CVE-2025-62449 is a path traversal vulnerability classified under CWE-22 affecting Microsoft Visual Studio Code CoPilot Chat Extension version 0.27.0. This vulnerability arises from improper limitation of pathname inputs, allowing an attacker with authorized local access to bypass directory restrictions. Specifically, the extension fails to properly sanitize or validate file pathnames, enabling an attacker to traverse directories outside the intended restricted scope. Exploitation requires the attacker to have limited privileges (PR:L) and some user interaction (UI:R), such as triggering the extension to process a crafted pathname. The vulnerability impacts confidentiality and integrity significantly by potentially exposing or allowing modification of sensitive local files. Availability impact is low since the attack does not directly disrupt service. The CVSS v3.1 base score is 6.8 (medium severity), reflecting local attack vector, low complexity, and partial user interaction. No known exploits are reported in the wild, and no patches have been published at the time of disclosure. This vulnerability is particularly relevant to developers and organizations using Visual Studio Code with the CoPilot Chat Extension in their local environments, as it could allow unauthorized access to sensitive code or configuration files.

For European organizations, this vulnerability poses a risk primarily to software development environments using Visual Studio Code with the CoPilot Chat Extension. Successful exploitation could lead to unauthorized disclosure or modification of sensitive source code, credentials, or configuration files stored locally. This could compromise intellectual property, lead to data leakage, or facilitate further attacks by exposing secrets or altering code integrity. Although exploitation requires local access and user interaction, insider threats or compromised endpoints could leverage this vulnerability to escalate privileges or bypass security controls. The impact on availability is minimal, but the confidentiality and integrity risks are significant, especially for organizations handling sensitive or regulated data. Given the widespread use of Visual Studio Code in European IT sectors, this vulnerability could affect a broad range of industries including finance, technology, and government. The lack of a patch increases exposure until mitigations are applied.

1. Immediately restrict usage of the CoPilot Chat Extension version 0.27.0 in sensitive or production environments until a patch is available. 2. Implement strict access controls on developer workstations to limit local user privileges and prevent unauthorized local access. 3. Monitor local filesystem access logs and extension activity for suspicious pathname manipulations or unexpected file access patterns. 4. Educate developers and users about the risk of interacting with untrusted inputs or files when using the extension. 5. Use application whitelisting or endpoint protection solutions to detect and block exploitation attempts involving path traversal. 6. Once Microsoft releases a patch, prioritize prompt deployment across all affected systems. 7. Consider isolating development environments or using containerization to limit the impact of potential local exploits. 8. Review and audit local file permissions to ensure sensitive files are not unnecessarily exposed to the extension or users.