This release adds support for inline skills in agent configuration and improves environment variable handling in path fields, along with several bug fixes.

What's New

• Adds support for inline skills in agent YAML config, allowing skills to be defined directly without separate files
• Adds support for ${env.VAR} syntax in path fields as an alias for ${VAR}

Improvements

• Streams tool outputs for better real-time feedback

Bug Fixes

• Fixes duplicate persistent toolset-failure notifications that were stacking in the TUI
• Fixes MCP OAuth dialog re-appearing after user declines authentication
• Surfaces inline-skill decode errors and rejects file reads for inline skills

Technical Changes

• Removes obsolete expansion-mismatch warnings for path fields
• Extracts failureStreak helper in StartableToolSet
• Removes notification-layer deduplication
• Removes MCP server on OAuth decline and stops providing incorrect information to the model

What's Changed

• docs: update CHANGELOG.md for v1.70.1 by @docker-read-write[bot] in #2940
• Stream tool outputs by @rumpl in #2945
• feat: support inline skills in agent YAML config by @dgageot in #2946
• chore: bump direct Go dependencies by @dgageot in #2941
• feat(config): accept ${env.X} in path fields (steps 2-4 of #2615) by @dgageot in #2944
• fix: dedupe persistent toolset-failure notifications by @dgageot in #2943
• fix(mcp): stop the OAuth Authentication Request loop after the user clicks Cancel by @trungutt in #2949

Full Changelog: v1.70.1...v1.70.2