Refactor new chat view: rename to workspace, separate session type and isolation pickers (#302797)

* refactor: rename SessionProject to SessionWorkspace and update related references * fix: update filter placeholder text in project picker to "Search Workspaces..." * feat: add SessionWorkspace class to represent workspaces for sessions * feat: implement ProjectPicker class for unified project selection * fix: update SessionTargetType to use 'copilot-cli' instead of 'cli' * refactor: rename targetMode to isolationMode in NewSession and related classes * refactor: rename LocalNewSession to CopilotCLISession and update related references * feat: set project in session type picker for local sessions * fix: ensure project is set in session type picker for both remote and local sessions * fix: reset isolation mode to worktree when isolation option is disabled * delete file
2026-04-02 08:15:56 +01:00 · 2026-03-18 14:43:31 +01:00
parent 819f0cd46c
commit 44264fdeae
12 changed files with 309 additions and 185 deletions
--- a/src/vs/sessions/contrib/changes/browser/changesView.ts
+++ b/src/vs/sessions/contrib/changes/browser/changesView.ts
@@ -58,7 +58,7 @@ import { ACTIVE_GROUP, IEditorService, SIDE_GROUP } from '../../../../workbench/
 import { IExtensionService } from '../../../../workbench/services/extensions/common/extensions.js';
 import { IWorkbenchLayoutService } from '../../../../workbench/services/layout/browser/layoutService.js';
 import { IActiveSessionItem, ISessionsManagementService } from '../../sessions/browser/sessionsManagementService.js';
-import { GITHUB_REMOTE_FILE_SCHEME } from '../../sessions/common/sessionProject.js';
+import { GITHUB_REMOTE_FILE_SCHEME } from '../../sessions/common/sessionWorkspace.js';
 import { CodeReviewStateKind, getCodeReviewFilesFromSessionChanges, getCodeReviewVersion, ICodeReviewService, PRReviewStateKind } from '../../codeReview/browser/codeReviewService.js';
 import { IGitRepository, IGitService } from '../../../../workbench/contrib/git/common/gitService.js';
 import { IGitHubService } from '../../github/browser/githubService.js';
--- a/src/vs/sessions/contrib/chat/browser/media/chatWelcomePart.css
+++ b/src/vs/sessions/contrib/chat/browser/media/chatWelcomePart.css
@@ -178,7 +178,7 @@
 }

 /* Prominent project picker button */
-.sessions-chat-picker-slot.sessions-chat-project-picker .action-label {
+.sessions-chat-picker-slot.sessions-chat-workspace-picker .action-label {
 	height: auto;
 	padding: 8px 20px;
 	font-size: 15px;
@@ -188,16 +188,16 @@
 	border-radius: 6px;
 }

-.sessions-chat-picker-slot.sessions-chat-project-picker .action-label:hover {
+.sessions-chat-picker-slot.sessions-chat-workspace-picker .action-label:hover {
 	background-color: var(--vscode-button-secondaryHoverBackground);
 }

-.sessions-chat-picker-slot.sessions-chat-project-picker .action-label .codicon {
+.sessions-chat-picker-slot.sessions-chat-workspace-picker .action-label .codicon {
 	font-size: 18px;
 	margin-right: 6px;
 }

-.sessions-chat-picker-slot.sessions-chat-project-picker .action-label .sessions-chat-dropdown-label {
+.sessions-chat-picker-slot.sessions-chat-workspace-picker .action-label .sessions-chat-dropdown-label {
 	font-size: 15px;
 }

--- a/src/vs/sessions/contrib/chat/browser/newChatViewPane.ts
+++ b/src/vs/sessions/contrib/chat/browser/newChatViewPane.ts
@@ -54,13 +54,12 @@ import { ContextMenuController } from '../../../../editor/contrib/contextmenu/br
 import { getSimpleEditorOptions } from '../../../../workbench/contrib/codeEditor/browser/simpleEditorOptions.js';
 import { NewChatContextAttachments } from './newChatContextAttachments.js';
 import { IGitService } from '../../../../workbench/contrib/git/common/gitService.js';
-import { TargetPicker } from './sessionTargetPicker.js';
+import { SessionTypePicker, IsolationPicker } from './sessionTargetPicker.js';
 import { BranchPicker } from './branchPicker.js';
-import { SyncIndicator } from './syncIndicator.js';
 import { INewSession, ISessionOptionGroup, RemoteNewSession } from './newSession.js';
 import { CloudModelPicker } from './modelPicker.js';
-import { ProjectPicker } from './projectPicker.js';
-import { SessionProject } from '../../sessions/common/sessionProject.js';
+import { WorkspacePicker } from './workspacePicker.js';
+import { SessionWorkspace } from '../../sessions/common/sessionWorkspace.js';
 import { ModePicker } from './modePicker.js';
 import { getErrorMessage } from '../../../../base/common/errors.js';
 import { SlashCommandHandler } from './slashCommands.js';
@@ -99,10 +98,10 @@ interface INewChatWidgetOptions {
 */
 class NewChatWidget extends Disposable implements IHistoryNavigationWidget {

-	private readonly _projectPicker: ProjectPicker;
-	private readonly _targetPicker: TargetPicker;
+	private readonly _workspacePicker: WorkspacePicker;
+	private readonly _sessionTypePicker: SessionTypePicker;
 	private readonly _branchPicker: BranchPicker;
-	private readonly _syncIndicator: SyncIndicator;
+	private readonly _isolationPicker: IsolationPicker;
 	private readonly _options: INewChatWidgetOptions;

 	// IHistoryNavigationWidget
@@ -185,17 +184,17 @@ class NewChatWidget extends Disposable implements IHistoryNavigationWidget {
 		super();
 		this._history = this._register(this.instantiationService.createInstance(ChatHistoryNavigator, ChatAgentLocation.Chat));
 		this._contextAttachments = this._register(this.instantiationService.createInstance(NewChatContextAttachments));
-		this._projectPicker = this._register(this.instantiationService.createInstance(ProjectPicker));
+		this._workspacePicker = this._register(this.instantiationService.createInstance(WorkspacePicker));
 		this._permissionPicker = this._register(this.instantiationService.createInstance(NewChatPermissionPicker));
 		this._cloudModelPicker = this._register(this.instantiationService.createInstance(CloudModelPicker));
 		this._modePicker = this._register(this.instantiationService.createInstance(ModePicker));
-		this._targetPicker = this._register(this.instantiationService.createInstance(TargetPicker));
+		this._sessionTypePicker = this._register(this.instantiationService.createInstance(SessionTypePicker));
 		this._branchPicker = this._register(this.instantiationService.createInstance(BranchPicker));
-		this._syncIndicator = this._register(this.instantiationService.createInstance(SyncIndicator));
+		this._isolationPicker = this._register(this.instantiationService.createInstance(IsolationPicker));
 		this._options = options;

