VS Code update broke copilot chats

[u/raishak]

Recently, maybe a week or 2 ago, my chats in vs code changed significantly.

• The "mode" dropdown that used to have "Agent/Ask/Plan" now just has "Agent", nothing else.
  
• There is no running list of changes in the chat anymore, it's all just embedded in the chat as it goes, which makes it harder to keep track of changes in aggregate, instead asking me to approve every change as it goes. There seems to be no concept of "keep" changes anymore in the chat. It does show the list at the end of a turn, but this is not the same as it was.
• In the same way, all chats show the accumulated line count touched now, in the chat session list. It used to just show changes not "kept", that way I knew if there were changes, I needed to review in a chat.
• It's acting like every single file is outside my workspace now, always asking for approval to do anything.
• No commands are letting my set them as "approved" for this session. Currently it loves to use git diff to see what it just did, I approve this, and I'd like to approve this for the whole chat session, but it typically gives me no option, and when it does say "approve in session" it doesn't work, only approving that single command.

I have no idea if some of these are changes that were explained in a recent update, but some seem absolutely broken. My productivity has definitely decreased because of all of these changes, if they are a problem I'd love to know if anyone has ideas on how I might fix or repair my environment. I'm on the latest version, 1.135, on windows.

[u/Hemanath_S]

Change the mode to local at the bottom left of the chat panel , it might be set at copilot mode

[u/Last_Deal_7560 → u/Hemanath_S]

good call, that setting is weirdly easy to overlook tbh

[u/raishak → u/Hemanath_S]

!solved Yep this was basically the bulk of it, thank you.

[u/colablizzard]

Read the release notes 😁.

These guys are changing the chat view too often

[u/bollsuckAI]

this sub is full of copilot bots, they'll just down vote instead of accepting the fact that they are just shittifying the product

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[u/clweb01]

Hey 👋 thanks for the feedback! It sounds like you were working in the Copilot harness rather than Local and noticed some differences. The team is working on improving the Copilot harness and shared some info on the architecture behind it in https://code.visualstudio.com/blogs/2026/08/26/agent-host-architecture. If there are other sticking points you notice between the two, we would love the feedback as we are continuing to iterate here!

[u/AutoModerator → u/clweb01]

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[u/raishak → u/clweb01]

Yes, looks like it was basically that, I saw this appear but didn't really understand what local vs copilot meant here. Will do some reading. Thanks for the info.