Iteration Plan for January 2026

[kieferrm]

This plan captures our work in January 2026. This is a 4-week iteration. We will ship in early February.

Endgame

• January 26, 2026: Endgame begins
• January 30, 2026: Endgame done

The endgame details for this iteration are tracked here.

Plan Items

Below is a summary of the top level plan items.

Legend of annotations:

Mark	Description
🏃	work in progress
✋	blocked task
💪	stretch goal for this iteration
🔴	missing issue reference
🔵	more investigation required to remove uncertainty
⚫	under discussion within the team
⬛	a large work item, larger than one iteration

Accessibility

• Accessibility issues, see query @meganrogge team

Workbench

• Glob matching should be case insensitive vscode#10633 @dmitrivMS
• Investigate improvements for Simple Browser vscode#277298 @kycutler @jruales @unthinkmedia
• Integrated Browser V1 vscode#286579 @kycutler @jruales @unthinkmedia
• Rollout Windows 11 Explorer context menu item to Stable vscode#204696 @deepak1556
• Rollout improved Windows update flow to Stable vscode#281963 @deepak1556
• 🏃 Support in-context Quick Pick interactions vscode#238095 @lszomoru @TylerLeonhardt
• 🏃 Portable mode improvements @dmitrivMS
• 🏃 Metered network connections support @dmitrivMS
• 🏃 Update UI improvements @dmitrivMS

Code Editor

• Hover on keyboard modifier should trigger instantly vscode#276558 @benvillalobos
• Fix important self host issues with experimental GPU acceleration project @Tyriar
• 🏃 Allow configuring font family, font size and line height via syntactic tokens vscode#263545 @aiday-mar

Languages

Python

• Use environment extension api when executing Python code and file vscode-python#25687 @anthonykim1
  • Create terminal api does not return activated terminal for command type vscode-python-environments#1078 @anthonykim1
  • Ctrl+c immeditately issued upon run, execution cancelled by activation command vscode-python-environments#640 @anthonykim1
• 🏃 Various bug fixes for Python Environments Extension vscode-python-environments-query @eleanorjboyd

Terminal

• Remove winpty support node-pty#842 vscode#284519 @anthonykim1
• Implement kitty keyboard protocol vscode#286809 @Tyriar
• Implement win32 input mode vscode#286896 @Tyriar
• ✋ 🏃 Conpty issues @anthonykim1
  • Ship newer version of conpty vscode#224488 @anthonykim1 @Tyriar
  • Issues from conpty on Windows 25H2 vscode#243584, vscode#241978 vscode#274372 @anthonykim1 @Tyriar
• 🏃 Implement kitty graphics protocol vscode#286141 @anthonykim1

API

• API proposals: query @mjbvz @alexr00
• API finalization: query @mjbvz @alexr00

Source Control

• 🏃 Git: Support setup steps for new worktrees vscode#276834 @lszomoru

AI

Chat

• Allow creating new sessions from chat input vscode#284091 @benibenj
• Chat: Improve model management UI vscode#270143 @sandy081
• Address chat performance problems for longer chats vscode#286610 @roblourens @connor4312
• Render progress as tool calls stream in vscode#278640 @lramos15
• Enable mermaid support by default vscode#271372 @mjbvz
• Improve terminal inside chat view vscode#257468 @meganrogge
• Unify changes in the 'working set' area across agent session types vscode#278654 @connor4312 @lostintangent
• Support tool approval in a hover vscode#280617 @connor4312
• 🏃 Polish Agent Sessions UI query @bpasero @lostintangent
• 🏃 Chat: Support contributable chat context resources vscode#271104 @alexr00
• 🏃 Improve chat response rendering query @justschen @jo-oikawa @hawkticehurst
• 🏃 Chat Sessions Controller API @mjbvz vscode#276243
• 🏃 Revisit terminal tool running background terminals UX vscode#274550 @Tyriar

MCP

• Support MCP registry url property vscode#278398 @sandy081
• Explore supporting MCP apps vscode#260218 @connor4312