 		// When a project is selected, infer the target and create a new session
-		this._register(this._projectPicker.onDidSelectProject(async (project) => {
+		this._register(this._workspacePicker.onDidSelectProject(async (project) => {
 			await this._onProjectSelected(project);
 			this._updateDraftState();
 			this._focusEditor();
@@ -208,15 +207,26 @@ class NewChatWidget extends Disposable implements IHistoryNavigationWidget {

 		this._register(this._branchPicker.onDidChange((branch) => {
 			this._newSession.value?.setBranch(branch);
-			this._syncIndicator.setBranch(branch);
 			this._updateDraftState();
 			this._focusEditor();
 		}));

-		this._register(this._targetPicker.onDidChange((mode) => {
-			this._newSession.value?.setTargetMode(mode);
+		this._register(this._sessionTypePicker.onDidChange((target) => {
+			if (target === 'cloud') {
+				this._isolationPicker.setVisible(false);
+				this._branchPicker.setVisible(false);
+			} else {
+				this._newSession.value?.setIsolationMode(this._isolationPicker.isolationMode);
+				this._isolationPicker.setVisible(true);
+				this._branchPicker.setVisible(this._isolationPicker.isWorktree);
+			}
+			this._updateDraftState();
+			this._focusEditor();
+		}));
+
+		this._register(this._isolationPicker.onDidChange((mode) => {
+			this._newSession.value?.setIsolationMode(mode);
 			this._branchPicker.setVisible(mode === 'worktree');
-			this._syncIndicator.setVisible(mode === 'worktree');
 			this._updateDraftState();
 			this._focusEditor();
 		}));
@@ -281,12 +291,12 @@ class NewChatWidget extends Disposable implements IHistoryNavigationWidget {

 		// Isolation mode and branch pickers (below the input, shown when Local target is selected)
 		const isolationContainer = dom.append(welcomeElement, dom.$('.chat-full-welcome-local-mode'));
-		this._targetPicker.render(isolationContainer);
+		this._sessionTypePicker.render(isolationContainer);
 		this._permissionPicker.render(isolationContainer);
 		dom.append(isolationContainer, dom.$('.sessions-chat-local-mode-spacer'));
 		const branchContainer = dom.append(isolationContainer, dom.$('.sessions-chat-local-mode-right'));
+		this._isolationPicker.render(branchContainer);
 		this._branchPicker.render(branchContainer);
-		this._syncIndicator.render(branchContainer);

 		// Render project picker & extension pickers
 		this._renderOptionGroupPickers();
@@ -298,7 +308,7 @@ class NewChatWidget extends Disposable implements IHistoryNavigationWidget {
 		this._restoreState();

 		// Create initial session
-		const restoredProject = this._projectPicker.selectedProject;
+		const restoredProject = this._workspacePicker.selectedProject;
 		if (restoredProject) {
 			this._onProjectSelected(restoredProject);
 		} else {
@@ -314,7 +324,7 @@ class NewChatWidget extends Disposable implements IHistoryNavigationWidget {
 		}, { once: true }));
 	}

-	private async _createNewSession(project?: SessionProject): Promise<void> {
+	private async _createNewSession(project?: SessionWorkspace): Promise<void> {
 		const target = project?.isRepo ? AgentSessionProviders.Cloud : AgentSessionProviders.Background;

 		const resource = getResourceForNewChatSession({
@@ -358,8 +368,9 @@ class NewChatWidget extends Disposable implements IHistoryNavigationWidget {
 			}
 		}));

+		this._sessionTypePicker.setProject(session.project);
+
 		if (session instanceof RemoteNewSession) {
-			this._targetPicker.setProject(session.project);
 			this._renderRemoteSessionPickers(session, true);
 			listeners.add(session.onDidChangeOptionGroups(() => {
 				this._renderRemoteSessionPickers(session);
@@ -382,7 +393,6 @@ class NewChatWidget extends Disposable implements IHistoryNavigationWidget {
 		this._repositoryLoading = true;
 		this._updateInputLoadingState();
 		this._branchPicker.setRepository(undefined);
-		this._syncIndicator.setRepository(undefined);
 		this._modePicker.reset();

 		this.gitService.openRepository(folderUri).then(repository => {
@@ -397,11 +407,10 @@ class NewChatWidget extends Disposable implements IHistoryNavigationWidget {
 				session.setProject(session.project.withRepository(repository));
 			}

-			this._targetPicker.setProject(session?.project);
+			this._sessionTypePicker.setProject(session?.project);
+			this._isolationPicker.setHasGitRepo(!!repository);
 			this._branchPicker.setRepository(repository);
-			this._branchPicker.setVisible(!!repository && this._targetPicker.isWorktree);
-			this._syncIndicator.setRepository(repository);
-			this._syncIndicator.setVisible(!!repository && this._targetPicker.isWorktree);
+			this._branchPicker.setVisible(!!repository && this._sessionTypePicker.isCli && this._isolationPicker.isWorktree);
 			this._modePicker.reset();
 		}).catch(e => {
 			if (cts.token.isCancellationRequested) {
@@ -410,11 +419,10 @@ class NewChatWidget extends Disposable implements IHistoryNavigationWidget {
 			this.logService.warn(`Failed to open repository at ${folderUri.toString()}`, getErrorMessage(e));
 			this._repositoryLoading = false;
 			this._updateInputLoadingState();
-			this._targetPicker.setProject(undefined);
+			this._sessionTypePicker.setProject(undefined);
+			this._isolationPicker.setHasGitRepo(false);
 			this._branchPicker.setRepository(undefined);
 			this._branchPicker.setVisible(false);
-			this._syncIndicator.setRepository(undefined);
-			this._syncIndicator.setVisible(false);
 			this._modePicker.reset();
 		});
 	}
@@ -677,7 +685,7 @@ class NewChatWidget extends Disposable implements IHistoryNavigationWidget {
 		const pickersRow = dom.append(this._pickersContainer, dom.$('.chat-full-welcome-pickers'));

 		// Project picker (unified folder + repo picker)
-		this._projectPicker.render(pickersRow);
+		this._workspacePicker.render(pickersRow);
 	}

