How to upgrade to next vscode and monaco‐editor versions

Preparation

It is assumed monaco-vscode-api and vscode repos are cloned locally on the same directory level.

Get The tag of the VSCode version from the VSCode github
Go to the VSCode repo directory, reset to the previous VSCode tag (config.vscode.ref from monaco-vscode-api package.json)
Apply the current patch: git am ../monaco-vscode-api/vscode-paches/*.patch
Fetch the new tag: git fetch origin <tag>
rebase on the new tag: git rebase <tag>
Resolve conflicts / update code (e.g. broken imports)
Generate new patch: rm -rf ../monaco-vscode-api/vscode-paches && git format-patch --zero-commit --no-numbered --no-signature <tag>.. -o '../monaco-vscode-api/vscode-paches'

Update the package.json to set config.vscode.ref to the new VSCode tag from above
Update the package.json to set config.monaco.ref to the new version of monaco-editor
Run npm install which will trigger the vscode install script
Wait for the new vscode version to be downloaded and built
Run npm run update-vscode-dependencies to update the vscode dependencies we use to the same versions as VSCode
Run npm install (might need to update/add the npm override for xterm in the package.json to fix the invalid peer deps)
Fix errors, adapt code, build, include the vscode-patches directory into this commit
- Do not hesitate to run the eslint autofix, it gets rid of the majority of your errors
- Implement missing services. This is easily observable seem when running the demo (see next point)
Update demo
- Update dependencies
- Implement improvements dependening on the new features available from vscode (optional)
- Don't forget to check the Window output (in the OUTPUT panel tab) to check for errors

Use repo log viewers and check the last update branch when in doubt