An extension lets VS Code Copilot Chat use local LM Studio models
LM Studio for Copilot Chat, by Dan Lambiase, adds LM Studio models to the Copilot Chat model picker and streams responses into VS Code chat. It supports tool calling and optional image generation, and it is free.
The extension went from 41,450 to 45,540 installs in 352 hours (about 14.7 days) - about 35 times the typical pace of other extensions SteadyVane tracks on the VS Code Marketplace. It has 5 reviews at a 5.0 rating.
Why it matters: If you already work in Copilot Chat but want a model running on your own machine, this routes that model through the chat you already use. It needs VS Code 1.104.0 or later and an LM Studio server reachable at a configured URL.