 	// --- Local session pickers ---
@@ -703,7 +711,7 @@ class NewChatWidget extends Disposable implements IHistoryNavigationWidget {
 		this._modePicker.setVisible(false);
 		this._permissionPicker.setVisible(false);
 		this._branchPicker.setVisible(false);
-		this._syncIndicator.setVisible(false);
+		this._isolationPicker.setVisible(false);

 		this._cloudModelPicker.setSession(session);
 		this._cloudModelPicker.setVisible(true);
@@ -957,20 +965,20 @@ class NewChatWidget extends Disposable implements IHistoryNavigationWidget {
 	}

 	private _openRepoOrFolderPicker(_sessionType: AgentSessionProviders): void {
-		this._projectPicker.showPicker();
+		this._workspacePicker.showPicker();
 	}

-	private async _requestFolderTrust(folderUri: URI, previousProject?: SessionProject): Promise<boolean> {
+	private async _requestFolderTrust(folderUri: URI, previousProject?: SessionWorkspace): Promise<boolean> {
 		const trusted = await this.workspaceTrustRequestService.requestResourcesTrust({
 			uri: folderUri,
 			message: localize('trustFolderMessage', "An agent session will be able to read files, run commands, and make changes in this folder."),
 		});
 		if (!trusted) {
-			this._projectPicker.removeFromRecents(folderUri);
+			this._workspacePicker.removeFromRecents(folderUri);
 			if (previousProject) {
-				this._projectPicker.setSelectedProject(previousProject, false);
+				this._workspacePicker.setSelectedProject(previousProject, false);
 			} else {
-				this._projectPicker.clearSelection();
+				this._workspacePicker.clearSelection();
 			}
 		}
 		return !!trusted;
@@ -996,8 +1004,8 @@ class NewChatWidget extends Disposable implements IHistoryNavigationWidget {
 			}
 			if (draft.projectUri) {
 				try {
-					const project = new SessionProject(URI.revive(draft.projectUri));
-					this._projectPicker.setSelectedProject(project, false);
+					const project = new SessionWorkspace(URI.revive(draft.projectUri));
+					this._workspacePicker.setSelectedProject(project, false);
 				} catch { /* ignore */ }
 			}
 		}
@@ -1054,7 +1062,7 @@ class NewChatWidget extends Disposable implements IHistoryNavigationWidget {
 	 * Infers the session target from the selection kind, creates a new session,
 	 * and shows/hides pickers accordingly.
 	 */
-	private async _onProjectSelected(project: SessionProject): Promise<void> {
+	private async _onProjectSelected(project: SessionWorkspace): Promise<void> {
 		// Cancel any in-flight project selection
 		this._projectSelectionCts.value?.cancel();
 		const cts = this._projectSelectionCts.value = new CancellationTokenSource();
--- a/src/vs/sessions/contrib/chat/browser/newSession.ts
+++ b/src/vs/sessions/contrib/chat/browser/newSession.ts
@@ -8,15 +8,15 @@ import { Disposable, IDisposable } from '../../../../base/common/lifecycle.js';
 import { URI } from '../../../../base/common/uri.js';
 import { ILogService } from '../../../../platform/log/common/log.js';
 import { IChatSessionProviderOptionGroup, IChatSessionProviderOptionItem, IChatSessionsService } from '../../../../workbench/contrib/chat/common/chatSessionsService.js';
-import { TargetMode } from './sessionTargetPicker.js';
-import { SessionProject } from '../../sessions/common/sessionProject.js';
+import { IsolationMode } from './sessionTargetPicker.js';
+import { SessionWorkspace } from '../../sessions/common/sessionWorkspace.js';
 import { AgentSessionProviders } from '../../../../workbench/contrib/chat/browser/agentSessions/agentSessions.js';
 import { ContextKeyExpr, IContextKeyService } from '../../../../platform/contextkey/common/contextkey.js';

 import { IChatRequestVariableEntry } from '../../../../workbench/contrib/chat/common/attachments/chatVariableEntries.js';
 import { IChatMode } from '../../../../workbench/contrib/chat/common/chatModes.js';

-export type NewSessionChangeType = 'repoUri' | 'targetMode' | 'branch' | 'options' | 'disabled' | 'agent';
+export type NewSessionChangeType = 'repoUri' | 'isolationMode' | 'branch' | 'options' | 'disabled' | 'agent';

 /**
 * Represents a resolved option group with its current selected value.
@@ -28,14 +28,14 @@ export interface ISessionOptionGroup {

 /**
 * A new session represents a session being configured before the first
- * request is sent. It holds the user's selections (repoUri, targetMode)
+ * request is sent. It holds the user's selections (repoUri, isolationMode)
 * and fires a single event when any property changes.
 */
 export interface INewSession extends IDisposable {
 	readonly resource: URI;
 	readonly target: AgentSessionProviders;
-	readonly project: SessionProject | undefined;
-	readonly targetMode: TargetMode;
+	readonly project: SessionWorkspace | undefined;
+	readonly isolationMode: IsolationMode | undefined;
 	readonly branch: string | undefined;
 	readonly modelId: string | undefined;
 	readonly mode: IChatMode | undefined;
@@ -44,8 +44,8 @@ export interface INewSession extends IDisposable {
 	readonly selectedOptions: ReadonlyMap<string, IChatSessionProviderOptionItem>;
 	readonly disabled: boolean;
 	readonly onDidChange: Event<NewSessionChangeType>;
-	setProject(project: SessionProject): void;
-	setTargetMode(mode: TargetMode): void;
+	setProject(project: SessionWorkspace): void;
+	setIsolationMode(mode: IsolationMode): void;
 	setBranch(branch: string | undefined): void;
 	setModelId(modelId: string | undefined): void;
 	setMode(mode: IChatMode | undefined): void;
@@ -61,14 +61,14 @@ const AGENT_OPTION_ID = 'agent';

 /**
 * Local new session for Background agent sessions.
- * Fires `onDidChange` for both `repoUri` and `targetMode` changes.
+ * Fires `onDidChange` for both `repoUri` and `isolationMode` changes.
 * Notifies the extension service with session options for each property change.
 */
-export class LocalNewSession extends Disposable implements INewSession {
+export class CopilotCLISession extends Disposable implements INewSession {

 	private _repoUri: URI | undefined;
-	private _project: SessionProject | undefined;
-	private _targetMode: TargetMode;
+	private _project: SessionWorkspace | undefined;
+	private _isolationMode: IsolationMode;
 	private _branch: string | undefined;
 	private _modelId: string | undefined;
 	private _mode: IChatMode | undefined;
@@ -81,8 +81,8 @@ export class LocalNewSession extends Disposable implements INewSession {
 	readonly target = AgentSessionProviders.Background;
 	readonly selectedOptions = new Map<string, IChatSessionProviderOptionItem>();

