diff --git a/src/vs/workbench/contrib/inlineChat/browser/inlineChatController.ts b/src/vs/workbench/contrib/inlineChat/browser/inlineChatController.ts
index 9c387879fd8..8c3052f63c9 100644
--- a/src/vs/workbench/contrib/inlineChat/browser/inlineChatController.ts
+++ b/src/vs/workbench/contrib/inlineChat/browser/inlineChatController.ts
@@ -55,7 +55,7 @@ import { EditorBasedInlineChatWidget } from './inlineChatWidget.js';
 import { InlineChatZoneWidget } from './inlineChatZoneWidget.js';
 import { ChatAgentLocation } from '../../chat/common/constants.js';
 import { ChatContextKeys } from '../../chat/common/chatContextKeys.js';
-import { IChatEditingService, ModifiedFileEntryState } from '../../chat/common/chatEditingService.js';
+import { ModifiedFileEntryState } from '../../chat/common/chatEditingService.js';
 import { observableConfigValue } from '../../../../platform/observable/common/platformObservableUtils.js';
 import { ISharedWebContentExtractorService } from '../../../../platform/webContentExtractor/common/webContentExtractor.js';
 import { IFileService } from '../../../../platform/files/common/files.js';
@@ -1499,16 +1499,15 @@ export async function reviewEdits(accessor: ServicesAccessor, editor: ICodeEdito
 	}
 
 	const chatService = accessor.get(IChatService);
-	const chatEditingService = accessor.get(IChatEditingService);
-
 	const uri = editor.getModel().uri;
 	const chatModel = chatService.startSession(ChatAgentLocation.Editor, token, false);
 
-	const editSession = await chatEditingService.createEditingSession(chatModel);
+	chatModel.startEditingSession(true);
+
+	const editSession = await chatModel.editingSessionObs?.promise;
 
 	const store = new DisposableStore();
 	store.add(chatModel);
-	store.add(editSession);
 
 	// STREAM
 	const chatRequest = chatModel?.addRequest({ text: '', parts: [] }, { variables: [] }, 0);
@@ -1526,11 +1525,11 @@ export async function reviewEdits(accessor: ServicesAccessor, editor: ICodeEdito
 	chatRequest.response.updateContent({ kind: 'textEdit', uri, edits: [], done: true });
 
 	if (!token.isCancellationRequested) {
-		chatRequest.response.complete();
+		chatModel.completeResponse(chatRequest);
 	}
 
 	const isSettled = derived(r => {
-		const entry = editSession.readEntry(uri, r);
+		const entry = editSession?.readEntry(uri, r);
 		if (!entry) {
 			return false;
 		}
diff --git a/src/vs/workbench/contrib/inlineChat/browser/inlineChatSessionServiceImpl.ts b/src/vs/workbench/contrib/inlineChat/browser/inlineChatSessionServiceImpl.ts
index 52169f74762..2ebe866eed1 100644
--- a/src/vs/workbench/contrib/inlineChat/browser/inlineChatSessionServiceImpl.ts
+++ b/src/vs/workbench/contrib/inlineChat/browser/inlineChatSessionServiceImpl.ts
@@ -93,7 +93,11 @@ export class InlineChatSessionServiceImpl implements IInlineChatSessionService {
 		@IChatWidgetService private readonly _chatWidgetService: IChatWidgetService,
 		@IConfigurationService private readonly _configurationService: IConfigurationService,
 	) {
-		this.hideOnRequest = observableConfigValue(InlineChatConfigKeys.HideOnRequest, false, this._configurationService);
+
+		const v2 = observableConfigValue(InlineChatConfigKeys.EnableV2, false, this._configurationService);
+
+		this.hideOnRequest = observableConfigValue(InlineChatConfigKeys.HideOnRequest, false, this._configurationService)
+			.map((value, r) => v2.read(r) && value);
 	}
 
 	dispose() {
diff --git a/src/vs/workbench/contrib/inlineChat/common/inlineChat.ts b/src/vs/workbench/contrib/inlineChat/common/inlineChat.ts
index a3436539e99..99240d7a38d 100644
--- a/src/vs/workbench/contrib/inlineChat/common/inlineChat.ts
+++ b/src/vs/workbench/contrib/inlineChat/common/inlineChat.ts
@@ -66,7 +66,7 @@ Registry.as<IConfigurationRegistry>(Extensions.Configuration).registerConfigurat
 			tags: ['preview', 'onExp'],
 		},
 		[InlineChatConfigKeys.HideOnRequest]: {
-			description: localize('hideOnRequest', "Whether to hide the inline chat widget after making a request. When enabled, the widget hides after a request has been made and instead the chat overlay shows. When hidden, the widget can always be shown again with the inline chat keybinding or from the chat overlay widget."),
+			markdownDescription: localize('hideOnRequest', "Whether to hide the inline chat widget after making a request. When enabled, the widget hides after a request has been made and instead the chat overlay shows. When hidden, the widget can always be shown again with the inline chat keybinding or from the chat overlay widget. *Note* that this setting requires `#inlineChat.enableV2#` to be enabled."),
 			default: false,
 			type: 'boolean',
 			tags: ['preview', 'onExp'],