CVE-2025-62449 is a path traversal vulnerability classified under CWE-22 found in the Microsoft Visual Studio Code CoPilot Chat Extension, specifically version 0.27.0. This vulnerability arises due to improper limitation of pathname inputs, allowing an authorized attacker with local access to bypass directory restrictions. By exploiting this flaw, an attacker can manipulate file paths to access files outside the intended directories, potentially reading or modifying sensitive files on the local system. The attack vector requires local access (AV:L), low attack complexity (AC:L), and privileges (PR:L), with user interaction (UI:R) needed to trigger the exploit. The vulnerability impacts confidentiality and integrity to a high degree (C:H, I:H) and availability to a low degree (A:L). The scope remains unchanged (S:U), meaning the impact is confined to the vulnerable component or system. No known exploits have been reported in the wild, and no patches are currently available, though the vulnerability is publicly disclosed. This issue is particularly concerning in development environments where sensitive source code or credentials might be stored or accessed via the extension. The vulnerability could allow an attacker to read or modify files they should not have access to, potentially leading to intellectual property theft or further local privilege escalation.

For European organizations, especially those heavily reliant on Microsoft Visual Studio Code and its CoPilot Chat Extension for software development, this vulnerability poses a risk of unauthorized local file access. Confidentiality could be compromised if sensitive source code, configuration files, or credentials are accessed or altered. Integrity risks arise from potential unauthorized modification of files, which could introduce malicious code or corrupt data. Although availability impact is low, the breach of confidentiality and integrity could lead to significant operational and reputational damage, particularly for companies in regulated industries such as finance, healthcare, and critical infrastructure. The vulnerability requires local access and user interaction, which somewhat limits remote exploitation but does not eliminate insider threat or risks from compromised endpoints. Organizations with distributed development teams or remote work setups may face increased exposure if endpoint security is weak. The lack of a current patch means organizations must rely on interim mitigations to reduce risk until an official fix is released.

1. Monitor for updates from Microsoft and apply patches to the Visual Studio Code CoPilot Chat Extension promptly once available. 2. Restrict local user permissions to the minimum necessary, preventing unauthorized users from installing or interacting with the extension. 3. Implement endpoint security controls to detect and prevent suspicious local file access or path manipulation attempts. 4. Educate developers and users about the risks of interacting with untrusted files or inputs within the extension. 5. Use application whitelisting and sandboxing to limit the extension's ability to access sensitive directories outside its intended scope. 6. Regularly audit file system permissions and monitor logs for unusual access patterns related to Visual Studio Code or its extensions. 7. Consider disabling or uninstalling the CoPilot Chat Extension in environments where it is not essential until the vulnerability is resolved. 8. Employ network segmentation and endpoint detection and response (EDR) tools to limit lateral movement if local compromise occurs.