-	get project(): SessionProject | undefined { return this._project; }
-	get targetMode(): TargetMode { return this._targetMode; }
+	get project(): SessionWorkspace | undefined { return this._project; }
+	get isolationMode(): IsolationMode { return this._isolationMode; }
 	get branch(): string | undefined { return this._branch; }
 	get modelId(): string | undefined { return this._modelId; }
 	get mode(): IChatMode | undefined { return this._mode; }
@@ -92,7 +92,7 @@ export class LocalNewSession extends Disposable implements INewSession {
 		if (!this._repoUri) {
 			return true;
 		}
-		if (this._targetMode === 'worktree' && !this._branch) {
+		if (this._isolationMode === 'worktree' && !this._branch) {
 			return true;
 		}
 		return false;
@@ -109,24 +109,24 @@ export class LocalNewSession extends Disposable implements INewSession {
 			this._repoUri = defaultRepoUri;
 			this.setOption(REPOSITORY_OPTION_ID, defaultRepoUri.fsPath);
 		}
-		this._targetMode = 'worktree';
+		this._isolationMode = 'worktree';
 		this.setOption(ISOLATION_OPTION_ID, 'worktree');
 	}

-	setProject(project: SessionProject): void {
+	setProject(project: SessionWorkspace): void {
 		this._project = project;
 		this._repoUri = project.uri;
-		this.setTargetMode('worktree');
+		this.setIsolationMode('worktree');
 		this._branch = undefined;
 		this._onDidChange.fire('repoUri');
 		this._onDidChange.fire('disabled');
 		this.setOption(REPOSITORY_OPTION_ID, project.uri.fsPath);
 	}

-	setTargetMode(mode: TargetMode): void {
-		if (this._targetMode !== mode) {
-			this._targetMode = mode;
-			this._onDidChange.fire('targetMode');
+	setIsolationMode(mode: IsolationMode): void {
+		if (this._isolationMode !== mode) {
+			this._isolationMode = mode;
+			this._onDidChange.fire('isolationMode');
 			this._onDidChange.fire('disabled');
 			this.setOption(ISOLATION_OPTION_ID, mode);
 		}
@@ -183,7 +183,7 @@ export class LocalNewSession extends Disposable implements INewSession {
 export class RemoteNewSession extends Disposable implements INewSession {

 	private _repoUri: URI | undefined;
-	private _project: SessionProject | undefined;
+	private _project: SessionWorkspace | undefined;
 	private _modelId: string | undefined;
 	private _query: string | undefined;
 	private _attachedContext: IChatRequestVariableEntry[] | undefined;
@@ -196,8 +196,8 @@ export class RemoteNewSession extends Disposable implements INewSession {

 	readonly selectedOptions = new Map<string, IChatSessionProviderOptionItem>();

-	get project(): SessionProject | undefined { return this._project; }
-	get targetMode(): TargetMode { return 'cloud'; }
+	get project(): SessionWorkspace | undefined { return this._project; }
+	get isolationMode(): undefined { return undefined; }
 	get branch(): string | undefined { return undefined; }
 	get modelId(): string | undefined { return this._modelId; }
 	get mode(): IChatMode | undefined { return undefined; }
@@ -232,7 +232,7 @@ export class RemoteNewSession extends Disposable implements INewSession {
 		}));
 	}

-	setProject(project: SessionProject): void {
+	setProject(project: SessionWorkspace): void {
 		this._project = project;
 		this._repoUri = project.uri;
 		this._onDidChange.fire('repoUri');
@@ -241,7 +241,7 @@ export class RemoteNewSession extends Disposable implements INewSession {
 		this.setOption('repositories', { id, name: id });
 	}

-	setTargetMode(_mode: TargetMode): void {
+	setIsolationMode(_mode: IsolationMode): void {
 		// No-op for remote sessions
 	}

--- a/src/vs/sessions/contrib/chat/browser/sessionTargetPicker.ts
+++ b/src/vs/sessions/contrib/chat/browser/sessionTargetPicker.ts
@@ -12,49 +12,173 @@ import { localize } from '../../../../nls.js';
 import { IActionWidgetService } from '../../../../platform/actionWidget/browser/actionWidget.js';
 import { ActionListItemKind, IActionListDelegate, IActionListItem } from '../../../../platform/actionWidget/browser/actionList.js';
 import { IConfigurationService } from '../../../../platform/configuration/common/configuration.js';
-import { SessionProject } from '../../sessions/common/sessionProject.js';
+import { SessionWorkspace } from '../../sessions/common/sessionWorkspace.js';
+
+// #region --- Types ---
+
+export type SessionTargetType = 'copilot-cli' | 'cloud';
+export type IsolationMode = 'worktree' | 'workspace';
+
+// #endregion

 // #region --- Target Picker ---

-export type TargetMode = 'worktree' | 'workspace' | 'cloud';
-
 /**
- * A self-contained widget for selecting the session target mode.
+ * A self-contained widget for selecting the session target type.
 *
 * Options:
- * - **Worktree** (`worktree`) — shown when a folder with a git repo is selected
- * - **Folder** (`workspace`) — shown only when isolation option is enabled
- * - **Cloud** (`cloud`) — shown and auto-selected when a repository is picked; disabled
+ * - **Copilot CLI** (`cli`) — local agent session
+ * - **Cloud** (`cloud`) — remote/cloud agent session
 *
- * Emits `onDidChange` with the selected `TargetMode` when the user picks an option.
+ * The target is determined by the project type (folder → CLI, repo → Cloud).
+ * Emits `onDidChange` with the selected `SessionTargetType` when the target changes.
 */
-export class TargetPicker extends Disposable {
+export class SessionTypePicker extends Disposable {

-	private _targetMode: TargetMode = 'worktree';
-	private _project: SessionProject | undefined;
-	private _isolationOptionEnabled: boolean = true;
+	private _sessionTarget: SessionTargetType = 'copilot-cli';
+	private _project: SessionWorkspace | undefined;

-	private readonly _onDidChange = this._register(new Emitter<TargetMode>());
-	readonly onDidChange: Event<TargetMode> = this._onDidChange.event;
+	private readonly _onDidChange = this._register(new Emitter<SessionTargetType>());
+	readonly onDidChange: Event<SessionTargetType> = this._onDidChange.event;

 	private readonly _renderDisposables = this._register(new DisposableStore());
 	private _slotElement: HTMLElement | undefined;
 	private _triggerElement: HTMLElement | undefined;

-	get targetMode(): TargetMode {
-		return this._targetMode;
+	get sessionTarget(): SessionTargetType {
+		return this._sessionTarget;
 	}

