VS Code: Copilot Enhancement and Agent Host Updates

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Good morning, this is your VS Code development update for Thursday, May 30th, 2026.

The team merged several significant Copilot enhancements today. Osvaldo Ortega merged live streaming support for Task API cloud agent sessions, adding incremental content updates that match existing behavior. Anthony Kim merged async shell completion notifications for Agent Host Copilot CLI, improving terminal integration with the SDK native shell tool.

Vikram Nitin addressed cache timeout issues during long tool calls by implementing keep-alive probes every four minutes, specifically for execution subagent calls. The same author also updated Execution Subagent settings to use Gemini-3-Flash as the default model, though Bhavyaus later disabled it by default pending experimentation rollout.

Several bug fixes landed as well. Dmitriy Vasura fixed language model event recursion issues and throttled Git repository status calls to prevent extension host crashes in workspaces with many repositories. The fix caps initial status checks to prevent IPC timeout loops.

Additional improvements include enabling the rubber duck critic subagent for code review, caching malicious extension lists for faster startup, and various session management fixes for maximize state handling and empty titles.

Benjamin Simmonds contributed multiple session-related fixes, including proper maximize state handling when moving sessions between slots and preventing selection of more/less sections in session lists.

What's next: The team continues refining Copilot agent capabilities and improving performance for large workspace scenarios. Session management enhancements appear to be an ongoing focus area.

That's your VS Code update for May 30th. We'll be back tomorrow with more development news.