diff --git a/.github/prompts/pull-request.prompt.md b/.github/prompts/pull-request.prompt.md
index 42a009703..85c9addfe 100644
--- a/.github/prompts/pull-request.prompt.md
+++ b/.github/prompts/pull-request.prompt.md
@@ -34,11 +34,24 @@ You WILL ALWAYS preserve template structure and formatting.
 * **If `pr-reference.xml` is NOT provided**:
   * Use `git fetch {{remote}} {{branch}}` determined from `${input:branch:origin/main}`, to update the remote branch to build a correct pull request.
   * **MANDATORY**: You MUST create `pr-reference.xml` using the repository scripts—select the command that matches your host environment. Do not use any other commands to gather git status or diffs.
-    * **Unix-like shells**: Use `./scripts/dev-tools/pr-ref-gen.sh`.
+  * **Script Location**: Scripts may be available locally at `./scripts/dev-tools/` OR bundled in a VS Code extension. Check local path first, then fall back to extension:
+    * **Local path**: `./scripts/dev-tools/pr-ref-gen.sh` or `./scripts/dev-tools/Generate-PrReference.ps1`
+    * **Extension path** (if local not found): `~/.vscode/extensions/ise-hve-essentials.hve-core-*/scripts/dev-tools/`
+    * **Locate from extension** (cross-platform):
+
+      ```bash
+      # Find PowerShell script
+      pwsh -c '$SCRIPT = Get-ChildItem -Path "$HOME/.vscode/extensions" -Filter "Generate-PrReference.ps1" -Recurse -ErrorAction SilentlyContinue | Select-Object -First 1 -ExpandProperty FullName; Write-Host "Found: $SCRIPT"'
+
+      # Find shell script
+      find ~/.vscode/extensions -name "pr-ref-gen.sh" 2>/dev/null | head -1
+      ```
+
+    * **Unix-like shells**: Use `./scripts/dev-tools/pr-ref-gen.sh` (or extension path if local not available).
       * Default: `./scripts/dev-tools/pr-ref-gen.sh`.
       * If `${input:excludeMarkdown}` is true: `./scripts/dev-tools/pr-ref-gen.sh --no-md-diff` (excludes markdown).
       * If a different base branch is specified via `${input:branch}`: `./scripts/dev-tools/pr-ref-gen.sh --no-md-diff --base-branch ${input:branch}` (adjust markdown inclusion as needed).
-    * **Windows PowerShell hosts**: Use `pwsh -File ./scripts/dev-tools/Generate-PrReference.ps1`.
+    * **Windows PowerShell hosts**: Use `pwsh -File ./scripts/dev-tools/Generate-PrReference.ps1` (or extension path if local not available).
       * Default: `pwsh -File ./scripts/dev-tools/Generate-PrReference.ps1`.
       * If `${input:excludeMarkdown}` is true: `pwsh -File ./scripts/dev-tools/Generate-PrReference.ps1 -ExcludeMarkdownDiff` (excludes markdown).
       * If a different base branch is specified via `${input:branch}`: `pwsh -File ./scripts/dev-tools/Generate-PrReference.ps1 -ExcludeMarkdownDiff -BaseBranch ${input:branch}` (adjust markdown inclusion as needed).
diff --git a/.github/workflows/extension-package.yml b/.github/workflows/extension-package.yml
new file mode 100644
index 000000000..3b63bbad5
--- /dev/null
+++ b/.github/workflows/extension-package.yml
@@ -0,0 +1,103 @@
+name: Package Extension
+
+on:
+  workflow_call:
+    inputs:
+      version:
+        description: 'Full version to use (e.g., 1.0.0 or empty to use package.json)'
+        required: false
+        type: string
+        default: ''
+      dev-patch-number:
+        description: 'Dev patch number to append (creates version like 1.0.0-dev.123)'
+        required: false
+        type: string
+        default: ''
+      use-changelog:
+        description: 'Whether to download and use changelog artifact'
+        required: false
+        type: boolean
+        default: false
+    outputs:
+      version:
+        description: 'Version that was packaged'
+        value: ${{ jobs.package.outputs.version }}
+      vsix-file:
+        description: 'Path to the packaged VSIX file'
+        value: ${{ jobs.package.outputs.vsix-file }}
+
+permissions:
+  contents: read
+
+jobs:
+  package:
+    runs-on: ubuntu-latest
+    outputs:
+      version: ${{ steps.package.outputs.version }}
+      vsix-file: ${{ steps.package.outputs.vsix-file }}
+    steps:
+      - name: Harden Runner
+        uses: step-security/harden-runner@0634a2670c59f64b4a01f0f96f84700a4088b9f0 # v2.12.0
+        with:
+          egress-policy: audit
+
+      - name: Checkout code
+        uses: actions/checkout@11bd71901bbe5b1630ceea73d27597364c9af683 # v4.2.2
+        with:
+          persist-credentials: false
+
+      - name: Setup Node.js
+        uses: actions/setup-node@49933ea5288caeca8642d1e84afbd3f7d6820020 # v4.4.0
+        with:
+          node-version: '20'
+
+      - name: Install dependencies
+        run: npm install -g @vscode/vsce
+
+      - name: Setup PowerShell
+        shell: pwsh
+        run: |
+          Write-Host "PowerShell version: $($PSVersionTable.PSVersion)"
+
+      - name: Download changelog artifact
+        if: inputs.use-changelog
+        uses: actions/download-artifact@fa0a91b85d4f404e444e00e005971372dc801d16 # v4.1.8
+        with:
+          name: changelog
+          path: ./
+        continue-on-error: true
+
+      - name: Package extension
+        id: package
+        shell: pwsh
+        run: |
+          $version = "${{ inputs.version }}".Trim()
+          $devPatch = "${{ inputs.dev-patch-number }}".Trim()
+          
+          Write-Host "📦 Packaging extension..."
