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Agent skills shift AI agents toward procedural tasks with skill.md steps; progressive disclosure reduces context window bloat in real use.
Latest VS Code update introduces prepackaged bundles of chat customizations that can include skills, commands, agents, MCP ...
Visual Studio Code 1.110 (February 2026) adds new agent extensibility, browser-driving chat tools, and expanded chat accessibility.
VS Code's AI Toolkit and Microsoft Foundry can speed up agent development, but real-world success often depends on picking the right runtime and region, keeping tool-driven context under control, and ...