diff --git a/.github/instructions/sessions.instructions.md b/.github/instructions/sessions.instructions.md
index ef9dd0066c7..6dec29dbb1c 100644
--- a/.github/instructions/sessions.instructions.md
+++ b/.github/instructions/sessions.instructions.md
@@ -11,3 +11,10 @@ When working on files under `src/vs/sessions/`, use these skills for detailed gu
 
 - **`sessions`** skill — covers the full architecture: layering, folder structure, chat widget, menus, contributions, entry points, and development guidelines
 - **`agent-sessions-layout`** skill — covers the fixed layout structure, grid configuration, part visibility, editor modal, titlebar, sidebar footer, and implementation requirements
+
+## Touch & iOS Compatibility
+
+The Agents window can run on touch-capable platforms (notably iOS). Follow these rules for all DOM interaction code:
+
+- Do not use `EventType.MOUSE_DOWN`, `EventType.MOUSE_UP`, or `EventType.MOUSE_MOVE` with `addDisposableListener` directly — on iOS, these events don't fire because the platform uses pointer events. Use `addDisposableGenericMouseDownListener`, `addDisposableGenericMouseUpListener`, or `addDisposableGenericMouseMoveListener` instead, which automatically select the correct event type per platform.
+- Add `touch-action: manipulation` in CSS on custom clickable elements (e.g. picker triggers, title bar pills, or other `<div>`/`<span>` elements styled as buttons) to eliminate the 300ms tap delay on touch devices. This is not needed for native `<button>` elements or standard VS Code widgets (quick picks, context menus, action bar items) which already handle touch behavior.
diff --git a/.github/skills/heap-snapshot-analysis/SKILL.md b/.github/skills/heap-snapshot-analysis/SKILL.md
index 41a906c079b..2f49c9966fd 100644
--- a/.github/skills/heap-snapshot-analysis/SKILL.md
+++ b/.github/skills/heap-snapshot-analysis/SKILL.md
@@ -33,6 +33,8 @@ If the user needs the agent to launch VS Code, drive a scenario, and capture sna
 
 Use the helpers in [parseSnapshot.ts](./helpers/parseSnapshot.ts) to load snapshots. The files are often >500MB and too large for `JSON.parse` as a string — the helpers use Buffer-based extraction. In scratchpad scripts, import helpers from `../helpers/*.ts`.
 
+For very large snapshots, the helper may still be too eager. Node cannot create a Buffer larger than roughly 2 GiB, so snapshots above that size can fail with `ERR_FS_FILE_TOO_LARGE` even before parsing. In that case, do not try to raise `--max-old-space-size` and retry the same full-file read. Switch to a streaming script.
+
 ```typescript
 import { parseSnapshot, buildGraph } from '../helpers/parseSnapshot.ts';
 
@@ -40,6 +42,44 @@ const data = parseSnapshot('/path/to/snapshot.heapsnapshot');
 const graph = buildGraph(data);
 ```
 
+#### Snapshots Larger Than 2 GiB
+
+When a snapshot is too large to load into a single Buffer, write scratchpad scripts that scan and parse only the sections needed for the question. Use [streamSnapshot.mjs](./helpers/streamSnapshot.mjs) for the common streaming primitives instead of copying them between scratch scripts.
+
+Useful tricks:
+
+- Find top-level section offsets first. Scan the file as bytes for markers like `"nodes":`, `"edges":`, `"strings":`, and `"trace_function_infos":`. This lets follow-up scripts jump directly to the large arrays instead of searching the whole file repeatedly.
+- Parse `snapshot.meta` separately from the small header at the start of the file. Use `meta.node_fields`, `meta.node_types`, `meta.edge_fields`, and `meta.edge_types` to avoid hard-coding tuple widths.
+- Stream numeric arrays in chunks. For `nodes` and `edges`, keep a small carryover string between chunks, split on commas, and process complete numeric tokens as they arrive.
+- Avoid materializing the full `strings` table unless the investigation truly needs it. If you only need suspicious names, collect string indexes from matching nodes/edges first, then resolve only those indexes in a second streaming pass.
+- If you do need many strings, store only short previews and category counters. Full source strings, ref-listing strings, and prompt payloads can dominate memory and make the analyzer become the leak.
+- Write intermediate outputs to files in the scratchpad. Large heap analysis is iterative and slow; cached node ids, offsets, and retainer traces save repeated multi-minute passes.
+- Prefer self-size attribution and field-level ownership for huge graphs. Full retained-size walks can wildly overcount shared services, roots, maps, and singleton caches.
+- When quantifying a suspected owner, count obvious owned fields separately: wrapper object, key arrays, array elements, direct strings, and parent strings of sliced/concatenated strings. This often gives a better lower-bound than a single direct string bucket.
+- Be explicit about approximation boundaries. A field-level subtotal usually undercounts listeners/watchers/back-references but avoids the much worse problem of attributing the whole runtime to one object.
+
+Example large-snapshot workflow:
+
+```javascript
+import { findArrayStart, findTokenOffsets, parseMeta, streamNumberTuples } from '../../helpers/streamSnapshot.mjs';
+
+const { size, offsets } = findTokenOffsets(snapshotPath);
+const meta = parseMeta(snapshotPath);
+const nodeFieldCount = meta.node_fields.length;
+const nodesStart = findArrayStart(snapshotPath, offsets.get('"nodes"'));
+
+streamNumberTuples(snapshotPath, nodesStart, offsets.get('"edges"'), nodeFieldCount, (node, nodeIndex) => {
+    // node is reused for speed; copy it before storing.
+});
+```
+
+```bash
+cd .github/skills/heap-snapshot-analysis
+node --max-old-space-size=24576 scratchpad/YYYY-MM-DD-topic/findOffsets.mjs /path/to/Heap.heapsnapshot
+node --max-old-space-size=24576 scratchpad/YYYY-MM-DD-topic/streamAnalyze.mjs /path/to/Heap.heapsnapshot > scratchpad/YYYY-MM-DD-topic/streamAnalyze.out
+node --max-old-space-size=24576 scratchpad/YYYY-MM-DD-topic/traceNodes.mjs /path/to/Heap.heapsnapshot 12345 67890 > scratchpad/YYYY-MM-DD-topic/traceNodes.out
+```
+
 ### 2. Compare Before/After
 
 Use [compareSnapshots.ts](./helpers/compareSnapshots.ts) to diff two snapshots:
@@ -134,6 +174,7 @@ override dispose() {
 
