`chat.mcp.enabled` unexpectedly "managed by organization" after VS Code Insiders update

[sascharo]

Type: Bug

The chat.mcp.enabled setting in VS Code Insiders has become disabled and is now indicated as "managed by organization" following a recent update. This occurred despite the user not being connected to any organization through their Windows or GitHub accounts, and the setting was user-configurable before the update.

VS Code Insiders Version Details (Affected):

• Version: 1.102.0-insider (user setup)
• Commit: 7e4e0f4
• Date: 2025-06-13T05:04:03.051Z
• Electron: 35.5.1
• ElectronBuildId: 11727614
• Chromium: 134.0.6998.205
• Node.js: 22.15.1
• V8: 13.4.114.21-electron.0
• OS: Windows_NT x64 10.0.26100

Previous VS Code Insiders Version (Unaffected): 1.101.0.20250611

Current Stable VS Code Version (Unaffected): 1.101.0

Steps to Reproduce:

1. Have VS Code Insiders version 1.101.0.20250611 installed with chat.mcp.enabled either enabled or user-configurable.
2. Allow VS Code Insiders to auto-update to version 1.102.0.20250613.
3. Open VS Code Insiders settings.
4. Search for the setting chat.mcp.enabled.
5. (Optional) Check the same setting in VS Code stable version 1.101.0 to observe it remains user-configurable.

Expected Behavior:

The chat.mcp.enabled setting should remain user-configurable in VS Code Insiders, allowing the user to enable or disable it as needed, consistent with its behavior in the stable release and previous Insiders versions.

Actual Behavior:

In VS Code Insiders 1.102.0.20250613, the chat.mcp.enabled setting is disabled (off) and is now labeled as "managed by organization." The user is unable to change this setting. This change in behavior occurred directly after the VS Code Insiders update, without any changes to the user's system or account affiliations.

Potential Regression:

This issue may be a regression related to or similar to the issue reported in GitHub issue #246585, where users also experienced settings becoming "managed by organization" unexpectedly.

Additional Information:

• The user's Windows operating system is not part of an organization.
• The user's GitHub account is not connected to an organization that would manage VS Code settings.
• This issue was not present in the previous VS Code Insiders version (1.101.0.20250611).
• The chat.mcp.enabled setting is still working correctly and is user-configurable in the regular (stable) VS Code version 1.101.0.
• The Model Context Protocol (MCP) support in VS Code is a preview feature.

Impact:

The user has lost the ability to enable and utilize MCP server functionalities within VS Code Insiders, which they were previously able to configure and can still configure in the stable version.

VS Code version: Code - Insiders 1.102.0-insider (7e4e0f4, 2025-06-13T05:04:03.051Z)
OS version: Windows_NT x64 10.0.26100
Modes:

System Info

Item	Value
CPUs	Intel(R) Core(TM) Ultra 9 285K (24 x 3686)
GPU Status	2d_canvas: enabled canvas_oop_rasterization: enabled_on direct_rendering_display_compositor: disabled_off_ok gpu_compositing: enabled multiple_raster_threads: enabled_on opengl: enabled_on rasterization: enabled raw_draw: disabled_off_ok skia_graphite: disabled_off video_decode: enabled video_encode: enabled vulkan: disabled_off webgl: enabled webgl2: enabled webgpu: enabled webnn: disabled_off
Load (avg)	undefined
Memory (System)	95.27GB (54.08GB free)
Process Argv	--crash-reporter-id 1ae4b98f-0c1a-4047-9e9b-45b755d2366c
Screen Reader	no
VM	0%

Extensions (30)

Extension	Author (truncated)	Version
markdown-mermaid	bie	1.28.0
gltf-vscode	ces	2.5.1
ruff	cha	2025.22.0
vscode-glsllint	dto	1.9.0
vscode-glsl	GeF	0.3.3
copilot	Git	1.335.0
copilot-chat	Git	0.29.2025061302
vscode-github-actions	git	0.27.2
hotline---icons	jak	1.2.6
vscode-clangd	llv	0.2.0
vscode-catch2-test-adapter	mat	4.17.0
vscode-containers	ms-	2.0.3
vscode-dotnet-runtime	ms-	2.3.5
debugpy	ms-	2025.9.2025053001
python	ms-	2025.7.2025060501
jupyter-keymap	ms-	1.1.2
jupyter-renderers	ms-	1.1.2025012901
vscode-jupyter-cell-tags	ms-	0.1.9
vscode-jupyter-slideshow	ms-	0.1.6
cmake-tools	ms-	1.21.30
cpptools	ms-	1.26.1
extension-test-runner	ms-	0.0.12
makefile-tools	ms-	0.13.6
powershell	ms-	2025.3.0
windows-ai-studio	ms-	0.15.2025060503
rust-targets	Pol	1.2.1
rust-analyzer	rus	0.4.2496
shader	sle	1.1.5
uv-toolkit	the	0.0.2
gistfs	vsl	0.9.3

