugins and skills from marketplaces you or your enterprise configured. For Business and Enterprise, an administrator must enable Editor preview features.


Quick Comparison: Permission Modes

If you're wondering how the permission choices differ, here's a simple view:

Mode What happens Best when
Manual You approve every tool call You want full control
Assisted Low-risk calls auto-approve; others ask you You want fewer interruptions with a safety check
Allow All The agent has full autonomy You accept the risk of unintended actions

Assisted permissions require Folder isolation and might be restricted by your organization. If your admin disables it, it stays visible but greyed out, with an explanation.


Best Tips and Do's & Don'ts

Do:

  • āœ… Try model comparison on a real task before deciding which model you like.
  • āœ… Commit your local changes before starting a cloud session, since they aren't copied over automatically.
  • āœ… Use Assisted permissions if constant approval prompts slow you down.
  • āœ… Set the image watermark setting if you want AI-made images clearly labeled.
  • āœ… Use the Insiders build if you want to try upcoming features early.

Don't:

  • āŒ Don't assume Experimental features are final. Settings and behavior can change.
  • āŒ Don't forget that Fusion bills for each model it uses.
  • āŒ Don't install plugins from sources you don't trust. Plugins can run code on your machine.

Common Mistakes People Make

1. Expecting cloud sessions to see local uncommitted work.
They use a separate workspace. Commit or push first.

2. Looking for a feature that isn't showing up.
Many items are Preview or Experimental and behind settings. Examples: chat.editor.workingSet.enabled, chat.agentHost.computerUse.enabled, and chat.canvases.enabled. Also, some features depend on your plan or organization policy.

3. Thinking the terminal is covered by the working set.
Edits from terminal commands don't appear there. Review those changes another way.

4. Treating model choice as a one-time decision.
New models keep arriving. Comparisons and Fusion exist so you can re-check without guessing.

5. Skipping the side notes for extension authors.
If you publish extensions, vsce publish --oidc lets you publish from GitHub Actions without storing a PAT as a repository secret. It needs @vscode/vsce 4.0.2 or later. Also, global PATs in Azure DevOps are retired on December 1, 2026, so Azure Pipelines users should move to Microsoft Entra ID with a service connection.


Small Extras Worth Knowing

  • Agent Host Protocol v1.0 is published. It's an open protocol VS Code uses to talk to agents locally and remotely, so you can build custom UIs or agent platforms around it.
  • Copilot Memory now works in the Copilot harness. It's enabled by default and respects your settings and organization policies.
  • Move chats between sessions (Preview) lets you drag nested chats around. Enable chat.agentHost.moveChats.enabled in Stable.
  • New issue reporter: turn it on with issueReporter.wizard.enabled to capture screenshots and recordings without leaving VS Code.
  • Windows terminal dialogs (like the Azure PowerShell sign-in picker) now open in front of VS Code instead of behind it.

Conclusion

VS Code 1.144 makes agent work feel less tied to one machine and one model. Cloud sessions and automations keep things moving, Copilot Fusion and model comparisons help you choose well, and Assisted permissions plus the working set keep you in control.

My suggestion: don't try everything at once. Pick one or two things, like model comparison and Assisted permissions, and see how they fit your workflow. If you're not on the update yet, use Check for Updates in VS Code. 😊

If this guide helped, you can find more developer posts at hamidrazadev.com. Share it with a teammate who's still approving every tool call by hand. And tell me in the comments: which VS Code 1.144 feature are you trying first? šŸ‘€

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