 ### False Retainers to Watch For
 
+- **DevTools debugger global handles**: If the snapshot was captured after opening DevTools, large source strings, compiled scripts, preview data, inspected objects, or debugger bookkeeping can be retained by paths like `DevTools debugger(internal)` → `synthetic::(Global handles)` → GC roots. Treat these as debugger-induced until proven otherwise. They may not exist in the app before DevTools opens, and they should not be confused with application-owned leaks.
 - **`DevToolsLogger._aliveInstances`** (Map): Enabled by `VSCODE_DEV_DEBUG_OBSERVABLES` env var. Retains ALL observed observables. Check if this is active before investigating observable-rooted paths.
 - **`GCBasedDisposableTracker` (FinalizationRegistry)**: If `register(target, held, target)` is used (target === unregister token), creates a strong self-reference preventing GC. Currently commented out in production.
 - **WeakMap backing arrays**: Show up in retainer paths but don't prevent collection.
diff --git a/.github/skills/heap-snapshot-analysis/helpers/streamSnapshot.mjs b/.github/skills/heap-snapshot-analysis/helpers/streamSnapshot.mjs
new file mode 100644
index 00000000000..242f9afc5a0
--- /dev/null
+++ b/.github/skills/heap-snapshot-analysis/helpers/streamSnapshot.mjs
@@ -0,0 +1,260 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import { closeSync, openSync, readSync, statSync } from 'fs';
+
+export const defaultTopLevelTokens = [
+	'"meta"',
+	'"nodes"',
+	'"edges"',
+	'"trace_function_infos"',
+	'"trace_tree"',
+	'"samples"',
+	'"locations"',
+	'"strings"'
+];
+
+export function formatBytes(bytes) {
+	if (Math.abs(bytes) < 1024) {
+		return `${bytes} B`;
+	}
+	if (Math.abs(bytes) < 1024 * 1024) {
+		return `${(bytes / 1024).toFixed(1)} KB`;
+	}
+	return `${(bytes / 1024 / 1024).toFixed(1)} MB`;
+}
+
+export function findTokenOffsets(path, tokens = defaultTopLevelTokens, options = {}) {
+	const stat = statSync(path);
+	const fd = openSync(path, 'r');
+	const chunkSize = options.chunkSize ?? 8 * 1024 * 1024;
+	const overlap = options.overlap ?? 256;
+	const found = new Map();
+	let previous = Buffer.alloc(0);
+	let position = 0;
+
+	try {
+		while (position < stat.size && found.size < tokens.length) {
+			const toRead = Math.min(chunkSize, stat.size - position);
+			const chunk = Buffer.allocUnsafe(toRead);
+			const bytesRead = readSync(fd, chunk, 0, toRead, position);
+			if (bytesRead <= 0) {
+				break;
+			}
+
+			const combined = Buffer.concat([previous, chunk.subarray(0, bytesRead)]);
+
+			for (const token of tokens) {
+				if (found.has(token)) {
+					continue;
+				}
+
+				const index = combined.indexOf(token);
+				if (index !== -1) {
+					found.set(token, position - previous.length + index);
+				}
+			}
+
+			previous = combined.subarray(Math.max(0, combined.length - overlap));
+			position += bytesRead;
+		}
+	} finally {
+		closeSync(fd);
+	}
+
+	return { size: stat.size, offsets: found };
+}
+
+export function readRange(path, start, length) {
+	const fd = openSync(path, 'r');
+	const buffer = Buffer.allocUnsafe(length);
+	let offset = 0;
+
+	try {
+		while (offset < length) {
+			const bytesRead = readSync(fd, buffer, offset, length - offset, start + offset);
+			if (bytesRead === 0) {
+				return buffer.subarray(0, offset);
+			}
+			offset += bytesRead;
+		}
+		return buffer;
+	} finally {
+		closeSync(fd);
+	}
+}
+
+export function parseMeta(path, options = {}) {
+	const maxBytes = options.maxBytes ?? 1024 * 1024;
+	const buffer = readRange(path, 0, maxBytes);
+	const metaPosition = buffer.indexOf(Buffer.from('"meta"'));
+	if (metaPosition === -1) {
+		throw new Error('Unable to find snapshot meta section');
+	}
+
+	const start = buffer.indexOf(Buffer.from('{'), metaPosition);
+	if (start === -1) {
+		throw new Error('Unable to find snapshot meta object start');
+	}
+
+	let depth = 0;
+	for (let i = start; i < buffer.length; i++) {
+		if (buffer[i] === 0x22) {
+			i++;
+			while (i < buffer.length) {
+				if (buffer[i] === 0x5c) {
+					i += 2;
+					continue;
+				}
+				if (buffer[i] === 0x22) {
+					break;
+				}
+				i++;
+			}
+			continue;
+		}
+
+		if (buffer[i] === 0x7b) {
+			depth++;
+		} else if (buffer[i] === 0x7d) {
+			depth--;
+			if (depth === 0) {
+				return JSON.parse(buffer.subarray(start, i + 1).toString('utf8'));
+			}
+		}
+	}
+
+	throw new Error(`Unable to parse snapshot meta within first ${formatBytes(maxBytes)}`);
+}
+
+export function findArrayStart(path, tokenOffset, options = {}) {
+	const windowSize = options.windowSize ?? 4096;
+	const buffer = readRange(path, tokenOffset, windowSize);
+	const bracket = buffer.indexOf(Buffer.from('['));
+	if (bracket === -1) {
+		throw new Error(`Unable to find array start near offset ${tokenOffset}`);
+	}
+	return tokenOffset + bracket + 1;
+}
+
+export function streamNumberArray(path, start, end, onNumber, options = {}) {
+	const fd = openSync(path, 'r');
+	const chunkSize = options.chunkSize ?? 16 * 1024 * 1024;
+	const buffer = Buffer.allocUnsafe(chunkSize);
+	let position = start;
+	let number = 0;
+	let inNumber = false;
+	let numberIndex = 0;
+
+	try {
+		while (position < end) {
+			const toRead = Math.min(chunkSize, end - position);
+			const bytesRead = readSync(fd, buffer, 0, toRead, position);
+			if (bytesRead <= 0) {
+				break;
+			}
+
+			for (let i = 0; i < bytesRead; i++) {
+				const code = buffer[i];
+				if (code >= 0x30 && code <= 0x39) {
+					number = number * 10 + code - 0x30;
+					inNumber = true;
+				} else if (inNumber) {
+					onNumber(number, numberIndex++);
+					number = 0;
+					inNumber = false;
+					if (code === 0x5d) {
+						return numberIndex;
+					}
+				} else if (code === 0x5d) {
+					return numberIndex;
+				}
+			}
+
+			position += bytesRead;
+		}
+
+		if (inNumber) {
+			onNumber(number, numberIndex++);
+		}
+		return numberIndex;
+	} finally {
+		closeSync(fd);
+	}
+}
+
+/**
+ * Streams fixed-size tuples from a number array.
+ *
+ * By default, the same mutable tuple array instance is reused for each callback
+ * invocation to avoid per-tuple allocations. Callers must not retain that array
+ * reference after onTuple returns unless options.copyTuple is enabled.
+ */
+export function streamNumberTuples(path, start, end, tupleSize, onTuple, options = {}) {
+	const tuple = new Array(tupleSize);
+	const copyTuple = options.copyTuple === true;
+	let tupleIndex = 0;
+	let fieldIndex = 0;
+
+	const numberCount = streamNumberArray(path, start, end, value => {
+		tuple[fieldIndex++] = value;
+		if (fieldIndex === tupleSize) {
+			onTuple(copyTuple ? tuple.slice() : tuple, tupleIndex++);
+			fieldIndex = 0;
+		}
+	}, options);
+
+	if (fieldIndex !== 0) {
+		throw new Error(`Number array ended with an incomplete tuple: ${fieldIndex}/${tupleSize}`);
+	}
+
+	return { numberCount, tupleCount: tupleIndex };
+}
+
+export function parseStrings(path, stringsTokenOffset, options = {}) {
+	const normalizedOptions = typeof options === 'number' ? { fileSize: options } : options;
+	const fileSize = normalizedOptions.fileSize ?? statSync(path).size;
+	const length = fileSize - stringsTokenOffset;
+	const maxBytes = normalizedOptions.maxBytes ?? 512 * 1024 * 1024;
+
+	if (length > maxBytes) {
+		throw new Error(`Refusing to parse ${formatBytes(length)} strings section into one Buffer. Pass a larger maxBytes value only if this is intentional.`);
+	}
+
+	const buffer = readRange(path, stringsTokenOffset, length);
+	const start = buffer.indexOf(Buffer.from('['));
+	if (start === -1) {
+		throw new Error(`Unable to find strings array near offset ${stringsTokenOffset}`);
+	}
+
+	let depth = 0;
+	for (let i = start; i < buffer.length; i++) {
+		if (buffer[i] === 0x22) {
+			i++;
+			while (i < buffer.length) {
+				if (buffer[i] === 0x5c) {
+					i += 2;
+					continue;
+				}
+				if (buffer[i] === 0x22) {
+					break;
+				}
+				i++;
+			}
+			continue;
+		}
+
+		if (buffer[i] === 0x5b) {
+			depth++;
+		} else if (buffer[i] === 0x5d) {
+			depth--;
+			if (depth === 0) {
+				return JSON.parse(buffer.subarray(start, i + 1).toString('utf8'));
+			}
+		}
+	}
+
+	throw new Error('Unable to parse strings array');
+}
diff --git a/.github/workflows/no-engineering-system-changes.yml b/.github/workflows/no-engineering-system-changes.yml
index b567d125884..77c04be0718 100644
--- a/.github/workflows/no-engineering-system-changes.yml
+++ b/.github/workflows/no-engineering-system-changes.yml
@@ -88,22 +88,54 @@ jobs:
           fi
         env:
           GH_TOKEN: ${{ secrets.GITHUB_TOKEN }}
+      - name: Allow cherry-pick bot PRs
+        id: cherry_pick_exception
+        if: ${{ steps.engineering_systems_check.outputs.engineering_systems_modified == 'true' && steps.bot_field_exception.outputs.allowed != 'true' && github.event.pull_request.user.login == 'vs-code-engineering[bot]' && startsWith(github.event.pull_request.title, '[cherry-pick]') }}
+        run: |
+          # The label is applied ~2s after PR creation, so the webhook payload
+          # may not include it yet. Fetch current labels from the API with retries.
+          for attempt in 1 2 3; do
+            if gh api repos/${{ github.repository }}/issues/${{ github.event.pull_request.number }}/labels --jq '.[].name' | grep -qx 'cherry-pick-artifact'; then
+              echo "Cherry-pick PR by vs-code-engineering bot with cherry-pick-artifact label — allowing"
+              echo "allowed=true" >> $GITHUB_OUTPUT
+              exit 0
+            fi
+            if [ "$attempt" -lt 3 ]; then
+              echo "cherry-pick-artifact label not present yet (attempt $attempt/3); retrying in 2s"
+              sleep 2
+            fi
+          done
+          echo "Cherry-pick PR by bot but missing cherry-pick-artifact label after retries — not allowed"
+          echo "allowed=false" >> $GITHUB_OUTPUT
+        env:
+          GH_TOKEN: ${{ secrets.GITHUB_TOKEN }}
+      - name: Determine if engineering system changes are allowed
+        id: allowed
+        if: ${{ steps.engineering_systems_check.outputs.engineering_systems_modified == 'true' }}
+        run: |
+          if [[ "${{ steps.bot_field_exception.outputs.allowed }}" == "true" || "${{ steps.cherry_pick_exception.outputs.allowed }}" == "true" ]]; then
+            echo "Engineering system changes are allowed by an exception"
+            echo "blocked=false" >> $GITHUB_OUTPUT
+          else
+            echo "No exception applies — enforcing restrictions"
+            echo "blocked=true" >> $GITHUB_OUTPUT
+          fi
       - name: Prevent Copilot from modifying engineering systems
-        if: ${{ steps.engineering_systems_check.outputs.engineering_systems_modified == 'true' && steps.bot_field_exception.outputs.allowed != 'true' && github.event.pull_request.user.login == 'Copilot' }}
+        if: ${{ steps.allowed.outputs.blocked == 'true' && github.event.pull_request.user.login == 'Copilot' }}
         run: |
           echo "Copilot is not allowed to modify .github/workflows, build folder files, or package.json files."
           echo "If you need to update engineering systems, please do so manually or through authorized means."
           exit 1
       - uses: octokit/request-action@b91aabaa861c777dcdb14e2387e30eddf04619ae # v3.0.0
         id: get_permissions
-        if: ${{ steps.engineering_systems_check.outputs.engineering_systems_modified == 'true' && steps.bot_field_exception.outputs.allowed != 'true' && github.event.pull_request.user.login != 'Copilot' }}
+        if: ${{ steps.allowed.outputs.blocked == 'true' && github.event.pull_request.user.login != 'Copilot' }}
         with:
           route: GET /repos/microsoft/vscode/collaborators/${{ github.event.pull_request.user.login }}/permission
         env:
           GITHUB_TOKEN: ${{ secrets.GITHUB_TOKEN }}
       - name: Set control output variable
         id: control
-        if: ${{ steps.engineering_systems_check.outputs.engineering_systems_modified == 'true' && steps.bot_field_exception.outputs.allowed != 'true' && github.event.pull_request.user.login != 'Copilot' }}
+        if: ${{ steps.allowed.outputs.blocked == 'true' && github.event.pull_request.user.login != 'Copilot' }}
         run: |
           echo "user: ${{ github.event.pull_request.user.login }}"
           echo "role: ${{ fromJson(steps.get_permissions.outputs.data).permission }}"
@@ -111,7 +143,7 @@ jobs:
           echo "should_run: ${{ !contains(fromJson('["admin", "maintain", "write"]'), fromJson(steps.get_permissions.outputs.data).permission) }}"
           echo "should_run=${{ !contains(fromJson('["admin", "maintain", "write"]'), fromJson(steps.get_permissions.outputs.data).permission) && github.event.pull_request.user.login != 'dependabot[bot]' }}" >> $GITHUB_OUTPUT
       - name: Check for engineering system changes
-        if: ${{ steps.engineering_systems_check.outputs.engineering_systems_modified == 'true' && steps.bot_field_exception.outputs.allowed != 'true' && steps.control.outputs.should_run == 'true' }}
+        if: ${{ steps.allowed.outputs.blocked == 'true' && steps.control.outputs.should_run == 'true' }}
         run: |
           echo "Changes to .github/workflows/, build/ folder files, or package.json files aren't allowed in PRs."
           exit 1
diff --git a/.npmrc b/.npmrc
index afaf9fccd33..025e4b04d2b 100644
--- a/.npmrc
+++ b/.npmrc
@@ -1,6 +1,6 @@
 disturl="https://electronjs.org/headers"
-target="39.8.7"
-ms_build_id="13841579"
+target="39.8.8"
+ms_build_id="13870025"
 runtime="electron"
 ignore-scripts=false
 build_from_source="true"
diff --git a/build/azure-pipelines/product-copilot-recovery.yml b/build/azure-pipelines/product-copilot-recovery.yml
index 92078b5154d..056bdedaed7 100644
--- a/build/azure-pipelines/product-copilot-recovery.yml
+++ b/build/azure-pipelines/product-copilot-recovery.yml
@@ -71,3 +71,4 @@ extends:
 
