[pull] main from microsoft:main

extensions/copilot/package.json

@@ -1992,10 +1992,15 @@
                 "responses",
                 "messages"
               ],
+              "enumItemLabels": [
+                "Chat Completions",
+                "Responses",
+                "Messages"
+              ],
               "enumDescriptions": [
-                "Chat Completions API.",
-                "Responses API.",
-                "Messages API."
+                "Chat Completions API",
+                "Responses API",
+                "Messages API"
               ],
               "default": "chat-completions",
               "title": "API Type",
@@ -2044,6 +2049,17 @@
                       "responses",
                       "messages"
                     ],
+                    "enumItemLabels": [
+                      "Chat Completions",
+                      "Responses",
+                      "Messages"
+                    ],
+                    "enumDescriptions": [
+                      "Chat Completions API",
+                      "Responses API",
+                      "Messages API"
+                    ],
+                    "title": "API Type",
                     "markdownDescription": "Request/response format used to talk to this endpoint:\n- `chat-completions`: Chat Completions API (default).\n- `responses`: Responses API.\n- `messages`: Messages API.\n\nWhen omitted, falls back to the group-level `apiType`, then to the URL path."
                   },
                   "toolCalling": {

extensions/copilot/src/extension/conversation/vscode-node/languageModelAccess.ts

@@ -15,7 +15,6 @@ import { EmbeddingType, getWellKnownEmbeddingTypeInfo, IEmbeddingsComputer } fro
 import { ChatEndpointFamily, IEndpointProvider } from '../../../platform/endpoint/common/endpointProvider';
 import { CustomDataPartMimeTypes } from '../../../platform/endpoint/common/endpointTypes';
 import { encodeStatefulMarker } from '../../../platform/endpoint/common/statefulMarkerContainer';
-import { isAnthropicFamily, isGeminiFamily } from '../../../platform/endpoint/common/chatModelCapabilities';
 import { AutoChatEndpoint } from '../../../platform/endpoint/node/autoChatEndpoint';
 import { IAutomodeService } from '../../../platform/endpoint/node/automodeService';
 import { CopilotChatEndpoint, CopilotUtilitySmallChatEndpoint } from '../../../platform/endpoint/node/copilotChatEndpoint';
@@ -59,21 +58,42 @@ const experimentalAutoModelHintMarkers = ['minimax', 'mp3yn0h7', 'yaqq2gxh'];
  * Returns the available context size options for a model, or undefined if the
  * model does not support configurable context sizes.
  *
- * For opus models with a large context window (>= 900K tokens), offers a
- * standard 200K option and the model's full context size.
+ * Driven entirely by CAPI billing metadata:
+ * - When CAPI returns a `long_context` tier, offers `default.context_max` as
+ *   the default option and `modelMaxPromptTokens` as an opt-in larger option.
+ * - When the long-context tier has higher prices, the larger option includes a
+ *   cost indicator so the user knows they are opting into higher billing.
+ * - When there is no `long_context` tier, no selector is shown.
  */
 function getContextSizeOptions(endpoint: IChatEndpoint): { value: number; description: string; isDefault: boolean }[] | undefined {
-	const maxTokens = endpoint.modelMaxPromptTokens;
+	const pricing = endpoint.tokenPricing;
 
-	// Claude Opus models with a large context window (~1M or more) get a 200K/full toggle
-	if (isAnthropicFamily(endpoint) && endpoint.family.startsWith('claude-opus') && maxTokens > 900_000) {
-		return [
-			{ value: 200_000, description: vscode.l10n.t('Balanced default'), isDefault: true },
-			{ value: maxTokens, description: vscode.l10n.t('Longer sessions without compaction'), isDefault: false },
-		];
+	// Only offer a selector when CAPI provides a default context max,
+	// which indicates a meaningful distinction between default and long context tiers.
+	if (!pricing?.default.contextMax) {
+		return undefined;
 	}
 
-	return undefined;
+	const defaultMax = pricing.default.contextMax;
+	const fullMax = endpoint.modelMaxPromptTokens;
+
+	// No point showing a selector if the default is already the full context
+	if (defaultMax >= fullMax) {
+		return undefined;
+	}
+
+	const hasLongContextSurcharge = !!pricing.longContext;
+
+	return [
+		{ value: defaultMax, description: vscode.l10n.t('Default pricing'), isDefault: true },
+		{
+			value: fullMax,
+			description: hasLongContextSurcharge
+				? vscode.l10n.t('Longer sessions (higher cost)')
+				: vscode.l10n.t('Longer sessions without compaction'),
+			isDefault: false,
+		},
+	];
 }
 
 function formatTokenCount(count: number): string {
@@ -92,17 +112,12 @@ function buildConfigurationSchema(endpoint: IChatEndpoint): { configurationSchem
 		return {};
 	}
 
