Merge branch 'vnext' of github.com:microsoft/vscode-docs into vnext

Author: aiday-mar

release-notes/images/1_100/ai-keywords.mp4

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release-notes/images/1_100/inlinechat2.mp4

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release-notes/images/1_100/mcp-confirm.mp4

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release-notes/images/1_100/run-prompt-as-slash-command.png

@@ -34,12 +34,6 @@ Welcome to the April 2025 release of Visual Studio Code. There are many updates
 
 ## Chat
 
-### Create and launch tasks with agent mode
-
-In the previous release, we introduced the `setting(github.copilot.chat.newWorkspaceCreation.enabled)` (Experimental) setting to enable workspace creation with agent mode.
-
-Now, at the end of this creation flow, you are prompted to create and run a task for launching your app or project, streamlining out-of-the-box launch and enabling easy task reuse.
-
 ### Improvements to the web page fetch tool
 
 Last month, we introduced the `#fetch` tool, which allows you to fetch the contents of a web page right from chat to include as context for your prompt. If you missed that release note, check out [the initial release of the fetch tool](v1_99.md#fetch-tool) release note and examples.
@@ -71,6 +65,10 @@ If you want to ask about the repo you are currently working on, you can just use
 
 Also, the `#githubRepo` tool is only for searching for relevant code snippets. The [GitHub MCP server](https://github.com/github/github-mcp-server?tab=readme-ov-file#github-mcp-server) provides tools for working with GitHub issues and pull requests. Learn more about [adding MCP servers in VS Code](https://code.visualstudio.com/docs/copilot/chat/mcp-servers#_add-an-mcp-server).
 
+### Chat input improvements
+
+We have done some improvements to the chat input box and how attachments are handled. Now, any attachment typed also appears as attachment-pill. This makes it simpler to understand what's being send to the language model. Also, the context picker has been streamlined to make it simpler to pick files, folders, and other attachment types. We also heard the feedback for the "Done"-button: We removed it! No more confusion, only the New Chat `kb(workbench.action.chat.newChat)` command starts a new session.
+
 ### Chat mode keybindings
 
 The keyboard shortcut `kb(workbench.action.chat.open)` still just opens the Chat view, but the `kb(workbench.action.chat.openAgent)` shortcut now opens the Chat view and switches to [agent mode](vscode://GitHub.Copilot-Chat/chat?mode=agent). If you'd like to set up keybindings for other chat modes, there is a command for each mode:
@@ -116,6 +114,110 @@ Use `#extensions` tool to find extensions from the Marketplace. This tool is ava
 
 <video src="images/1_100/extensions-agent-tool.mp4" title="Video that shows using the extensions tool to display popular Java extensions." autoplay loop controls muted></video>
 
