DriversRecommendedOutdated drivers can make a good PC feel brokenScan driver issues before chasing fixes manually.Scan NowHalloween DealsAmazon USHalloween week deals: useful picks before month-endAmazon US: current deals, useful picks and tech finds.Check DealsPC HealthRecommendedCrashes, freezes, slowdowns? Check your PC nowSpot repairable issues before they interrupt work.Check PC×
FREEDOM251

Freedom251 › Blog › AI Canvases

Visual Studio Code 1.142 Adds Shared AI Canvases, Chat Moves and Markdown Improvements

By Freedom251 Team · · 4 min read

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Visual Studio Code 1.142, released on 14 October 2026, adds preview Canvases for working with an AI agent on the same visual artifact, lets you move an active chat between folders or Git worktrees without losing its transcript, and substantially improves Markdown authoring. The release also changes how policy-managed agent sessions are hosted and exposes more controls in the model picker.

What is new in Visual Studio Code 1.142?

Microsoft’s 1.142 release is primarily an agent-workflow update rather than a performance release. Its most visible addition is Canvases (Preview), which Microsoft describes as “interactive interfaces to collaborate with an agent.” A Canvas sits beside chat so you and the agent can inspect and update the same artifact instead of exchanging instructions only through a conversation.

As an Amazon Associate I earn from qualifying purchases.

Area Before 1.142 What 1.142 adds
Agent collaboration Chat-centered interaction A shared Canvas artifact that both the developer and agent can update
Context continuity Starting work in another folder generally meant starting or reconfiguring a chat Move an existing chat to another folder or Git worktree while preserving its transcript
Markdown authoring Conventional source editing and preview controls One visual line per source line, pasted-image insertion, file-link renaming, heading navigation and hover-to-copy code buttons
Governance Local-session permission and sandbox handling Policy-managed chats with configured permissions or sandboxing run on Copilot Agent Host

The release notes do not publish a named benchmark or independently measured performance figure, so 1.142 should be evaluated by these documented workflow and editing changes rather than by an assumed speed improvement.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

How shared AI Canvases work

What a Canvas is

A Canvas is an interactive surface supplied by a Canvas extension. It provides a visual representation of an artifact while the agent works alongside it. The Kanban example in the release documentation lets you create and move cards; the agent can break work into tasks and update progress as the work advances. This is different from asking an agent to describe a plan in chat because the plan remains visible and editable in the shared surface.

Where Canvases run

Canvases run in the VS Code desktop application for local sessions using the Copilot harness. They work in the normal editor window and in the Agents window. The Copilot harness is being progressively rolled out as the default harness for new sessions, so the exact default you see can depend on rollout status and your installation.

How to enable Canvases

  1. Open VS Code Settings and search for chat.canvases.enabled.
  2. Enable the chat.canvases.enabled setting.
  3. Start a new session using the Copilot harness; Canvases are available for local desktop sessions on that harness.
  4. In chat, type /create-canvas to generate a Canvas, or install a chat plugin that includes a Canvas extension.
  5. Use the Canvas in either the editor window or the Agents window. Community sample extensions are also available for experimenting with other Canvas interfaces.

Canvases are a preview feature, and the extension determines the artifact and interactions it provides. Enabling the setting alone does not turn every chat into a Canvas; you must start a compatible Copilot-harness session and create or install a Canvas extension.

Move a Copilot chat to another folder or worktree

Version 1.142 can move an existing chat from the Agents window to another folder or a new Git worktree without discarding the conversation history. This is useful when an agent has already analyzed a repository and you need the next changes to apply in a different checkout.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.
  1. Open the Agents window and select the chat you want to relocate.
  2. Use the chat’s move action and choose another folder or create/select a Git worktree as the destination.
  3. Allow the agent to finish its current turn. VS Code then moves the chat and continues it automatically in the destination workspace.
  4. Review the next edits and commands in the new workspace; the original checkout remains unchanged.

The transcript is preserved, and an unsent draft is retained during migration. Nothing is sent automatically merely because the chat was moved. Once the move completes, subsequent edits and terminal commands target the destination folder or worktree, so verify the path before accepting changes.

Markdown editing upgrades

The Markdown editor in 1.142 is more source-oriented while retaining the existing read-only rendering behavior.

  • Separate source lines: Each source line appears on its own visual line, making line-by-line editing easier to inspect.
  • Paste images: Screenshots and other images can be pasted directly into a Markdown document.
  • Rename Symbol for file links: Renaming a file-link symbol updates matching links throughout the document.
  • Outline and breadcrumbs: Heading structure is exposed through Outline and breadcrumb navigation, helping you jump through long documents.
  • Copy code blocks: Hovering over a fenced code block reveals a copy button.

These changes apply to authoring. The release notes state that read-only Markdown rendering is unchanged, so readers should not expect a redesigned preview solely because they upgraded to 1.142.

Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Support on Ko-Fi

Policy-managed chats and sandbox changes

In managed environments, VS Code now routes a full policy-managed chat to Copilot Agent Host when its configuration contains a nonempty permissions object or sandbox.enabled: true. This host is intended to enforce organization-level permission and sandbox policies. Administrators can restrict which permission modes are available.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Existing chats are migrated with their transcript and unsent draft preserved; the migration does not send the draft automatically. Windows terminal sandboxing for Local agent sessions is deprecated in this release, so organizations relying on that path should review their approved Agent Host and permission configuration before adopting 1.142 broadly.

Model picker changes

The model picker now separates Copilot providers from bring-your-own-key (BYOK) providers. Hovering a model exposes its thinking-level and context-window controls, making it easier to see which options are available before starting or continuing an agent task. Availability still depends on the provider, account, and organization policy configured for your session.

Who should upgrade first?

  • Agent-heavy developers: Canvases and chat relocation are the most consequential changes if your work involves multi-step tasks across repositories or worktrees.
  • Documentation authors: The Markdown line display, image paste, link renaming and navigation improvements reduce friction in large documentation files.
  • Teams with governance requirements: Review Agent Host routing, permission restrictions and the deprecation of Windows Local-agent terminal sandboxing before rollout.
  • Users expecting a visual Canvas in every chat: Remember that Canvases remain in preview, require the relevant setting and harness, and depend on a Canvas extension.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

AI CanvasesCopilot harnessDeveloper ToolsMarkdownVisual Studio CodeVS Code 1.142

Leave a Reply

Your email address will not be published. Required fields are marked *

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Recommended PC Tool
Recommended PC Tool
Windows Errors? Fix Them Before They SpreadFree repair scan
Crashes, No Sound, or Screen Glitches?Free driver scan

Two free Windows tools

One Free Minute Could Fix That PC

Before you go - each of these free tools takes about a minute and tackles what quietly slows a Windows PC down.

Special offer. View Outbyte info, uninstall instructions, EULA, and Privacy Policy.