+          
+          $arguments = @()
+          
+          if ($version) {
+            $arguments += '-Version'
+            $arguments += $version
+          }
+          
+          if ($devPatch) {
+            $arguments += '-DevPatchNumber'
+            $arguments += $devPatch
+          }
+          
+          if (Test-Path "./CHANGELOG.md") {
+            $arguments += '-ChangelogPath'
+            $arguments += "./CHANGELOG.md"
+          }
+          
+          ./scripts/extension/Package-Extension.ps1 @arguments
+
+      - name: Upload VSIX artifact
+        uses: actions/upload-artifact@ea165f8d65b6e75b540449e92b4886f43607fa02 # v4.6.2
+        with:
+          name: extension-vsix
+          path: extension/*.vsix
+          retention-days: 30
diff --git a/.github/workflows/extension-publish.yml b/.github/workflows/extension-publish.yml
new file mode 100644
index 000000000..1e0e33756
--- /dev/null
+++ b/.github/workflows/extension-publish.yml
@@ -0,0 +1,146 @@
+name: Publish Extension
+
+on:
+  release:
+    types: [published]
+  workflow_dispatch:
+    inputs:
+      version:
+        description: 'Version to publish (leave empty to use package.json version)'
+        required: false
+        type: string
+        default: ''
+      dry-run:
+        description: 'Dry run (package only, do not publish)'
+        required: false
+        type: boolean
+        default: false
+
+permissions:
+  contents: read
+  id-token: write
+
+jobs:
+  prepare-changelog:
+    name: Prepare Changelog
+    runs-on: ubuntu-latest
+    outputs:
+      changelog-path: ${{ steps.create-changelog.outputs.path }}
+    steps:
+      - name: Harden Runner
+        uses: step-security/harden-runner@0634a2670c59f64b4a01f0f96f84700a4088b9f0 # v2.12.0
+        with:
+          egress-policy: audit
+
+      - name: Checkout code
+        uses: actions/checkout@11bd71901bbe5b1630ceea73d27597364c9af683 # v4.2.2
+        with:
+          persist-credentials: false
+
+      - name: Create changelog file
+        id: create-changelog
+        run: |
+          if [ "${{ github.event_name }}" == "release" ]; then
+            cat > CHANGELOG.md << 'EOF'
+          ${{ github.event.release.body }}
+          EOF
+            echo "path=CHANGELOG.md" >> $GITHUB_OUTPUT
+          elif [ "${{ github.event_name }}" == "workflow_dispatch" ]; then
+            echo "path=" >> $GITHUB_OUTPUT
+          else
+            echo "path=" >> $GITHUB_OUTPUT
+          fi
+
+      - name: Upload changelog
+        if: steps.create-changelog.outputs.path != ''
+        uses: actions/upload-artifact@ea165f8d65b6e75b540449e92b4886f43607fa02 # v4.6.2
+        with:
+          name: changelog
+          path: CHANGELOG.md
+          retention-days: 1
+
+  normalize-version:
+    name: Normalize Version
+    runs-on: ubuntu-latest
+    outputs:
+      version: ${{ steps.normalize.outputs.version }}
+    steps:
+      - name: Harden Runner
+        uses: step-security/harden-runner@0634a2670c59f64b4a01f0f96f84700a4088b9f0 # v2.12.0
+        with:
+          egress-policy: audit
+
+      - name: Normalize version string
+        id: normalize
+        run: |
+          if [ "${{ github.event_name }}" == "release" ]; then
+            VERSION="${{ github.event.release.tag_name }}"
+          else
+            VERSION="${{ inputs.version }}"
+          fi
+          # Strip leading 'v' if present
+          VERSION="${VERSION#v}"
+          echo "version=$VERSION" >> $GITHUB_OUTPUT
+
+  package:
+    name: Package Extension
+    needs: [prepare-changelog, normalize-version]
+    uses: ./.github/workflows/extension-package.yml
+    with:
+      version: ${{ needs.normalize-version.outputs.version }}
+      use-changelog: ${{ needs.prepare-changelog.outputs.changelog-path != '' }}
+    permissions:
+      contents: read
+
+  publish:
+    name: Publish to Marketplace
+    needs: [prepare-changelog, package]
+    if: ${{ !inputs.dry-run }}
+    runs-on: ubuntu-latest
+    environment: marketplace
+    steps:
+      - name: Harden Runner
+        uses: step-security/harden-runner@0634a2670c59f64b4a01f0f96f84700a4088b9f0 # v2.12.0
+        with:
+          egress-policy: audit
+
+      - name: Checkout code
+        uses: actions/checkout@11bd71901bbe5b1630ceea73d27597364c9af683 # v4.2.2
+        with:
+          persist-credentials: false
+
+      - name: Azure Login (OIDC)
+        uses: azure/login@a65d910e8af852a8061c627c456678983e180302 # v2.2.0
+        with:
+          client-id: ${{ secrets.AZURE_CLIENT_ID }}
+          tenant-id: ${{ secrets.AZURE_TENANT_ID }}
+          subscription-id: ${{ secrets.AZURE_SUBSCRIPTION_ID }}
+
+      - name: Setup Node.js
+        uses: actions/setup-node@49933ea5288caeca8642d1e84afbd3f7d6820020 # v4.4.0
+        with:
+          node-version: '20'
+
+      - name: Install VSCE
+        run: npm install -g @vscode/vsce
+
+      - name: Download VSIX artifact
+        uses: actions/download-artifact@fa0a91b85d4f404e444e00e005971372dc801d16 # v4.1.8
+        with:
+          name: extension-vsix
+          path: ./extension
+
+      - name: Publish to VS Code Marketplace
+        run: |
+          VSIX_FILE=$(ls -t extension/hve-core-*.vsix | head -1)
+          echo "📦 Publishing: $VSIX_FILE"
+          vsce publish --packagePath "$VSIX_FILE" --azure-credential
+
+      - name: Summary
+        run: |
+          echo "## 🎉 Extension Published Successfully" >> $GITHUB_STEP_SUMMARY
+          echo "" >> $GITHUB_STEP_SUMMARY
+          echo "**Version:** ${{ needs.package.outputs.version }}" >> $GITHUB_STEP_SUMMARY
+          echo "**VSIX File:** ${{ needs.package.outputs.vsix-file }}" >> $GITHUB_STEP_SUMMARY
+          echo "" >> $GITHUB_STEP_SUMMARY
+          echo "View on [VS Code Marketplace](https://marketplace.visualstudio.com/items?itemName=ise-hve-essentials.hve-core)" >> $GITHUB_STEP_SUMMARY
diff --git a/.github/workflows/main.yml b/.github/workflows/main.yml
index 89a1c613d..1b1049fa5 100644
--- a/.github/workflows/main.yml
+++ b/.github/workflows/main.yml
@@ -4,6 +4,7 @@ on:
   push:
     branches:
       - main
+
   workflow_dispatch:
 
 # Minimal permissions for security
@@ -46,6 +47,19 @@ jobs:
       upload-sarif: true
       upload-artifact: true
 
+  extension-package:
+    name: Package VS Code Extension
+    needs:
+      - spell-check
+      - markdown-lint
+      - table-format
+      - dependency-pinning-scan
+    uses: ./.github/workflows/extension-package.yml
+    with:
+      dev-patch-number: ${{ github.run_number }}
+    permissions:
+      contents: read
+
   release-please:
     name: Release Please
     needs:
@@ -53,6 +67,7 @@ jobs:
       - markdown-lint
       - table-format
       - dependency-pinning-scan
+      - extension-package
     runs-on: ubuntu-latest
     permissions:
       contents: write
diff --git a/.gitignore b/.gitignore
index 0b1a5003f..9b5399957 100644
--- a/.gitignore
+++ b/.gitignore
@@ -3,6 +3,9 @@
 ##
 ## Get latest from https://github.com/github/gitignore/blob/main/VisualStudio.gitignore
 
+# macOS
+.DS_Store
+
 # User-specific files
 *.rsuser
 *.suo
@@ -412,6 +415,10 @@ FodyWeavers.xsd
 # Built Visual Studio Code Extensions
 *.vsix
 
+# Extension build artifacts
+extension/LICENSE
+extension/CHANGELOG.md
+
 # Windows Installer files from build outputs
 *.cab
 *.msi
diff --git a/extension/.vscodeignore b/extension/.vscodeignore
new file mode 100644
index 000000000..5b7e96394
--- /dev/null
+++ b/extension/.vscodeignore
@@ -0,0 +1,13 @@
+# Exclude everything by default
+**
+
+# Include only the extension essentials
+!.github/chatmodes/**
+!.github/prompts/**
+!.github/instructions/**
+!.github/agents/**
+!scripts/dev-tools/**
+!package.json
+!README.md
+!LICENSE
+!CHANGELOG.md
diff --git a/extension/LICENSE b/extension/LICENSE
new file mode 100644
index 000000000..7bd95a91b
--- /dev/null
+++ b/extension/LICENSE
@@ -0,0 +1,21 @@
+# MIT License
+
+Copyright (c) Microsoft Corporation. All rights reserved.
+
+Permission is hereby granted, free of charge, to any person obtaining a copy
+of this software and associated documentation files (the "Software"), to deal
+in the Software without restriction, including without limitation the rights
+to use, copy, modify, merge, publish, distribute, sublicense, and/or sell
+copies of the Software, and to permit persons to whom the Software is
+furnished to do so, subject to the following conditions:
+
+The above copyright notice and this permission notice shall be included in all
+copies or substantial portions of the Software.
+
+THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
+IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
+FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
+AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
+LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM,
+OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE
+SOFTWARE.
diff --git a/extension/PACKAGING.md b/extension/PACKAGING.md
new file mode 100644
index 000000000..04ba74abb
--- /dev/null
+++ b/extension/PACKAGING.md
@@ -0,0 +1,211 @@
+---
+title: Extension Packaging Guide
+description: Developer guide for packaging and publishing the HVE Core VS Code extension
+author: Microsoft
+ms.date: 2025-12-19
+ms.topic: reference
+---
+
+This folder contains the VS Code extension configuration for HVE Core.