-	get isWorktree(): boolean {
-		return this._targetMode === 'worktree';
-	}
-
-	get isFolder(): boolean {
-		return this._targetMode === 'workspace';
+	get isCli(): boolean {
+		return this._sessionTarget === 'copilot-cli';
 	}

 	get isCloud(): boolean {
-		return this._targetMode === 'cloud';
+		return this._sessionTarget === 'cloud';
+	}
+
+	constructor(
+	) {
+		super();
+	}
+
+	/**
+	 * Sets the current project context. Determines the target type:
+	 * - Repo project → cloud
+	 * - Folder project → cli
+	 * - No project → retains current target
+	 */
+	setProject(project: SessionWorkspace | undefined): void {
+		this._project = project;
+		this._updateTarget();
+		this._updateTriggerLabel();
+	}
+
+	private _updateTarget(): void {
+		if (this._project?.isRepo) {
+			this._setTarget('cloud');
+			return;
+		}
+
+		if (this._project?.isFolder) {
+			this._setTarget('copilot-cli');
+			return;
+		}
+	}
+
+	render(container: HTMLElement): void {
+		this._renderDisposables.clear();
+
+		const slot = dom.append(container, dom.$('.sessions-chat-picker-slot'));
+		this._slotElement = slot;
+		this._renderDisposables.add({ dispose: () => slot.remove() });
+
+		const trigger = dom.append(slot, dom.$('a.action-label'));
+		trigger.tabIndex = -1;
+		trigger.role = 'button';
+		trigger.setAttribute('aria-disabled', 'true');
+		this._triggerElement = trigger;
+		this._updateTriggerLabel();
+	}
+
+	private _setTarget(target: SessionTargetType): void {
+		if (this._sessionTarget !== target) {
+			this._sessionTarget = target;
+			this._updateTriggerLabel();
+			this._onDidChange.fire(target);
+		}
+	}
+
+	private _updateTriggerLabel(): void {
+		if (!this._triggerElement) {
+			return;
+		}
+
+		dom.clearNode(this._triggerElement);
+
+		let modeIcon;
+		let modeLabel: string;
+
+		switch (this._sessionTarget) {
+			case 'cloud':
+				modeIcon = Codicon.cloud;
+				modeLabel = localize('sessionTarget.cloud', "Cloud");
+				break;
+			case 'copilot-cli':
+			default:
+				modeIcon = Codicon.worktree;
+				modeLabel = localize('sessionTarget.cli', "Copilot CLI");
+				break;
+		}
+
+		dom.append(this._triggerElement, renderIcon(modeIcon));
+		const labelSpan = dom.append(this._triggerElement, dom.$('span.sessions-chat-dropdown-label'));
+		labelSpan.textContent = modeLabel;
+
+		this._slotElement?.classList.toggle('disabled', true);
+	}
+}
+
+// #endregion
+
+// #region --- Isolation Picker ---
+
+/**
+ * A self-contained widget for selecting the isolation mode.
+ *
+ * Options:
+ * - **Worktree** (`worktree`) — run in a git worktree
+ * - **Folder** (`workspace`) — run directly in the folder
+ *
+ * Only visible when isolation option is enabled, project has a git repo,
+ * and the target is CLI.
+ *
+ * Emits `onDidChange` with the selected `IsolationMode` when the user picks an option.
+ */
+export class IsolationPicker extends Disposable {
+
+	private _isolationMode: IsolationMode = 'worktree';
+	private _hasGitRepo = false;
+	private _visible = true;
+	private _isolationOptionEnabled: boolean;
+
+	private readonly _onDidChange = this._register(new Emitter<IsolationMode>());
+	readonly onDidChange: Event<IsolationMode> = this._onDidChange.event;
+
+	private readonly _renderDisposables = this._register(new DisposableStore());
+	private _slotElement: HTMLElement | undefined;
+	private _triggerElement: HTMLElement | undefined;
+
+	get isolationMode(): IsolationMode {
+		return this._isolationMode;
+	}
+
+	get isWorktree(): boolean {
+		return this._isolationMode === 'worktree';
+	}
+
+	get isFolder(): boolean {
+		return this._isolationMode === 'workspace';
 	}

 	constructor(
@@ -67,35 +191,37 @@ export class TargetPicker extends Disposable {
 		this._register(this.configurationService.onDidChangeConfiguration(e => {
 			if (e.affectsConfiguration('github.copilot.chat.cli.isolationOption.enabled')) {
 				this._isolationOptionEnabled = this.configurationService.getValue<boolean>('github.copilot.chat.cli.isolationOption.enabled') !== false;
-				this._updateMode();
+				if (!this._isolationOptionEnabled) {
+					// Reset to worktree when isolation option is disabled
+					this._setMode('worktree');
+				}
+				this._updateVisibility();
 				this._updateTriggerLabel();
 			}
 		}));
 	}

 	/**
-	 * Sets the current project context. Determines the available target modes:
-	 * - Repo project → cloud mode (disabled picker)
-	 * - Folder with git repo → retains current local mode (worktree/folder)
-	 * - Folder without git repo → folder mode only
-	 * - No project → retains current mode
+	 * Sets whether the project has a git repository.
+	 * Resets isolation mode to the appropriate default.
 	 */
-	setProject(project: SessionProject | undefined): void {
-		this._project = project;
-		this._updateMode();
+	setHasGitRepo(hasRepo: boolean): void {
+		this._hasGitRepo = hasRepo;
+		if (!hasRepo) {
+			this._setMode('workspace');
+		} else {
+			this._setMode('worktree');
+		}
+		this._updateVisibility();
 		this._updateTriggerLabel();
 	}

-	private _updateMode(): void {
-		if (this._project?.isRepo) {
-			this._setMode('cloud');
-			return;
-		}
-
-		if (this._project?.isFolder) {
-			this._setMode(this._project.repository ? 'worktree' : 'workspace');
-			return;
-		}
+	/**
+	 * Sets external visibility (e.g. hidden when target is Cloud).
+	 */
+	setVisible(visible: boolean): void {
+		this._visible = visible;
+		this._updateVisibility();
 	}

 	render(container: HTMLElement): void {
@@ -110,6 +236,7 @@ export class TargetPicker extends Disposable {
 		trigger.role = 'button';
 		this._triggerElement = trigger;
 		this._updateTriggerLabel();
+		this._updateVisibility();

 		this._renderDisposables.add(dom.addDisposableListener(trigger, dom.EventType.CLICK, (e) => {
 			dom.EventHelper.stop(e, true);
@@ -125,35 +252,31 @@ export class TargetPicker extends Disposable {
 	}

 	private _showPicker(): void {
-		if (!this._triggerElement || this.actionWidgetService.isVisible || this._targetMode === 'cloud') {
+		if (!this._triggerElement || this.actionWidgetService.isVisible) {
 			return;
 		}

