New VS Code Extension - Week Two: 188 PRs, 21 Upstream Merges, and a Lot of Bug Fixes

Here's what landed this week

Last week we shared what we were hearing and what we were shipping after the new VS Code extension went GA. This week, we’re following up with what actually landed.

The short version: v7.2.10 is out now for both the CLI and VS Code extension, and improves on every area of feedback we received last week — plus a lot more.

Progress on Last Week’s Issues

Here’s where we stand on the specific problems we called out:

Rate limiting and quota handling is fixed. Sessions no longer get stuck on rate limit errors. The extension now retries with exponential backoff, shows a countdown, and lets you cancel or switch models while waiting (#8435, #8552). We also fixed a separate issue where signing in or changing your auth state didn’t re-evaluate provider access, leaving users stuck on the free model (#8898).

Plan agent can no longer write files outside the plan directory. We hardened Plan mode permissions and propagated restrictions to sub-agents so Plan stays read-only where it should (#8417). We also strengthened Ask mode with explicit “supersedes” language so it stays read-only even when project instructions try to override it (#8320).

Progress on human-in-the-loop controls. This is a bigger effort, but we’ve shipped the first piece: inline diffs now appear directly in edit/create-file permission prompts, so you can review exactly what an agent wants to change before approving (#8617). The per-file revert buttons in Agent Manager diffs also shipped, letting you selectively discard individual changes (#7455). More work from the tracking issue is ongoing.

Config handling is more resilient. Invalid or incomplete configuration no longer silently breaks the extension. Kilo now skips broken agent/command/skill configs instead of crashing, surfaces schema validation errors with actionable messages, and adds kilo config check so you can diagnose problems (#8473). Config warnings also surface directly in the TUI and VS Code so you know something is off before it becomes a problem.

Prereleases: How We Ship Now

Starting with this release cycle, we’re using a prerelease channel. Versions 7.2.3 through 7.2.7 shipped as prereleases before being promoted to stable as 7.2.10.

If you’re on the prerelease channel from the beta period and want stable releases, switch to the stable/release channel in VS Code’s extension settings. Stable releases go through the prerelease process first.

If you have an experimental spirit, the prerelease channel gets fixes and features earlier. You’ll be running the same builds the team dogfoods internally, and your feedback on prereleases directly shapes what goes stable. We try to ship whenever we think we made a meaningful change which will improve the product, and don’t wait to bundle them. This might mean a lot of versions, especially in the pre-release channel.

21 Upstream OpenCode Releases Merged

Kilo’s CLI engine is built on OpenCode server, and this release includes a major sync — 21 upstream versions merged, from v1.2.25 through v1.4.3. Highlights from upstream include:

• AI SDK v6 support with improved provider compatibility

• Venice AI and Poe as new built-in providers

• Event-sourced session sync for more reliable state

• Full HTTP proxy support

• OTLP observability export

• Vertex Anthropic prompt caching

• First-class PowerShell support on Windows

• Many Windows stability fixes — terminal keyboard handling, path canonicalization, process management

This is one of the advantages of building on a shared open-source foundation: the broader OpenCode community’s work lands in Kilo automatically.

Codebase Indexing Is Progressing

Community contributor @shssoichiro continues work on codebase indexing (#6966), which will give agents awareness of your full project structure without manual context or large numbers of tool calls. The PR is active with an ongoing review. We really appreciate the sustained effort here — this is a complex feature and the kind of contribution that makes open source work.

What Else Shipped

Across 7.2.1 through 7.2.10, we merged 188 Kilo PRs on top of the upstream work. Here are some highlights beyond the items above:

New Capabilities

• Allow Everything mode — a session-scoped or global permission toggle for users who trust their agents fully, with a command-palette off switch (#7764)

• Local Recall — agents can search and read past sessions from sibling worktrees and the current repo (#8191)

• @terminal mention support — reference terminal output directly in chat and Agent Manager (#8894)

• Run Scripts — execute project-specific .kilo/run-script from Agent Manager worktrees with Run/Stop controls and Cmd/Ctrl+E (#8730)

• Agent Manager sections — organize worktrees into custom groups with drag-and-drop, color, and collapse (#8225)

• Agent Manager PR sync — PR status is shown with approved badge checkmarks (#8655, #8657)

• Custom commit message prompts — override the system prompt used for AI commit messages (#8974)

• kilo help --all — full CLI reference in markdown or text (#8504)

• Network resilience — sessions pause on network failures and auto-resume; kilo run reconnects automatically (#7578)

Fixes

• Fuzzy model search with provider and acronym matching (#8567)

• @ file mentions now prioritize open tabs and the active editor (#8727)

• Token usage breakdown visible in the TUI sidebar (#8357)

• Azure provider config improvements with xhigh reasoning for GPT-5.4+ (#8566)

• OpenAI-compatible providers now default image input to enabled (#8729)

• Fixed Bedrock Claude failures on empty text blocks (#6757)

• Fixed SSE memory leaks on Windows (#8952)

• Fixed git process orphaning on Windows (#8572)

• Fixed prompt/question docks stealing editor focus (#8872)

• Subagents can no longer spawn additional subagents (#8644)

Thank You

To everyone who filed issues, opened PRs, jumped into Discord, and tested prereleases this week — thank you. The speed we’re moving at is only possible because you’re showing up, reporting what’s broken, and in many cases fixing it yourselves.

Special thanks to the contributors whose PRs landed in this release cycle, including @shssoichiro, @maphew, @jacksonkasi1, @justincqz, @thomasboom, @ScuttleBot, @Githubguy132010, @aravhawk, @Ashwinhegde19, @IamCoder18, @gmjosund, @ricardofiorani, @0xCybin, @grandmaster451, @shantoislamdev, and @Varuu-0.

Keep the feedback coming — on GitHub, in Discord, wherever works. We’re reading all of it.