+
+## Structure
+
+```plaintext
+extension/
+├── .github/              # Temporarily copied during packaging (removed after)
+├── scripts/dev-tools/    # Temporarily copied during packaging (removed after)
+├── package.json          # Extension manifest with VS Code configuration
+├── .vscodeignore         # Controls what gets packaged into the .vsix
+├── README.md             # Extension marketplace description
+├── LICENSE               # Copy of root LICENSE
+├── CHANGELOG.md          # Copy of root CHANGELOG
+└── PACKAGING.md          # This file
+```
+
+## Prerequisites
+
+Install the VS Code Extension Manager CLI:
+
+```bash
+npm install -g @vscode/vsce
+```
+
+Install the PowerShell-Yaml module (required for Prepare-Extension.ps1):
+
+```powershell
+Install-Module -Name PowerShell-Yaml -Scope CurrentUser
+```
+
+## Automated CI/CD Workflows
+
+The extension is automatically packaged and published through GitHub Actions:
+
+| Workflow                                   | Trigger           | Purpose                                     |
+|--------------------------------------------|-------------------|---------------------------------------------|
+| `.github/workflows/extension-package.yml`  | Reusable workflow | Packages extension with flexible versioning |
+| `.github/workflows/extension-publish.yml`  | Release/manual    | Publishes to VS Code Marketplace            |
+| `.github/workflows/main.yml`               | Push to main      | Includes extension packaging in CI          |
+
+## Packaging the Extension
+
+### Using the Automated Scripts (Recommended)
+
+#### Step 1: Prepare the Extension
+
+First, update `package.json` with discovered agents, chatmodes, prompts, and instructions:
+
+```bash
+# Discover components and update package.json
+pwsh ./scripts/extension/Prepare-Extension.ps1
+
+# Or use npm script
+npm run extension:prepare
+```
+
+The preparation script automatically:
+
+- Discovers and registers all chat agents from `.github/agents/`
+- Discovers and registers all chatmodes from `.github/chatmodes/`
+- Discovers and registers all prompts from `.github/prompts/`
+- Discovers and registers all instruction files from `.github/instructions/`
+- Updates `package.json` with discovered components
+- Uses existing version from `package.json` (does not modify it)
+
+#### Step 2: Package the Extension
+
+Then package the extension:
+
+```bash
+# Package using version from package.json
+pwsh ./scripts/extension/Package-Extension.ps1
+
+# Or use npm script
+npm run extension:package
+
+# Package with specific version
+pwsh ./scripts/extension/Package-Extension.ps1 -Version "1.0.3"
+
+# Package with dev patch number (e.g., 1.0.2-dev.123)
+pwsh ./scripts/extension/Package-Extension.ps1 -DevPatchNumber "123"
+
+# Package with version and dev patch number
+pwsh ./scripts/extension/Package-Extension.ps1 -Version "1.1.0" -DevPatchNumber "456"
+```
+
+The packaging script automatically:
+
+- Uses version from `package.json` (or specified version)
+- Optionally appends dev patch number for pre-release builds
+- Copies required `.github` directory
+- Copies `scripts/dev-tools` directory (developer utilities)
+- Packages the extension using `vsce`
+- Cleans up temporary files
+- Restores original `package.json` version if temporarily modified
+
+### Manual Packaging (Legacy)
+
+If you need to package manually:
+
+```bash
+cd extension
+rm -rf .github scripts && cp -r ../.github . && mkdir -p scripts && cp -r ../scripts/dev-tools scripts/ && vsce package && rm -rf .github scripts
+```
+
+Or use npm script:
+
+```bash
+npm run package:extension
+```
+
+## Publishing the Extension
+
+**Important:** Update version in `extension/package.json` before publishing.
+
+**Setup Personal Access Token (one-time):**
+
+Set your Azure DevOps PAT as an environment variable:
+
+```bash
+export VSCE_PAT=your-token-here
+```
+
+To get a PAT:
+
+1. Go to <https://dev.azure.com>
+2. User settings → Personal access tokens → New Token
+3. Set scope to **Marketplace (Manage)**
+4. Copy the token
+
+**Publish command:**
+
+```bash
+# Publish the packaged extension (replace X.Y.Z with actual version)
+vsce publish --packagePath "extension/hve-core-X.Y.Z.vsix"
+
+# Or use the latest .vsix file
+VSIX_FILE=$(ls -t extension/hve-core-*.vsix | head -1)
+vsce publish --packagePath "$VSIX_FILE"
+```
+
+Or use npm script:
+
+```bash
+npm run publish:extension
+```
+
+## What Gets Included
+
+The `extension/.vscodeignore` file controls what gets packaged. Currently included:
+
+- `.github/agents/**` - All chat agent definitions
+- `.github/chatmodes/**` - All chatmode definitions
+- `.github/prompts/**` - All prompt templates
+- `.github/instructions/**` - All instruction files
+- `package.json` - Extension manifest
+- `README.md` - Extension description
+- `LICENSE` - License file
+- `CHANGELOG.md` - Version history
+
+## Testing Locally
+
+Install the packaged extension locally:
+
+```bash
+code --install-extension hve-core-*.vsix
+```
+
+## Version Management
+
+### Update Version in `package.json`
+
+1. Manually update version in `extension/package.json`
+2. Run `scripts/extension/Prepare-Extension.ps1` to update agents/chatmodes/prompts/instructions
+3. Run `scripts/extension/Package-Extension.ps1` to create the `.vsix` file
+
+### Development Builds
+
+For pre-release or CI builds, use the dev patch number:
+
+```bash
+# Creates version like 1.0.2-dev.123
+pwsh ./scripts/extension/Package-Extension.ps1 -DevPatchNumber "123"
+```
+
+This temporarily modifies the version during packaging but restores it afterward.
+
+### Override Version at Package Time
+
+You can override the version without modifying `package.json`:
+
+```bash
+# Package as 1.1.0 without updating package.json
+pwsh ./scripts/extension/Package-Extension.ps1 -Version "1.1.0"
+```
+
+## Notes
+
+- The `.github` and `scripts/dev-tools` folders are temporarily copied during packaging (not permanently stored)
+- `LICENSE` and `CHANGELOG.md` are copied from root during packaging and excluded from git
+- Only essential extension files are included (chatmodes, prompts, instructions, dev-tools)
+- Non-essential files are excluded (workflows, issue templates, agent installer, etc.)
+- The root `package.json` contains development scripts for the repository
diff --git a/extension/README.md b/extension/README.md
new file mode 100644
index 000000000..a53c4f52c
--- /dev/null
+++ b/extension/README.md
@@ -0,0 +1,107 @@
+---
+title: HVE Core - AI-Powered Development Assistant
+description: AI-powered chat agents, prompts, and instructions for hybrid virtual environments
+author: Microsoft
+ms.date: 2025-12-19
+ms.topic: overview
+---
+
+> AI-powered chat agents, prompts, and instructions for hybrid virtual environments
+
+HVE Core provides a comprehensive collection of specialized AI chat agents, prompts, and instructions designed to accelerate development workflows in VS Code with GitHub Copilot.