-		// No picker when there's no git repo — only Folder mode is available
-		if (!this._project?.repository) {
+		if (!this._hasGitRepo || !this._isolationOptionEnabled) {
 			return;
 		}

-		const items: IActionListItem<TargetMode>[] = [
+		const items: IActionListItem<IsolationMode>[] = [
 			{
 				kind: ActionListItemKind.Action,
-				label: localize('targetMode.worktree', "Worktree"),
+				label: localize('isolationMode.worktree', "Worktree"),
 				group: { title: '', icon: Codicon.worktree },
 				item: 'worktree',
 			},
-		];
-
-		if (this._isolationOptionEnabled) {
-			items.push({
+			{
 				kind: ActionListItemKind.Action,
-				label: localize('targetMode.folder', "Folder"),
+				label: localize('isolationMode.folder', "Folder"),
 				group: { title: '', icon: Codicon.folder },
 				item: 'workspace',
-			});
-		}
+			},
+		];

 		const triggerElement = this._triggerElement;
-		const delegate: IActionListDelegate<TargetMode> = {
+		const delegate: IActionListDelegate<IsolationMode> = {
 			onSelect: (mode) => {
 				this.actionWidgetService.hide();
 				this._setMode(mode);
@@ -161,8 +284,8 @@ export class TargetPicker extends Disposable {
 			onHide: () => { triggerElement.focus(); },
 		};

-		this.actionWidgetService.show<TargetMode>(
-			'targetPicker',
+		this.actionWidgetService.show<IsolationMode>(
+			'isolationPicker',
 			false,
 			items,
 			delegate,
@@ -171,19 +294,27 @@ export class TargetPicker extends Disposable {
 			[],
 			{
 				getAriaLabel: (item) => item.label ?? '',
-				getWidgetAriaLabel: () => localize('targetPicker.ariaLabel', "Target"),
+				getWidgetAriaLabel: () => localize('isolationPicker.ariaLabel', "Isolation Mode"),
 			},
 		);
 	}

-	private _setMode(mode: TargetMode): void {
-		if (this._targetMode !== mode) {
-			this._targetMode = mode;
+	private _setMode(mode: IsolationMode): void {
+		if (this._isolationMode !== mode) {
+			this._isolationMode = mode;
 			this._updateTriggerLabel();
 			this._onDidChange.fire(mode);
 		}
 	}

+	private _updateVisibility(): void {
+		if (!this._slotElement) {
+			return;
+		}
+		const shouldShow = this._visible && this._hasGitRepo && this._isolationOptionEnabled;
+		this._slotElement.style.display = shouldShow ? '' : 'none';
+	}
+
 	private _updateTriggerLabel(): void {
 		if (!this._triggerElement) {
 			return;
@@ -193,25 +324,16 @@ export class TargetPicker extends Disposable {

 		let modeIcon;
 		let modeLabel: string;
-		let isDisabled: boolean = true;

-		if (this._project?.isFolder && this._project.repository) {
-			isDisabled = !this._isolationOptionEnabled;
-		}
-
-		switch (this._targetMode) {
-			case 'cloud':
-				modeIcon = Codicon.cloud;
-				modeLabel = localize('targetMode.cloud', "Cloud");
-				break;
+		switch (this._isolationMode) {
 			case 'workspace':
 				modeIcon = Codicon.folder;
-				modeLabel = localize('targetMode.folder', "Folder");
+				modeLabel = localize('isolationMode.folder', "Folder");
 				break;
 			case 'worktree':
 			default:
 				modeIcon = Codicon.worktree;
-				modeLabel = localize('targetMode.worktree', "Worktree");
+				modeLabel = localize('isolationMode.worktree', "Worktree");
 				break;
 		}

@@ -219,12 +341,6 @@ export class TargetPicker extends Disposable {
 		const labelSpan = dom.append(this._triggerElement, dom.$('span.sessions-chat-dropdown-label'));
 		labelSpan.textContent = modeLabel;
 		dom.append(this._triggerElement, renderIcon(Codicon.chevronDown));
-
-		this._slotElement?.classList.toggle('disabled', isDisabled);
-		if (this._triggerElement) {
-			this._triggerElement.tabIndex = isDisabled ? -1 : 0;
-			this._triggerElement.setAttribute('aria-disabled', String(isDisabled));
-		}
 	}
 }

--- a/src/vs/sessions/contrib/chat/browser/workspacePicker.ts
+++ b/src/vs/sessions/contrib/chat/browser/workspacePicker.ts
@@ -17,7 +17,7 @@ import { IFileDialogService } from '../../../../platform/dialogs/common/dialogs.
 import { IStorageService, StorageScope, StorageTarget } from '../../../../platform/storage/common/storage.js';
 import { IUriIdentityService } from '../../../../platform/uriIdentity/common/uriIdentity.js';
 import { renderIcon } from '../../../../base/browser/ui/iconLabel/iconLabels.js';
-import { GITHUB_REMOTE_FILE_SCHEME, SessionProject } from '../../sessions/common/sessionProject.js';
+import { GITHUB_REMOTE_FILE_SCHEME, SessionWorkspace } from '../../sessions/common/sessionWorkspace.js';

 const OPEN_REPO_COMMAND = 'github.copilot.chat.cloudSessions.openRepository';
 const STORAGE_KEY_LAST_PROJECT = 'sessions.lastPickedProject';
@@ -51,18 +51,18 @@ interface IStoredProject {
 * - "Browse Folders..." — opens a folder dialog
 * - "Browse Repositories..." — runs the cloud repository picker command
 */
-export class ProjectPicker extends Disposable {
+export class WorkspacePicker extends Disposable {

-	private readonly _onDidSelectProject = this._register(new Emitter<SessionProject>());
-	readonly onDidSelectProject: Event<SessionProject> = this._onDidSelectProject.event;
+	private readonly _onDidSelectProject = this._register(new Emitter<SessionWorkspace>());
+	readonly onDidSelectProject: Event<SessionWorkspace> = this._onDidSelectProject.event;

-	private _selectedProject: SessionProject | undefined;
+	private _selectedProject: SessionWorkspace | undefined;
 	private _recentProjects: IStoredProject[] = [];

 	private _triggerElement: HTMLElement | undefined;
 	private readonly _renderDisposables = this._register(new DisposableStore());

-	get selectedProject(): SessionProject | undefined {
+	get selectedProject(): SessionWorkspace | undefined {
 		return this._selectedProject;
 	}

