diff --git a/.vscode/settings.json b/.vscode/settings.json
index 9fc915163ee..8ccf6b95f1d 100644
--- a/.vscode/settings.json
+++ b/.vscode/settings.json
@@ -214,5 +214,4 @@
 	"azureMcp.serverMode": "all",
 	"azureMcp.readOnly": true,
 	"chat.tools.terminal.outputLocation": "none",
-	"chat.agentSessionsViewLocation": "single-view"
 }
diff --git a/src/vs/workbench/contrib/chat/browser/actions/chatActions.ts b/src/vs/workbench/contrib/chat/browser/actions/chatActions.ts
index ab07d381d89..2ccecb2b96d 100644
--- a/src/vs/workbench/contrib/chat/browser/actions/chatActions.ts
+++ b/src/vs/workbench/contrib/chat/browser/actions/chatActions.ts
@@ -516,8 +516,8 @@ export function registerChatActions() {
 							ContextKeyExpr.equals('view', ChatViewId),
 							ChatContextKeys.inEmptyStateWithHistoryEnabled.negate()
 						),
-						group: 'navigation',
-						order: 2
+						group: '2_history',
+						order: 1
 					},
 					{
 						id: MenuId.EditorTitle,
diff --git a/src/vs/workbench/contrib/chat/browser/chat.contribution.ts b/src/vs/workbench/contrib/chat/browser/chat.contribution.ts
index 5b8ac17f346..0251b256d13 100644
--- a/src/vs/workbench/contrib/chat/browser/chat.contribution.ts
+++ b/src/vs/workbench/contrib/chat/browser/chat.contribution.ts
@@ -529,7 +529,7 @@ configurationRegistry.registerConfiguration({
 			type: 'string',
 			enum: ['disabled', 'view', 'single-view'],
 			description: nls.localize('chat.sessionsViewLocation.description', "Controls where to show the agent sessions menu."),
-			default: 'view',
+			default: product.quality === 'stable' ? 'view' : 'single-view',
 			tags: ['experimental'],
 			experiment: {
 				mode: 'auto'
diff --git a/src/vs/workbench/contrib/chat/browser/chatSetup.ts b/src/vs/workbench/contrib/chat/browser/chatSetup.ts
index 9f504dd75b6..f275faa8289 100644
--- a/src/vs/workbench/contrib/chat/browser/chatSetup.ts
+++ b/src/vs/workbench/contrib/chat/browser/chatSetup.ts
@@ -87,6 +87,7 @@ import { IPosition } from '../../../../editor/common/core/position.js';
 import { IMarker, IMarkerService, MarkerSeverity } from '../../../../platform/markers/common/markers.js';
 import { EditorContextKeys } from '../../../../editor/common/editorContextKeys.js';
 import { ICodeEditorService } from '../../../../editor/browser/services/codeEditorService.js';
+import { AGENT_SESSIONS_VIEW_CONTAINER_ID } from './agentSessions/agentSessions.js';
 
 const defaultChat = {
 	extensionId: product.defaultChatAgent?.extensionId ?? '',
@@ -1672,9 +1673,12 @@ export class ChatTeardownContribution extends Disposable implements IWorkbenchCo
 		const activeContainers = this.viewDescriptorService.getViewContainersByLocation(ViewContainerLocation.AuxiliaryBar).filter(
 			container => this.viewDescriptorService.getViewContainerModel(container).activeViewDescriptors.length > 0
 		);
+		const hasChatView = activeContainers.some(container => container.id === CHAT_SIDEBAR_PANEL_ID);
+		const hasAgentSessionsView = activeContainers.some(container => container.id === AGENT_SESSIONS_VIEW_CONTAINER_ID);
 		if (
-			(activeContainers.length === 0) ||  													// chat view is already gone but we know it was there before
-			(activeContainers.length === 1 && activeContainers.at(0)?.id === CHAT_SIDEBAR_PANEL_ID) // chat view is the only view which is going to go away
+			(activeContainers.length === 0) ||  										// chat view is already gone but we know it was there before
+			(activeContainers.length === 1 && (hasChatView || hasAgentSessionsView)) || // chat view or agent sessions is the only view which is going to go away
+			(activeContainers.length === 2 && hasChatView && hasAgentSessionsView) 		// both chat and agent sessions view are going to go away
 		) {
 			this.layoutService.setPartHidden(true, Parts.AUXILIARYBAR_PART); // hide if there are no views in the secondary sidebar
 		}