+
+## Features
+
+### 🤖 Chat Agents
+
+Specialized AI assistants for specific development tasks:
+
+#### Setup & Installation
+
+- **hve-core-installer** - Decision-driven installer with 6 installation methods for local, devcontainer, and Codespaces environments
+
+#### Development Workflow
+
+- **task-researcher** - Research technical solutions and approaches
+- **task-planner** - Plan and break down complex tasks
+- **task-implementor** - Implement tasks from detailed plans
+- **pr-review** - Comprehensive pull request review assistant
+- **github-issue-manager** - Manage GitHub issues efficiently
+
+#### Architecture & Documentation
+
+- **adr-creation** - Create Architecture Decision Records
+- **arch-diagram-builder** - Build high-quality ASCII-art architecture diagrams
+- **brd-builder** - Build Business Requirements Documents with guided Q&A
+- **prd-builder** - Build Product Requirements Documents with guided Q&A
+- **prompt-builder** - Build and optimize AI prompts
+- **security-plan-creator** - Expert security architect for creating comprehensive cloud security plans
+
+#### Azure DevOps Integration
+
+- **ado-prd-to-wit** - Convert Product Requirements Documents to Azure DevOps work items
+
+#### Data Science & Visualization
+
+- **gen-data-spec** - Generate data specifications and schemas
+- **gen-jupyter-notebook** - Generate Jupyter notebooks for data analysis
+- **gen-streamlit-dashboard** - Generate Streamlit dashboards
+- **test-streamlit-dashboard** - Comprehensive testing of Streamlit dashboards
+
+### 📝 Prompts
+
+Reusable prompt templates for common workflows:
+
+- **Git Operations** - Commit messages, merges, setup, and pull requests
+- **GitHub Workflows** - Issue creation and management
+- **Azure DevOps** - PR creation, build info, and work item management
+
+### 📚 Instructions
+
+Best practice guidelines for:
+
+- **Languages** - Bash, Python, C#, Bicep
+- **Git & Version Control** - Commit messages, merge operations
+- **Documentation** - Markdown formatting
+- **Azure DevOps** - Work item management and PR workflows
+- **Task Management** - Implementation tracking and planning
+- **Project Management** - UV projects and dependencies
+
+## Getting Started
+
+After installing this extension, the chat agents will be available in GitHub Copilot Chat. You can:
+
+1. **Use chat agents** by typing `@agent-name` in Copilot Chat
+2. **Apply prompts** through the Copilot Chat interface
+3. **Reference instructions** - They're automatically applied based on file patterns
+
+## Usage Examples
+
+### Using Chat Agents
+
+```plaintext
+@task-planner help me break down this feature into implementable tasks
+@pr-review review this pull request for security issues
+@adr-creation create an ADR for our new microservice architecture
+```
+
+### Applying Prompts
+
+Prompts are available in the Copilot Chat prompt picker and can be used to generate consistent, high-quality outputs for common tasks.
+
+## Requirements
+
+- VS Code version 1.106.1 or higher
+- GitHub Copilot extension
+
+## License
+
+MIT License - see [LICENSE](LICENSE) for details
+
+## Support
+
+For issues, questions, or contributions, please visit the [GitHub repository](https://github.com/microsoft/hve-core).
+
+---
+
+Brought to you by Microsoft ISE HVE Essentials
diff --git a/extension/package.json b/extension/package.json
new file mode 100644
index 000000000..a63601178
--- /dev/null
+++ b/extension/package.json
@@ -0,0 +1,242 @@
+{
+  "name": "hve-core",
+  "displayName": "HVE Core",
+  "version": "1.0.0",
+  "description": "AI-powered chat agents, prompts, and instructions for hybrid virtual environments",
+  "publisher": "ise-hve-essentials",
+  "repository": {
+    "type": "git",
+    "url": "https://github.com/microsoft/hve-core.git"
+  },
+  "engines": {
+    "vscode": "^1.106.1"
+  },
+  "categories": [
+    "Chat"
+  ],
+  "contributes": {
+    "chatAgents": [
+      {
+        "name": "hve-core-installer",
+        "path": "./.github/agents/hve-core-installer.agent.md",
+        "description": "Decision-driven installer for HVE-Core with 6 installation methods for local, devcontainer, and Codespaces environments - Brought to you by microsoft/hve-core"
+      },
+      {
+        "name": "ado-prd-to-wit",
+        "path": "./.github/chatmodes/ado-prd-to-wit.chatmode.md",
+        "description": "Product Manager expert for analyzing PRDs and planning Azure DevOps work item hierarchies"
+      },
+      {
+        "name": "adr-creation",
+        "path": "./.github/chatmodes/adr-creation.chatmode.md",
+        "description": "Interactive AI coaching for collaborative architectural decision record creation with guided discovery, research integration, and progressive documentation building - Brought to you by microsoft/edge-ai"
+      },
+      {
+        "name": "arch-diagram-builder",
+        "path": "./.github/chatmodes/arch-diagram-builder.chatmode.md",
+        "description": "Architecture diagram builder agent that builds high quality ASCII-art diagrams - Brought to you by microsoft/hve-core"
+      },
+      {
+        "name": "brd-builder",
+        "path": "./.github/chatmodes/brd-builder.chatmode.md",
+        "description": "Business Requirements Document builder with guided Q&A and reference integration"
+      },
+      {
+        "name": "gen-data-spec",
+        "path": "./.github/chatmodes/gen-data-spec.chatmode.md",
+        "description": "Generate comprehensive data dictionaries, machine-readable data profiles, and objective summaries for downstream analysis (EDA notebooks, dashboards) through guided discovery"
+      },
+      {
+        "name": "gen-jupyter-notebook",
+        "path": "./.github/chatmodes/gen-jupyter-notebook.chatmode.md",
+        "description": "Create a structured exploratory data analysis Jupyter notebook leveraging available data sources & generated data dictionaries WITHOUT directly embedding raw data dumps."
+      },
+      {
+        "name": "gen-streamlit-dashboard",
+        "path": "./.github/chatmodes/gen-streamlit-dashboard.chatmode.md",
+        "description": "Develop a multi-page streamlit dashboard"
+      },
+      {
+        "name": "github-issue-manager",
+        "path": "./.github/chatmodes/github-issue-manager.chatmode.md",
+        "description": "Interactive GitHub issue management with conversational workflows for filing, navigating, and searching issues"
+      },
+      {
+        "name": "pr-review",
+        "path": "./.github/chatmodes/pr-review.chatmode.md",
+        "description": "Comprehensive Pull Request review assistant ensuring code quality, security, and convention compliance - Brought to you by microsoft/hve-core"
+      },
+      {
+        "name": "prd-builder",
+        "path": "./.github/chatmodes/prd-builder.chatmode.md",
+        "description": "Product Requirements Document builder with guided Q&A and reference integration"
+      },
+      {
+        "name": "prompt-builder",
+        "path": "./.github/chatmodes/prompt-builder.chatmode.md",
+        "description": "Expert prompt engineering and validation system for creating high-quality prompts - Brought to you by microsoft/hve-core"
+      },
+      {
+        "name": "security-plan-creator",
+        "path": "./.github/chatmodes/security-plan-creator.chatmode.md",
+        "description": "Expert security architect for creating comprehensive cloud security plans - Brought to you by microsoft/edge-ai"
+      },
+      {
+        "name": "task-implementor",
+        "path": "./.github/chatmodes/task-implementor.chatmode.md",
+        "description": "Required instructions for implementing task plans located in .copilot-tracking/plans and .copilot-tracking/details folders, with progressive tracking and change records - Brought to you by microsoft/edge-ai"
+      },
+      {
+        "name": "task-planner",
+        "path": "./.github/chatmodes/task-planner.chatmode.md",
+        "description": "Task planner for creating actionable implementation plans - Brought to you by microsoft/hve-core"
+      },
+      {
+        "name": "task-researcher",
+        "path": "./.github/chatmodes/task-researcher.chatmode.md",
+        "description": "Task research specialist for comprehensive project analysis - Brought to you by microsoft/hve-core"
+      },
+      {
+        "name": "test-streamlit-dashboard",
+        "path": "./.github/chatmodes/test-streamlit-dashboard.chatmode.md",
+        "description": "Comprehensive testing of the Streamlit dashboard using Playwright automation and issue tracking"
+      }
+    ],
+    "chatPromptFiles": [
+      {
+        "name": "ado-create-pull-request",
+        "path": "./.github/prompts/ado-create-pull-request.prompt.md",
+        "description": "Generate pull request description, discover related work items, identify reviewers, and create Azure DevOps pull request with all linkages."