@@ -134,7 +134,7 @@ export class ProjectPicker extends Disposable {
 		try {
 			const lastFolder = this.storageService.get(LEGACY_STORAGE_KEY_LAST_FOLDER, StorageScope.PROFILE);
 			if (lastFolder) {
-				this._selectedProject = new SessionProject(URI.parse(lastFolder));
+				this._selectedProject = new SessionWorkspace(URI.parse(lastFolder));
 				return;
 			}
 		} catch { /* ignore */ }
@@ -143,7 +143,7 @@ export class ProjectPicker extends Disposable {
 			const lastRepo = this.storageService.get(LEGACY_STORAGE_KEY_LAST_REPO, StorageScope.PROFILE);
 			if (lastRepo) {
 				const repo: { id: string; name: string } = JSON.parse(lastRepo);
-				this._selectedProject = new SessionProject(URI.from({ scheme: GITHUB_REMOTE_FILE_SCHEME, authority: 'github', path: `/${repo.id}/HEAD` }));
+				this._selectedProject = new SessionWorkspace(URI.from({ scheme: GITHUB_REMOTE_FILE_SCHEME, authority: 'github', path: `/${repo.id}/HEAD` }));
 			}
 		} catch { /* ignore */ }
 	}
@@ -155,7 +155,7 @@ export class ProjectPicker extends Disposable {
 	render(container: HTMLElement): HTMLElement {
 		this._renderDisposables.clear();

-		const slot = dom.append(container, dom.$('.sessions-chat-picker-slot.sessions-chat-project-picker'));
+		const slot = dom.append(container, dom.$('.sessions-chat-picker-slot.sessions-chat-workspace-picker'));
 		this._renderDisposables.add({ dispose: () => slot.remove() });

 		const trigger = dom.append(slot, dom.$('a.action-label'));
@@ -207,10 +207,10 @@ export class ProjectPicker extends Disposable {
 			onHide: () => { triggerElement.focus(); },
 		};

-		const listOptions = showFilter ? { showFilter: true, filterPlaceholder: localize('projectPicker.filter', "Filter projects...") } : undefined;
+		const listOptions = showFilter ? { showFilter: true, filterPlaceholder: localize('workspacePicker.filter', "Search Workspaces...") } : undefined;

 		this.actionWidgetService.show<IStoredProject>(
-			'projectPicker',
+			'workspacePicker',
 			false,
 			items,
 			delegate,
@@ -219,7 +219,7 @@ export class ProjectPicker extends Disposable {
 			[],
 			{
 				getAriaLabel: (item) => item.label ?? '',
-				getWidgetAriaLabel: () => localize('projectPicker.ariaLabel', "Project Picker"),
+				getWidgetAriaLabel: () => localize('workspacePicker.ariaLabel', "Workspace Picker"),
 			},
 			listOptions,
 		);
@@ -229,7 +229,7 @@ export class ProjectPicker extends Disposable {
 	 * Programmatically set the selected project.
 	 * @param fireEvent Whether to fire the onDidSelectProject event. Defaults to true.
 	 */
-	setSelectedProject(project: SessionProject, fireEvent = true): void {
+	setSelectedProject(project: SessionWorkspace, fireEvent = true): void {
 		this._selectProject(project, fireEvent);
 	}

@@ -254,7 +254,7 @@ export class ProjectPicker extends Disposable {
 		}
 	}

-	private _selectProject(project: SessionProject, fireEvent = true): void {
+	private _selectProject(project: SessionWorkspace, fireEvent = true): void {
 		this._selectedProject = project;
 		const stored = this._toStored(project);
 		this._addToRecents(stored);
@@ -274,7 +274,7 @@ export class ProjectPicker extends Disposable {
 				title: localize('selectFolder', "Select Folder"),
 			});
 			if (selected?.[0]) {
-				this._selectProject(new SessionProject(selected[0]));
+				this._selectProject(new SessionWorkspace(selected[0]));
 			}
 		} catch {
 			// dialog was cancelled or failed
@@ -285,7 +285,7 @@ export class ProjectPicker extends Disposable {
 		try {
 			const result: string | undefined = await this.commandService.executeCommand(OPEN_REPO_COMMAND);
 			if (result) {
-				this._selectProject(new SessionProject(URI.from({ scheme: GITHUB_REMOTE_FILE_SCHEME, authority: 'github', path: `/${result}/HEAD` })));
+				this._selectProject(new SessionWorkspace(URI.from({ scheme: GITHUB_REMOTE_FILE_SCHEME, authority: 'github', path: `/${result}/HEAD` })));
 			}
 		} catch {
 			// command was cancelled or failed
@@ -386,7 +386,7 @@ export class ProjectPicker extends Disposable {

 		dom.clearNode(this._triggerElement);
 		const project = this._selectedProject;
-		const label = project ? this._getProjectLabel(project) : localize('pickProject', "Pick a Project");
+		const label = project ? this._getProjectLabel(project) : localize('pickWorkspace', "Pick a Workspace");
 		const icon = project ? (project.isFolder ? Codicon.folder : Codicon.repo) : Codicon.project;

 		dom.append(this._triggerElement, renderIcon(icon));
@@ -395,7 +395,7 @@ export class ProjectPicker extends Disposable {
 		dom.append(this._triggerElement, renderIcon(Codicon.chevronDown));
 	}

-	private _getProjectLabel(project: SessionProject): string {
+	private _getProjectLabel(project: SessionWorkspace): string {
 		return this._getStoredProjectLabel({ uri: project.uri.toJSON() });
 	}

@@ -408,14 +408,14 @@ export class ProjectPicker extends Disposable {
 		return uri.path.substring(1).replace(/\/HEAD$/, '');
 	}

-	private _toStored(project: SessionProject): IStoredProject {
+	private _toStored(project: SessionWorkspace): IStoredProject {
 		return {
 			uri: project.uri.toJSON(),
 		};
 	}

-	private _fromStored(stored: IStoredProject): SessionProject {
-		return new SessionProject(URI.revive(stored.uri));
+	private _fromStored(stored: IStoredProject): SessionWorkspace {
+		return new SessionWorkspace(URI.revive(stored.uri));
 	}

 	private _projectKey(project: IStoredProject): string {
--- a/src/vs/sessions/contrib/fileTreeView/browser/fileTreeView.contribution.ts
+++ b/src/vs/sessions/contrib/fileTreeView/browser/fileTreeView.contribution.ts
@@ -8,7 +8,7 @@ import { IFileService } from '../../../../platform/files/common/files.js';
 import { IInstantiationService } from '../../../../platform/instantiation/common/instantiation.js';
 import { registerWorkbenchContribution2, WorkbenchPhase } from '../../../../workbench/common/contributions.js';
 import { GitHubFileSystemProvider } from './githubFileSystemProvider.js';
-import { GITHUB_REMOTE_FILE_SCHEME } from '../../sessions/common/sessionProject.js';
+import { GITHUB_REMOTE_FILE_SCHEME } from '../../sessions/common/sessionWorkspace.js';

