The December 2025 Visual Studio Code v1.108 update delivers significant productivity enhancements for developers. Key features include experimental AI Agent Skills, allowing users to train Copilot with custom commands for specialized workflows like cybersecurity. The update also introduces smarter chat sessions, terminal auto-approval for safe commands (git, npm), and major accessibility improvements including live chat streaming for screen readers.

Microsoft notably resolved over 6,000 open issues, resulting in a faster, more stable terminal that handles long command pasting without lag. This release focuses on reducing friction in the development environment, moving beyond simple bug fixes to actively boosting coding efficiency and user experience.