Seems like @code is starting to tell you: your agent primitives need to move.
There is now a new migration banner in the Chat panel, and it is part of a much bigger change happening under the hood: the move from the old Local harness to the new Agent Host architecture built around AHP.
This is not just about moving where an agent runs.
The old model was very VS Code-centric: prompts, custom agents, instructions and skills could live in VS Code-specific locations and the agent runtime lived inside the extension host.
The new Agent Host separates the agent runtime from the editor. Sessions can keep running when the window closes, be shared across VS Code windows, run remotely, and support different harnesses such as Copilot, CLI and Copilot Desktop App through a common session layer.
And that means some of our primitives need to move too.
Prompt files are being deprecated for Agent Host and migrated to Skills. User-level agents and instructions that lived in VS Code profile storage need to move to harness-supported locations. Even the old location settings are being deprecated.
The new migration experience can detect these things and guide you through moving or converting them, while keeping the originals unless you explicitly remove them.
The new banner is basically the first visible sign that this migration is becoming a real product workflow. Basically telling us - it's time to move on!!!!
If you have accumulated a lot of prompts, custom agents, instructions and skills over the last year, now is probably a good time to understand where they actually live and which harness owns them.
To summarize the shift - it isn't just:
VS Code Chat → Agent Host
It is:
VS Code-specific primitives → harness-native primitives.
And I think this is going to become increasingly important as agents stop being features inside an IDE and become runtimes that multiple clients can connect to.
Go run your migrations now 🏃♀️
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