 // --- View registration is currently disabled in favor of the "Add Context" picker.
 // The Files view will be re-enabled once we finalize the sessions auxiliary bar layout.
--- a/src/vs/sessions/contrib/fileTreeView/browser/fileTreeView.ts
+++ b/src/vs/sessions/contrib/fileTreeView/browser/fileTreeView.ts
@@ -44,7 +44,7 @@ import { ITelemetryService } from '../../../../platform/telemetry/common/telemet
 import { ILogService } from '../../../../platform/log/common/log.js';
 import { ISessionsManagementService, IActiveSessionItem } from '../../sessions/browser/sessionsManagementService.js';
 import { getGitHubRemoteFileDisplayName } from './githubFileSystemProvider.js';
-import { GITHUB_REMOTE_FILE_SCHEME } from '../../sessions/common/sessionProject.js';
+import { GITHUB_REMOTE_FILE_SCHEME } from '../../sessions/common/sessionWorkspace.js';
 import { basename } from '../../../../base/common/path.js';
 import { isEqual } from '../../../../base/common/resources.js';

--- a/src/vs/sessions/contrib/fileTreeView/browser/githubFileSystemProvider.ts
+++ b/src/vs/sessions/contrib/fileTreeView/browser/githubFileSystemProvider.ts
@@ -12,7 +12,7 @@ import { IAuthenticationService } from '../../../../workbench/services/authentic
 import { CancellationToken } from '../../../../base/common/cancellation.js';
 import { ILogService } from '../../../../platform/log/common/log.js';

-import { GITHUB_REMOTE_FILE_SCHEME } from '../../sessions/common/sessionProject.js';
+import { GITHUB_REMOTE_FILE_SCHEME } from '../../sessions/common/sessionWorkspace.js';

 /**
 * Derives a display name from a github-remote-file URI.
--- a/src/vs/sessions/contrib/github/test/browser/githubService.test.ts
+++ b/src/vs/sessions/contrib/github/test/browser/githubService.test.ts
@@ -10,7 +10,7 @@ import { NullLogService, ILogService } from '../../../../../platform/log/common/
 import { TestInstantiationService } from '../../../../../platform/instantiation/test/common/instantiationServiceMock.js';
 import { GitHubService } from '../../browser/githubService.js';
 import { URI } from '../../../../../base/common/uri.js';
-import { GITHUB_REMOTE_FILE_SCHEME } from '../../../sessions/common/sessionProject.js';
+import { GITHUB_REMOTE_FILE_SCHEME } from '../../../sessions/common/sessionWorkspace.js';
 import { IActiveSessionItem } from '../../../sessions/browser/sessionsManagementService.js';

 suite('GitHubService', () => {
--- a/src/vs/sessions/contrib/sessions/browser/sessionsManagementService.ts
+++ b/src/vs/sessions/contrib/sessions/browser/sessionsManagementService.ts
@@ -21,12 +21,12 @@ import { IAgentSession, isAgentSession } from '../../../../workbench/contrib/cha
 import { IAgentSessionsService } from '../../../../workbench/contrib/chat/browser/agentSessions/agentSessionsService.js';
 import { ICommandService } from '../../../../platform/commands/common/commands.js';
 import { AgentSessionProviders } from '../../../../workbench/contrib/chat/browser/agentSessions/agentSessions.js';
-import { INewSession, LocalNewSession, RemoteNewSession } from '../../chat/browser/newSession.js';
+import { INewSession, CopilotCLISession, RemoteNewSession } from '../../chat/browser/newSession.js';
 import { IUriIdentityService } from '../../../../platform/uriIdentity/common/uriIdentity.js';
 import { isBuiltinChatMode } from '../../../../workbench/contrib/chat/common/chatModes.js';
 import { ILanguageModelsService } from '../../../../workbench/contrib/chat/common/languageModels.js';
 import { ILanguageModelToolsService } from '../../../../workbench/contrib/chat/common/tools/languageModelToolsService.js';
-import { GITHUB_REMOTE_FILE_SCHEME } from '../common/sessionProject.js';
+import { GITHUB_REMOTE_FILE_SCHEME } from '../common/sessionWorkspace.js';
 import { IGitHubSessionContext } from '../../github/common/types.js';
 import { ResourceSet } from '../../../../base/common/map.js';

@@ -267,7 +267,7 @@ export class SessionsManagementService extends Disposable implements ISessionsMa

 		let newSession: INewSession;
 		if (target === AgentSessionProviders.Background) {
-			newSession = this.instantiationService.createInstance(LocalNewSession, sessionResource, defaultRepoUri);
+			newSession = this.instantiationService.createInstance(CopilotCLISession, sessionResource, defaultRepoUri);
 		} else {
 			newSession = this.instantiationService.createInstance(RemoteNewSession, sessionResource, target);
 		}
--- a/src/vs/sessions/contrib/sessions/common/sessionWorkspace.ts
+++ b/src/vs/sessions/contrib/sessions/common/sessionWorkspace.ts
@@ -9,10 +9,10 @@ import { IGitRepository } from '../../../../workbench/contrib/git/common/gitServ
 export const GITHUB_REMOTE_FILE_SCHEME = 'github-remote-file';

 /**
- * Represents a project (folder or repository) for a session.
- * The project type (folder vs repo) is derived from the URI scheme.
+ * Represents a workspace (folder or repository) for a session.
+ * The workspace type (folder vs repo) is derived from the URI scheme.
 */
-export class SessionProject {
+export class SessionWorkspace {

 	readonly uri: URI;
 	readonly repository: IGitRepository | undefined;
@@ -22,18 +22,18 @@ export class SessionProject {
 		this.repository = repository;
 	}

-	/** Whether this is a local folder project. */
+	/** Whether this is a local folder workspace. */
 	get isFolder(): boolean {
 		return this.uri.scheme !== GITHUB_REMOTE_FILE_SCHEME;
 	}

-	/** Whether this is a remote repository project. */
+	/** Whether this is a remote repository workspace. */
 	get isRepo(): boolean {
 		return this.uri.scheme === GITHUB_REMOTE_FILE_SCHEME;
 	}

-	/** Returns a new SessionProject with the repository updated. */
-	withRepository(repository: IGitRepository | undefined): SessionProject {
-		return new SessionProject(this.uri, repository);
+	/** Returns a new SessionWorkspace with the repository updated. */
+	withRepository(repository: IGitRepository | undefined): SessionWorkspace {
+		return new SessionWorkspace(this.uri, repository);
 	}
 }