Enhancements

General

Added precise drag-and-drop for files onto folded directories in the Project Panel (#22983; thanks 0xtimsb).
Added functionality to expand or collapse a directory and all its contents (alt+click) (#22896; thanks 0xtimsb).
Added Open File action in file menu for Linux and Windows (#23707; thanks 0xtimsb).
Added a new show_tab_bar_buttons setting, under tab_bar, that enables hiding the pane tab bar buttons (#23752).
Added auto-completion support for snippet files (#23698; thanks loczek).
Added an editor: open selections in multibuffer (alt-enter) command (#23644).
Improved terminal hover word matching (#23776).
Improved diff rendering, allowing you to navigate with your cursor inside of deleted text in diff hunks (#22994).
Improved editor horizontal autoscroll to now place the cursor to the left of the scrollbar rather than under it (#23586).
Improved the task modal by using the full task label when it does not require truncation (#23611).
Improved project search performance in worktrees with binary files (#23581).
Improved the Copy Permalink menu item by disabling it when not in a Git repository (#23350; thanks Swiftaff).
Errors in settings file are now reported in UI on startup (#23817).

Added Python syntax highlighting for class- and module-level docstrings, additional docstrings, and improved recognition of function-level docstrings (#20898; thanks jfmontanaro).
Improved support for yaml-language-server as YAML formatter (#23612).
Language servers now track their working directory more accurately (#23473).

Accepting completions while the cursor is in the middle of suggested completion will now result in smaller edits being applied (#23490).

Vim: Added ab/ib "AnyBrackets" text objects that are the smallest of a(, a[ or a{ or i(, i[ or i{ (#23679; thanks oca159).
Vim: Added support for ctrl-g and {count} ctrl-g to show the filename in the status bar (#23562).
Vim: Fixed aq/iq "AnyQuotes" text objects when they are nested (#23679; thanks oca159).

Fixed terminal drag and drop, including project panel items (#23827).
Fixed inline Git blame not visible on long lines due to overflow (#23374; thanks 0xtimsb).
Fixed project_panel::NewDirectory, editor:: NewlineAbove in TextMate keymap (#23825; thanks huacnlee).
Fixed .gitignored files filter occasionally not working in context file picker (#23777).
Fixed an issue where snippets would not update when a snippets file contained comments (#23755; thanks loczek).
Fixed the issue where a file outside of the workspace was opening in a random window instead of the last active window (#23726; thanks 0xtimsb).
Fixed ZED_WORKTREE_ROOT incorrectly pointing to a file. Now points to a directory when current file is a project or unset when in out-of-project files (settings.json, tasks.json, etc) (#23150; thanks aborg-dev).
Fixed incorrect UTF-8 characters handling in GoToLine and caret position (#23654).
Fixed some instances of disabled list items still registering clicks (#23569).
Fixed The path /.../tsserver.js doesn't point to a valid tsserver install. Falling back to bundled TypeScript version. pop-up appearing (#23525).
Fixed panics on opening repositories with empty remotes (#23520).
Python: Fixed venv activation script path showing up in terminal for non-existent scripts (#23476).

Changed editor: open excerpts split key binding to cmd-alt-enter on macOS and ctrl-alt-enter on Linux, to be more consistent with other actions that open files in a new split (#23646).