     publishExtension: ${{ parameters.publishExtension }}
     ghReleasePublishVSIX: true
+    ghTagPrefix: 'copilot/'
diff --git a/build/checksums/electron.txt b/build/checksums/electron.txt
index 6aacfecc747..9a9269e0013 100644
--- a/build/checksums/electron.txt
+++ b/build/checksums/electron.txt
@@ -1,75 +1,75 @@
-2e2a3533f9969ded3b11eb0baa5357abeb652975d9bcaea0b0725c9bd0866061 *chromedriver-v39.8.7-darwin-arm64.zip
-c74882bcbdd53f6e8cd65906809ac446bb032dce3ce8f109e2376d49b9b394ee *chromedriver-v39.8.7-darwin-x64.zip
-a8caf72372eb47deb336dc440eb183c30d228b3fef5349dac7571d86103f117c *chromedriver-v39.8.7-linux-arm64.zip
-5d5f02b2e28e8328435d2fd83207098e69dc3e5fecbbbdc2612792370ab2c4ec *chromedriver-v39.8.7-linux-armv7l.zip
-e336dc2dce9d11d44f6eb5b5cc655d3311a9a109ea184625da3ac51181c3ad27 *chromedriver-v39.8.7-linux-x64.zip
-8c795231a7d143cb242083e466763007609ffa63b65f6c7a8b46c4e95bf04748 *chromedriver-v39.8.7-mas-arm64.zip
-5033c9550cb25a228fee9ecb2179f4258847585ee1d8609aec14f42d5aeb654b *chromedriver-v39.8.7-mas-x64.zip
-9834624a8f92bec9931a8b74ce2e1195e0527f61f88c18367129371cfeb7d87b *chromedriver-v39.8.7-win32-arm64.zip
-fffd2a04a1e3a9d0b2aeb47044c308c6ef9e361f23b2d120e19f507f4de53e1c *chromedriver-v39.8.7-win32-ia32.zip
-7b25598ba3db1b0df6253e7233ef68e4cb9764aa7f62d854fe3c620edfbb2a7c *chromedriver-v39.8.7-win32-x64.zip
-ca234cdbdf5cd724adaf5079d860a3d510d8cdfbff7c9392d7b6b0e6948593f7 *electron-api.json
-62fe91fbbe83d68e713ee48d1dbbad06dc3f2be739eb649002e390a585a4639d *electron-v39.8.7-darwin-arm64-dsym-snapshot.zip
-c837b62c12dc16dd41244fbc2c4f8c97ceb93d56ae6a41064782f6876bf01ac0 *electron-v39.8.7-darwin-arm64-dsym.zip
-e4d96c888bbe699e7be9dc90aa39b64dd23dbe3f42d86f354c490f77a9fb6c41 *electron-v39.8.7-darwin-arm64-symbols.zip
-86fa117ba10e36149ca33d7c22de2cfc3fb7490ca88b07ce953d2efe1f2a41cd *electron-v39.8.7-darwin-arm64.zip
-4182678fadb19e0d9be6b7411e18a1e8e5801d14c99fcb5faa5d8a32f3af2cab *electron-v39.8.7-darwin-x64-dsym-snapshot.zip
-765c509e1f3090bdf9610e9b618264bf8251ac708b2d7ffb4550ce75f036a6aa *electron-v39.8.7-darwin-x64-dsym.zip
-52804dec7a659502d4d2df194d4a14abc70dad315cff001712100feb640c589d *electron-v39.8.7-darwin-x64-symbols.zip
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diff --git a/build/gulpfile.reh.ts b/build/gulpfile.reh.ts
index 2c44fc9427f..3c0e3a16d02 100644
--- a/build/gulpfile.reh.ts
+++ b/build/gulpfile.reh.ts
@@ -34,7 +34,7 @@ import * as cp from 'child_process';
 import log from 'fancy-log';
 import buildfile from './buildfile.ts';
 import { fetchUrls, fetchGithub } from './lib/fetch.ts';
-import { getCopilotExcludeFilter, copyCopilotNativeDeps, prepareBuiltInCopilotExtensionShims } from './lib/copilot.ts';
+import { getCopilotExcludeFilter, prepareBuiltInCopilotRipgrepShim } from './lib/copilot.ts';
 import jsonEditor from 'gulp-json-editor';
 
 
@@ -463,14 +463,13 @@ function patchWin32DependenciesTask(destinationFolderName: string) {
 	};
 }
 
-function copyCopilotNativeDepsTaskREH(platform: string, arch: string, destinationFolderName: string) {
+function prepareCopilotRipgrepShimTaskREH(platform: string, arch: string, destinationFolderName: string) {
 	return async () => {
 		const outputDir = path.join(BUILD_ROOT, destinationFolderName);
 		const nodeModulesDir = path.join(outputDir, 'node_modules');
-		copyCopilotNativeDeps(platform, arch, nodeModulesDir);
 
 		const builtInCopilotExtensionDir = path.join(outputDir, 'extensions', 'copilot');
-		prepareBuiltInCopilotExtensionShims(platform, arch, builtInCopilotExtensionDir, nodeModulesDir);
+		prepareBuiltInCopilotRipgrepShim(platform, arch, builtInCopilotExtensionDir, nodeModulesDir);
 	};
 }
 
@@ -523,7 +522,7 @@ function tweakProductForServerWeb(product: typeof import('../product.json')) {
 				gulp.task(`node-${platform}-${arch}`) as task.Task,
 				util.rimraf(path.join(BUILD_ROOT, destinationFolderName)),
 				packageTask(type, platform, arch, sourceFolderName, destinationFolderName),
-				copyCopilotNativeDepsTaskREH(platform, arch, destinationFolderName)
+				prepareCopilotRipgrepShimTaskREH(platform, arch, destinationFolderName)
 			];
 
 			if (platform === 'win32') {
diff --git a/build/gulpfile.vscode.ts b/build/gulpfile.vscode.ts
index 31188a4ce9e..75ccf64fe7e 100644
--- a/build/gulpfile.vscode.ts
+++ b/build/gulpfile.vscode.ts
@@ -31,7 +31,7 @@ import minimist from 'minimist';
 import { compileBuildWithoutManglingTask, compileBuildWithManglingTask } from './gulpfile.compile.ts';
 import { compileNonNativeExtensionsBuildTask, compileNativeExtensionsBuildTask, compileAllExtensionsBuildTask, compileExtensionMediaBuildTask, cleanExtensionsBuildTask, compileCopilotExtensionBuildTask } from './gulpfile.extensions.ts';
 import { copyCodiconsTask } from './lib/compilation.ts';
-import { getCopilotExcludeFilter, copyCopilotNativeDeps, prepareBuiltInCopilotExtensionShims } from './lib/copilot.ts';
+import { getCopilotExcludeFilter, prepareBuiltInCopilotRipgrepShim } from './lib/copilot.ts';
 import type { EmbeddedProductInfo } from './lib/embeddedType.ts';
 import { useEsbuildTranspile } from './buildConfig.ts';
 import { promisify } from 'util';
@@ -700,7 +700,7 @@ function patchWin32DependenciesTask(destinationFolderName: string) {
 	};
 }
 
-function copyCopilotNativeDepsTask(platform: string, arch: string, destinationFolderName: string) {
+function prepareCopilotRipgrepShimTask(platform: string, arch: string, destinationFolderName: string) {
 	const outputDir = path.join(path.dirname(root), destinationFolderName);
 
 	return async () => {
@@ -711,10 +711,9 @@ function copyCopilotNativeDepsTask(platform: string, arch: string, destinationFo
 			? path.join(outputDir, `${product.nameLong}.app`, 'Contents', 'Resources', 'app')
 			: path.join(outputDir, versionedResourcesFolder, 'resources', 'app');
 		const appNodeModulesDir = path.join(appBase, 'node_modules');
-		copyCopilotNativeDeps(platform, arch, appNodeModulesDir);
 
 		const builtInCopilotExtensionDir = path.join(appBase, 'extensions', 'copilot');
-		prepareBuiltInCopilotExtensionShims(platform, arch, builtInCopilotExtensionDir, appNodeModulesDir);
+		prepareBuiltInCopilotRipgrepShim(platform, arch, builtInCopilotExtensionDir, appNodeModulesDir);
 	};
 }
 
@@ -743,7 +742,7 @@ BUILD_TARGETS.forEach(buildTarget => {
 			compileNativeExtensionsBuildTask,
 			util.rimraf(path.join(buildRoot, destinationFolderName)),
 			packageTask(platform, arch, sourceFolderName, destinationFolderName, opts),
-			copyCopilotNativeDepsTask(platform, arch, destinationFolderName)
+			prepareCopilotRipgrepShimTask(platform, arch, destinationFolderName)
 		];
 
 		if (platform === 'win32') {
diff --git a/build/lib/copilot.ts b/build/lib/copilot.ts
index f0e50ce9a80..fec1c3d0d85 100644
--- a/build/lib/copilot.ts
+++ b/build/lib/copilot.ts
@@ -46,8 +46,9 @@ function toNodePlatformArch(platform: string, arch: string): { nodePlatform: str
  * for architectures other than the build target.
  *
  * For platforms the copilot SDK doesn't natively support (e.g. alpine, armhf),
- * ALL platform packages are stripped - that's fine because the SDK doesn't ship
- * binaries for those platforms anyway, and we replace them with VS Code's own.
+ * ALL platform packages are stripped - that's fine because the copilot CLI SDK
+ * resolves `node-pty` from the embedder (VS Code) first via `hostRequire`,
+ * falling back to its bundled copy only if the embedder can't provide it.
  */
 export function getCopilotExcludeFilter(platform: string, arch: string): string[] {
 	const { nodePlatform, nodeArch } = toNodePlatformArch(platform, arch);
@@ -55,74 +56,30 @@ export function getCopilotExcludeFilter(platform: string, arch: string): string[
 	const nonTargetPlatforms = copilotPlatforms.filter(p => p !== targetPlatformArch);
 
 	// Strip wrong-architecture @github/copilot-{platform} packages.
-	// All copilot prebuilds are stripped by .moduleignore; VS Code's own
-	// node-pty is copied into the prebuilds location by a post-packaging task.
+	// All copilot prebuilds are stripped by .moduleignore; the copilot CLI SDK
+	// resolves `node-pty` from VS Code's own node_modules via `hostRequire`.
 	const excludes = nonTargetPlatforms.map(p => `!**/node_modules/@github/copilot-${p}/**`);
 
 	return ['**', ...excludes];
 }
 
 /**
- * Copies VS Code's own node-pty binaries into the copilot SDK's
- * expected locations so the copilot CLI subprocess can find them at runtime.
- * The copilot-bundled prebuilds are stripped by .moduleignore;
- * this replaces them with the same binaries VS Code already ships, avoiding
- * new system dependency requirements.
- *
- * This works even for platforms the copilot SDK doesn't natively support
- * (e.g. alpine, armhf) because the SDK's native module loader simply
- * looks for `prebuilds/{process.platform}-{process.arch}/pty.node` - it
- * doesn't validate the platform against a supported list.
- *
- * Failures are logged but do not throw, to avoid breaking the build on
- * platforms where something unexpected happens.
- *
- * @param nodeModulesDir Absolute path to the node_modules directory that
- *   contains both the source binaries (node-pty) and the copilot SDK
- *   target directories.
- */
-export function copyCopilotNativeDeps(platform: string, arch: string, nodeModulesDir: string): void {
-	const { nodePlatform, nodeArch } = toNodePlatformArch(platform, arch);
-	const platformArch = `${nodePlatform}-${nodeArch}`;
-
-	const copilotBase = path.join(nodeModulesDir, '@github', 'copilot');
-	if (!fs.existsSync(copilotBase)) {
-		console.warn(`[copyCopilotNativeDeps] @github/copilot not found at ${copilotBase}, skipping`);
-		return;
-	}
-
-	const nodePtySource = path.join(nodeModulesDir, 'node-pty', 'build', 'Release');
-	if (!fs.existsSync(nodePtySource)) {
-		console.warn(`[copyCopilotNativeDeps] node-pty source not found at ${nodePtySource}, skipping`);
-		return;
-	}
-
-	try {
-		// Copy node-pty (pty.node + spawn-helper on Unix, conpty.node + conpty/ on Windows)
-		// into copilot prebuilds so the SDK finds them via loadNativeModule.
-		const copilotPrebuildsDir = path.join(copilotBase, 'prebuilds', platformArch);
-		fs.mkdirSync(copilotPrebuildsDir, { recursive: true });
-		fs.cpSync(nodePtySource, copilotPrebuildsDir, { recursive: true });
-		console.log(`[copyCopilotNativeDeps] Copied node-pty from ${nodePtySource} to ${copilotPrebuildsDir}`);
-	} catch (err) {
-		console.warn(`[copyCopilotNativeDeps] Failed to copy node-pty for ${platformArch}: ${err}`);
-	}
-}
-
-/**
- * Materializes copilot CLI shims directly inside the built-in copilot extension.
+ * Materializes the copilot CLI ripgrep shim directly inside the built-in copilot extension.
  *
  * This is used when copilot is shipped as a built-in extension so startup does
- * not need to create shims at runtime. The destination layout matches the
+ * not need to create the shim at runtime. The destination layout matches the
  * runtime shim logic in the copilot extension:
- * - node-pty: node_modules/@github/copilot/sdk/prebuilds/{platform-arch}
  * - ripgrep:  node_modules/@github/copilot/sdk/ripgrep/bin/{platform-arch}
  * - marker:   node_modules/@github/copilot/shims.txt
  *
+ * Note: `node-pty` is no longer shimmed. The copilot CLI SDK resolves
+ * `node-pty` from the embedder (VS Code) via `hostRequire` and falls back to
+ * its bundled copy only if that fails.
+ *
  * Failures throw to fail the build because built-in packaging must guarantee
- * these artifacts are present.
+ * this artifact is present.
  */
-export function prepareBuiltInCopilotExtensionShims(platform: string, arch: string, builtInCopilotExtensionDir: string, appNodeModulesDir: string): void {
+export function prepareBuiltInCopilotRipgrepShim(platform: string, arch: string, builtInCopilotExtensionDir: string, appNodeModulesDir: string): void {
 	const { nodePlatform, nodeArch } = toNodePlatformArch(platform, arch);
 	const platformArch = `${nodePlatform}-${nodeArch}`;
 