+      },
+      {
+        "name": "ado-get-build-info",
+        "path": "./.github/prompts/ado-get-build-info.prompt.md",
+        "description": "Retrieve Azure DevOps build information for a Pull Request or specific Build Number."
+      },
+      {
+        "name": "ado-get-my-work-items",
+        "path": "./.github/prompts/ado-get-my-work-items.prompt.md",
+        "description": "Retrieve user's current Azure DevOps work items and organize them into planning file definitions"
+      },
+      {
+        "name": "ado-process-my-work-items-for-task-planning",
+        "path": "./.github/prompts/ado-process-my-work-items-for-task-planning.prompt.md",
+        "description": "Process retrieved work items for task planning and generate task-planning-logs.md handoff file"
+      },
+      {
+        "name": "git-commit-message",
+        "path": "./.github/prompts/git-commit-message.prompt.md",
+        "description": "Generates a commit message following the commit-message.instructions.md rules based on all changes in the branch"
+      },
+      {
+        "name": "git-commit",
+        "path": "./.github/prompts/git-commit.prompt.md",
+        "description": "Stages all changes, generates a conventional commit message, shows it to the user, and commits using only git add/commit"
+      },
+      {
+        "name": "git-merge",
+        "path": "./.github/prompts/git-merge.prompt.md",
+        "description": "Coordinate Git merge, rebase, and rebase --onto workflows with consistent conflict handling."
+      },
+      {
+        "name": "git-setup",
+        "path": "./.github/prompts/git-setup.prompt.md",
+        "description": "Interactive, verification-first Git configuration assistant (non-destructive)"
+      },
+      {
+        "name": "github-add-issue",
+        "path": "./.github/prompts/github-add-issue.prompt.md",
+        "description": "Add a GitHub issue to the backlog using discovered issue templates from .github/ISSUE_TEMPLATE/"
+      },
+      {
+        "name": "pull-request",
+        "path": "./.github/prompts/pull-request.prompt.md",
+        "description": "Provides prompt instructions for pull request (PR) generation - Brought to you by microsoft/edge-ai"
+      }
+    ],
+    "chatInstructions": [
+      {
+        "name": "ado-create-pull-request-instructions",
+        "path": "./.github/instructions/ado-create-pull-request.instructions.md",
+        "description": "Required protocol for creating Azure DevOps pull requests with work item discovery, reviewer identification, and automated linking."
+      },
+      {
+        "name": "ado-get-build-info-instructions",
+        "path": "./.github/instructions/ado-get-build-info.instructions.md",
+        "description": "Required instructions for anything related to Azure Devops or ado build information including status, logs, or details from provided pullrequest (PR), build Id, or branch name."
+      },
+      {
+        "name": "ado-update-wit-items-instructions",
+        "path": "./.github/instructions/ado-update-wit-items.instructions.md",
+        "description": "Required instructions for work item updating and creation leveraging mcp ado tool calls."
+      },
+      {
+        "name": "ado-wit-discovery-instructions",
+        "path": "./.github/instructions/ado-wit-discovery.instructions.md",
+        "description": "Required protocol for discovering, planning, and handing off Azure DevOps User Stories and Bugs."
+      },
+      {
+        "name": "ado-wit-planning-instructions",
+        "path": "./.github/instructions/ado-wit-planning.instructions.md",
+        "description": "Required instructions for work item planning and creation or updating leveraging mcp ado tool calls."
+      },
+      {
+        "name": "bash-instructions",
+        "path": "./.github/instructions/bash/bash.instructions.md",
+        "description": "Instructions for bash script implementation - Brought to you by microsoft/edge-ai"
+      },
+      {
+        "name": "bicep-instructions",
+        "path": "./.github/instructions/bicep/bicep.instructions.md",
+        "description": "Instructions for Bicep infrastructure as code implementation - Brought to you by microsoft/edge-ai"
+      },
+      {
+        "name": "commit-message-instructions",
+        "path": "./.github/instructions/commit-message.instructions.md",
+        "description": "Required instructions for creating all commit messages - Brought to you by microsoft/edge-ai"
+      },
+      {
+        "name": "csharp-tests-instructions",
+        "path": "./.github/instructions/csharp/csharp-tests.instructions.md",
+        "description": "Required instructions for C# (CSharp) test code research, planning, implementation, editing, or creating"
+      },
+      {
+        "name": "csharp-instructions",
+        "path": "./.github/instructions/csharp/csharp.instructions.md",
+        "description": "Instructions for C# (CSharp) implementation - Brought to you by microsoft/edge-ai"
+      },
+      {
+        "name": "git-merge-instructions",
+        "path": "./.github/instructions/git-merge.instructions.md",
+        "description": "Required protocol for Git merge, rebase, and rebase --onto workflows with conflict handling and stop controls."
+      },
+      {
+        "name": "markdown-instructions",
+        "path": "./.github/instructions/markdown.instructions.md",
+        "description": "Required instructions for creating or editing any Markdown (.md) files"
+      },
+      {
+        "name": "python-script-instructions",
+        "path": "./.github/instructions/python-script.instructions.md",
+        "description": "Instructions for python scripting implementation - Brought to you by microsoft/edge-ai"
+      },
+      {
+        "name": "shell-instructions",
+        "path": "./.github/instructions/shell.instructions.md",
+        "description": "Instructions for shell script implementation using Bash conventions - Brought to you by microsoft/edge-ai"
+      },
+      {
+        "name": "task-implementation-instructions",
+        "path": "./.github/instructions/task-implementation.instructions.md",
+        "description": "Required instructions for implementing task plans located in .copilot-tracking/plans and .copilot-tracking/details folders, with progressive tracking and change records - Brought to you by microsoft/edge-ai"
+      },
+      {
+        "name": "uv-projects-instructions",
+        "path": "./.github/instructions/uv-projects.instructions.md",
+        "description": "Instructions for Uv Projects"
+      }
+    ]
+  },
+  "author": "Microsoft",
+  "license": "MIT"
+}
diff --git a/package.json b/package.json
index a980c84f9..863ee7ca6 100644
--- a/package.json
+++ b/package.json
@@ -13,7 +13,11 @@
     "lint:md-links": "pwsh -File scripts/linting/Markdown-Link-Check.ps1",
     "lint:frontmatter": "pwsh -NoProfile -File scripts/linting/Validate-MarkdownFrontmatter.ps1 -WarningsAsErrors -EnableSchemaValidation",
     "lint:all": "npm run lint:md && npm run lint:ps && npm run lint:links && npm run lint:frontmatter",
-    "format:tables": "markdown-table-formatter \"**/*.md\""
+    "format:tables": "markdown-table-formatter \"**/*.md\"",
+    "extension:prepare": "pwsh ./scripts/extension/Prepare-Extension.ps1",
+    "extension:package": "pwsh ./scripts/extension/Package-Extension.ps1",
+    "package:extension": "npm run extension:prepare && npm run extension:package",
+    "publish:extension": "npm run extension:prepare && pwsh -Command \"Set-Location extension; try { vsce publish } catch { npx @vscode/vsce publish }\""
   },
   "devDependencies": {
     "cspell": "9.4.0",
diff --git a/scripts/extension/Package-Extension.ps1 b/scripts/extension/Package-Extension.ps1
new file mode 100644
index 000000000..e282b7d5f
--- /dev/null
+++ b/scripts/extension/Package-Extension.ps1
@@ -0,0 +1,263 @@
+#!/usr/bin/env pwsh
+
+<#
+.SYNOPSIS
+    Packages the HVE Core VS Code extension.
+
+.DESCRIPTION
+    This script packages the VS Code extension into a .vsix file.
+    It uses the version from package.json or a specified version.
+    Optionally adds a dev patch number for pre-release builds.
