Visual Studio August 2025 Update Brings AI and Debugging Upgrades

The latest Visual Studio 2025 update is here, delivering smarter AI features, improved debugging tools, and more control for developers. Microsoft’s August release focuses on boosting productivity and streamlining the developer experience.

Here’s what you need to know:

• GPT-5 Support

  Experience the latest in AI-powered development with GPT-5—delivering smarter, more accurate, and context-aware code suggestions and chat experiences.

• Model Context Protocol (MCP) GA

  Connect your entire stack seamlessly. MCP lets AI agents tap into databases, code search, and deployment systems—without building custom integrations.

• Smarter Copilot Chat

  Find the right code faster with improved semantic search, making Copilot Chat more reliable in surfacing relevant snippets.

• Google Sign-in for Copilot

  Getting started is easier than ever—sign up for Copilot directly with your Google account.

• Bring Your Own Model

  Use the LLM that works best for you. Connect your own models via API keys from OpenAI, Google, or Anthropic.

You can view the full list here.

GitHub Copilot Brings Next-Gen Diagnostics to .NET in Visual Studio

Microsoft has unveiled a powerful new diagnostics toolset for .NET development in Visual Studio, integrated with GitHub Copilot to streamline everything from breakpoint suggestions to LINQ query generation. The feature set—including context-aware tracepoint suggestions, immediate breakpoint troubleshooting, and a parallel stacks analysis & auto summaries—promises to significantly speed up debugging workflows and make profiling in Visual Studio more intuitive and efficient.

Here’s what you need to know:

• Breakpoint & Tracepoint Suggestions

  Skip manual setup — Copilot suggests the right conditional expressions or tracepoint actions based on your context.

• Breakpoint Troubleshooting

  No more trial-and-error. Copilot explains non-binding breakpoints, whether caused by mismatched symbols, build configs, or optimized code paths, and guides you to a fix.

• LINQ Query Hover

  Hover over any LINQ statement while debugging and get clear explanations, context evaluation, and insights on inefficiencies without leaving the editor.

• Parallel Stacks Analysis & Auto Summaries

  Untangle async and multithreaded code with Copilot’s thread summaries, app state insights, and deadlock/hang detection.

• Auto Insights in CPU & Allocation Tools

  Copilot highlights hot paths, high-usage functions, and performance bottlenecks so you can zero in on what really matters.

You can view the full list here.

Microsoft Brings Azure Tools into Copilot Agent Mode via Azure MCP in VS 2022

Microsoft has rolled out the public preview of GitHub Copilot for Azure in Visual Studio 2022 (version 17.14+), integrating a suite of Azure developer tools directly into Copilot's Agent Mode. The extension streamlines developer workflows by automatically installing and managing an Azure MCP server, enabling users to query resources, run CLI commands, deploy via azd, and diagnose issues—all within the Copilot Chat.

Here’s what you need to know:

• What’s in Public Preview?

  You can now use a zero-setup Azure MCP server that starts automatically when you open Copilot Chat, agent mode with Azure tools that pick the right resources for your goals, and broad Azure coverage via MCP tools.

• Getting Started

  Make sure you’re on Visual Studio 2022 (v17.4 or later) with an active GitHub Copilot subscription, Copilot Chat enabled, and a Microsoft account linked to an Azure subscription.

• How to Install

  • Step 1: Install the GitHub Copilot for Azure (Preview) extension in Visual Studio—the Azure MCP server starts automatically, so no manual setup is needed.

  • Step 2: Open Copilot Chat and select Agent Mode.

  • Step 3: Enable the Azure Extension under Select Tools and include resource details like subscription, resource group, and name in your prompts for the best results.

Model Context Protocol Support Now Generally Available in Visual Studio

Model Context Protocol (MCP) support is now generally available in Visual Studio, unlocking rich, real-time integration with external tools and services to power smarter AI-driven workflows. Now enabled by default in Copilot Chat, MCP lets developers connect securely to databases, deployment pipelines, and custom servers—transforming Visual Studio into a powerful hub for intelligent development.

Here’s what you need to know:

• What is MCP?
  MCP is an open standard that allows AI agents to seamlessly connect with external tools and services—databases, code search, deployment pipelines, and more—through a consistent, secure protocol.

• Why it matters
  It enables custom workflows, enterprise-grade integrations, and smarter, context-aware conversations.

• Full MCP client integration
  Connect to local or remote MCP servers via .mcp.json. Visual Studio now makes managing server inputs, authentication, and tools a first-class experience.

• First-class authentication
  Securely sign in to protected endpoints with built-in Visual Studio flows. Support extends across the full MCP authentication spec—no matter the provider.

• One-click server installation
  Add new MCP servers straight from the web in just a click—making it easier than ever to expand your AI-powered workflows.

Take Control Over Your Copilot Edit Suggestions in Visual Studio

Visual Studio has just rolled out enhanced settings that let developers fine-tune when and how GitHub Copilot code suggestions appear—whether that's pausing suggestions while typing or triggering them only with a keystroke. This update aims to strike a better balance between helpful AI assistance and keeping your coding flow uninterrupted by unwanted distractions.

Here’s what you need to know:

• Pause suggestions while typing

  Keep your flow uninterrupted. Suggestions will only appear after you pause, so you can type freely without constant pop-ups. Simply go to Tools -> Options → IntelliCode → Advanced and turn on wait for pauses in typing before showing whole line completions.

• Request completions only when you’re ready

  Disable automatic completions and trigger them manually with shortcuts like Alt + , or Alt + .. Perfect for developers who prefer fewer distractions.

• Preview edit suggestions on demand

  No more auto-inserts. Review the next edit suggestion only when you click the margin indicator or press Tab. Accept with Tab or dismiss with ESC—you’re in charge.