-	const family = endpoint.family.toLowerCase();
-	if (isGeminiFamily(endpoint)) {
-		return {};
-	}
-
 	const properties: Record<string, NonNullable<vscode.LanguageModelConfigurationSchema['properties']>[string]> = {};
 
 	// Reasoning effort config
 	const effortLevels = endpoint.supportsReasoningEffort;
 	if (effortLevels && effortLevels.length > 1) {
-		properties.reasoningEffort = buildReasoningEffortSchemaProperty(effortLevels, family);
+		properties.reasoningEffort = buildReasoningEffortSchemaProperty(effortLevels, endpoint.family.toLowerCase());
 	}
 
 	// Context size config

extensions/copilot/src/platform/customInstructions/common/customInstructionsService.ts

@@ -24,7 +24,7 @@ import { IFileSystemService } from '../../filesystem/common/fileSystemService';
 import { ILogService } from '../../log/common/logService';
 import { IPromptPathRepresentationService } from '../../prompts/common/promptPathRepresentationService';
 import { IWorkspaceService } from '../../workspace/common/workspaceService';
-import { COPILOT_INSTRUCTIONS_PATH, INSTRUCTION_FILE_EXTENSION, INSTRUCTIONS_LOCATION_KEY, PERSONAL_SKILL_FOLDERS, PromptsType, SKILLS_LOCATION_KEY, USE_AGENT_SKILLS_SETTING, WORKSPACE_SKILL_FOLDERS } from './promptTypes';
+import { COPILOT_INSTRUCTIONS_PATH, COPILOT_PERSONAL_INSTRUCTIONS_PATH, INSTRUCTION_FILE_EXTENSION, INSTRUCTIONS_LOCATION_KEY, PERSONAL_SKILL_FOLDERS, PromptsType, SKILLS_LOCATION_KEY, USE_AGENT_SKILLS_SETTING, WORKSPACE_SKILL_FOLDERS } from './promptTypes';
 
 declare const TextDecoder: {
 	decode(input: Uint8Array): string;
@@ -317,6 +317,14 @@ export class CustomInstructionsService extends Disposable implements ICustomInst
 					// ignore non-existing instruction files
 				}
 			}
+			try {
+				const uri = extUriBiasedIgnorePathCase.joinPath(this.envService.userHome, COPILOT_PERSONAL_INSTRUCTIONS_PATH);
+				if ((await this.fileSystemService.stat(uri)).type === FileType.File) {
+					result.push(uri);
+				}
+			} catch (e) {
+				// ignore non-existing instruction files
+			}
 		}
 		return result;
 	}

extensions/copilot/src/platform/customInstructions/common/promptTypes.ts

@@ -22,6 +22,7 @@ export const USE_AGENT_SKILLS_SETTING = 'chat.useAgentSkills';
 export const USE_SKILL_ADHERENCE_PROMPT_SETTING = 'chat.experimental.useSkillAdherencePrompt';
 
 export const COPILOT_INSTRUCTIONS_PATH = '.github/copilot-instructions.md';
+export const COPILOT_PERSONAL_INSTRUCTIONS_PATH = '.copilot/copilot-instructions.md';
 
 /**
  * File extension for the reusable prompt files.

extensions/copilot/src/platform/customInstructions/test/node/customInstructionsService.spec.ts

@@ -6,18 +6,22 @@
 import { afterEach, beforeEach, expect, suite, test } from 'vitest';
 import { URI } from '../../../../util/vs/base/common/uri';
 import { SyncDescriptor } from '../../../../util/vs/platform/instantiation/common/descriptors';
-import { IConfigurationService } from '../../../configuration/common/configurationService';
+import { ConfigKey, IConfigurationService } from '../../../configuration/common/configurationService';
 import { DefaultsOnlyConfigurationService } from '../../../configuration/common/defaultsOnlyConfigurationService';
 import { InMemoryConfigurationService } from '../../../configuration/test/common/inMemoryConfigurationService';
+import { MockFileSystemService } from '../../../filesystem/node/test/mockFileSystemService';
 import { createPlatformServices, ITestingServicesAccessor } from '../../../test/node/services';
 import { TestWorkspaceService } from '../../../test/node/testWorkspaceService';
 import { IWorkspaceService } from '../../../workspace/common/workspaceService';
 import { ICustomInstructionsService } from '../../common/customInstructionsService';
+import { IFileSystemService } from '../../../filesystem/common/fileSystemService';
+import { mockFiles } from '../../../promptFiles/test/node/mockFiles';
 