+
+.PARAMETER Version
+    Optional. The version to use for the package.
+    If not specified, uses the version from package.json.
+
+.PARAMETER DevPatchNumber
+    Optional. Dev patch number to append (e.g., "123" creates "1.0.0-dev.123").
+
+.PARAMETER ChangelogPath
+    Optional. Path to a changelog file to include in the package.
+
+.EXAMPLE
+    ./Package-Extension.ps1
+    # Packages using version from package.json
+
+.EXAMPLE
+    ./Package-Extension.ps1 -Version "2.0.0"
+    # Packages with specific version
+
+.EXAMPLE
+    ./Package-Extension.ps1 -DevPatchNumber "123"
+    # Packages with dev version (e.g., 1.0.0-dev.123)
+
+.EXAMPLE
+    ./Package-Extension.ps1 -Version "1.1.0" -DevPatchNumber "456"
+    # Packages with specific dev version (1.1.0-dev.456)
+#>
+
+[CmdletBinding()]
+param(
+    [Parameter(Mandatory = $false)]
+    [string]$Version = "",
+
+    [Parameter(Mandatory = $false)]
+    [string]$DevPatchNumber = "",
+
+    [Parameter(Mandatory = $false)]
+    [string]$ChangelogPath = ""
+)
+
+$ErrorActionPreference = "Stop"
+
+# Determine script and repo paths
+$ScriptDir = Split-Path -Parent $MyInvocation.MyCommand.Path
+$RepoRoot = (Get-Item "$ScriptDir/../..").FullName
+$ExtensionDir = Join-Path $RepoRoot "extension"
+$GitHubDir = Join-Path $RepoRoot ".github"
+$PackageJsonPath = Join-Path $ExtensionDir "package.json"
+
+Write-Host "📦 HVE Core Extension Packager" -ForegroundColor Cyan
+Write-Host "==============================" -ForegroundColor Cyan
+Write-Host ""
+
+# Verify paths exist
+if (-not (Test-Path $ExtensionDir)) {
+    Write-Error "Extension directory not found: $ExtensionDir"
+    exit 1
+}
+
+if (-not (Test-Path $PackageJsonPath)) {
+    Write-Error "package.json not found: $PackageJsonPath"
+    exit 1
+}
+
+if (-not (Test-Path $GitHubDir)) {
+    Write-Error ".github directory not found: $GitHubDir"
+    exit 1
+}
+
+# Read current package.json
+Write-Host "📖 Reading package.json..." -ForegroundColor Yellow
+try {
+    $packageJson = Get-Content -Path $PackageJsonPath -Raw | ConvertFrom-Json
+} catch {
+    Write-Error "Failed to parse package.json: $_`nPlease check $PackageJsonPath for JSON syntax errors."
+    exit 1
+}
+
+# Validate package.json has required version field
+if (-not $packageJson.PSObject.Properties['version']) {
+    Write-Error "package.json is missing required 'version' field"
+    exit 1
+}
+
+# Determine version
+$baseVersion = if ($Version -and $Version -ne "") {
+    # Validate specified version format
+    if ($Version -notmatch '^\d+\.\d+\.\d+$') {
+        Write-Error "Invalid version format specified: '$Version'. Expected semantic version format (e.g., 1.0.0).`nPre-release suffixes like '-dev.123' should be added via -DevPatchNumber parameter, not in the version itself."
+        exit 1
+    }
+    $Version
+} else {
+    # Use version from package.json
+    $currentVersion = $packageJson.version
+    if ($currentVersion -notmatch '^\d+\.\d+\.\d+') {
+        $errorMessage = @(
+            "Invalid version format in package.json: '$currentVersion'.",
+            "Expected semantic version format (e.g., 1.0.0).",
+            "Pre-release suffixes should not be committed to package.json.",
+            "Use -DevPatchNumber parameter to add '-dev.N' suffix during packaging."
+        ) -join "`n"
+        Write-Error $errorMessage
+        exit 1
+    }
+    # Extract base version (validation above ensures this will match)
+    $currentVersion -match '^(\d+\.\d+\.\d+)' | Out-Null
+    $Matches[1]
+}
+
+# Apply dev patch number if provided
+$packageVersion = if ($DevPatchNumber -and $DevPatchNumber -ne "") {
+    "$baseVersion-dev.$DevPatchNumber"
+} else {
+    $baseVersion
+}
+
+Write-Host "   Using version: $packageVersion" -ForegroundColor Green
+
+# Handle temporary version update for dev builds
+$originalVersion = $packageJson.version
+
+if ($packageVersion -ne $originalVersion) {
+    Write-Host ""
+    Write-Host "📝 Temporarily updating package.json version..." -ForegroundColor Yellow
+    $packageJson.version = $packageVersion
+    $packageJson | ConvertTo-Json -Depth 10 | Set-Content -Path $PackageJsonPath -Encoding UTF8NoBOM
+    Write-Host "   Version: $originalVersion -> $packageVersion" -ForegroundColor Green
+}
+
+# Handle changelog if provided
+if ($ChangelogPath -and $ChangelogPath -ne "") {
+    Write-Host ""
+    Write-Host "📋 Processing changelog..." -ForegroundColor Yellow
+    
+    if (Test-Path $ChangelogPath) {
+        $changelogDest = Join-Path $ExtensionDir "CHANGELOG.md"
+        Copy-Item -Path $ChangelogPath -Destination $changelogDest -Force
+        Write-Host "   Copied changelog to extension directory" -ForegroundColor Green
+    } else {
+        Write-Warning "Changelog file not found: $ChangelogPath"
+    }
+}
+
+# Prepare extension directory
+Write-Host ""
+Write-Host "🗂️  Preparing extension directory..." -ForegroundColor Yellow
+
+# Clean any existing copied directories
+$dirsToClean = @(".github", "scripts")
+foreach ($dir in $dirsToClean) {
+    $dirPath = Join-Path $ExtensionDir $dir
+    if (Test-Path $dirPath) {
+        Remove-Item -Path $dirPath -Recurse -Force
+        Write-Host "   Cleaned existing $dir directory" -ForegroundColor Gray
+    }
+}
+
+# Copy required directories
+Write-Host "   Copying .github..." -ForegroundColor Gray
+Copy-Item -Path "$RepoRoot/.github" -Destination "$ExtensionDir/.github" -Recurse
+
+Write-Host "   Copying scripts/dev-tools..." -ForegroundColor Gray
+New-Item -Path "$ExtensionDir/scripts" -ItemType Directory -Force | Out-Null
+Copy-Item -Path "$RepoRoot/scripts/dev-tools" -Destination "$ExtensionDir/scripts/dev-tools" -Recurse
+
+Write-Host "   ✅ Extension directory prepared" -ForegroundColor Green
+
+# Package extension
+Write-Host ""
+Write-Host "📦 Packaging extension..." -ForegroundColor Yellow
+
+# Initialize vsixFile variable to avoid scope issues
+$vsixFile = $null
+
+Push-Location $ExtensionDir
+
+try {
+    # Check if vsce is available
+    $vsceCmd = Get-Command vsce -ErrorAction SilentlyContinue
+    if (-not $vsceCmd) {
+        $vsceCmd = Get-Command npx -ErrorAction SilentlyContinue
+        if ($vsceCmd) {
+            Write-Host "   Using npx @vscode/vsce..." -ForegroundColor Gray
+            & npx @vscode/vsce package --no-dependencies
+        } else {
+            Write-Error "Neither vsce nor npx found. Please install @vscode/vsce globally or ensure npm is available."
