Visual Studio Code 1.101 Enhances MCP Security and Version Control Capabilities

The latest update of Visual Studio Code (VS Code) introduces significant advancements in both security and functionality, particularly focusing on the Model Context Protocol (MCP). This upgrade, denoted as version 1.101, fully integrates the MCP, enhancing the security for developers working with MCP sources.

The update comes on the heels of a prior enhancement to the MCP in March, which established an authorization framework between the client and server. This framework employs external identity management systems, such as OAuth, relieving developers of the need to implement their own authorization mechanisms for MCP sources. Consequently, developers can now focus on server development without being encumbered by user management issues. A key example highlighted in the release notes is the GitHub-MCP server, which seamlessly connects to VS Code using existing GitHub credentials, allowing users to grant access with a single approval.

Another notable feature in the update is the addition of sampling capabilities, allowing MCP servers to directly access the large language model (LLM) while utilizing the editor's API key as the client. This removes the necessity for the server to have its own API key for LLM interactions. Furthermore, the introduction of prompts--dynamic templates generated by the server--enables users to send context-specific requests to the LLM. Resources, including screenshots and log files, can also be leveraged to enhance the functionality.

Additionally, developers now have the ability to debug MCP servers using languages like Python or Node.js, and they can also publish multiple servers within a single extension, broadening the scope of their development capabilities.

In terms of version control, VS Code has introduced a new view that enhances the commit history display. Users can now expand the list of modified files in previous commits and easily view changes in the editor, with modifications highlighted in a color-coded diff view. This feature significantly improves visual search capabilities within the commit history. Older commits can now also be utilized for Copilot chats, allowing users to request explanations of changes made.

Furthermore, a new feature--Tools Sets--has been introduced for the AI chat functionality, independent of version control. This feature allows users to group multiple tools that the Copilot can process step-by-step within a single task.