Summary
On July 30, 2026, GitHub summarized Copilot's July VS Code releases (v1.127-v1.131), centered on the Agents window: reviewing code beside chat with diff counts, Git worktree support for isolated sessions, quick chat without a workspace, session grouping, and subagent tracking (model, elapsed time, tool calls). Multi-chat lets Claude agent sessions run several related conversations and fork into a peer chat; Copilot vision and BYOK models in the Agents window also went generally available.
What changed
Agents window redesign (code review beside chat, addition/deletion counts, compact diffs), Git worktree isolated sessions, workspace-free quick chat, session grouping and reordering, and subagent tracking. Multi-chat sessions with peer-chat forking for Claude agents. Copilot vision GA; BYOK models and terminal commands via ! in the Agents window.
Why it matters
Reframes the IDE around running and reviewing multiple agents at once rather than a single assistant. Worktree isolation and subagent tracking are infrastructure for parallel agentic coding, and BYOK plus peer-chat forking give teams control over model choice and exploration, matching where Cursor and Devin Desktop are also heading.
Evidence excerpt
review code alongside chat ... Git worktree support for isolated repository sessions ... Subagent tracking showing model, elapsed time, and active tool calls ... Fork into a peer chat ... BYOK models can now be used with the Copilot agent in the Agents window.