diff --git a/src/vs/workbench/contrib/chat/browser/actions/chatNewActions.ts b/src/vs/workbench/contrib/chat/browser/actions/chatNewActions.ts
index 06ad0a46914..ff0d3e0b06a 100644
--- a/src/vs/workbench/contrib/chat/browser/actions/chatNewActions.ts
+++ b/src/vs/workbench/contrib/chat/browser/actions/chatNewActions.ts
@@ -16,7 +16,7 @@ import { KeybindingWeight } from '../../../../../platform/keybinding/common/keyb
 import { ActiveEditorContext } from '../../../../common/contextkeys.js';
 import { ChatContextKeys } from '../../common/chatContextKeys.js';
 import { IChatEditingSession } from '../../common/chatEditingService.js';
-import { ChatModeKind } from '../../common/constants.js';
+import { ChatAgentLocation, ChatModeKind } from '../../common/constants.js';
 import { ChatViewId, IChatWidgetService } from '../chat.js';
 import { EditingSessionAction, getEditingSessionContext } from '../chatEditing/chatEditingActions.js';
 import { ChatEditorInput } from '../chatEditorInput.js';
@@ -82,7 +82,7 @@ export function registerNewChatActions() {
 				title: localize2('chat.newEdits.label', "New Chat"),
 				category: CHAT_CATEGORY,
 				icon: Codicon.plus,
-				precondition: ContextKeyExpr.and(ChatContextKeys.enabled),
+				precondition: ContextKeyExpr.and(ChatContextKeys.enabled, ChatContextKeys.location.isEqualTo(ChatAgentLocation.Chat)),
 				f1: true,
 				menu: [
 					{
diff --git a/src/vs/workbench/contrib/inlineChat/browser/inlineChatController.ts b/src/vs/workbench/contrib/inlineChat/browser/inlineChatController.ts
index 0ab1e4008e2..0b860c31704 100644
--- a/src/vs/workbench/contrib/inlineChat/browser/inlineChatController.ts
+++ b/src/vs/workbench/contrib/inlineChat/browser/inlineChatController.ts
@@ -1244,7 +1244,6 @@ export class InlineChatController2 implements IEditorContribution {
 	}
 
 	private readonly _store = new DisposableStore();
-	private readonly _showWidgetOverrideObs = observableValue(this, false);
 	private readonly _isActiveController = observableValue(this, false);
 	private readonly _zone: Lazy<InlineChatZoneWidget>;
 
@@ -1291,7 +1290,7 @@ export class InlineChatController2 implements IEditorContribution {
 						selection: this._editor.getSelection(),
 						document,
 						wholeRange,
-						close: () => this._showWidgetOverrideObs.set(false, undefined),
+						close: () => { /* TODO@jrieken */ },
 						delegateSessionResource: chatService.editingSessions.find(session =>
 							session.entries.get().some(e => e.hasModificationAt({
 								range: wholeRange,
@@ -1382,17 +1381,8 @@ export class InlineChatController2 implements IEditorContribution {
 
 			if (!session || !isActive || !model) {
 				visibleSessionObs.set(undefined, undefined);
-				return;
-			}
-
-			const { chatModel } = session;
-			const showShowUntil = this._showWidgetOverrideObs.read(r);
-			const hasNoRequests = chatModel.getRequests().length === 0;
-
-			if (showShowUntil || hasNoRequests) {
-				visibleSessionObs.set(session, undefined);
 			} else {
-				visibleSessionObs.set(undefined, undefined);
+				visibleSessionObs.set(session, undefined);
 			}
 		}));