diff --git a/.github/actions/next-version-gen/action.yml b/.github/actions/next-version-gen/action.yml
new file mode 100644
index 00000000..9d333616
--- /dev/null
+++ b/.github/actions/next-version-gen/action.yml
@@ -0,0 +1,23 @@
+name: 'Next version generator'
+description: 'Generate next version number'
+inputs:
+  publish-type:
+    description: 'Preview or Release'
+    required: true
+  preview-infix:
+    description: 'Infix used when creating a tag for the preview version'
+    default: '-insiders'
+    required: false
+outputs:
+  next-version:
+    description: 'Next version number'
+    value: ${{ steps.version.outputs.next-version }}
+  next-version-tag:
+    description: 'Name of the tag used to mark version in git'
+    value: ${{ steps.version.outputs.next-version-tag }}
+runs:
+  using: "composite"
+  steps:  
+    - id: version
+      shell: pwsh
+      run: ${{github.action_path}}/generateVersion.ps1 -publishType "${{ inputs.publish-type }}" -previewInfix "${{ inputs.preview-infix }}"
\ No newline at end of file
diff --git a/.github/actions/next-version-gen/generateVersion.ps1 b/.github/actions/next-version-gen/generateVersion.ps1
new file mode 100644
index 00000000..c94c281c
--- /dev/null
+++ b/.github/actions/next-version-gen/generateVersion.ps1
@@ -0,0 +1,66 @@
+param(
+	$publishType,
+    $previewInfix
+)
+
+if($publishType -ne "Preview" -and $publishType -ne "Release") {
+    Write-Host "::error::Publish type can only be 'Preview' or 'Release'"
+    exit 1
+}
+
+$isPreview = $publishType -eq "Preview"
+
+$pattern = "(?<Product>\w+)-v(?<Major>\d+)\.(?<Minor>\d+)\.(?<Patch>\w+)"
+
+if ($env:GITHUB_REF_NAME -match $pattern) {
+    $product = $Matches['Product']
+    $majorVer = $Matches['Major']
+    $minorVer = $Matches['Minor']
+    $patchVer = $Matches['Patch']
+}
+else {
+	Write-Host "::error::Invalid branch name. Example valid name: vs-v0.2.x"
+    exit 1
+}
+
+if($patchVer -ne "x") {
+	Write-Host "::error::Path version number must be set to 'x'"
+    exit 1
+}
+
+if($minorVer % 2 -eq 1) {
+	Write-Host "::error::Minor version number must be even"
+    exit 1
+}
+
+if($isPreview) {
+    if($minorVer -eq 0) {
+        $newMinorVer = 999
+        $majorVer = $majorVer - 1
+    } else {
+        $newMinorVer = $minorVer - 1
+    }
+
+	$infix = $previewInfix
+} else {
+	$newMinorVer = $minorVer
+	$infix = ""
+}
+
+$nextPathVer = 0
+
+do {
+	$nextVersion = "$majorVer.$newMinorVer.$nextPathVer"
+	$nextVersionTag = "$product$infix-v$nextVersion"
+	git -C $env:GITHUB_WORKSPACE rev-parse "refs/tags/$nextVersionTag" --quiet 2> Out-Null
+	if($?) { $nextPathVer = $nextPathVer + 1 }
+	else { break }
+} while($true)
+
+"next-version=$nextVersion" >> $env:GITHUB_OUTPUT
+"next-version-tag=$nextVersionTag" >> $env:GITHUB_OUTPUT
+
+Write-Host "Next version: $nextVersion"
+Write-Host "Next version tag name: $nextVersionTag"
+
+exit 0
\ No newline at end of file
diff --git a/.github/workflows/nightly.yml b/.github/workflows/nightly.yml
index e10ed5cc..de94cb93 100644
--- a/.github/workflows/nightly.yml
+++ b/.github/workflows/nightly.yml
@@ -35,7 +35,8 @@ jobs:
         id: cody
         with:
           repository: sourcegraph/cody
-          prefix: vscode-
+          regex: 'vscode(-insiders)?-v\d+\.\d+\.\d+'
+          sort-tags: true
           
