Microsoft has released its August 2026 update for Visual Studio, bringing new improvements designed to give developers greater control over their development workflows. The update focuses on smarter AI-assisted development and more flexible ways to manage Git branches and repositories.

Here’s what you need to know:

Fine-tune AI thinking for every task
Choose the level of AI reasoning that best suits your development task to balance speed, response depth and token usage. Set it to Low for straightforward questions and code suggestions, Medium for your daily development tasks, or High for complicated algorithm, architecture, and bugs.
Share custom agents across your organisation
Teams can now create and share custom agents across repositories for more consistent development workflows. Organisation-level agents help Copilot follow shared processes and expectations.
Easily access your Copilot usage
Keep track of your Copilot plan usage directly within Visual Studio. View your usage details by selecting View all Copilot usage and receive notifications when you’re approaching your limit.
Work on multiple branches with worktrees
Work on multiple Git branches simultaneously without having to stash your current changes. Each worktree provides a separate working directory, making it easier to switch between tasks.
Manage Git submodules more easily
Visual Studio now provides improved support for managing Git submodules within your repositories. A dedicated Submodules section makes it easier to add, update and delete submodules while keeping your repository organised.

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