+### Inline Chat V2 Preview
+
+We have been working on a revamped version of inline chat `kb(inlineChat.start)`. Its theme is still "bringing chat into code" but behind the scenes it uses the same logic as chat edits. Meaning better use of the available context and a better code editing strategy. You can enable inline chat v2 via `setting(editor.stickyScroll.enabled:true)`
+
+Further, there is a more light weight UX that can optionally be enabled. With the `setting(inlineChat.hideOnRequest:true)`-setting inline chat hides as soon as a request is made - it then minimizes into the chat editing overlay which allows to accept or discard changes as well as to restore the widget again.
+
+<video src="images/1_100/inlinechat2.mp4" title="Inline chat v2 and hide-on-request in action" autoplay loop controls muted></video>
+
+### Faster agent mode edits with GPT 4.1
+
+We've implemented support for OpenAI's apply patch editing format when using GPT 4.1 and o4-mini in agent mode. This means significantly faster edits, especially in large files. The tool is enabled by default in VS Code Insiders and will be progressively rolled out in VS Code Stable.
+
+### Autofix diagnostics from agent mode edits
+
+If a file edit in agent mode introduces new errors, agent mode can now detect them and automatically propose a followup edit. You can disable this behavior with `setting(github.copilot.chat.agent.autoFix)`.
+
+### Prompt and instructions files
+
+We now distinguish between 'instructions' and 'prompt' files. They use the same fiele format but have separate file suffices and features. The purpose of the separation is to align with the existing custom instructions feature and make the UI more intuitive.
+
+**Instruction files** (aka custom instructions, rules) provide context to a request, typically describing code guidelines or specifying which framework to use.
+
+Instruction files use the `.instructions.md` file suffix. They can be located in your user data folder or in the workspace. The `setting(chat.instructionsFilesLocations)` setting lists the folders that contain the instruction files.
+
+Instructions files can be added manually or automatically to chat requests.
+- To add them manually, use the `Add Context ` button in the chat view and select `Instructions...`. Alternativly use the `Chat: Attach Instructions File...` command from the command palette. This brings aup a picker that lets you select existing instructions files or create a new one to attach.
+- To have them added automatically, add the `applyTo` header to the instructions file. If a chat request contains a file that matches the given pattern, the instructions file will be attached.
+````md
+---
+applyTo: '**/*.ts'
+---
+Place curly braces on separate lines for multi-line blocks:
+if (condition)
+{
+  doSomething();
+}
+else
+{
+  doSomethingElse();
+}
+````
+
+
+**Prompt files** describe a complete chat request, including the user query, mode and tools to use.
+
+Prompt files use the `.prompt.md` file suffix. They can be located in your user data folder or in the workspace. The `setting(chat.promptFilesLocations)` setting lists the folder where prompt files are looked for.
+
+
+To run a prompt file, you can
+- type `/` in the chat input field and select your prompt file
+![Run prompt as slash command](images/1_100/run-prompt-as-slash-command.png)
+- open the prompt file in an editor and press the 'Play' button in the editor tool bar
+![Run prompt as slash command](images/1_100/run-prompt-from-play-button.png)
+- use the 'Chat: Run Prompt File...' command from the command palette
+
+Use the following headers to specify how the prompt is run:
+- `mode` to select whether the prompt is invoked in `ask`, `edit` or `agent` mode
+- If the mode is `agent`, use `tools` to select the tools that are available for the prompt.
+
+```md
+---
+mode: 'agent'
+tools: ['getCurrentMilestone', 'getReleaseFeatures', 'file_search', 'semantic_search', 'read_file', 'insert_edit_into_file', 'create_file', 'replace_string_in_file', 'fetch_webpage', 'vscode_search_extensions_internal']
+---
+Generate release notes for the features I worked in the current release and update them in the release notes file. Use [release notes writing instructions file](.github/instructions/release-notes-writing.instructions.md) as a guide.
+```
+
+### MCP Support for Streamable HTTP
+
+This release adds support for the new Streamable HTTP transport for Model Context Protocol servers. Streamable HTTP servers are configured just like existing SSE servers, and our implementation is backwards-compatible with SSE servers:
+
+```json
+{
+  "servers": {
+    "my-mcp-server": {
+      "url": "http://localhost:3000/mcp"
+    }
+  }
+}
+```
+
+### MCP Support for Image Output
+
+We now support MCP servers that generate images as part of their tool output.
+
+Please note that not all language models support reading images from tool output. For example, although GPT-4.1 has vision capability, it does not currently support reading images from tools.
+
+### Enhanced input, output, and progress from MCP servers
+
+We have enhanced the UI that shows MCP server tool input and output, and have also added support for MCP's new progress messages.
+
+<video src="images/1_100/mcp-confirm.mp4" autoplay loop controls muted></video>
+_Theme: [Codesong](https://marketplace.visualstudio.com/items?itemName=connor4312.codesong) (preview on [vscode.dev](https://vscode.dev/editor/theme/connor4312.codesong))_
+
+### MCP Config Generation Uses Inputs
+
+AI-assisted configurations generated by the `MCP: Add Server` now generate `inputs` for any secrets rather than inlining them into the resulting configuration.
+
+### Create and launch tasks with agent mode (Experimental)
+
+In the previous release, we introduced the `setting(github.copilot.chat.newWorkspaceCreation.enabled)` (Experimental) setting to enable workspace creation with agent mode.
+
+Now, at the end of this creation flow, you are prompted to create and run a task for launching your app or project, streamlining out-of-the-box launch and enabling easy task reuse.
+
 ## Accessibility
 
 ### Merge editor improvements
@@ -196,6 +298,15 @@ VS Code now prevents the installation of Copilot chat pre-release version in VS
 
 Views (tree views and webview views) can now be opened without focusing them. This is useful for extensions and keybindings that want to open a view but not take focus away from the current editor. The command is `your-view-id.open`, and it takes a property bag argument: `{ preserveFocus: boolean}`.
 