       - name: Hash tag name
         uses: pplanel/hash-calculator-action@v1.3.2
diff --git a/.github/workflows/publish-release.yml b/.github/workflows/publish-release.yml
deleted file mode 100644
index 61be43cf..00000000
--- a/.github/workflows/publish-release.yml
+++ /dev/null
@@ -1,116 +0,0 @@
-name: Publish release
-
-on:
-  push:
-    tags:
-      - release-v*.*.*
-
-# concurrency prevents multiple instances of the workflow from running at the same time,
-# using `cancel-in-progress` to cancel any existing runs.
-concurrency:
-  group: ${{ github.workflow }}-${{ github.ref }}
-  cancel-in-progress: true
-
-jobs:
-  build:
-    runs-on: 16gb_16_core_large_window_runner
-    # do we want to run this on forks?
-    if: github.repository_owner == 'sourcegraph'
-    env:
-      NUGET_PACKAGES: ${{ github.workspace }}/.nuget/packages
-      Configuration: Release
-
-    steps:
-      - uses: actions/checkout@v4
-    
-      - name: Extract version from tag
-        uses: nowsprinting/check-version-format-action@v4.0.3
-        id: version
-        with:
-          prefix: release-v
-
-      - name: Add msbuild
-        uses: microsoft/setup-msbuild@v2
-        
-      - name: Cache nuget
-        uses: actions/cache@v4
-        with:
-          path: ${{ github.workspace }}/.nuget/packages
-          key: ${{ runner.os }}-nuget-${{ github.sha }}
-          restore-keys: ${{ runner.os }}-nuget-
-        
-      - name: Cache agent
-        id: cache-agent
-        uses: actions/cache@v4
-        with:
-          path: src/Cody.VisualStudio/Agent
-          key: ${{ runner.os }}-agent-${{ hashFiles('agent/agent.version') }}  
-        
-      - name: Build agent if needed
-        if: ${{ steps.cache-agent.outputs.cache-hit != 'true' }}
-        shell: pwsh
-        run: ./agent/runBuildAgent.ps1
-        
-      - name: Set version on AssemblyInfo.cs files
-        uses: dannevesdantas/set-version-assemblyinfo@v.1.0.0
-        with:
-          version: ${{ steps.version.outputs.full_without_prefix }}
-          path: src/
-          
-      - name: Set version for .vsixmanifest file
-        uses: cezarypiatek/VsixVersionAction@1.2
-        with:
-          version: ${{ steps.version.outputs.full_without_prefix }}
-          vsix-manifest-file: src\Cody.VisualStudio\source.extension.vsixmanifest
-        
-      - name: Build extension (${{ env.Configuration }})
-        run: msbuild src/Cody.sln -t:Build -restore -verbosity:minimal -property:Configuration=${{ env.Configuration }}
-        
-      - name: Upload Cody.VisualStudio.vsix artifact
-        uses: actions/upload-artifact@v4
-        with:
-          name: Cody.VisualStudio.vsix
-          path: src/Cody.VisualStudio/bin/${{ env.Configuration }}/Cody.VisualStudio.vsix
-        
-      #Running tests  
-
-      - name: Change Screen Resolution
-        shell: pwsh
-        run: Set-DisplayResolution -Width 1920 -Height 1080 -Force
-        
-      - name: Run tests
-        env:
-          Access_Token_UI_Tests: ${{ secrets.SRC_ACCESS_TOKEN_DOTCOM }}
-          WEBVIEW2_ADDITIONAL_BROWSER_ARGUMENTS: '--remote-debugging-port=9222'
-        run: dotnet test src/*Tests/bin/${{ env.Configuration }}/*.Tests.dll --logger:trx --verbosity detailed
-        
-      - name: Upload screenshots for UI tests
-        uses: actions/upload-artifact@v4
-        if: always()
-        with:
-          name: UI Tests Screenshots
-          path: src/Cody.VisualStudio.Tests/bin/${{ env.Configuration }}/Screenshots
-          retention-days: 20
-
-      - name: Publish Test Results
-        uses: EnricoMi/publish-unit-test-result-action/windows@v2
-        if: always()
-        with:
-          files: TestResults/**/*.trx
-          
-      #Publish
-          
-      - name: Create GitHub release
-        uses: ncipollo/release-action@v1.14.0
-        with:
-          tag: ${{ steps.version.outputs.full }}
-          name: Cody for Visual Studio ${{ steps.version.outputs.full_without_prefix }}
-          prerelease: false
-          artifacts: src/Cody.VisualStudio/bin/${{ env.Configuration }}/Cody.VisualStudio.vsix
-          
-      - name: Publish to Visual Studio Marketplace
-        uses: cezarypiatek/VsixPublisherAction@1.1
-        with:
-          extension-file: src/Cody.VisualStudio/bin/${{ env.Configuration }}/Cody.VisualStudio.vsix
-          publish-manifest-file: src\Cody.VisualStudio\publishManifest.json
-          personal-access-code: ${{ secrets.CODY_VS_MARKETPLACE_RELEASE_TOKEN }}
diff --git a/.github/workflows/publish-preview.yml b/.github/workflows/publish.yml
similarity index 72%
rename from .github/workflows/publish-preview.yml
rename to .github/workflows/publish.yml
index 8436d29f..b8e8f9ea 100644
--- a/.github/workflows/publish-preview.yml
+++ b/.github/workflows/publish.yml
@@ -1,9 +1,15 @@
-name: Publish preview
+name: Publish
 
 on:
-  push:
-    tags:
-      - preview-v*.*.*
+  workflow_dispatch:
+    inputs:
+      publish:
+        type: choice
+        description: Publish type
+        default: Preview
+        options:
+          - Preview
+          - Release
 
