VS Code 1.142 retires Windows terminal sandboxing for agents

VS Code 1.142, released on 14 October, deprecates Windows sandboxing for terminal commands in Local agent chat sessions. Organisations with configured sandbox or permission policies now need the Copilot harness in Agent Host instead, which VS Code says it requires “to be able to enforce these policies.” Existing Local chats are migrated to Agent Host automatically, with transcripts and drafts kept.

Teams that need more time can set vscode.temporaryDefaultToLocalHarness to delay the switch, but it’s described as a temporary escape hatch, not a long-term setting. The release also adds a preview “Canvases” mode for shared artefacts like Kanban boards inside Copilot harness sessions, and a redesigned model picker that separates Copilot models from bring-your-own-key ones.

chat.agent.sandbox.enabled   -> VS Code 1.141, cross-platform toggle
Local harness on Windows     -> VS Code 1.142, deprecated
vscode.temporaryDefaultToLocalHarness -> temporary opt-out

Why it matters: last week’s 1.141 added a cross-platform sandbox setting for the agent host; this release narrows how that policy can actually be enforced on Windows. Anyone running Copilot coding agents under an enterprise sandbox or permission policy should check which harness their sessions are actually using before the opt-out disappears.