FileSystem MCP Server is a local MCP server designed for Visual Studio 2022 that exposes a curated subset of the local filesystem to MCP clients and AI agents. It supports code-workspace style workflows by enabling selective access to project folders and files, while enforcing an allow-list of directories and file extensions. The server provides core capabilities such as directory traversal, reading file contents, and reading binary data. It includes a directory validation feature to verify accessibility of configured directories. The server uses a hybrid configuration model: command-line arguments (MCP) can set allowed_dirs and allowed_extensions directly, and a config.json file can serve as a fallback for debugging; in Visual Studio 2022 debugging, config.json placed next to app.py is automatically used, while in MCP client deployments, config.json is typically placed alongside the .mcp.json file. When both sources are present, command-line arguments take precedence over config.json. The API exposes tools like init(directory, file_path), list_directory(directory, report_progress, batch_size), read_file(file_path), read_file_binary(file_path), list_resources(directory, report_progress, batch_size), and get_resource(path). This setup is intended for local development in VS 2022 or similar environments, with cross-platform path support and clear error handling to aid debugging and testing.