Copilot Chat v0.41.2026031806: Rate Limit Retry & Fixes

Auto-retry for rate limits, smarter inline chat tools, and internal fixes in Copilot Chat v0.41.2026031806.

Copilot Chat v0.41.2026031806: Rate Limit Retry & Fixes

TL;DR

  • Auto-retry for model rate limits — no more manual retries when you hit limits
  • Better inline chat tool selection and metadata tracking improvements
  • Dependency bump (fast-xml-parser) and internal cleanup

New

  • Auto-retry for rate limits — Copilot Chat now automatically retries when you hit model rate limits, saving you from manual re-submission.
  • Enhanced ChatSessionMetadataStore — Better request details management for improved session tracking and debugging.
  • Smarter inline chat tools — Drops EditFile tool when better alternatives are available, reducing noise in your edit options.

Fixed

  • Rebase failure logging — Added logs for async requests and rebase failures to help diagnose issues faster.
  • Rebase setting defaults — Fixed default value matching for settings that were causing "rebase failure" errors when user typing interfered.
  • Worktree event handler — Cleaned up repository changes event handler to prevent background noise.
  • Subagent initialization — Fixed parent initialization for subagent tool calls.

Dependencies

  • fast-xml-parser — Bumped from 5.4.2 to 5.5.6 for security and stability improvements.

Update: Install the latest version via the VS Code Extensions marketplace or run code --install-extension GitHub.Copilot-Chat.

Source: Copilot Chat