@@ -130,33 +87,24 @@ export function prepareBuiltInCopilotExtensionShims(platform: string, arch: stri
 	const copilotBase = path.join(extensionNodeModules, '@github', 'copilot');
 	const copilotSdkBase = path.join(copilotBase, 'sdk');
 	if (!fs.existsSync(copilotSdkBase)) {
-		throw new Error(`[prepareBuiltInCopilotExtensionShims] Copilot SDK directory not found at ${copilotSdkBase}`);
-	}
-
-	const nodePtySource = path.join(appNodeModulesDir, 'node-pty', 'build', 'Release');
-	if (!fs.existsSync(nodePtySource)) {
-		throw new Error(`[prepareBuiltInCopilotExtensionShims] node-pty source not found at ${nodePtySource}`);
+		throw new Error(`[prepareBuiltInCopilotRipgrepShim] Copilot SDK directory not found at ${copilotSdkBase}`);
 	}
 
 	const ripgrepSource = path.join(appNodeModulesDir, '@vscode', 'ripgrep', 'bin');
 	if (!fs.existsSync(ripgrepSource)) {
-		throw new Error(`[prepareBuiltInCopilotExtensionShims] ripgrep source not found at ${ripgrepSource}`);
+		throw new Error(`[prepareBuiltInCopilotRipgrepShim] ripgrep source not found at ${ripgrepSource}`);
 	}
 
-	const nodePtyDest = path.join(copilotSdkBase, 'prebuilds', platformArch);
 	const ripgrepDest = path.join(copilotSdkBase, 'ripgrep', 'bin', platformArch);
 	const shimMarkerPath = path.join(copilotBase, 'shims.txt');
 
 	try {
-		fs.mkdirSync(nodePtyDest, { recursive: true });
-		fs.cpSync(nodePtySource, nodePtyDest, { recursive: true });
-
 		fs.mkdirSync(ripgrepDest, { recursive: true });
 		fs.cpSync(ripgrepSource, ripgrepDest, { recursive: true });
 
 		fs.writeFileSync(shimMarkerPath, 'Shims created successfully');
-		console.log(`[prepareBuiltInCopilotExtensionShims] Materialized shims for ${platformArch} in ${builtInCopilotExtensionDir}`);
+		console.log(`[prepareBuiltInCopilotRipgrepShim] Materialized ripgrep shim for ${platformArch} in ${builtInCopilotExtensionDir}`);
 	} catch (err) {
-		throw new Error(`[prepareBuiltInCopilotExtensionShims] Failed to materialize shims for ${platformArch}: ${err}`);
+		throw new Error(`[prepareBuiltInCopilotRipgrepShim] Failed to materialize ripgrep shim for ${platformArch}: ${err}`);
 	}
 }
diff --git a/build/lib/i18n.resources.json b/build/lib/i18n.resources.json
index 960c4f10529..d8d04044494 100644
--- a/build/lib/i18n.resources.json
+++ b/build/lib/i18n.resources.json
@@ -636,6 +636,10 @@
 			"name": "vs/sessions/contrib/agentFeedback",
 			"project": "vscode-sessions"
 		},
+		{
+			"name": "vs/sessions/contrib/agentHost",
+			"project": "vscode-sessions"
+		},
 		{
 			"name": "vs/sessions/contrib/aiCustomizationTreeView",
 			"project": "vscode-sessions"
@@ -672,10 +676,10 @@
 			"name": "vs/sessions/contrib/files",
 			"project": "vscode-sessions"
 		},
-                {
-                        "name": "vs/sessions/contrib/policyBlocked",
-                        "project": "vscode-sessions"
-                },
+		{
+			"name": "vs/sessions/contrib/policyBlocked",
+			"project": "vscode-sessions"
+		},
 		{
 			"name": "vs/sessions/contrib/git",
 			"project": "vscode-sessions"
@@ -684,10 +688,6 @@
 			"name": "vs/sessions/contrib/logs",
 			"project": "vscode-sessions"
 		},
-		{
-			"name": "vs/sessions/contrib/localAgentHost",
-			"project": "vscode-sessions"
-		},
 		{
 			"name": "vs/sessions/contrib/remoteAgentHost",
 			"project": "vscode-sessions"
@@ -711,6 +711,10 @@
 		{
 			"name": "vs/sessions/contrib/tunnelHost",
 			"project": "vscode-sessions"
+		},
+		{
+			"name": "vs/sessions/contrib/editor",
+			"project": "vscode-sessions"
 		}
 	]
 }
diff --git a/build/lib/stylelint/vscode-known-variables.json b/build/lib/stylelint/vscode-known-variables.json
index 59dfc331f35..a46bef0bbab 100644
--- a/build/lib/stylelint/vscode-known-variables.json
+++ b/build/lib/stylelint/vscode-known-variables.json
@@ -61,6 +61,9 @@
 		"--vscode-chat-avatarForeground",
 		"--vscode-chat-checkpointSeparator",
 		"--vscode-chat-editedFileForeground",
+		"--vscode-chat-inputWorkingBorderColor1",
+		"--vscode-chat-inputWorkingBorderColor2",
+		"--vscode-chat-inputWorkingBorderColor3",
 		"--vscode-chat-linesAddedForeground",
 		"--vscode-chat-linesRemovedForeground",
 		"--vscode-chat-requestBackground",
@@ -941,6 +944,7 @@
 		"--inline-chat-frame-progress",
 		"--insert-border-color",
 		"--last-tab-margin-right",
+		"--last-tab-layout-actions-width",
 		"--list-scroll-right-offset",
 		"--monaco-monospace-font",
 		"--monaco-monospace-font",
@@ -1036,6 +1040,8 @@
 		"--monaco-editor-warning-decoration",
 		"--animation-angle",
 		"--animation-opacity",
+		"--chat-input-anim-angle",
+		"--chat-send-button-anim-angle",
 		"--chat-setup-dialog-glow-angle",
 		"--vscode-chat-font-family",
 		"--vscode-chat-font-size-body-l",
diff --git a/cgmanifest.json b/cgmanifest.json
index 41466b8883d..5dfcbbfadca 100644
--- a/cgmanifest.json
+++ b/cgmanifest.json
@@ -529,13 +529,13 @@
 				"git": {
 					"name": "electron",
 					"repositoryUrl": "https://github.com/electron/electron",
-					"commitHash": "2d7e11a76ca841e08e31eb0121056d875f731f30",
-					"tag": "39.8.7"
+					"commitHash": "c0435f7a9fc498b1ece041d209c6c74d4a7e201b",
+					"tag": "39.8.8"
 				}
 			},
 			"isOnlyProductionDependency": true,
 			"license": "MIT",
-			"version": "39.8.7"
+			"version": "39.8.8"
 		},
 		{
 			"component": {
diff --git a/eslint.config.js b/eslint.config.js
index 8b6235587f8..ca35a088c17 100644
--- a/eslint.config.js
+++ b/eslint.config.js
@@ -159,21 +159,7 @@ export default tseslint.config(
 				}
 			],
 			'jsdoc/no-types': 'warn',
-			'local/code-no-static-self-ref': 'warn'
-		}
-	},
-	// vscode TS
-	{
-		files: [
-			'src/**/*.ts',
-		],
-		languageOptions: {
-			parser: tseslint.parser,
-		},
-		plugins: {
-			'@typescript-eslint': tseslint.plugin,
-		},
-		rules: {
+			'local/code-no-static-self-ref': 'warn',
 			'@typescript-eslint/naming-convention': [
 				'warn',
 				{
diff --git a/extensions/copilot/.esbuild.ts b/extensions/copilot/.esbuild.ts
index c5c11434b85..68dd4703578 100644
--- a/extensions/copilot/.esbuild.ts
+++ b/extensions/copilot/.esbuild.ts
@@ -183,7 +183,6 @@ const nodeExtHostBuildOptions = {
 		{ in: './src/platform/parser/node/parserWorker.ts', out: 'worker2' },
 		{ in: './src/platform/tokenizer/node/tikTokenizerWorker.ts', out: 'tikTokenizerWorker' },
 		{ in: './src/platform/diff/node/diffWorkerMain.ts', out: 'diffWorker' },
-		{ in: './src/platform/tfidf/node/tfidfWorker.ts', out: 'tfidfWorker' },
 		{ in: './src/extension/chatSessions/copilotcli/node/copilotCLITodoWorker.ts', out: 'copilotCLITodoWorker' },
 		{ in: './src/extension/onboardDebug/node/copilotDebugWorker/index.ts', out: 'copilotDebugCommand' },
 		{ in: './src/extension/chatSessions/vscode-node/copilotCLIShim.ts', out: 'copilotCLIShim' },
diff --git a/extensions/copilot/.vscodeignore b/extensions/copilot/.vscodeignore
index b506880f18b..85fb8d7f7ca 100644
--- a/extensions/copilot/.vscodeignore
+++ b/extensions/copilot/.vscodeignore
@@ -9,7 +9,6 @@ assets/walkthroughs/**
 !dist/*.bpe
 !dist/*.tiktoken
 !dist/node_modules/**
-!dist/tfidfWorker.js
 !dist/worker2.js
 !dist/tikTokenizerWorker.js
 !dist/diffWorker.js
diff --git a/extensions/copilot/build/pre-release.yml b/extensions/copilot/build/pre-release.yml
index 00c83bbbafd..06fb5999002 100644
--- a/extensions/copilot/build/pre-release.yml
+++ b/extensions/copilot/build/pre-release.yml
@@ -257,3 +257,4 @@ extends:
 
     publishExtension: ${{ parameters.publishExtension }}
     ghReleasePublishVSIX: true
+    ghTagPrefix: 'copilot/'
diff --git a/extensions/copilot/build/release.yml b/extensions/copilot/build/release.yml
index 7e3022928ed..7bfcd30b6c7 100644
--- a/extensions/copilot/build/release.yml
+++ b/extensions/copilot/build/release.yml
@@ -243,3 +243,4 @@ extends:
 