 # concurrency prevents multiple instances of the workflow from running at the same time,
 # using `cancel-in-progress` to cancel any existing runs.
@@ -29,12 +35,12 @@ jobs:
 
     steps:
       - uses: actions/checkout@v4
-    
-      - name: Extract version from tag
-        uses: nowsprinting/check-version-format-action@v4.0.3
+
+      - name: Generate version
+        uses: ./.github/actions/next-version-gen
         id: version
         with:
-          prefix: preview-v
+          publish-type: ${{ github.event.inputs.publish }}
 
       - name: Add msbuild
         uses: microsoft/setup-msbuild@v2
@@ -61,13 +67,13 @@ jobs:
       - name: Set version on AssemblyInfo.cs files
         uses: dannevesdantas/set-version-assemblyinfo@v.1.0.0
         with:
-          version: ${{ steps.version.outputs.full_without_prefix }}
+          version: ${{ steps.version.outputs.next-version }}
           path: src/
           
       - name: Set version for .vsixmanifest file
         uses: cezarypiatek/VsixVersionAction@1.2
         with:
-          version: ${{ steps.version.outputs.full_without_prefix }}
+          version: ${{ steps.version.outputs.next-version }}
           vsix-manifest-file: src\Cody.VisualStudio\source.extension.vsixmanifest
         
       - name: Build extension (${{ env.Configuration }})
@@ -106,30 +112,51 @@ jobs:
           files: TestResults/**/*.trx
           
       #Publish
+      - name: Create git tag
+        uses: actions/github-script@v6
+        with:
+          script: |
+            github.rest.git.createRef({
+              owner: context.repo.owner,
+              repo: context.repo.repo,
+              ref: "refs/tags/${{ steps.version.outputs.next-version-tag }}",
+              sha: context.sha
+            })
           
       - name: Create GitHub release
         uses: ncipollo/release-action@v1.14.0
         with:
-          tag: ${{ steps.version.outputs.full }}
-          name: Cody for Visual Studio ${{ steps.version.outputs.full_without_prefix }}
+          tag: ${{ steps.version.outputs.next-version-tag }}
+          name: Cody for Visual Studio ${{ steps.version.outputs.next-version }}
           prerelease: true
           artifacts: src/Cody.VisualStudio/bin/${{ env.Configuration }}/Cody.VisualStudio.vsix
           
       - name: Create custom VSIX feed
+        if: ${{ github.event.inputs.publish == 'Preview' }}
         uses: ./.github/actions/create-vsix-feed
         with:
           vsix-directory: src/Cody.VisualStudio/bin/${{ env.Configuration }}
           feed-file: feed/feed.xml
-          source-path: https://github.com/sourcegraph/cody-vs/releases/download/${{ steps.version.outputs.full }}/
+          source-path: https://github.com/sourcegraph/cody-vs/releases/download/${{ steps.version.outputs.next-version-tag }}/
           gallery-name: "Sourcegraph preview gallery"
           
       - name: Upload feed files as artifact
+        if: ${{ github.event.inputs.publish == 'Preview' }}
         uses: actions/upload-pages-artifact@v3
         with:
           name: vsix-gallery-feed
           path: feed/
 
       - name: Deploy feed to GitHub Pages
+        if: ${{ github.event.inputs.publish == 'Preview' }}
         uses: actions/deploy-pages@v4
         with:
-          artifact_name: vsix-gallery-feed
\ No newline at end of file
+          artifact_name: vsix-gallery-feed
+
+      - name: Publish to Visual Studio Marketplace
+        if: ${{ github.event.inputs.publish == 'Release' }}
+        uses: cezarypiatek/VsixPublisherAction@1.1
+        with:
+          extension-file: src/Cody.VisualStudio/bin/${{ env.Configuration }}/Cody.VisualStudio.vsix
+          publish-manifest-file: src\Cody.VisualStudio\publishManifest.json
+          personal-access-code: ${{ secrets.CODY_VS_MARKETPLACE_RELEASE_TOKEN }}
\ No newline at end of file
diff --git a/src/Cody.sln b/src/Cody.sln
index 731601e0..3a1ee1e3 100644
--- a/src/Cody.sln
+++ b/src/Cody.sln
@@ -24,8 +24,7 @@ Project("{2150E333-8FDC-42A3-9474-1A3956D46DE8}") = "Solution Items", "Solution
 		..\.github\workflows\build.yml = ..\.github\workflows\build.yml
 		..\.github\workflows\code-style.yml = ..\.github\workflows\code-style.yml
 		..\.github\workflows\nightly.yml = ..\.github\workflows\nightly.yml
-		..\.github\workflows\publish-preview.yml = ..\.github\workflows\publish-preview.yml
-		..\.github\workflows\publish-release.yml = ..\.github\workflows\publish-release.yml
+		..\.github\workflows\publish.yml = ..\.github\workflows\publish.yml
 	EndProjectSection
 EndProject
 Project("{FAE04EC0-301F-11D3-BF4B-00C04F79EFBC}") = "Cody.Core.Tests", "Cody.Core.Tests\Cody.Core.Tests.csproj", "{9B46B477-E57A-4F19-A240-56D5D3C7EE8F}"