Inline Chat

• Make inline chat more discoverable vscode#287105 @jrieken

NES / Completions

• Improve the speed for import NES suggestions vscode#277811 @benibenj @dbaeumer
• Improve rendering of inline completions in small edits scenarios (single characters, punctuation) vscode#284517 @benibenj
• Prefer NES/completions over word suggestions vscode#284076 @benibenj
• Add support for diagnostics to the inline completion prompt vscode#277829 @dbaeumer
• Suggest semantic renames when editing an identifier vscode#289124@dbaeumer
• Add support for patch-based model response format vscode#287115 @ulugbekna @vkrd
• Adopt ICompletionsFetchService for completions vscode#277830 @ulugbekna
• 💪 Allow running simulation tests that include the completions model vscode#280344 @ulugbekna @benibenj

Agents

• Suggest to install GHPRI from Cloud agent sessions vscode#286168 @alexr00
• Support model-specific tools and tool descriptions vscode#277472 @connor4312 @bhavyaus
• Support model / 3rd party agents in Cloud Agents vscode#286170 @joshspicer
• Polish background agent session UX vscode#287043 @lszomoru @rebornix team
• Sandboxing terminal while running commands through agent vscode#277286 @dileepyavan
• 🏃 Support for Claude Agent vscode#266962 @TylerLeonhardt
• 🏃 Support repo picker for cloud agents and polish empty workspace experience vscode#286020 @osortega @rebornix
• 🏃 CLI integration improvements (custom-agent/model/tools) vscode#286028 @DonJayamanne

Prompt/Instruction Files and Custom Agents

• Allow parallel subagent execution vscode#274630 @roblourens
• Improve custom agents vscode#286237 @aeschli @pwang347 @digitarald
• Improve skill lookup vscode#286238 @aeschli @pwang347
• Provide skill lookup debugging vscode#286239 @aeschli @pwang347
• Support GitHub's organization custom instructions vscode#276636 @pwang347 @aeschli
• 💪 Improve open editor handoff for Plan agent vscode#277432 @aeschli @pwang347

Code Review

• 💪 Notify user when CCR no-ops vscode#277286 @benvillalobos
• 💪 Add Chat: Code Review command vscode#276977 @benvillalobos

Engineering

• Consume codicons from npm vscode#283823 @alexr00
• Explore distributing .dmg for macOS arm64 vscode#265849 @deepak1556

Documentation

• Test-driven development user guide vscode-docs#8951 @ntrogh @digitarald
• Refactor Enterprise article into separate articles vscode-docs#9132 @ntrogh @joshspicer
• 💪 Working with large codebases user guide vscode-docs#8932 @digitarald @ntrogh

---

Deferred

• Register a single inline completions provider to vscode's API vscode#287116 @ulugbekna
• Archive handling for background/cloud sessions vscode#286171 @joshspicer
• Explore layouts for Chat session + Multi File Diff vscode#260226 @joshspicer
• Update Profiles UI to include AI features vscode#270130 @eli-w-king
• Engineering: ESM restore support for ASAR vscode#228064 @deepak1556
• Explore task-oriented workflow for chat/agent sessions vscode-pr#8076 @mjbvz
• Exploration: Support runtime experimentation vscode#286162 @deepak1556
• Refine chat motion rendering vscode#287175 @hawkticehurst @justchen @roblourens

[iwangbowen]

Always looking forward to new updates

[OrenMe]

The organization/enterprise custom agents and instructions are a great feature
I would like to raise suggestion to consider more fine grained ability - one custom instruction per org is a stretch IMO and experience and it's more likely that a sub set of repos that are managed by a group might have common standards over and entire org or enterprise
Same goes for custom agents
Commented also on #276636 (comment)

I think .github-private is nice storage solution but then solution would benefit if it would be decoupled, exposed with an api and allow more ways to attach to granular groups by direct assignment or dynamic rules(repo associated to teams or by metadata tags)
Also would benefit by collecting stats on which sessions uses which instruction or ran with which custom agents by some ID to measure usage and effectiveness/ROI

[ivanm696]

Revert "Add workflow badges to README