VS Code 1.106 out with new icons, Agents view with Codex, diff selection fixes (code.visualstudio.com)

VS Code 1.106 introduces a centralized "Agent Sessions" view (chat.agentSessionsViewLocation) and a suite of agent-focused upgrades that stitch local, Copilot and OpenAI Codex sessions into a single workflow. The Agent Sessions view (now on by default) groups sessions by source, supports search (⌥⌘F / Ctrl+Alt+F) and an optional consolidated single-view next to Chat. A new Plan agent guides developers through multi‑step implementations with clarifying questions and an approval step before code is generated, and you can author custom agents (.github/agents/*.agent.md) with a new target frontmatter (vscode or github-copilot) and fields like name, argument-hint, model, tools and handoffs. Cloud/CLI integrations are tighter: Copilot coding agent moved into the Copilot Chat extension, Copilot CLI sessions can be created/resumed in editors/terminals (including /delegate), and chat edit sessions now track agent edits with inline edit pills and a working set for better auditability. Editor and UX changes smooth day‑to‑day work: deleted lines in inline diffs are now selectable and copyable, multi-file diff navigation is supported, and Go to Line gained character-offset syntax (::599) plus better out-of-range handling. Inline suggestions were open‑sourced and consolidated into the vscode-copilot-chat repo (GitHub Copilot extension to be deprecated by early 2026), and you can snooze suggestions from the gutter. Miscellaneous quality-of-life updates include refreshed codicons, Linux JSON policy support, copy buttons on diagnostic hovers, accent-insensitive Command Palette filtering, and a hidden "advanced settings" category for power users. Together these changes prioritize auditable, customizable agent workflows and easier hybrid local/cloud AI development.