     publishExtension: ${{ parameters.publishExtension }}
     ghReleasePublishVSIX: true
+    ghTagPrefix: 'copilot/'
diff --git a/extensions/copilot/chat-lib/package-lock.json b/extensions/copilot/chat-lib/package-lock.json
index cc1de521b7e..7e8ac762088 100644
--- a/extensions/copilot/chat-lib/package-lock.json
+++ b/extensions/copilot/chat-lib/package-lock.json
@@ -30,7 +30,6 @@
 				"@anthropic-ai/sdk": "^0.82.0",
 				"@octokit/types": "^14.1.0",
 				"@types/node": "^22.16.3",
-				"@types/vscode": "^1.109.0",
 				"copyfiles": "^2.4.1",
 				"dotenv": "^17.2.0",
 				"npm-run-all": "^4.1.5",
@@ -1221,13 +1220,6 @@
 			"resolved": "https://registry.npmjs.org/@types/shimmer/-/shimmer-1.0.3.tgz",
 			"integrity": "sha512-F/IjUGnV6pIN7R4ZV4npHJVoNtaLZWvb+2/9gctxjb99wkpI7Ozg8VPogwDiTRyjLwZXAYxjvdg1KS8LTHKdDA=="
 		},
-		"node_modules/@types/vscode": {
-			"version": "1.109.0",
-			"resolved": "https://registry.npmjs.org/@types/vscode/-/vscode-1.109.0.tgz",
-			"integrity": "sha512-0Pf95rnwEIwDbmXGC08r0B4TQhAbsHQ5UyTIgVgoieDe4cOnf92usuR5dEczb6bTKEp7ziZH4TV1TRGPPCExtw==",
-			"dev": true,
-			"license": "MIT"
-		},
 		"node_modules/@vitest/expect": {
 			"version": "3.2.4",
 			"resolved": "https://registry.npmjs.org/@vitest/expect/-/expect-3.2.4.tgz",
@@ -1566,9 +1558,9 @@
 			"dev": true
 		},
 		"node_modules/brace-expansion": {
-			"version": "1.1.12",
-			"resolved": "https://registry.npmjs.org/brace-expansion/-/brace-expansion-1.1.12.tgz",
-			"integrity": "sha512-9T9UjW3r0UW5c1Q7GTwllptXwhvYmEzFhzMfZ9H7FQWt+uZePjZPjBP/W1ZEyZ1twGWom5/56TF4lPcqjnDHcg==",
+			"version": "1.1.14",
+			"resolved": "https://registry.npmjs.org/brace-expansion/-/brace-expansion-1.1.14.tgz",
+			"integrity": "sha512-MWPGfDxnyzKU7rNOW9SP/c50vi3xrmrua/+6hfPbCS2ABNWfx24vPidzvC7krjU/RTo235sV776ymlsMtGKj8g==",
 			"dev": true,
 			"license": "MIT",
 			"dependencies": {
@@ -3234,9 +3226,9 @@
 			}
 		},
 		"node_modules/minimatch/node_modules/brace-expansion": {
-			"version": "5.0.3",
-			"resolved": "https://registry.npmjs.org/brace-expansion/-/brace-expansion-5.0.3.tgz",
-			"integrity": "sha512-fy6KJm2RawA5RcHkLa1z/ScpBeA762UF9KmZQxwIbDtRJrgLzM10depAiEQ+CXYcoiqW1/m96OAAoke2nE9EeA==",
+			"version": "5.0.5",
+			"resolved": "https://registry.npmjs.org/brace-expansion/-/brace-expansion-5.0.5.tgz",
+			"integrity": "sha512-VZznLgtwhn+Mact9tfiwx64fA9erHH/MCXEUfB/0bX/6Fz6ny5EGTXYltMocqg4xFAQZtnO3DHWWXi8RiuN7cQ==",
 			"dev": true,
 			"license": "MIT",
 			"dependencies": {
@@ -4830,13 +4822,13 @@
 			}
 		},
 		"node_modules/vite": {
-			"version": "7.2.2",
-			"resolved": "https://registry.npmjs.org/vite/-/vite-7.2.2.tgz",
-			"integrity": "sha512-BxAKBWmIbrDgrokdGZH1IgkIk/5mMHDreLDmCJ0qpyJaAteP8NvMhkwr/ZCQNqNH97bw/dANTE9PDzqwJghfMQ==",
+			"version": "7.3.2",
+			"resolved": "https://registry.npmjs.org/vite/-/vite-7.3.2.tgz",
+			"integrity": "sha512-Bby3NOsna2jsjfLVOHKes8sGwgl4TT0E6vvpYgnAYDIF/tie7MRaFthmKuHx1NSXjiTueXH3do80FMQgvEktRg==",
 			"dev": true,
 			"license": "MIT",
 			"dependencies": {
-				"esbuild": "^0.25.0",
+				"esbuild": "^0.27.0",
 				"fdir": "^6.5.0",
 				"picomatch": "^4.0.3",
 				"postcss": "^8.5.6",
@@ -4927,6 +4919,490 @@
 				"url": "https://opencollective.com/vitest"
 			}
 		},
+		"node_modules/vite/node_modules/@esbuild/aix-ppc64": {
+			"version": "0.27.7",
+			"resolved": "https://registry.npmjs.org/@esbuild/aix-ppc64/-/aix-ppc64-0.27.7.tgz",
+			"integrity": "sha512-EKX3Qwmhz1eMdEJokhALr0YiD0lhQNwDqkPYyPhiSwKrh7/4KRjQc04sZ8db+5DVVnZ1LmbNDI1uAMPEUBnQPg==",
+			"cpu": [
+				"ppc64"
+			],
+			"dev": true,
+			"license": "MIT",
+			"optional": true,
+			"os": [
+				"aix"
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+				"esbuild": "bin/esbuild"
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+				"@esbuild/android-arm64": "0.27.7",
+				"@esbuild/android-x64": "0.27.7",
+				"@esbuild/darwin-arm64": "0.27.7",
+				"@esbuild/darwin-x64": "0.27.7",
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+				"@esbuild/freebsd-x64": "0.27.7",
+				"@esbuild/linux-arm": "0.27.7",
+				"@esbuild/linux-arm64": "0.27.7",
+				"@esbuild/linux-ia32": "0.27.7",
+				"@esbuild/linux-loong64": "0.27.7",
+				"@esbuild/linux-mips64el": "0.27.7",
+				"@esbuild/linux-ppc64": "0.27.7",
+				"@esbuild/linux-riscv64": "0.27.7",
+				"@esbuild/linux-s390x": "0.27.7",
+				"@esbuild/linux-x64": "0.27.7",
+				"@esbuild/netbsd-arm64": "0.27.7",
+				"@esbuild/netbsd-x64": "0.27.7",
+				"@esbuild/openbsd-arm64": "0.27.7",
+				"@esbuild/openbsd-x64": "0.27.7",
+				"@esbuild/openharmony-arm64": "0.27.7",
+				"@esbuild/sunos-x64": "0.27.7",
+				"@esbuild/win32-arm64": "0.27.7",
+				"@esbuild/win32-ia32": "0.27.7",
+				"@esbuild/win32-x64": "0.27.7"
+			}
+		},
 		"node_modules/vitest": {
 			"version": "3.2.4",
 			"resolved": "https://registry.npmjs.org/vitest/-/vitest-3.2.4.tgz",
diff --git a/extensions/copilot/eslint.config.mjs b/extensions/copilot/eslint.config.mjs
index 4006797351e..7edfb1982d9 100644
--- a/extensions/copilot/eslint.config.mjs
+++ b/extensions/copilot/eslint.config.mjs
@@ -338,7 +338,6 @@ export default tseslint.config(
 		ignores: [
 			'src/util/vs/**/*.ts', // vendored code
 			'src/**/*.spec.ts', // allow in tests
-			'./src/extension/agents/copilotcli/node/nodePtyShim.ts',
 			'./src/extension/byok/common/anthropicMessageConverter.ts',
 			'./src/extension/byok/common/geminiFunctionDeclarationConverter.ts',
 			'./src/extension/byok/common/geminiMessageConverter.ts',
@@ -489,9 +488,6 @@ export default tseslint.config(
 			'./src/platform/test/node/telemetry.ts',
 			'./src/platform/test/node/testWorkbenchService.ts',
 			'./src/platform/testing/common/nullWorkspaceMutationManager.ts',
-			'./src/platform/tfidf/node/tfidf.ts',
-			'./src/platform/tfidf/node/tfidfMessaging.ts',
-			'./src/platform/tfidf/node/tfidfWorker.ts',
 			'./src/platform/thinking/common/thinking.ts',
 			'./src/platform/tokenizer/node/tikTokenizerWorker.ts',
 			'./src/platform/tokenizer/node/tokenizer.ts',
diff --git a/extensions/copilot/package-lock.json b/extensions/copilot/package-lock.json
index d2e50eb11bd..e7b122547ef 100644
--- a/extensions/copilot/package-lock.json
+++ b/extensions/copilot/package-lock.json
@@ -1,19 +1,19 @@
 {
 	"name": "copilot-chat",
-	"version": "0.45.0",
+	"version": "0.46.0",
 	"lockfileVersion": 3,
 	"requires": true,
 	"packages": {
 		"": {
 			"name": "copilot-chat",
-			"version": "0.45.0",
+			"version": "0.46.0",
 			"hasInstallScript": true,
 			"license": "SEE LICENSE IN LICENSE.txt",
 			"dependencies": {
-				"@anthropic-ai/claude-agent-sdk": "0.2.98",
+				"@anthropic-ai/claude-agent-sdk": "0.2.112",
 				"@anthropic-ai/sdk": "^0.82.0",
 				"@github/blackbird-external-ingest-utils": "^0.3.0",
-				"@github/copilot": "^1.0.28",
+				"@github/copilot": "^1.0.34",
 				"@google/genai": "^1.22.0",
 				"@humanwhocodes/gitignore-to-minimatch": "1.0.2",
 				"@microsoft/tiktokenizer": "^1.0.10",
@@ -153,7 +153,7 @@
 			"engines": {
 				"node": ">=22.14.0",
 				"npm": ">=9.0.0",
-				"vscode": "^1.117.0"
+				"vscode": "^1.118.0"
 			}
 		},
 		"node_modules/@aashutoshrathi/word-wrap": {
@@ -180,13 +180,13 @@
 			}
 		},
 		"node_modules/@anthropic-ai/claude-agent-sdk": {
-			"version": "0.2.98",
-			"resolved": "https://registry.npmjs.org/@anthropic-ai/claude-agent-sdk/-/claude-agent-sdk-0.2.98.tgz",
-			"integrity": "sha512-pWUx+xY21rKy5wvX0eBZja7p8J5ykOYaHsykvdj9nkTbAVXmP1WusI1mP6jbBByJ8uBJeBc4beAPSZIFcdIpTA==",
+			"version": "0.2.112",
+			"resolved": "https://registry.npmjs.org/@anthropic-ai/claude-agent-sdk/-/claude-agent-sdk-0.2.112.tgz",
+			"integrity": "sha512-vMFoiDKlOive8p3tphpV1gQaaytOipwGJ+uw9mvvaLQUODSC2+fCdRDAY25i2Tsv+lOtxzXBKctmaDuWqZY7ig==",
 			"license": "SEE LICENSE IN README.md",
 			"dependencies": {
-				"@anthropic-ai/sdk": "^0.80.0",
-				"@modelcontextprotocol/sdk": "^1.27.1"
+				"@anthropic-ai/sdk": "^0.81.0",
+				"@modelcontextprotocol/sdk": "^1.29.0"
 			},
 			"engines": {
 				"node": ">=18.0.0"
@@ -207,9 +207,9 @@
 			}
 		},
 		"node_modules/@anthropic-ai/claude-agent-sdk/node_modules/@anthropic-ai/sdk": {
-			"version": "0.80.0",
-			"resolved": "https://registry.npmjs.org/@anthropic-ai/sdk/-/sdk-0.80.0.tgz",
-			"integrity": "sha512-WeXLn7zNVk3yjeshn+xZHvld6AoFUOR3Sep6pSoHho5YbSi6HwcirqgPA5ccFuW8QTVJAAU7N8uQQC6Wa9TG+g==",
+			"version": "0.81.0",
+			"resolved": "https://registry.npmjs.org/@anthropic-ai/sdk/-/sdk-0.81.0.tgz",
+			"integrity": "sha512-D4K5PvEV6wPiRtVlVsJHIUhHAmOZ6IT/I9rKlTf84gR7GyyAurPJK7z9BOf/AZqC5d1DhYQGJNKRmV+q8dGhgw==",
 			"license": "MIT",
 			"dependencies": {
 				"json-schema-to-ts": "^3.1.1"
@@ -3203,26 +3203,26 @@
 			"license": "MIT"
 		},
 		"node_modules/@github/copilot": {
-			"version": "1.0.28",
-			"resolved": "https://registry.npmjs.org/@github/copilot/-/copilot-1.0.28.tgz",
-			"integrity": "sha512-S1Y+KnhywjIsK1DzskoCqPVC3uURohvCRyDkGPWXvMw+lXO5ryOJvHFZDDw7MSRjT7ea7T0m8e3yKdK0OxJhnw==",
+			"version": "1.0.34",
+			"resolved": "https://registry.npmjs.org/@github/copilot/-/copilot-1.0.34.tgz",
+			"integrity": "sha512-jFYulj1v00b3j43Er9+WwhZ/XldGq7+gti2s2pRhrdPwYEd1PMvscDZwRa/1iUBz/XQ5HUGac1tD8P7+VUpWjg==",
 			"license": "SEE LICENSE IN LICENSE.md",
 			"bin": {
 				"copilot": "npm-loader.js"
 			},
 			"optionalDependencies": {
-				"@github/copilot-darwin-arm64": "1.0.28",
-				"@github/copilot-darwin-x64": "1.0.28",
-				"@github/copilot-linux-arm64": "1.0.28",
-				"@github/copilot-linux-x64": "1.0.28",
-				"@github/copilot-win32-arm64": "1.0.28",
-				"@github/copilot-win32-x64": "1.0.28"
+				"@github/copilot-darwin-arm64": "1.0.34",
+				"@github/copilot-darwin-x64": "1.0.34",
+				"@github/copilot-linux-arm64": "1.0.34",
+				"@github/copilot-linux-x64": "1.0.34",
+				"@github/copilot-win32-arm64": "1.0.34",
+				"@github/copilot-win32-x64": "1.0.34"
 			}
 		},
 		"node_modules/@github/copilot-darwin-arm64": {
-			"version": "1.0.28",
-			"resolved": "https://registry.npmjs.org/@github/copilot-darwin-arm64/-/copilot-darwin-arm64-1.0.28.tgz",
-			"integrity": "sha512-Bkis5dkOsdgaK95j/8mgIGSxHlRuL211Wa3S4MeeYGrilZweaG20sa0jktzagL6XFxfPRKBC87E+fDFyXz1L3g==",
+			"version": "1.0.34",
+			"resolved": "https://registry.npmjs.org/@github/copilot-darwin-arm64/-/copilot-darwin-arm64-1.0.34.tgz",
+			"integrity": "sha512-g94EhSLd3a6fckZ6xb/zP2DZJZEx7kONWdOoDiHXUtSqc4RiZ7OBq1EwT4WrPY1lsmy9sioJIcZSGzJd0C1M7Q==",
 			"cpu": [
 				"arm64"
 			],
@@ -3236,9 +3236,9 @@
 			}
 		},
 		"node_modules/@github/copilot-darwin-x64": {
-			"version": "1.0.28",
-			"resolved": "https://registry.npmjs.org/@github/copilot-darwin-x64/-/copilot-darwin-x64-1.0.28.tgz",
-			"integrity": "sha512-0RIabmr05KgPPUcD4kpKNBGg/eRwJF2NrYtibDUCIRFWKZu7q0m9c9EURpW0wOO32cXZtAQ+BmJIGlqfCkt6gA==",
+			"version": "1.0.34",
+			"resolved": "https://registry.npmjs.org/@github/copilot-darwin-x64/-/copilot-darwin-x64-1.0.34.tgz",
+			"integrity": "sha512-tIgFEZV0ohCF/VgTODJWre3xURsvEd+6IPN/HPKWxG6AXtJOxzjlr5kLYYdPHdNlHNmSxGQw8fWsN2FZ4nyDdw==",
 			"cpu": [
 				"x64"
 			],
@@ -3252,9 +3252,9 @@
 			}
 		},
 		"node_modules/@github/copilot-linux-arm64": {
-			"version": "1.0.28",
-			"resolved": "https://registry.npmjs.org/@github/copilot-linux-arm64/-/copilot-linux-arm64-1.0.28.tgz",