• Accept code in smaller pieces

  Take partial control of suggestions. Accept one word at a time with Ctrl + → or one line at a time with Ctrl + ↓, tailoring the output to your needs.

Visual Studio Expands Chat with Custom AI Model Integration

Microsoft has announced that Visual Studio Chat now supports third-party language models via API keys from providers like OpenAI, Anthropic, and Google—offering developers enhanced choice, customization, and control. This marks a significant shift, letting users seamlessly switch between built-in Copilot models and their own preferred AI models right inside the IDE.

Here’s what you need to know:

• Why it matters

  • Try the latest models as soon as they’re released

  • Customize models to fit your security, infrastructure, or performance needs

  • Manage usage, quotas, and billing directly with your provider

  • Switch seamlessly between Copilot’s built-in models and your own

• How to set it up

  1. Open the Chat Window in Visual Studio.

  2. From the model picker, select Manage models.

  3. Pick your provider and enter your API key.

  4. Choose from the preset options or add a custom model name.

Power Platform Introduces Public Preview of Monitor Alerts

Microsoft has introduced Monitor Alerts in Power Platform, now available in public preview. The new feature gives admins the ability to set health thresholds and receive alerts when apps or flows begin to slip. This update aims to help organizations respond faster and prevent issues before they escalate.

Here’s what you need to know:

• Why Monitor Alerts Matters

  Define healthy metrics so you only get alerted when it counts. This means fewer surprises, faster response times, and more focus on fixing issues instead of hunting for them.

• Key Details

  Available in public preview today for tenant and environment admins—no setup required. You’ll find it in the Power Platform Admin Center.

• Supported Alerts

  Monitor Alerts is currently available for canvas apps, model-driven apps, cloud flows, and desktop flows.

• How to Use It

  In the Power Platform Admin Center, go to Monitor > Alerts, then create your alert. Set conditions (metric, threshold, evaluation window), then add recipients, then save & test. Adjust thresholds as needed to balance sensitivity vs. noise.

• Best practices

  ✔ Align thresholds with SLAs

  ✔ Alert on trends, not noise

  ✔ Route alerts smartly

  ✔ Pair with recommendations

  ✔ Review and refine regularly

Microsoft Enhances Dynamics 365 Contact Center with Expanded SMS Reach via Mobile Numbers & Short Codes

Microsoft has introduced two powerful updates to Dynamics 365 Contact Center—SMS mobile numbers and SMS short codes—via Azure Communication Services. These enhancements give businesses more flexibility and reach in how they connect with customers through messaging.

Here’s what you need to know:

• SMS Mobile Numbers (Expanded Availability)

  ACS-based SMS is now supported in 10 additional countries: Australia, Belgium, Denmark, Finland, Ireland, Latvia, Netherlands, Poland, Sweden, and the UK.

  This means organizations can:

  • Enable two-way SMS for conversational customer support

  • Use local mobile numbers to boost trust and deliverability

  • Seamlessly integrate with Dynamics 365 Contact Center for easy setup & management

• ACS SMS Short Codes

  Now available in the US, Canada, and the UK, short codes make it easier to send high-volume, compliant messaging. With this update, organizations can:

  • Use short, memorable numbers directly in Contact Center (no third-party SMS provider required)

  • Simplify provisioning and management within the Microsoft + Azure ecosystem

  • Ensure compliance and security, with carrier-approved short codes reducing spam risks

What’s New in Power BI: August 2025 Feature Summary

Microsoft has rolled out the August 2025 Power BI update, introducing fresh capabilities across Copilot, reporting, and modeling. The release continues to build on AI-driven insights while adding new previews and features designed to make analytics more seamless and collaborative.

Here’s what’s new:

• Copilot & AI

  Copilot is now supported in embedded Power BI reports for SharePoint Online, allowing users to interact with the Copilot Report Pane directly within their embedded reports.

• Reporting

  Org apps (preview) are now supported in workspaces with Pro licenses. Create multiple org apps per workspace to deliver tailored report experiences for leaders, managers, or cross-business initiatives.

• Modeling

  You can now use Mirrored Azure Databricks catalogs as a data source to bring Direct Lake tables into a semantic model in Power BI Desktop via OneLake.

• Developer API

  When saving a Live Connect report as a PBIP, the definition.pbir file now includes a simplified connection string with the XMLA endpoint and semantic model ID.

• Visualizations

  The new Powerviz Date Picker brings a modern calendar view, presets, pop-up mode, default selection, themes, and more — making it a must-have date slicer.

View the full list here.

Power Pages Now Allows Full SPA Development via GitHub Spark and Codespaces

Microsoft has introduced a streamlined workflow that enables developers to build and deploy single-page applications in Power Pages using GitHub Spark and Codespaces. The integration allows authors to generate a site through natural-language prompts, customize it directly in a browser-based Codespace, and deploy it to Power Pages—all without local setup.

Here’s what you need to know:

• What is GitHub Spark and Codespaces?

  GitHub Spark uses AI to generate SPAs from simple natural language prompts, while Codespaces offers a ready-to-use cloud development environment for instant coding anywhere.

• Why host in Power Pages?

  Power Pages is a secure, scalable, enterprise-ready platform designed to simplify modern web development and integration with the Microsoft ecosystem.

• Power Pages capabilities in hosting

  Enjoy AI-assisted site creation, instant cloud-based editing, seamless deployment, and built-in security, governance, analytics, plus native Power Platform integration.

• How to host your site in Power Pages

  Generate your SPA in GitHub Spark, customize it in Codespaces using React or your chosen framework, then deploy with pac pages upload-code-site.