Reviewing Andrej Karpathyās definition of "vibe coding", I think he captured a new "hands-free" way of building with LLMs.
AI Coding Tools like Cursor and GitHub Copilotās Agent Mode are bringing that vision to lifeāturning the IDE into a collaborative, autonomous workflow engine powered by protocols like MCP.
In this post, weāll explore how features like MCP, NES, and customizable agents are driving a new wave of intelligent, agentic development across modern AI Coding Tools such as:
Weāve been playing with AI completing snippets or suggesting one-liners. Agent Mode goes furtherāitās closer to working with a smart developer who can write, run, and even fix things. Whether inside the IDE or through CLI tools like Claude Code or OpenAI Codex, itās the closest weāve gotten to truly collaborative AI in the development workflow.
So what does Agent Mode really do?
Writes code ā Think full files, not just lines. You feed it intent, it returns structure.
Iterates ā It reviews its own output and revises.
Executes commands ā From installing dependencies to scaffolding projects.
Self-corrects ā When it fails (e.g., bad lint or broken build), it often recovers on its own.
It can plan, execute, and react. Thatās not a glorified copilotāthatās autonomous task flow.
š§ The Real Engine: Model Context Protocol (MCP)
Letās talk architecture. Agent Modeās capabilities are powered by MCP, and if youāre a builder, this is the rabbit hole you want to go down.
What Makes MCP Essential for You
Value: You can build custom, domain-specific agents that interact with your companyās internal tools or data. The community already supports 1,000+ MCP servers: modelcontextprotocol.io
š What is MCP?
MCP is an open protocol for feeding LLMs with structured, real-world dev context.
Think of it like what LSP (Language Server Protocol) did for syntax and intellisenseāMCP does for AI agents.
It standardizes how tools like VS Code provide context to AI models.
-
It connects your AI not just to code, but to:
- Figma designs.
- Internal wikis.
- GitHub repos.
- Databases.
- APIs.
š± Why Should You Care?
Because with MCP, you can build custom agents that:
- Understand your product domain.
- Use internal tools.
- Access backend APIs or datasets.
- Help teammates onboard faster.
And with it being just HTTP or std I/O, developers are shipping servers for everything: modelcontextprotocol.io
š ļø How to Plug MCP Into Your Stack
Getting Started
Add an MCP server (e.g. GitHub) to your workspace using
.vscode/mcp.json
or via VS Code's Command Palette.Install methods range from Docker to Python CLI wrappers.
Security Improvements
MCP started with JSON env var keys (yes, the usual papercut). But weāre moving toward:
Secure input variables inside VS Code.
OAuth-enabled remote MCP servers.
Less friction, more security.
Example: GitHub MCP Server
It allows Agent Mode to:
- Create repos.
- Open pull requests.
- Search issues.
- Manage branches.
Everything works via natural language. You can literally type:
"open a PR with changes from main to staging"
ā¦and itāll handle it.
Building Your Own Server?
Itās easier than you think. SDKs exist for:
- Python (my go-to)
- Node
- Go
- C#
Wrap your internal logic or APIs, write solid descriptions, and boomāyouāve got a tool your Agent can invoke. Test locally with tools like mcp-inspector
.
š¬ Agent Mode Features Worth Using Daily
Unified Chat Modes
One chat window, three gears:
Ask Mode: Like Stack Overflow meets your context.
Edit Mode: Tightly scoped changes to known files.
Agent Mode: All tools, full workspace, terminal, and file edits unlocked.
Switch freely mid-convo:
Plan in Ask.
Execute in Agent.
Powerful Context Tags
-
#codebase
: Grants search across files. -
#file
: Targets specific files. -
#fetch
: Pull in web content.
You can also drag and drop code, images, or datasets into the chat window.
Prompt Files
Save reusable .prompt.md
files inside .github/prompts/
to standardize workflows, like scaffolding components or writing tests with mocks.
Interact with Changes
Keep ā Approve generated diffs.
Undo/Redo ā Navigate iterations.
History ā All sessions saved.
Compact Chat Window ā Keep the convo in your flow, not your face.
Tool Permissions
Agent Mode asks before running tools. Grant:
Per tool.
Per session.
Per workspace.
Or globally (not recommended for the careless among us).
š Jupyter Notebook Integration
Agent Mode + Jupyter = š„
- Auto-setup environments with
uv
. - Fix import errors via built-in terminal actions.
- Explain outputs or improve charts.
- Generate entire notebooks from scratch via prompt.
Try: āCreate a notebook to analyze Titanic datasetā and watch the structure roll in.
š§ Next Edit Suggestions (NES)
This is inline magic. NES predicts the next logical change as you edit.
Examples:
- Rename
Point
toPoint3D
? NES adds the z-axis logic. - Add
get_max
afterget_min
? NES updates your comparator. - Misspell
const
? NES fixes it.
Press Tab
to accept, Esc
to skip. Itās contextual, real-time, and fast.
š§ Model Customization & BYOK
Youāre not locked into GPT-4.
Agent Mode supports:
- OpenAI (03, 04 Mini, 4.1).
- Claude.
- Gemini.
- Ollama (local LLMs!).
- Anthropic, OpenRouter, Azure, and more...
Plug in your own API keys (BYOK) and experiment. Some models donāt support tool callingāso test before going all in.
Bonus: .github/copilot-instructions.md
Standardize your LLM behavior:
- "Always write unit tests"
- "Use React hooks"
- "Donāt use for-loops"
codeGeneration.instructions.file
Also, auto-include certain files (like schema.sql) using codeGeneration.instructions.files
in your workspace.
š Looking Ahead: Project Padawan
This is the asynchronous agent futureārunning directly on GitHub.com.
How It Works:
Assign an issue to Copilot.
It works in the background via GitHub Actions.
Opens a PR with a proposed fix.
You review + comment ā it iterates.
Imagine automating your backlog, onboarding smart tasks, or killing tech debt without opening VS Code.
š§© My Dev Recommendations
Context matters: Better input = better output.
Break down work: Guide the agent like you would a smart dev.
Use NES: Inline intelligence that complements completion.
Explore MCP: Build agents tailored to your stack.
Experiment with models: BYOK is a playground.
Always commit: Let Git be your safety net.
Stay curious: This space is moving fastāride the wave.
Agent Mode is the real deal. Itās not just about AI writing lines of codeāitās about building with you. And with MCP, NES, and customizable tooling, itās evolving into something that can actually improve how we build, collaborate, and ship.
Iāve already made it part of my dev workflowāand honestly, I donāt want to go back.
Letās Chat
What tool would you wrap into an MCP server?
Whatās your favorite Agent Mode use case?
Tried Padawan yet?