+### Semantic text search with keyword suggestions (Experimental)
+
+**Setting**: `setting(github.copilot.chat.search.keywordSuggestions:true)`
+
+Semantic text search now supports AI-powered keyword suggestions. By enabling this feature, you will start seeing relevant references or definitions that will help you find the code you are looking for.
+
+<video src="images/1_100/ai-keywords.mp4" title="Video that shows AI-powered keyword suggestions in Visual Studio Code." autoplay loop controls muted></video>
+
+
 ## Code Editing
 
 ### NES Import Suggestions
@@ -238,12 +349,6 @@ You can customize the color of the staged changes quick diff decorations by usin
 
 If you do not want to see quick diff decorations for staged changes, you can hide them by using the **Diff Decorations** submenu that is available in the editor gutter context menu.
 
-## Terminal
-
-
-## Tasks
-
-
 ## Debugging
 
 ### Disassembly view context menu
@@ -252,6 +357,10 @@ Thanks to a community contribution, we now have a context menu in the disassembl
 
 ![Context menu in disassembly view](images/1_100/disassembly-context.png)
 
+### JavaScript Debugger Network View
+
+Recent versions of Node.js have enhanced its network debugging capabilities. The ![experimental network view](./v1_93.md#experimental-network-view) will be enabled by default on recent versions of Node.js that support it well (v22.14.0 and above).
+
 ## Testing
 
 
@@ -330,6 +439,7 @@ There has been more progress on the [GitHub Pull Requests](https://marketplace.v
 * Ask Copilot questions about the active pull request, such as "Address all comments in the #activePullRequest".
 * View issues in a webview, just like you can view pull requests.
 * Polish and alignment of the "Pull Requests", "Issues", and "Notifications" views.
+* Prepared for the release of GitHub's Project Padawan by enabling assignment of issues to Copilot, @-mentioning of Copilot, and ensuring it will be displayed properly in the UI.
 
 Review the [changelog for the 0.110.0](https://github.com/microsoft/vscode-pull-request-github/blob/main/CHANGELOG.md#0110) release of the extension to learn about the other highlights.
 
@@ -358,7 +468,13 @@ Check out [this API proposal issue](https://github.com/microsoft/vscode/issues/2
 
 The NodeJS extension host now supports extensions that use JavaScript-modules (ESM). All it needs is the `"type": "module"`-entry in your extension's `package.json`-file. With that the JavaScript code can use `import`- and `export`-statements, including the special module `import('vscode')`. Find a sample here: <https://github.com/jrieken/vscode-esm-sample-extension>.
 
-Please note that ESM support isn't for the web worker extension host yet. There are some technical challenges that need to overcome first and we'll post updates on <https://github.com/microsoft/vscode/issues/130367>
+Please note that ESM support isn't for the web worker extension host yet. There are some technical challenges that need to be overcome first. We'll post updates on <https://github.com/microsoft/vscode/issues/130367>. Stay tuned
+
+### MCP servers contributed by extensions
+
+Extensions are able to programmatically contribute extensions to the editor using the new [proposed API](https://github.com/microsoft/vscode/blob/main/src/vscode-dts/vscode.proposed.languageModelDataPart.d.ts). This is an alternative to users hardcoding configuration for each server in their settings or `mcp.json`.
+
+If this API is interesting to you, check out [its sample](https://github.com/microsoft/vscode-extension-samples/tree/main/mcp-extension-sample/) and [the API proposal issue](https://github.com/microsoft/vscode/issues/243522) to stay up to date with the status of this API.
 
 ## Engineering