diff --git a/docs/toolhive/_partials/_client-compat-table.md b/docs/toolhive/_partials/_client-compat-table.md
index 92bb2d9a..f9c2f4b8 100644
--- a/docs/toolhive/_partials/_client-compat-table.md
+++ b/docs/toolhive/_partials/_client-compat-table.md
@@ -1,16 +1,17 @@
-| Client                     | Supported | Auto-configuration | Notes                                          |
-| -------------------------- | :-------: | :----------------: | ---------------------------------------------- |
-| GitHub Copilot (VS Code)   |    ✅     |         ✅         | v1.100+ or Insiders version                    |
-| Cursor                     |    ✅     |         ✅         | v0.50.0+                                       |
-| Roo Code (VS Code)         |    ✅     |         ✅         | v3.19.2+                                       |
-| Cline (VS Code)            |    ✅     |         ✅         | v3.8.5+ (sse only; streamable-http [issue][2]) |
-| Claude Code CLI            |    ✅     |         ✅         | v1.0.27+                                       |
-| GitHub Copilot (JetBrains) |    ✅     |         ❌         | v1.5.47+                                       |
-| Continue (VS Code)         |    ✅     |         ❌         | v1.0.14+                                       |
-| Continue (JetBrains)       |    ✅     |         ❌         | v1.0.23+                                       |
-| PydanticAI                 |    ✅     |         ❌         | v0.2.18+                                       |
-| ChatGPT Desktop            |    ❌     |         ❌         | No support for HTTP/SSE MCPs                   |
-| Claude Desktop             |    ❌     |         ❌         | No support for HTTP/SSE MCPs ([issue][1])      |
+| Client                     | Supported | Auto-configuration | Notes                                                |
+| -------------------------- | :-------: | :----------------: | ---------------------------------------------------- |
+| GitHub Copilot (VS Code)   |    ✅     |         ✅         | v1.100+ or Insiders version (v1.102+, [see note][3]) |
+| Cursor                     |    ✅     |         ✅         | v0.50.0+                                             |
+| Roo Code (VS Code)         |    ✅     |         ✅         | v3.19.2+                                             |
+| Cline (VS Code)            |    ✅     |         ✅         | v3.8.5+ (sse only; streamable-http [issue][2])       |
+| Claude Code CLI            |    ✅     |         ✅         | v1.0.27+                                             |
+| GitHub Copilot (JetBrains) |    ✅     |         ❌         | v1.5.47+                                             |
+| Continue (VS Code)         |    ✅     |         ❌         | v1.0.14+                                             |
+| Continue (JetBrains)       |    ✅     |         ❌         | v1.0.23+                                             |
+| PydanticAI                 |    ✅     |         ❌         | v0.2.18+                                             |
+| ChatGPT Desktop            |    ❌     |         ❌         | No support for HTTP/SSE MCPs                         |
+| Claude Desktop             |    ❌     |         ❌         | No support for HTTP/SSE MCPs ([issue][1])            |
 
 [1]: https://github.com/orgs/modelcontextprotocol/discussions/16
 [2]: https://github.com/cline/cline/issues/4391
+[3]: /toolhive/reference/client-compatibility.mdx#vs-code-with-copilot
diff --git a/docs/toolhive/reference/client-compatibility.mdx b/docs/toolhive/reference/client-compatibility.mdx
index ee564050..c66a457c 100644
--- a/docs/toolhive/reference/client-compatibility.mdx
+++ b/docs/toolhive/reference/client-compatibility.mdx
@@ -51,6 +51,31 @@ GitHub Copilot in VS Code stores its
 [global MCP configuration](https://code.visualstudio.com/docs/copilot/chat/mcp-servers#_add-an-mcp-server-to-your-user-settings)
 in your VS Code user settings file.
 
+:::note
+
+VS Code version 1.102 moved the MCP settings to a new location. Servers are now
+configured in a dedicated `mcp.json` file in the user settings directory.
+
+ToolHive currently only supports the previous location (`settings.json`). When
+ToolHive adds a new MCP server, VS Code prompts you to move it to the new
+location.
+
+<img
+  src='/img/toolhive/vscode-config-update.webp'
+  alt='Screenshot of the VS Code MCP move prompt'
+  width={440}
+/>
+
+This works, but ToolHive will not automatically update the new `mcp.json` file
+in the same location as the `settings.json` file referenced below. You can still
+use the MCP servers, but you will need to manually update the `mcp.json` file if
+you stop or remove the server.
+
+Subscribe to [this issue](https://github.com/stacklok/toolhive/issues/1037) for
+updates on ToolHive's support for the new MCP configuration location.
+
+:::
+
 **Standard version**:
 
 - **macOS**: `~/Library/Application Support/Code/User/settings.json`
@@ -77,19 +102,6 @@ Example configuration:
 }
 ```
 
-:::note
-
-You need to manually start MCP servers from the settings file. Open the command
-palette and select "Preferences: Open User Settings (JSON)".
-
-<img
-  src='/img/toolhive/vscode-mcp-start.webp'
-  alt='Screenshot of the VS Code MCP settings'
-  className='screenshot'
-/>
-
-:::
-
 When you register VS Code as a client, ToolHive automatically updates the global
 MCP configuration file whenever you run an MCP server. You can also
 [configure project-specific MCP servers](https://code.visualstudio.com/docs/copilot/chat/mcp-servers#_add-an-mcp-server-to-your-workspace)
diff --git a/static/img/toolhive/vscode-config-update.webp b/static/img/toolhive/vscode-config-update.webp
new file mode 100644
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diff --git a/static/img/toolhive/vscode-mcp-start.webp b/static/img/toolhive/vscode-mcp-start.webp
deleted file mode 100644
index 5f431893..00000000
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