-			"integrity": "sha512-A/zQ4ifN+FSSEHdPHajv5UwygS5BOQ8l1AJMYdVBnnuqVX9bCcRAJJ4S/F60AnaDimzDvVuYSe3lYXRYxz3M5A==",
+			"version": "1.0.34",
+			"resolved": "https://registry.npmjs.org/@github/copilot-linux-arm64/-/copilot-linux-arm64-1.0.34.tgz",
+			"integrity": "sha512-feqjEetrlqBUhYskIsPmwACQOWO99cvRpKwIFl3OlEjWoj+//HA7yXh49UIe0gD8wQUI8hy05uVz3K2/xti2nQ==",
 			"cpu": [
 				"arm64"
 			],
@@ -3268,9 +3268,9 @@
 			}
 		},
 		"node_modules/@github/copilot-linux-x64": {
-			"version": "1.0.28",
-			"resolved": "https://registry.npmjs.org/@github/copilot-linux-x64/-/copilot-linux-x64-1.0.28.tgz",
-			"integrity": "sha512-0VqoW9hj7qKj+eH2un9E7zn9AbassTZHkKQPsd8yPvLsmPaNJgsHMYDrCCNZNol2ZSGt/XskTfmWQaQM6BoBfg==",
+			"version": "1.0.34",
+			"resolved": "https://registry.npmjs.org/@github/copilot-linux-x64/-/copilot-linux-x64-1.0.34.tgz",
+			"integrity": "sha512-3l0rZZqmceklHizJaaO+Iy2PsAZpVZS9Mn9VYnVcY/8Yzt4Y2hmXSFcKVfc4l+JlhFsPs7trhMdIkfwkjaKPLg==",
 			"cpu": [
 				"x64"
 			],
@@ -3284,9 +3284,9 @@
 			}
 		},
 		"node_modules/@github/copilot-win32-arm64": {
-			"version": "1.0.28",
-			"resolved": "https://registry.npmjs.org/@github/copilot-win32-arm64/-/copilot-win32-arm64-1.0.28.tgz",
-			"integrity": "sha512-f28NKudBtIXTpIliHGJbRhEfCItsXKWNzXzgqgmP8FZB+JYrqG/ysU2qCUCxhpv3PLjMLWqnsWs+mIvVLTH9zw==",
+			"version": "1.0.34",
+			"resolved": "https://registry.npmjs.org/@github/copilot-win32-arm64/-/copilot-win32-arm64-1.0.34.tgz",
+			"integrity": "sha512-06kEJO3iyohmAqF4iIbOxOfWLFSIpLDJ1L1oEHRtouMrH2Ll1wrUjsoQT1gXgBOv7rifl25qx/Avx5zKqvuORw==",
 			"cpu": [
 				"arm64"
 			],
@@ -3300,9 +3300,9 @@
 			}
 		},
 		"node_modules/@github/copilot-win32-x64": {
-			"version": "1.0.28",
-			"resolved": "https://registry.npmjs.org/@github/copilot-win32-x64/-/copilot-win32-x64-1.0.28.tgz",
-			"integrity": "sha512-b9ZEx2i5P7DZTP66FXTfwf81r5kbAqs2GEJjDdevCwxH7cRexqM9eBxQGj1zGtm4qXF7JGK2eH6Ay7NC28m1Iw==",
+			"version": "1.0.34",
+			"resolved": "https://registry.npmjs.org/@github/copilot-win32-x64/-/copilot-win32-x64-1.0.34.tgz",
+			"integrity": "sha512-QLL8pS4q2TTyQbClEXxqXtQGPr4lk+pwc8hPMUL7iw7HGDOvs1WCLMT1ZSDPPcxSrTnR/dURX5za1NMA8uF/fw==",
 			"cpu": [
 				"x64"
 			],
diff --git a/extensions/copilot/package.json b/extensions/copilot/package.json
index ad6d82a7892..8525cd4b5cb 100644
--- a/extensions/copilot/package.json
+++ b/extensions/copilot/package.json
@@ -2,7 +2,7 @@
 	"name": "copilot-chat",
 	"displayName": "GitHub Copilot Chat",
 	"description": "AI chat features powered by Copilot",
-	"version": "0.45.0",
+	"version": "0.46.0",
 	"build": "1",
 	"internalAIKey": "1058ec22-3c95-4951-8443-f26c1f325911",
 	"completionsCoreVersion": "1.378.1799",
@@ -23,7 +23,7 @@
 	"icon": "assets/copilot.png",
 	"pricing": "Trial",
 	"engines": {
-		"vscode": "^1.117.0",
+		"vscode": "^1.118.0",
 		"npm": ">=9.0.0",
 		"node": ">=22.14.0"
 	},
@@ -3968,15 +3968,6 @@
 			{
 				"id": "advanced",
 				"properties": {
-					"github.copilot.chat.sessionSearch.cloudSync.enabled": {
-						"type": "boolean",
-						"default": false,
-						"markdownDescription": "%github.copilot.config.sessionSearch.cloudSync.enabled%",
-						"tags": [
-							"advanced",
-							"onExp"
-						]
-					},
 					"github.copilot.chat.reasoningEffortOverride": {
 						"type": [
 							"string",
@@ -4231,6 +4222,33 @@
 							"onExp"
 						]
 					},
+					"github.copilot.chat.inlineChat.reasoningEffort": {
+						"type": "string",
+						"default": "low",
+						"enum": [
+							"none",
+							"minimal",
+							"low",
+							"medium",
+							"high"
+						],
+						"markdownDescription": "%github.copilot.config.inlineChat.reasoningEffort%",
+						"tags": [
+							"advanced",
+							"experimental",
+							"onExp"
+						]
+					},
+					"github.copilot.chat.inlineChat.enableThinking": {
+						"type": "boolean",
+						"default": false,
+						"markdownDescription": "%github.copilot.config.inlineChat.enableThinking%",
+						"tags": [
+							"advanced",
+							"experimental",
+							"onExp"
+						]
+					},
 					"github.copilot.chat.debug.requestLogger.maxEntries": {
 						"type": "number",
 						"default": 100,
@@ -5691,7 +5709,7 @@
 				{
 					"command": "github.copilot.sessions.discardChanges",
 					"when": "chatSessionType == copilotcli && isSessionsWindow && sessions.hasGitRepository && sessions.changesVersionMode == branchChanges",
-					"group": "navigation@1"
+					"group": "navigation@2"
 				}
 			],
 			"chat/customizations/create": [
@@ -6180,62 +6198,89 @@
 		"chatPromptFiles": [
 			{
 				"path": "./assets/prompts/plan.prompt.md",
-				"sessionTypes": ["local"]
+				"sessionTypes": [
+					"local"
+				]
 			}
 		],
 		"chatSkills": [
 			{
 				"path": "./assets/prompts/skills/project-setup-info-local/SKILL.md",
 				"when": "config.github.copilot.chat.projectSetupInfoSkill.enabled && !config.github.copilot.chat.newWorkspace.useContext7",
-				"sessionTypes": ["local"]
+				"sessionTypes": [
+					"local"
+				]
 			},
 			{
 				"path": "./assets/prompts/skills/project-setup-info-context7/SKILL.md",
 				"when": "config.github.copilot.chat.projectSetupInfoSkill.enabled && config.github.copilot.chat.newWorkspace.useContext7",
-				"sessionTypes": ["local"]
+				"sessionTypes": [
+					"local"
+				]
 			},
 			{
 				"path": "./assets/prompts/skills/install-vscode-extension/SKILL.md",
 				"when": "config.github.copilot.chat.installExtensionSkill.enabled && config.github.copilot.chat.newWorkspaceCreation.enabled",
-				"sessionTypes": ["local"]
+				"sessionTypes": [
+					"local"
+				]
 			},
 			{
 				"path": "./assets/prompts/skills/get-search-view-results/SKILL.md",
 				"when": "config.github.copilot.chat.getSearchViewResultsSkill.enabled",
-				"sessionTypes": ["local"]
+				"sessionTypes": [
+					"local"
+				]
 			},
 			{
 				"path": "./assets/prompts/skills/troubleshoot/SKILL.md",
-				"sessionTypes": ["local", "copilotcli"]
+				"sessionTypes": [
+					"local",
+					"copilotcli"
+				]
 			},
 			{
 				"path": "./assets/prompts/skills/agent-customization/SKILL.md",
-				"sessionTypes": ["local", "copilotcli"]
+				"sessionTypes": [
+					"local",
+					"copilotcli"
+				]
 			},
 			{
 				"path": "./assets/prompts/skills/init/SKILL.md",
-				"sessionTypes": ["local"]
+				"sessionTypes": [
+					"local"
+				]
 			},
 			{
 				"path": "./assets/prompts/skills/create-prompt/SKILL.md",
-				"sessionTypes": ["local"]
+				"sessionTypes": [
+					"local"
+				]
 			},
 			{
 				"path": "./assets/prompts/skills/create-instructions/SKILL.md",
-				"sessionTypes": ["local"]
-
+				"sessionTypes": [
+					"local"
+				]
 			},
 			{
 				"path": "./assets/prompts/skills/create-skill/SKILL.md",
-				"sessionTypes": ["local"]
+				"sessionTypes": [
+					"local"
+				]
 			},
 			{
 				"path": "./assets/prompts/skills/create-agent/SKILL.md",
-				"sessionTypes": ["local"]
+				"sessionTypes": [
+					"local"
+				]
 			},
 			{
 				"path": "./assets/prompts/skills/create-hook/SKILL.md",
-				"sessionTypes": ["local"]
+				"sessionTypes": [
+					"local"
+				]
 			}
 		],
 		"terminal": {
@@ -6390,10 +6435,10 @@
 		"zod": "3.25.76"
 	},
 	"dependencies": {
-		"@anthropic-ai/claude-agent-sdk": "0.2.98",
+		"@anthropic-ai/claude-agent-sdk": "0.2.112",
 		"@anthropic-ai/sdk": "^0.82.0",
 		"@github/blackbird-external-ingest-utils": "^0.3.0",
-		"@github/copilot": "^1.0.28",
+		"@github/copilot": "^1.0.34",
 		"@google/genai": "^1.22.0",
 		"@humanwhocodes/gitignore-to-minimatch": "1.0.2",
 		"@microsoft/tiktokenizer": "^1.0.10",
diff --git a/extensions/copilot/package.nls.json b/extensions/copilot/package.nls.json
index 48568dfeee7..7d7f9d690d3 100644
--- a/extensions/copilot/package.nls.json
+++ b/extensions/copilot/package.nls.json
@@ -173,7 +173,7 @@
 	"copilot.chronicle.tips.description": "Get personalized tips based on your Copilot usage patterns",
 	"github.copilot.config.sessionSearch.enabled": "Enable session search and /chronicle commands. This is a team-internal setting.",
 	"github.copilot.config.sessionSearch.localIndex.enabled": "Enable local session tracking. When enabled, Copilot tracks session data locally for /chronicle commands.",
-	"github.copilot.config.sessionSearch.cloudSync.enabled": "Enable cloud sync for session data. When enabled, chat session data is synced to the cloud for cross-device querying.",
+	"github.copilot.config.sessionSearch.cloudSync.enabled": "Enable cloud sync for session data. When enabled, session data is synced to your Copilot account for cross-device access.",
 	"github.copilot.config.sessionSearch.cloudSync.excludeRepositories": "Repository patterns to exclude from cloud sync. Use exact `owner/repo` names or glob patterns like `my-org/*`. Sessions from matching repos will only be stored locally.",
 	"copilot.workspace.explain.description": "Explain how the code in your active editor works",
 	"copilot.workspace.edit.description": "Edit files in your workspace",
@@ -374,6 +374,8 @@
 	"github.copilot.config.localWorkspaceRecording.enabled": "Enable local workspace recording for analysis.",
 	"github.copilot.config.editRecording.enabled": "Enable edit recording for analysis.",
 	"github.copilot.config.inlineChat.selectionRatioThreshold": "Threshold at which to switch editing strategies for inline chat. When a selection portion of code matches a parse tree node, only that is presented to the language model. This speeds up response times but might have lower quality results. Requires having a parse tree for the document and the `inlineChat.enableV2` setting. Values must be between 0 and 1, where 0 means off and 1 means the selection perfectly matches a parse tree node.",
+	"github.copilot.config.inlineChat.reasoningEffort": "Controls the reasoning effort level for inline chat requests. Lower values result in faster responses with fewer reasoning tokens. Supported values depend on the model.",
+	"github.copilot.config.inlineChat.enableThinking": "Controls whether thinking/reasoning is enabled for inline chat requests. When disabled, reasoning summaries are suppressed for faster responses.",
 	"github.copilot.config.debug.requestLogger.maxEntries": "Maximum number of entries to keep in the request logger for debugging purposes.",
 	"github.copilot.config.chat.agentDebugLog.enabled": "Deprecated: use `github.copilot.chat.agentDebugLog.fileLogging.enabled` instead.",
 	"github.copilot.config.chat.agentDebugLog.enabled.deprecated": "This setting has been merged into `github.copilot.chat.agentDebugLog.fileLogging.enabled`. Please use this setting instead.",
diff --git a/extensions/copilot/src/extension/chatSessions/claude/node/sessionParser/claudeSessionSchema.ts b/extensions/copilot/src/extension/chatSessions/claude/node/sessionParser/claudeSessionSchema.ts
index 8035e48cbfc..7d3e1c3cd0b 100644
--- a/extensions/copilot/src/extension/chatSessions/claude/node/sessionParser/claudeSessionSchema.ts
+++ b/extensions/copilot/src/extension/chatSessions/claude/node/sessionParser/claudeSessionSchema.ts
@@ -517,6 +517,8 @@ export interface IClaudeCodeSessionInfo {
 	readonly folderName?: string;
 	/** Current working directory of the session */
 	readonly cwd?: string;
+	/** Git branch of the session */
+	readonly gitBranch?: string;
 }
 
