Update Code to 1.116.0 (#7754)

* Update Code to 1.116.0

* Add copilot extension build

Seems the vscode build requires this separately now.

* Disable welcome popup

A giant modal window asking you to sign in for AI features is blocking
the tests.  Rather than have to click through it, disable it.  It looks like
this has to be a user setting, so switch to that instead of machine (we
used machine because user settings were in the browser, but they have
been since moved back to disk).

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Co-authored-by: Asher <ash@coder.com>