docs: sync WHATS_NEW.md from Skylight CHANGELOG (2267a2f) (#702)

Author: MuyangAmigo

WHATS_NEW.md

@@ -1,5 +1,30 @@
 # What's New in Foundry Toolkit for VS Code
 
+## Version 1.6.9 - 19 August, 2026
+
+This release streamlines agent creation, brings administrator-connected Foundry models to playgrounds and Hosted Agent creation, and adds richer Agent Inspector views and controls.
+
+### Added
+
+- **Create Agent**: Start from a redesigned page with direct paths to Agent Framework, Copilot SDK, and LangGraph samples, Copilot-assisted coding, Agent Builder, or the full sample catalog.
+- **Administrator-connected models**: Select Microsoft Foundry models configured by an administrator in playgrounds and when creating a Hosted Agent.
+- **Agent Inspector**
+  - **Responses Overview**: Inspect all runs or a selected run in a default Overview tab with a latency waterfall and an ordered timeline of model, reasoning, and tool activity.
+  - **Reasoning**: View raw reasoning and reasoning summaries in separate collapsible sections when an agent provides them.
+
+### Changed
+
+- **Agent Inspector permissions**: Pending MCP approvals and OAuth consent requests stay pinned above the message input, with bulk actions and expandable request details.
+- **Agent Inspector response details**: Response footers now show the model, duration, token total, and timestamp. Hover over the token total to see input and output usage. The Tokens table now uses **Response** terminology.
+- **Activity Protocol agents**: Newly scaffolded Python projects now open Microsoft 365 Agents Playground inside VS Code for local debugging.
+
+### Fixed
+
+- **Agent Inspector**
+  - Response text, reasoning, tool calls, and permission decisions now stay in their original order.
+  - Human-in-the-loop pauses no longer show duplicate tool and approval cards.
+  - **Clear Chat** remains available while a Responses turn is paused for approval or consent.
+
 ## Version 1.6.8 - 12 August, 2026
 
 This release adds user-scoped Hosted Agent Playground sessions, makes Hosted Agent setup and Activity Protocol deployment more reliable, and improves resource loading, Agent Inspector continuations, Prompt Builder persistence, and MCP authorization.