 // #endregion
diff --git a/extensions/copilot/src/extension/chatSessions/claude/node/sessionParser/sdkSessionAdapter.ts b/extensions/copilot/src/extension/chatSessions/claude/node/sessionParser/sdkSessionAdapter.ts
index f074a576e8a..725d562fbc4 100644
--- a/extensions/copilot/src/extension/chatSessions/claude/node/sessionParser/sdkSessionAdapter.ts
+++ b/extensions/copilot/src/extension/chatSessions/claude/node/sessionParser/sdkSessionAdapter.ts
@@ -89,7 +89,8 @@ export function sdkSessionInfoToSessionInfo(
 		created: info.createdAt ?? info.lastModified,
 		lastRequestEnded: info.lastModified,
 		folderName,
-		cwd: info.cwd
+		cwd: info.cwd,
+		gitBranch: info.gitBranch,
 	};
 }
 
diff --git a/extensions/copilot/src/extension/chatSessions/common/chatSessionMetadataStore.ts b/extensions/copilot/src/extension/chatSessions/common/chatSessionMetadataStore.ts
index 78d876be13f..e38c94ebdff 100644
--- a/extensions/copilot/src/extension/chatSessions/common/chatSessionMetadataStore.ts
+++ b/extensions/copilot/src/extension/chatSessions/common/chatSessionMetadataStore.ts
@@ -91,6 +91,21 @@ export interface ChatSessionMetadataFile {
 	 * session or if the session is a child session created from the Agents app.
 	 */
 	parentSessionId?: string;
+	/** Milliseconds since epoch when this metadata was first written. */
+	created?: number;
+	/** Milliseconds since epoch of the last write. Used for top-N trim sort and cross-process merge. */
+	modified?: number;
+}
+
+/**
+ * One line in `~/.copilot/vscode.session.worktree.jsonl`. Maps a session id
+ * to the path of its worktree so folder → session lookups work even when the
+ * session has been evicted from the bulk metadata cache.
+ */
+export interface WorktreeSessionEntry {
+	readonly id: string;
+	readonly path: string;
+	readonly created: number;
 }
 
 export const IChatSessionMetadataStore = createServiceIdentifier<IChatSessionMetadataStore>('IChatSessionMetadataStore');
@@ -124,4 +139,12 @@ export interface IChatSessionMetadataStore {
 	storeForkedSessionMetadata(sourceSessionId: string, targetSessionId: string, customTitle: string): Promise<void>;
 	setSessionOrigin(sessionId: string): Promise<void>;
 	getSessionOrigin(sessionId: string): Promise<'vscode' | 'other'>;
+	setSessionParentId(sessionId: string, parentSessionId: string): Promise<void>;
+	getSessionParentId(sessionId: string): Promise<string | undefined>;
+	/**
+	 * Re-read the shared bulk metadata file from disk and merge into the in-memory cache.
+	 * Wired to the chat-sessions UI refresh action so cross-process writes become visible
+	 * on demand. Concurrent calls collapse: at most one in-flight + one pending.
+	 */
+	refresh(): Promise<void>;
 }
diff --git a/extensions/copilot/src/extension/chatSessions/common/test/mockChatSessionMetadataStore.ts b/extensions/copilot/src/extension/chatSessions/common/test/mockChatSessionMetadataStore.ts
index 9bc85d003c1..96aa2ee811e 100644
--- a/extensions/copilot/src/extension/chatSessions/common/test/mockChatSessionMetadataStore.ts
+++ b/extensions/copilot/src/extension/chatSessions/common/test/mockChatSessionMetadataStore.ts
@@ -31,6 +31,10 @@ export class MockChatSessionMetadataStore implements IChatSessionMetadataStore {
 		this._requestDetails.delete(sessionId);
 	}
 
+	async refresh(): Promise<void> {
+		// no-op in mock — there is no on-disk state to reload.
+	}
+
 	async storeWorktreeInfo(sessionId: string, properties: ChatSessionWorktreeProperties): Promise<void> {
 		this._worktreeProperties.set(sessionId, properties);
 	}
@@ -143,4 +147,12 @@ export class MockChatSessionMetadataStore implements IChatSessionMetadataStore {
 	async getSessionOrigin(sessionId: string): Promise<'vscode' | 'other'> {
 		return this._sessionOrigins.get(sessionId) ?? 'vscode';
 	}
+
+	setSessionParentId(_sessionId: string, _parentSessionId: string): Promise<void> {
+		return Promise.resolve();
+	}
+
+	getSessionParentId(_sessionId: string): Promise<string | undefined> {
+		return Promise.resolve(undefined);
+	}
 }
diff --git a/extensions/copilot/src/extension/chatSessions/copilotcli/AGENTS.md b/extensions/copilot/src/extension/chatSessions/copilotcli/AGENTS.md
index eb343ccf15b..ebd7169ae23 100644
--- a/extensions/copilot/src/extension/chatSessions/copilotcli/AGENTS.md
+++ b/extensions/copilot/src/extension/chatSessions/copilotcli/AGENTS.md
@@ -78,7 +78,6 @@ copilotcli/
 │   ├── copilotCLISkills.ts     # Skills location resolution
 │   ├── copilotCLIImageSupport.ts    # Image attachment handling
 │   ├── mcpHandler.ts           # MCP server configuration for SDK sessions
-│   ├── nodePtyShim.ts          # Copies VS Code's node-pty for SDK use
 │   ├── userInputHelpers.ts     # User question/input handling interface
 │   ├── exitPlanModeHandler.ts  # Plan mode exit flow with user choice
 │   ├── ripgrepShim.ts          # Copies VS Code's ripgrep for SDK use
@@ -313,7 +312,7 @@ Orchestrates the start and end of each chat request turn, coordinating worktree
 
 ## Critical Pitfalls
 
-- **Shims before SDK import**: `ensureNodePtyShim()` and `ensureRipgrepShim()` in `node/nodePtyShim.ts` / `node/ripgrepShim.ts` MUST be called before any `import('@github/copilot/sdk')`. They copy VS Code's bundled native binaries to the SDK's expected locations. See `node/copilotCli.ts` for the initialization order.
+- **Shims before SDK import**: `ensureRipgrepShim()` in `node/ripgrepShim.ts` MUST be called before any `import('@github/copilot/sdk')`. It copies VS Code's bundled ripgrep binary to the SDK's expected location. `node-pty` is no longer shimmed: the copilot CLI SDK resolves it from VS Code's own `node_modules` via `hostRequire`, falling back to its bundled copy only if that fails. See `node/copilotCli.ts` for the initialization order.
 
