# LocalAI v3.7.0 — Release & Upgrade Intelligence
- **Product:** LocalAI (https://localai.io)
- **Version:** v3.7.0
- **Released:** Oct 31, 2025
- **Impact Score:** 5/10
- **Breaking Changes:** Not verified
- **Canonical Analysis:** https://changelogs.us/localai/updates/v3.7.0/

## Executive Summary (TL;DR)
LocalAI v3.7.0. Source highlight: Welcome to **LocalAI 3.7.0** :wave:

## New Features
- **New Endpoint**: `POST /mcp/v1/chat/completions` (OpenAI-compatible).
- **Flexible Tool Configuration**:
- **Advanced Agent Control** via `agent` config:
- `max_attempts`: Retry failed tool calls up to N times.
- `max_iterations`: Limit how many times the agent can loop through reasoning.
- `enable_reasoning`: Allow step-by-step thought processes (e.g., chain-of-thought).

## Improvements
- The chat view now has an MCP toggle in the chat for models that have `mcp` settings enabled in the model config file.
- The Editor mask of the model has now been simplified to show/edit the YAML settings of the model
- More reactive, dropped HTMX in favor of Alpine.js and vanilla javascript
- `fallback` (no optimized instructions available)
- chore(docs): enhancements and clarifications

## Bug Fixes
- Various fixes including deletion of models
- **Nullable JSON Schemas**: `"type": ["string", "null"]` now works without panics.
- **Empty Parameters**: Tools with missing or empty `parameters` now handled gracefully.
- **Strict Mode Enforcement**: When `strict_mode: true`, the model **must** pick a tool — no more skipping.
- **Multi-Type Arrays**: Safe handling of `["string", "null"]` in function definitions.
- fix(chatterbox): chunk long text