 suite('CustomInstructionsService - Skills', () => {
 	let accessor: ITestingServicesAccessor;
 	let customInstructionsService: ICustomInstructionsService;
 	let configService: InMemoryConfigurationService;
+	let fileSystemService: MockFileSystemService;
 
 	beforeEach(async () => {
 		const services = createPlatformServices();
@@ -38,6 +42,7 @@ suite('CustomInstructionsService - Skills', () => {
 
 		accessor = services.createTestingAccessor();
 		customInstructionsService = accessor.get(ICustomInstructionsService);
+		fileSystemService = accessor.get(IFileSystemService) as MockFileSystemService;
 	});
 
 	afterEach(() => {
@@ -323,6 +328,28 @@ suite('CustomInstructionsService - Skills', () => {
 	});
 
 	suite('chat.instructionsFilesLocations config', () => {
+		test('should return workspace and home copilot instruction files from getAgentInstructions', async () => {
+			await configService.setConfig(ConfigKey.UseInstructionFiles, true);
+			await mockFiles(fileSystemService, [
+				{ path: '/workspace/.github/copilot-instructions.md', contents: ['Workspace instructions'] },
+				{ path: '/home/testuser/.copilot/copilot-instructions.md', contents: ['Home instructions'] },
+			]);
+
+			expect((await customInstructionsService.getAgentInstructions()).map(uri => uri.path)).toEqual([
+				'/workspace/.github/copilot-instructions.md',
+				'/home/testuser/.copilot/copilot-instructions.md',
+			]);
+		});
+
+		test('should skip home copilot instruction files from getAgentInstructions when disabled', async () => {
+			await configService.setConfig(ConfigKey.UseInstructionFiles, false);
+			await mockFiles(fileSystemService, [
+				{ path: '/home/testuser/.copilot/copilot-instructions.md', contents: ['Home instructions'] },
+			]);
+
+			expect(await customInstructionsService.getAgentInstructions()).toEqual([]);
+		});
+
 		test('should recognize instruction file in absolute path location', async () => {
 			await configService.setNonExtensionConfig('chat.instructionsFilesLocations', {
 				'/custom/instructions': true

extensions/copilot/src/platform/endpoint/common/endpointProvider.ts

@@ -83,7 +83,12 @@ export interface IModelTokenPriceTier {
 	input_price: number;
 	output_price: number;
 	cache_price: number;
-	context_max: number;
+	/**
+	 * The maximum context window size (in tokens) for this pricing tier.
+	 * Present on the `default` tier only when a `long_context` tier also
+	 * exists; always present on the `long_context` tier itself.
+	 */
+	context_max?: number;
 }
 
 export interface IModelTokenPrices {

extensions/copilot/src/platform/endpoint/node/chatEndpoint.ts

@@ -126,6 +126,7 @@ function normalizePriceTier(tier: IModelTokenPriceTier, scale: number): ITokenPr
 		inputPrice: tier.input_price * scale,
 		outputPrice: tier.output_price * scale,
 		cacheReadTokenPrice: tier.cache_price * scale,
+		contextMax: tier.context_max,
 	};
 }
 

extensions/copilot/src/platform/endpoint/node/modelMetadataFetcher.ts

@@ -340,6 +340,15 @@ export class ModelMetadataFetcher extends Disposable implements IModelMetadataFe
 			return modelLimit;
 		}
 
+		// When a long context tier exists, use max_context_window_tokens as the
+		// prompt token basis so users can opt into the full context window via
+		// the model picker. The configurationSchema default (defaultContextMax)
+		// ensures users aren't billed at the long-context rate without explicit opt-in.
+		if (chatModelInfo.billing?.token_prices?.long_context && chatModelInfo.capabilities?.limits?.max_context_window_tokens) {
+			modelLimit += chatModelInfo.capabilities.limits.max_context_window_tokens;
+			return modelLimit;
+		}
+
 		// Check if CAPI has prompt token limits and return those
 		if (chatModelInfo.capabilities?.limits?.max_prompt_tokens) {
 			modelLimit += chatModelInfo.capabilities.limits.max_prompt_tokens;

extensions/copilot/src/platform/networking/common/networking.ts

@@ -270,6 +270,12 @@ export interface ITokenPriceTier {
 	readonly outputPrice: number;
 	/** Cost in AICs per million cached (read) tokens */
 	readonly cacheReadTokenPrice: number;
+	/**
+	 * The largest prompt size (in tokens) billed at this tier's rates.
+	 * Derived from CAPI `billing.token_prices.<tier>.context_max`.
+	 * Present only when CAPI provides a `long_context` tier.
+	 */
+	readonly contextMax?: number;
 }
 
