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VS Code Local vs Copilot harness: settings to stay on Local

You picked Local for chat in VS Code, then an update came in and your chat was back on the Copilot harness. As of October 2026, VS Code's docs say Local "remains an editor harness option while you adapt integrations that depend on it", and they give settings that "make Local visible and turn off automatic Copilot preference". This guide covers what those docs say you can do.

If you want the next step, read Copilot run_in_terminal missing? Use Local or your shell.

Quick fix

  • Pick Local again. In the editor's Chat view, start a new session and select Local under Session Target.
  • Turn off automatic Copilot preference on an unmanaged editor with the three experimental settings the docs give (see step 2).
  • On a managed editor, ask your administrator about the temporary enterprise setting.

What the user report shows

As of October 2026, in microsoft/vscode#343753 (opened 23 Oct 2026, still open), one user reports: "each time vscode updates, it switches my chat mode from local to copilot". The reporter says they rely on Local's keep/undo controls for each change. As of 24 Oct 2026 the issue has 3 thumbs-up reactions, no comments and no reply from the VS Code team. This is a user report, not a confirmed VS Code bug.

Step 1: start the chat on Local

VS Code's agent harnesses page says to start a new session in the editor's Chat view and select Local from Session Target. The page notes that Local is not available in the Agents window.

Step 2: turn off automatic Copilot preference

For an unmanaged editor, the same page gives three experimental settings, which "make Local visible and turn off automatic Copilot preference". You add them to your user settings.json. The exact JSON is in step 2 of Copilot run_in_terminal missing, so we don't repeat it here.

These are experimental settings, and the docs don't say whether they will keep working in later releases. The issue doesn't say whether the reporter had these settings in place when the update switched their chat. After the next update, check that they are still in your settings file and that new chats still start on Local.

Step 3: managed editors

The docs say "an organization policy can override user settings". From version 1.142, administrators can set vscode.temporaryDefaultToLocalHarness to true in enterprise-managed settings. The docs say this temporary control "keeps Local available and suppresses automatic Copilot routing" and "preserves explicit, remembered, and current harness choices". They also warn that "Local does not enforce runtime-only sandbox and permission rules", so check that trade-off before you rely on Local.

If you're staying on Local because skills, hooks or the integrated terminal broke on the Copilot harness, see Copilot skills not working in VS Code, GitHub Copilot hooks not working and Copilot run_in_terminal missing.

Keep Local while you migrate, with the kit

Disclosure: this is our own paid product. The Copilot Harness Port Kit is designed to help you keep chat on Local, move personal skills to folders the Copilot harness reads, and port your hooks. Its keep-Local script adds the three user settings the VS Code docs give to keep Local visible and turn off automatic Copilot preference, with a dry run and undo. We haven't tested whether the keep-Local settings survive a VS Code update, and the kit doesn't fix microsoft/vscode#343753. Downgrading VS Code isn't covered. Its 62 automated tests ran against local fixtures and temporary folders, not a live Copilot session or VS Code install. It needs Node.js 20 or later. It costs $12 (plus VAT where applicable). The kit page lists what's included.

Sources

As of October 2026 (sources checked 24 Oct 2026):

GitHub, GitHub Copilot, Visual Studio Code (VS Code), Microsoft and other names belong to their owners. Names are used only to identify products and compatibility. Stack & Ship is not affiliated with or endorsed by any of them.

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