+            exit 1
+        }
+    } else {
+        Write-Host "   Using vsce..." -ForegroundColor Gray
+        & vsce package --no-dependencies
+    }
+    
+    if ($LASTEXITCODE -ne 0) {
+        Write-Error "Failed to package extension"
+        exit 1
+    }
+    
+    # Find the generated vsix file
+    $vsixFile = Get-ChildItem -Path $ExtensionDir -Filter "*.vsix" | Sort-Object LastWriteTime -Descending | Select-Object -First 1
+    
+    if ($vsixFile) {
+        Write-Host ""
+        Write-Host "✅ Extension packaged successfully!" -ForegroundColor Green
+        Write-Host "   File: $($vsixFile.Name)" -ForegroundColor Cyan
+        Write-Host "   Size: $([math]::Round($vsixFile.Length / 1KB, 2)) KB" -ForegroundColor Cyan
+        Write-Host "   Version: $packageVersion" -ForegroundColor Cyan
+    } else {
+        Write-Error "No .vsix file found after packaging"
+        exit 1
+    }
+    
+} finally {
+    Pop-Location
+    
+    # Cleanup copied directories
+    Write-Host ""
+    Write-Host "🧹 Cleaning up..." -ForegroundColor Yellow
+    
+    foreach ($dir in $dirsToClean) {
+        $dirPath = Join-Path $ExtensionDir $dir
+        if (Test-Path $dirPath) {
+            Remove-Item -Path $dirPath -Recurse -Force
+            Write-Host "   Removed $dir" -ForegroundColor Gray
+        }
+    }
+    
+    # Restore original version if it was changed
+    if ($packageVersion -ne $originalVersion) {
+        Write-Host ""
+        Write-Host "🔄 Restoring original package.json version..." -ForegroundColor Yellow
+        $packageJson.version = $originalVersion
+        $packageJson | ConvertTo-Json -Depth 10 | Set-Content -Path $PackageJsonPath -Encoding UTF8NoBOM
+        Write-Host "   Version restored to: $originalVersion" -ForegroundColor Green
+    }
+}
+
+Write-Host ""
+Write-Host "🎉 Done!" -ForegroundColor Green
+Write-Host ""
+
+# Output for CI/CD consumption
+if ($env:GITHUB_OUTPUT) {
+    if ($vsixFile) {
+        "version=$packageVersion" | Out-File -FilePath $env:GITHUB_OUTPUT -Append -Encoding utf8
+        "vsix-file=$($vsixFile.Name)" | Out-File -FilePath $env:GITHUB_OUTPUT -Append -Encoding utf8
+    } else {
+        Write-Warning "Cannot write GITHUB_OUTPUT: vsix file not available"
+    }
+}
+
+exit 0
diff --git a/scripts/extension/Prepare-Extension.ps1 b/scripts/extension/Prepare-Extension.ps1
new file mode 100644
index 000000000..d3ad8d5b7
--- /dev/null
+++ b/scripts/extension/Prepare-Extension.ps1
@@ -0,0 +1,322 @@
+#!/usr/bin/env pwsh
+#Requires -Modules PowerShell-Yaml
+
+<#
+.SYNOPSIS
+    Prepares the HVE Core VS Code extension for packaging.
+
+.DESCRIPTION
+    This script prepares the VS Code extension by:
+    - Auto-discovering chat agents, chatmodes, prompts, and instruction files
+    - Updating package.json with discovered components
+    - Updating changelog if provided
+    
+    The package.json version is not modified.
+
+.PARAMETER ChangelogPath
+    Optional. Path to a changelog file to include in the package.
+
+.PARAMETER DryRun
+    Optional. If specified, shows what would be done without making changes.
+
+.EXAMPLE
+    ./Prepare-Extension.ps1
+    # Prepares using existing version from package.json
+
+.EXAMPLE
+    ./Prepare-Extension.ps1 -ChangelogPath "./CHANGELOG.md"
+    # Prepares with changelog
+
+.NOTES
+    Dependencies: PowerShell-Yaml module
+#>
+
+[CmdletBinding()]
+param(
+    [Parameter(Mandatory = $false)]
+    [string]$ChangelogPath = "",
+
+    [Parameter(Mandatory = $false)]
+    [switch]$DryRun
+)
+
+$ErrorActionPreference = "Stop"
+
+# Helper function to extract description from YAML frontmatter
+function Get-DescriptionFromYaml {
+    param(
+        [Parameter(Mandatory = $true)]
+        [string]$FilePath,
+        
+        [Parameter(Mandatory = $false)]
+        [string]$FallbackDescription = ""
+    )
+    
+    $content = Get-Content -Path $FilePath -Raw
+    $description = ""
+    
+    # Extract YAML frontmatter and parse with PowerShell-Yaml
+    if ($content -match '(?s)^---\s*\r?\n(.*?)\r?\n---') {
+        # Normalize line endings to LF for consistent parsing across platforms
+        $yamlContent = $Matches[1] -replace '\r\n', "`n" -replace '\r', "`n"
+        try {
+            $data = ConvertFrom-Yaml -Yaml $yamlContent
+            if ($data.ContainsKey('description')) {
+                $description = $data.description
+            }
+        } catch {
+            Write-Warning "Failed to parse YAML frontmatter in $(Split-Path -Leaf $FilePath): $_"
+        }
+    }
+    
+    # Return description or fallback
+    if ($description) {
+        return $description
+    } else {
+        return $FallbackDescription
+    }
+}
+
+# Determine script and repo paths
+$ScriptDir = Split-Path -Parent $MyInvocation.MyCommand.Path
+$RepoRoot = (Get-Item "$ScriptDir/../..").FullName
+$ExtensionDir = Join-Path $RepoRoot "extension"
+$GitHubDir = Join-Path $RepoRoot ".github"
+$PackageJsonPath = Join-Path $ExtensionDir "package.json"
+
+Write-Host "📦 HVE Core Extension Preparer" -ForegroundColor Cyan
+Write-Host "==============================" -ForegroundColor Cyan
+Write-Host ""
+
+# Verify paths exist
+if (-not (Test-Path $ExtensionDir)) {
+    Write-Error "Extension directory not found: $ExtensionDir"
+    exit 1
+}
+
+if (-not (Test-Path $PackageJsonPath)) {
+    Write-Error "package.json not found: $PackageJsonPath"
+    exit 1
+}
+
+if (-not (Test-Path $GitHubDir)) {
+    Write-Error ".github directory not found: $GitHubDir"
+    exit 1
+}
+
+# Read current package.json
+Write-Host "📖 Reading package.json..." -ForegroundColor Yellow
+try {
+    $packageJson = Get-Content -Path $PackageJsonPath -Raw | ConvertFrom-Json
+} catch {
+    Write-Error "Failed to parse package.json: $_`nPlease check $PackageJsonPath for JSON syntax errors."
