Visual Studio Code 1.105, the latest release of Microsoft’s popular Visual Studio Code editor, introduces several new AI coding features, including the ability to resolve merge conflicts with AI assistance, the ability to resume recent chat sessions, and the ability to install Model Context Protocol (MCP) servers from the MCP marketplace.
Announced October 9, VS Code 1.105, aka the September 2025 release, can be downloaded from code.visualstudio.com for Windows, Mac, and Linux.
Developers with VS Code 1.105 now are able to resolve merge conflicts with AI assistance, when opening a file with git merge conflict markers. This feature is available via a new action in the lower right-hand corner of the editor. Selecting this action opens the Chat view and begins an agentic flow with the merge base and changes from each branch as context.
