GitHub Copilot in VS Code August 2026 Releases Introduce Agent Session Management and Improved Diff Reviews

GitHub has rolled out a series of updates for GitHub Copilot in VS Code spanning versions 1.132 through 1.135. The primary focus of this release is optimizing the workflow around AI agents and long-running chat sessions. A newly introduced Agents window allows developers to track active agent sessions, organize related conversations, and monitor agent activity directly within the editor. Code review processes for agent-generated changes have also received a significant overhaul. Developers can now navigate between original prompts and their resulting file modifications more seamlessly. This update introduces more intuitive diff reviews, making it easier to evaluate and merge changes without losing the conversational context of the chat interface. Additionally, the release addresses usability across various input methods and host environments. Improvements to the agent host, the VS Code integrated browser, and the dictation engine provide developers with more flexible ways to interact with Copilot. These features collectively reduce the cognitive load associated with tracking complex, multi-turn tasks and verifying code quality.