(7 theme extensions excluded)

A/B Experiments

vsliv368:30146709
vspor879:30202332
vspor708:30202333
vspor363:30204092
vswsl492cf:30256198
vsc_aacf:30263846
pythonvspyt551cf:31249598
vscod805cf:30301675
c4g48928:30535728
a9j8j154:30646983
962ge761:30841072
dsvsc014:30777825
dsvsc015:30821418
2e7ec940:31000449
pythontbext0:30879054
cppperfnew:30980852
dwnewjupytercf:31046870
pythonrstrctxt:31093868
nativeloc1:31118317
e80f6927:31120813
dwcopilot:31158714
c3hdf307:31184662
6074i472:31201624
dwoutputs:31242946
customenabled:31248079
hdaa2157:31222309
copilot_t_ci:31222730
g012b348:31231168
pythoneinst12:31251391
bgtreat:31252123
c7cif404:31309980
pythonpulldiag:31287486
6gi0g917:31259950
editoredits36407:31282444
996jf627:31264550
pythonrdcb7:31268811
usemplatestapi:31297334
jdghv92:31317040
747dc170:31275146
pythoncompactctx:31296835
6518g693:31302842
pylancecolor:31288664
generatesymbolt:31280541
convertfstringf:31280702
gendocf:31280703
nes0dcc7202:31321960
923gi514:31310909
j97ad248:31306657
1cfa2231:31326675
convertlamdat:31319677
gce3e431:31315077
4f60g487:31327383

[sascharo]

By the way, the same setting remains user-configurable in the latest stable VS Code release (1.101.0).

[orcunbalcilar]

same here

[sascharo]

I guess #251368 and #251373 are probably the same issue.

[Sayvai]

I am also having the same issue since the most recent update of VS Code Insiders to 1.102.0-insider on MacOS 15.5 (24F74)

Unable to toggle back on the setting Chat > Mcp: Enabled, which incorrectly also states that it is "Managed by organization", which i believe is the culprit in blocking the toggling, despite my own personal GitHub account not managed by any organisation, and nor is my account associated with any organisations at all?

I suspect this also explains why my user-added MCP Servers are no longer loaded, and just loads only the built-in tools (see #251368)

Video Demonstration

VS.Code.Insiders.-.Unable.to.toggle.MCP.Enabled.setting.mp4

---

Version: 1.102.0-insider
Commit: 7e4e0f4e55d0d0a2a931aa4e0b7acc518e5da0dd
Date: 2025-06-13T05:04:03.051Z
Electron: 35.5.1
ElectronBuildId: 11727614
Chromium: 134.0.6998.205
Node.js: 22.15.1
V8: 13.4.114.21-electron.0
OS: Darwin arm64 24.5.0

[sascharo]

I suspect this also explains why my user-added MCP Servers are no longer loaded, and just loads only the built-in tools (see #251368)

Yeah, I have the same issue. All MCP servers in my user settings.json and workspace's mcp.json cannot be loaded anymore, the option to start the server is gone.

[Manouchehri]

Likewise, just ran into this as well.

[sascharo]

I found workaround that works for me. I installed Wednesday's VS Code Insiders version 1.101.0.20250611 from June 11, 2025, with Chocolatey and locked it with "update.mode": "none" to stay at 1.101.0.20250611. Chocolatey installs it in C:\Program Files\Microsoft VS Code Insiders\, whereas MS' default location is in C:\Users\user\AppData\Local\Programs\Microsoft VS Code Insiders\. Therefore, I can run both versions in parallel.

• https://community.chocolatey.org/packages/vscode-insiders/1.101.0.20250611#versionhistory

I'm running VS Code Insiders 1.101.0.20250611 now and my MCP servers are up and running again.

[IslamWahid]

same here :(

Version: 1.102.0-insider
Commit: 7e4e0f4e55d0d0a2a931aa4e0b7acc518e5da0dd
Date: 2025-06-13T05:04:03.051Z (10 hrs ago)
Electron: 35.5.1
ElectronBuildId: 11727614
Chromium: 134.0.6998.205
Node.js: 22.15.1
V8: 13.4.114.21-electron.0
OS: Darwin arm64 24.5.0

[joshspicer]

Thanks for the report - I am reverting the responsible change #251408. This change was in for one insiders release.