 /**

extensions/copilot/src/platform/promptFiles/test/node/agentInstructionsLocator.spec.ts

@@ -212,6 +212,24 @@ suite('AgentInstructionsLocator', () => {
 		expect(paths).not.toContain(`${userHome}/.claude/CLAUDE.md`);
 	});
 
+	test('should collect ~/.copilot/copilot-instructions.md when enabled', async () => {
+		const userHome = '/home/testuser';
+		await mockFiles(fileSystem, [
+			{ path: `${userHome}/.copilot/copilot-instructions.md`, contents: ['Copilot guidelines from home'] },
+			{ path: `${rootFolder}/src/file.ts`, contents: ['console.log("test");'] },
+		]);
+
+		await configService.setConfig(ConfigKey.UseInstructionFiles, true);
+		let result = await locator.listAgentInstructions(CancellationToken.None);
+		let paths = result.map(f => f.uri.path);
+		expect(paths).toContain(`${userHome}/.copilot/copilot-instructions.md`);
+
+		await configService.setConfig(ConfigKey.UseInstructionFiles, false);
+		result = await locator.listAgentInstructions(CancellationToken.None);
+		paths = result.map(f => f.uri.path);
+		expect(paths).not.toContain(`${userHome}/.copilot/copilot-instructions.md`);
+	});
+
 	test('should collect parent folder CLAUDE configurations when includeWorkspaceFolderParents is enabled', async () => {
 		await mockFiles(fileSystem, [
 			// `.git/HEAD` marks the parent folder as a repository root.

extensions/copilot/src/platform/promptFiles/vscode-node/agentInstructionsLocator.ts

@@ -26,6 +26,7 @@ const AGENT_MD_FILENAME = 'AGENTS.md';
 const CLAUDE_MD_FILENAME = 'CLAUDE.md';
 const CLAUDE_LOCAL_MD_FILENAME = 'CLAUDE.local.md';
 const CLAUDE_CONFIG_FOLDER = '.claude';
+const COPILOT_CONFIG_FOLDER = '.copilot';
 const COPILOT_CUSTOM_INSTRUCTIONS_FILENAME = 'copilot-instructions.md';
 const GITHUB_CONFIG_FOLDER = '.github';
 
@@ -93,14 +94,16 @@ export class AgentInstructionsLocator extends Disposable {
 			promises.push(this.findFilesInRoots([this.envService.userHome], CLAUDE_CONFIG_FOLDER, [claudeMdFile], token, resolvedAgentFiles));
 		}
 
-		// `useCopilotInstructionsFiles` gates only `.github/copilot-instructions.md`.
+		// `useCopilotInstructionsFiles` gates both workspace and personal
+		// `copilot-instructions.md` discovery.
 		// Reuses the existing extension config (default true) instead of hard-coding the qualified key.
 		const useCopilotInstructionsFiles = this.configurationService.getConfig(ConfigKey.UseInstructionFiles) !== false;
 		if (!useCopilotInstructionsFiles) {
 			logger?.logInfo('Copilot instructions files are disabled via configuration.');
 		} else {
-			const githubConfigFiles: IWorkspaceInstructionFile[] = [{ fileName: COPILOT_CUSTOM_INSTRUCTIONS_FILENAME, type: AgentInstructionFileType.copilotInstructionsMd }];
-			promises.push(this.findFilesInRoots(rootFolders, GITHUB_CONFIG_FOLDER, githubConfigFiles, token, resolvedAgentFiles));
+			const copilotInstructionsFile: IWorkspaceInstructionFile = { fileName: COPILOT_CUSTOM_INSTRUCTIONS_FILENAME, type: AgentInstructionFileType.copilotInstructionsMd };
+			promises.push(this.findFilesInRoots(rootFolders, GITHUB_CONFIG_FOLDER, [copilotInstructionsFile], token, resolvedAgentFiles)); // copilot-instructions.md in .github folder under workspace root
+			promises.push(this.findFilesInRoots([this.envService.userHome], COPILOT_CONFIG_FOLDER, [copilotInstructionsFile], token, resolvedAgentFiles)); // copilot-instructions.md in ~/.copilot folder
 		}
 
 		// Files at the workspace root itself (AGENTS.md / CLAUDE.md / CLAUDE.local.md).

src/vs/base/browser/ui/dialog/dialog.css

@@ -17,7 +17,7 @@
 }
 
 .monaco-dialog-modal-block.dimmed {
-	background: rgba(0, 0, 0, 0.3);
+	background: rgba(0, 0, 0, 0.5);
 }
 
 /** Dialog: Container */