+    exit 1
+}
+
+# Validate package.json has required version field
+if (-not $packageJson.PSObject.Properties['version']) {
+    Write-Error "package.json is missing required 'version' field"
+    exit 1
+}
+
+# Use existing version from package.json
+$version = $packageJson.version
+
+# Validate version format
+if ($version -notmatch '^\d+\.\d+\.\d+$') {
+    Write-Error "Invalid version format in package.json: '$version'. Expected semantic version format (e.g., 1.0.0)"
+    exit 1
+}
+
+Write-Host "   Using version: $version" -ForegroundColor Green
+
+# Discover chat agents
+Write-Host ""
+Write-Host "🔍 Discovering chat agents..." -ForegroundColor Yellow
+$agentsDir = Join-Path $GitHubDir "agents"
+$chatAgents = @()
+
+if (Test-Path $agentsDir) {
+    $agentFiles = Get-ChildItem -Path $agentsDir -Filter "*.agent.md" | Sort-Object Name
+    
+    foreach ($agentFile in $agentFiles) {
+        # Extract agent name from filename (e.g., hve-core-installer.agent.md -> hve-core-installer)
+        $agentName = $agentFile.BaseName -replace '\.agent$', ''
+        
+        # Extract description from YAML frontmatter
+        $description = Get-DescriptionFromYaml -FilePath $agentFile.FullName -FallbackDescription "AI agent for $agentName"
+        
+        $agent = [PSCustomObject]@{
+            name        = $agentName
+            path        = "./.github/agents/$($agentFile.Name)"
+            description = $description
+        }
+        
+        $chatAgents += $agent
+        Write-Host "   ✅ $agentName" -ForegroundColor Green
+    }
+} else {
+    Write-Warning "Agents directory not found: $agentsDir"
+}
+
+# Discover chatmodes
+Write-Host ""
+Write-Host "🔍 Discovering chatmodes..." -ForegroundColor Yellow
+$chatmodesDir = Join-Path $GitHubDir "chatmodes"
+$chatmodes = @()
+
+if (Test-Path $chatmodesDir) {
+    $chatmodeFiles = Get-ChildItem -Path $chatmodesDir -Filter "*.chatmode.md" | Sort-Object Name
+    
+    foreach ($chatmodeFile in $chatmodeFiles) {
+        # Extract chatmode name from filename (e.g., task-planner.chatmode.md -> task-planner)
+        $chatmodeName = $chatmodeFile.BaseName -replace '\.chatmode$', ''
+        
+        # Extract description from YAML frontmatter
+        $displayName = $chatmodeName -replace '-', ' '
+        $description = Get-DescriptionFromYaml -FilePath $chatmodeFile.FullName -FallbackDescription "Chatmode for $displayName"
+        
+        $chatmode = [PSCustomObject]@{
+            name        = $chatmodeName
+            path        = "./.github/chatmodes/$($chatmodeFile.Name)"
+            description = $description
+        }
+        
+        $chatmodes += $chatmode
+        Write-Host "   ✅ $chatmodeName" -ForegroundColor Green
+    }
+} else {
+    Write-Warning "Chatmodes directory not found: $chatmodesDir"
+}
+
+# Discover prompts
+Write-Host ""
+Write-Host "🔍 Discovering prompts..." -ForegroundColor Yellow
+$promptsDir = Join-Path $GitHubDir "prompts"
+$chatPromptFiles = @()
+
+if (Test-Path $promptsDir) {
+    $promptFiles = Get-ChildItem -Path $promptsDir -Filter "*.prompt.md" -Recurse | Sort-Object Name
+    
+    foreach ($promptFile in $promptFiles) {
+        # Extract prompt name from filename (e.g., git-commit.prompt.md -> git-commit)
+        $promptName = $promptFile.BaseName -replace '\.prompt$', ''
+        
+        # Extract description from YAML frontmatter
+        $displayName = ($promptName -replace '-', ' ') -replace '(\b\w)', { $_.Groups[1].Value.ToUpper() }
+        $description = Get-DescriptionFromYaml -FilePath $promptFile.FullName -FallbackDescription "Prompt for $displayName"
+        
+        # Calculate relative path from .github
+        $relativePath = $promptFile.FullName.Substring($GitHubDir.Length + 1) -replace '\\', '/'
+        
+        $prompt = [PSCustomObject]@{
+            name        = $promptName
+            path        = "./.github/$relativePath"
+            description = $description
+        }
+        
+        $chatPromptFiles += $prompt
+        Write-Host "   ✅ $promptName" -ForegroundColor Green
+    }
+} else {
+    Write-Warning "Prompts directory not found: $promptsDir"
+}
+
+# Discover instruction files
+Write-Host ""
+Write-Host "🔍 Discovering instruction files..." -ForegroundColor Yellow
+$instructionsDir = Join-Path $GitHubDir "instructions"
+$chatInstructions = @()
+
+if (Test-Path $instructionsDir) {
+    $instructionFiles = Get-ChildItem -Path $instructionsDir -Filter "*.instructions.md" -Recurse | Sort-Object Name
+    
+    foreach ($instrFile in $instructionFiles) {
+        # Extract instruction name from filename (e.g., commit-message.instructions.md -> commit-message-instructions)
+        $baseName = $instrFile.BaseName -replace '\.instructions$', ''
+        $instrName = "$baseName-instructions"
+        
+        # Extract description from YAML frontmatter
+        $displayName = ($baseName -replace '-', ' ') -replace '(\b\w)', { $_.Groups[1].Value.ToUpper() }
+        $description = Get-DescriptionFromYaml -FilePath $instrFile.FullName -FallbackDescription "Instructions for $displayName"
+        
+        # Calculate relative path from .github using cross-platform APIs
+        $relativePathFromGitHub = [System.IO.Path]::GetRelativePath($GitHubDir, $instrFile.FullName)
+        $normalizedRelativePath = (Join-Path ".github" $relativePathFromGitHub) -replace '\\', '/'
+        
+        $instruction = [PSCustomObject]@{
+            name        = $instrName
+            path        = "./$normalizedRelativePath"
+            description = $description
+        }
+        
+        $chatInstructions += $instruction
+        Write-Host "   ✅ $instrName" -ForegroundColor Green
+    }
+} else {
+    Write-Warning "Instructions directory not found: $instructionsDir"
+}
+
+# Update package.json
+Write-Host ""
+Write-Host "📝 Updating package.json..." -ForegroundColor Yellow
+
+# Ensure contributes section exists
+if (-not $packageJson.contributes) {
+    $packageJson | Add-Member -NotePropertyName "contributes" -NotePropertyValue ([PSCustomObject]@{})
+}
+
+# Combine agents and chatmodes into chatAgents (VS Code treats chatmodes as chatAgents)
+$allChatAgents = $chatAgents + $chatmodes
+
+# Update chatAgents
+$packageJson.contributes.chatAgents = $allChatAgents
+Write-Host "   Updated chatAgents: $($allChatAgents.Count) items ($($chatAgents.Count) agents + $($chatmodes.Count) chatmodes)" -ForegroundColor Green
+
+# Update chatPromptFiles
+$packageJson.contributes.chatPromptFiles = $chatPromptFiles
+Write-Host "   Updated chatPromptFiles: $($chatPromptFiles.Count) prompts" -ForegroundColor Green
+
+# Update chatInstructions
+$packageJson.contributes.chatInstructions = $chatInstructions
+Write-Host "   Updated chatInstructions: $($chatInstructions.Count) files" -ForegroundColor Green
+
+if ($DryRun) {
+    Write-Host ""
+    Write-Host "🔍 DRY RUN - Would write the following package.json:" -ForegroundColor Magenta
+    Write-Host ($packageJson | ConvertTo-Json -Depth 10)
+    Write-Host ""
+    Write-Host "🔍 DRY RUN - No changes made" -ForegroundColor Magenta
+    exit 0
+}
+
+# Write updated package.json
+$packageJson | ConvertTo-Json -Depth 10 | Set-Content -Path $PackageJsonPath -Encoding UTF8NoBOM
+Write-Host "   Saved package.json" -ForegroundColor Green
+
+# Handle changelog if provided
+if ($ChangelogPath) {
+    Write-Host ""
+    Write-Host "📋 Processing changelog..." -ForegroundColor Yellow
+    
+    if (Test-Path $ChangelogPath) {
+        $changelogDest = Join-Path $ExtensionDir "CHANGELOG.md"
+        Copy-Item -Path $ChangelogPath -Destination $changelogDest -Force
+        Write-Host "   Copied changelog to extension directory" -ForegroundColor Green
+    } else {
+        Write-Warning "Changelog file not found: $ChangelogPath"
+    }
+}
+
+Write-Host ""
+Write-Host "🎉 Done!" -ForegroundColor Green
+Write-Host ""
+Write-Host "📊 Summary:" -ForegroundColor Cyan
+Write-Host "   Version: $version" -ForegroundColor White
+Write-Host "   Chat Agents: $($chatAgents.Count)" -ForegroundColor White
+Write-Host "   Chatmodes: $($chatmodes.Count)" -ForegroundColor White
+Write-Host "   Prompts: $($chatPromptFiles.Count)" -ForegroundColor White
+Write-Host "   Instructions: $($chatInstructions.Count)" -ForegroundColor White
+Write-Host ""
+
+exit 0