docs: add changelog and readme entries for config upgrade feature

- CHANGELOG: Add notification and upgrade-configs command entries under [1.13.0]
- README: Add Upgrade config files command to Commands table
- README: Add Notifications section with outdated config files description

Co-authored-by: garrytrinder <11563347+garrytrinder@users.noreply.github.com>

Author: Copilot

CHANGELOG.md

@@ -12,6 +12,8 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 ### Added:
 
 - Install: Added automated install and upgrade support for Linux using official setup scripts
+- Notification: Detect outdated Dev Proxy config files in workspace and show warning when schema versions don't match installed version
+- Command: `dev-proxy-toolkit.upgrade-configs` - Upgrade config files with Copilot Chat using Dev Proxy MCP tools
 - Quick Fixes: Enable local language model fix now adds or updates `languageModel.enabled: true` for supported plugins only
 - Workspace: Added automatic prompt to recommend extension in `.vscode/extensions.json` when Dev Proxy config files are detected
 - Command: Added `Add to Workspace Recommendations` to manually add extension to workspace recommendations

README.md

@@ -36,6 +36,7 @@ Control Dev Proxy directly from VS Code via the Command Palette (`Cmd+Shift+P` /
 | Generate JWT | Dev Proxy installed |
 | Add to Workspace Recommendations | Always |
 | Reset State | Always |
+| Upgrade config files | Dev Proxy installed |
 
 ### Snippets
 
@@ -217,6 +218,10 @@ The prompt offers three options:
 
 You can also manually add the extension to recommendations at any time using the `Add to Workspace Recommendations` command, or use `Reset State` to clear all extension state including prompt preferences.
 
+### Notifications
+
+- **Outdated config files** - On activation, scans workspace for Dev Proxy config files with a schema version that doesn't match the installed Dev Proxy version. Offers a one-click upgrade using Copilot Chat and Dev Proxy MCP tools.
+
 ## Configuration
 
 | Setting | Type | Default | Description |