The first time I let two Copilot agents work on the same repo at the same time, one of them stomped on the other's edits inside about ninety seconds. Different tasks, same working tree, same branch. I closed the second session, made a coffee, and went back to running them one at a time like a person from 2024. That is the small, unglamorous frustration the July release notes for Copilot in VS Code aim at. Between v1.127 and v1.131, shipped across July, the Agents window learned to start each session in its own git worktree, and it learned to hold several chats inside a single session without losing the plot.

The change, in one paragraph

The Agents window is still in public preview, and the July batch is a spread of small, connected improvements rather than one headline feature. The one I care about most: you can now start a Copilot, Claude, or Codex session in a git worktree, so each session works in an isolated copy of your repository. Multi-chat lands next to it: a single agent session can hold several related chats, each with its own history, title, and model, and you can fork a chat from any point to explore a different approach while the original context stays put. There is a new panel that opens files and diffs next to the conversation, per-file addition and deletion counts, and a toggle between inline and side-by-side diff views. Subagent runs now surface their model, elapsed time, and active tool call, and if a pull request the agent is minding fails a CI check or picks up a new review comment, a banner shows up above the chat input.