What are multi-folder sessions in Visual Studio Code 1.140?

Multi-folder sessions allow users to work with isolated folders, repositories, or Git worktrees in the same agent session, enhancing workspace compartmentalization.

How does the new remote agent delegation work in VS Code 1.140?

It uses connected host data (OS, memory, CPU, load) to dynamically assign tasks to an optimized remote system in agent-managed sessions.

What changes have been made to the Copilot harness in this release?

The expanded Copilot harness now functions in a dedicated agent host process, linking multiple VS Code windows to the same session for better multitasking.

What are enterprise AI controls in VS Code 1.140?

Enterprise AI controls offer management and telemetry configuration tools tailored to enterprises, enhancing control and compliance.

What additional interface improvements are included in VS Code 1.140?

Interface updates include compact session lists, chat layout customization, and progress indicators for long-running agent operations.

Visual Studio Code 1.140: Multi-Folder Sessions and Remote Agent Delegation

Microsoft’s Visual Studio Code 1.140, released on September 30, 2026, introduces several notable features aimed at enhancing developer productivity and collaboration. Key updates include experimental multi-folder sessions, advanced remote agent delegation, an upgraded Copilot harness, and enterprise-oriented AI controls. These improvements provide new customization, scaling options, and functionality for individual developers and enterprise teams alike.

As IT leaders evaluate the adoption of VS Code in workflows, these features underscore Microsoft’s continued focus on enabling remote work capabilities and AI-driven enhancements in developer tools. Below is a closer look at the highlights from this update.

1. Multi-Folder Agent Sessions

One of the headline features of Visual Studio Code 1.140 is the rollout of multi-folder sessions. This experimental capability allows different agent chats within the same session to isolate workflows across multiple folders, repositories, or Git worktrees. With separate terminals, tasks, changes, pull requests, and merge states, this feature enhances team collaboration by minimizing conflicts between tasks.

Why this matters: For large teams tackling complex projects, multi-folder sessions offer a way to better silo workstreams, improving productivity and reducing merge conflicts. Engineering leaders should monitor this feature’s stability as it progresses beyond its experimental stage.

2. Remote Agent Delegation

The new remote agent delegation feature allows VS Code agents to dynamically discover connected remote hosts and delegate tasks based on resource availability, such as operating system, memory, and CPU usage. This provides a layer of optimization for remote development and builds.

Why this matters: By automating resource selection for tasks, this feature ensures optimal performance and better utilization of available computing resources, a critical benefit for distributed teams.

3. Expanded Copilot Harness

The Copilot harness now runs in a dedicated agent host process powered by the Agent Host Protocol. This upgrade enables the same agent session to persist across multiple VS Code windows, making work organization and multitasking across sessions more efficient.

Why this matters: Developers who frequently manage multiple instances of VS Code will benefit from session persistence and a more seamless workflow when making use of AI-assisted development.

4. Enterprise AI Controls

Version 1.140 introduces robust enterprise AI controls, which are designed to meet the specific needs of workplace development environments. These controls aim to support enterprise-grade use of AI models by allowing refined management and enhanced telemetry configurations. The specifics of these configurations include granular visibility tailored for organizations to maintain compliance.

Why this matters: For CTOs and IT teams, enhancing manageability and data oversight for AI-driven tools becomes crucial when juggling regulatory compliance and maintaining a secure development environment.

5. Additional Improvements and Fixes

This release also brings a host of quality-of-life enhancements:

Improvements to chat and session interfaces include compact session lists, filters, and alternate layouts for chat tabs.
A new option for changing text-selection highlighting behavior now supports case sensitivity.
Long-running agent actions display a visual progress indicator, indicating that tasks are active.
A distribution change to the user-setup installer includes logic to manage reinstall prompts, affecting deployment and updates.

Why this matters: These changes collectively optimize user experience, making the already developer-friendly editor more accessible and efficient for day-to-day workflows.

What This Means for VS Code Users

Visual Studio Code 1.140 delivers meaningful updates for developer teams and enterprises alike, blending enhanced AI-driven features and customization options with practical quality-of-life improvements. The addition of multi-folder sessions and remote agent delegation highlights Microsoft’s commitment to supporting flexible, scalable remote workflows, while new enterprise AI controls address growing corporate compliance requirements. Organizations relying on VS Code for development should assess these updates for their suitability in reducing friction and improving team agility.

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