How VS Code Copilot Chat Compacts Your Conversation

🫧 Open on Bubbles LLMs have limited context windows. When an agent session grows too long, VS Code Copilot Chat uses compaction to summarize older history while keeping recent work verbatim. I traced exactly how it works from the source. The standalone microsoft/vscode-copilot-chat repo was archived in May 2026. The agent code now lives in the main microsoft/vscode repo under extensions/copilot/, and it has changed since the standalone repo froze. Everything be