 - **Delayed permission UI**: Tool invocation messages are held in `toolCallWaitingForPermissions` until permission resolves. `flushPendingInvocationMessageForToolCallId()` flushes only the specific approved tool, not all pending tools. This is intentional — don't bypass it.
 
diff --git a/extensions/copilot/src/extension/chatSessions/copilotcli/common/copilotCLITools.ts b/extensions/copilot/src/extension/chatSessions/copilotcli/common/copilotCLITools.ts
index dae44d37c50..8bfcbeaf367 100644
--- a/extensions/copilot/src/extension/chatSessions/copilotcli/common/copilotCLITools.ts
+++ b/extensions/copilot/src/extension/chatSessions/copilotcli/common/copilotCLITools.ts
@@ -1601,6 +1601,17 @@ export async function updateTodoListFromSqlItems(
 	}, token);
 }
 
+export async function clearTodoList(toolsService: IToolsService,
+	toolInvocationToken: ChatParticipantToolToken,
+	token: CancellationToken): Promise<void> {
+	await toolsService.invokeTool(ToolName.CoreManageTodoList, {
+		input: {
+			operation: 'write',
+			todoList: []
+		} satisfies IManageTodoListToolInputParams,
+		toolInvocationToken,
+	}, token);
+}
 
 interface IManageTodoListToolInputParams {
 	readonly operation?: 'write' | 'read'; // Optional in write-only mode
diff --git a/extensions/copilot/src/extension/chatSessions/copilotcli/node/cliHelpers.ts b/extensions/copilot/src/extension/chatSessions/copilotcli/node/cliHelpers.ts
index 3ecbf0330d5..ea9074ae5d3 100644
--- a/extensions/copilot/src/extension/chatSessions/copilotcli/node/cliHelpers.ts
+++ b/extensions/copilot/src/extension/chatSessions/copilotcli/node/cliHelpers.ts
@@ -36,3 +36,21 @@ export function getCopilotCLISessionEventsFile(sessionId: string) {
 export function getCopilotCLIWorkspaceFile(sessionId: string) {
 	return join(getCopilotCLISessionDir(sessionId), 'workspace.yaml');
 }
+
+/**
+ * Path of the shared bulk metadata cache file. This file is shared by all VS Code
+ * installs (Stable, Insiders, OSS, Exploration) and the Agents application.
+ */
+export function getCopilotBulkMetadataFile(): string {
+	return join(getCopilotHome(), 'vscode.session.metadata.cache.json');
+}
+
+/**
+ * Path of the shared worktree-sessions JSONL index. Append-only, one
+ * {@link WorktreeSessionEntry} per line.
+ * Used as a worktree folder → session-id fallback
+ * when an entry has been evicted from the bulk cache.
+ */
+export function getCopilotWorktreeSessionsFile(): string {
+	return join(getCopilotHome(), 'vscode.session.worktree.jsonl');
+}
diff --git a/extensions/copilot/src/extension/chatSessions/copilotcli/node/copilotCli.ts b/extensions/copilot/src/extension/chatSessions/copilotcli/node/copilotCli.ts
index 72308407e8c..5ba70073994 100644
--- a/extensions/copilot/src/extension/chatSessions/copilotcli/node/copilotCli.ts
+++ b/extensions/copilot/src/extension/chatSessions/copilotcli/node/copilotCli.ts
@@ -23,7 +23,6 @@ import { basename } from '../../../../util/vs/base/common/resources';
 import { URI } from '../../../../util/vs/base/common/uri';
 import { IInstantiationService } from '../../../../util/vs/platform/instantiation/common/instantiation';
 import { getCopilotLogger } from './logger';
-import { ensureNodePtyShim } from './nodePtyShim';
 import { ensureRipgrepShim } from './ripgrepShim';
 import { CancellationToken } from '../../../../util/vs/base/common/cancellation';
 
@@ -460,7 +459,7 @@ export class CopilotCLISDK implements ICopilotCLISDK {
 
 	public async getPackage(): Promise<typeof import('@github/copilot/sdk')> {
 		try {
-			// Ensure the node-pty shim exists before importing the SDK (required for CLI sessions)
+			// Ensure the ripgrep shim exists before importing the SDK (required for CLI sessions)
 			await this._ensureShimsPromise;
 			return await import('@github/copilot/sdk');
 		} catch (error) {
@@ -497,10 +496,7 @@ export class CopilotCLISDK implements ICopilotCLISDK {
 		if (await checkFileExists(successfulPlaceholder)) {
 			return;
 		}
-		await Promise.all([
-			ensureNodePtyShim(this.extensionContext.extensionPath, this.envService.appRoot, this.logService),
-			ensureRipgrepShim(this.extensionContext.extensionPath, this.envService.appRoot, this.logService)
-		]);
+		await ensureRipgrepShim(this.extensionContext.extensionPath, this.envService.appRoot, this.logService);
 		await fs.writeFile(successfulPlaceholder, 'Shims created successfully');
 	}
 
diff --git a/extensions/copilot/src/extension/chatSessions/copilotcli/node/copilotcliSession.ts b/extensions/copilot/src/extension/chatSessions/copilotcli/node/copilotcliSession.ts
index e4c1bd69b26..96f64b577f3 100644
--- a/extensions/copilot/src/extension/chatSessions/copilotcli/node/copilotcliSession.ts
+++ b/extensions/copilot/src/extension/chatSessions/copilotcli/node/copilotcliSession.ts
@@ -29,7 +29,7 @@ import { IToolsService } from '../../../tools/common/toolsService';
 import { IChatSessionMetadataStore } from '../../common/chatSessionMetadataStore';
 import { ExternalEditTracker } from '../../common/externalEditTracker';
 import { getWorkingDirectory, isIsolationEnabled, IWorkspaceInfo } from '../../common/workspaceInfo';
-import { enrichToolInvocationWithSubagentMetadata, isCopilotCliEditToolCall, isCopilotCLIToolThatCouldRequirePermissions, isTodoRelatedSqlQuery, processToolExecutionComplete, processToolExecutionStart, ToolCall, updateTodoListFromSqlItems } from '../common/copilotCLITools';
+import { enrichToolInvocationWithSubagentMetadata, isCopilotCliEditToolCall, isCopilotCLIToolThatCouldRequirePermissions, isTodoRelatedSqlQuery, processToolExecutionComplete, processToolExecutionStart, ToolCall, updateTodoListFromSqlItems, clearTodoList } from '../common/copilotCLITools';
 import { getCopilotCLISessionDir } from './cliHelpers';
 import type { CopilotCliBridgeSpanProcessor } from './copilotCliBridgeSpanProcessor';
 import { ICopilotCLIImageSupport } from './copilotCLIImageSupport';
@@ -381,6 +381,9 @@ export class CopilotCLISession extends DisposableStore implements ICopilotCLISes
 		const editTracker = new ExternalEditTracker();
 		let sdkRequestId: string | undefined;
 		const toolIdEditMap = new Map<string, Promise<string | undefined>>();
+		clearTodoList(this._toolsService, request.toolInvocationToken, token).catch(err => {
+			this.logService.error(err, '[CopilotCLISession] Failed to clear todo list at start of session');
+		});
 		/**
 		 * The sequence of events from the SDK is as follows:
 		 * tool.start 			-> About to run a terminal command
diff --git a/extensions/copilot/src/extension/chatSessions/copilotcli/node/copilotcliSessionService.ts b/extensions/copilot/src/extension/chatSessions/copilotcli/node/copilotcliSessionService.ts
index 0b9367e73d8..3d670a8797f 100644
--- a/extensions/copilot/src/extension/chatSessions/copilotcli/node/copilotcliSessionService.ts
+++ b/extensions/copilot/src/extension/chatSessions/copilotcli/node/copilotcliSessionService.ts
@@ -69,6 +69,7 @@ export type ISessionOptions = {
 	debugTargetSessionIds?: readonly string[];
 	mcpServerMappings?: McpServerMappings;
 	additionalWorkspaces?: IWorkspaceInfo[];
+	sessionParentId?: string;
 }
 export type IGetSessionOptions = ISessionOptions & { sessionId: string };
 export type ICreateSessionOptions = ISessionOptions & { sessionId?: string };
@@ -177,7 +178,7 @@ export class CopilotCLISessionService extends Disposable implements ICopilotCLIS
 		this.monitorSessionFiles();
 		this._sessionManager = new Lazy<Promise<internal.LocalSessionManager>>(async () => {
 			try {
-				const { internal, createLocalFeatureFlagService } = await this.getSDKPackage();
+				const { internal, createLocalFeatureFlagService, AutoModeSessionManager } = await this.getSDKPackage();
 				// Always enable SDK OTel so the debug panel receives native spans via the bridge.
 				// When user OTel is disabled, we force file exporter to /dev/null so the SDK
 				// creates OtelSessionTracker (for debug panel) but doesn't export to any collector.
@@ -209,6 +210,7 @@ export class CopilotCLISessionService extends Disposable implements ICopilotCLIS
 				return new internal.LocalSessionManager({
 					featureFlagService: createLocalFeatureFlagService(),
 					telemetryService: new internal.NoopTelemetryService(),
+					autoModeManager: new AutoModeSessionManager(),
 				}, { flushDebounceMs: undefined, settings: undefined, version: undefined });
 			}
 			catch (error) {
@@ -220,8 +222,8 @@ export class CopilotCLISessionService extends Disposable implements ICopilotCLIS
 	}
 
 	private async getSDKPackage() {
-		const { internal, LocalSession, createLocalFeatureFlagService } = await this.copilotCLISDK.getPackage();
-		return { internal, LocalSession, createLocalFeatureFlagService };
+		const { internal, LocalSession, createLocalFeatureFlagService, AutoModeSessionManager } = await this.copilotCLISDK.getPackage();
+		return { internal, LocalSession, createLocalFeatureFlagService, AutoModeSessionManager };
 	}
 
 	getSessionWorkingDirectory(sessionId: string): Uri | undefined {
@@ -567,7 +569,15 @@ export class CopilotCLISessionService extends Disposable implements ICopilotCLIS
 
 			const session = this.createCopilotSession(sdkSession, options.workspace, options.agent?.name, sessionManager);
 			session.object.add(mcpGateway);
+
+			// Set origin
 			void this._chatSessionMetadataStore.setSessionOrigin(session.object.sessionId);
+
+			// Set session parent id
+			if (options.sessionParentId) {
+				void this._chatSessionMetadataStore.setSessionParentId(session.object.sessionId, options.sessionParentId);
+			}
+
 			return session;
 		}
 		catch (error) {
diff --git a/extensions/copilot/src/extension/chatSessions/copilotcli/node/nodePtyShim.ts b/extensions/copilot/src/extension/chatSessions/copilotcli/node/nodePtyShim.ts
deleted file mode 100644
index c7db274412a..00000000000
--- a/extensions/copilot/src/extension/chatSessions/copilotcli/node/nodePtyShim.ts
+++ /dev/null
@@ -1,144 +0,0 @@
-/*---------------------------------------------------------------------------------------------
- *  Copyright (c) Microsoft Corporation. All rights reserved.
- *  Licensed under the MIT License. See License.txt in the project root for license information.
- *--------------------------------------------------------------------------------------------*/
-
-import { promises as fs } from 'fs';
-import * as path from 'path';
-import { ILogService } from '../../../../platform/log/common/logService';
-
-let shimCreated: Promise<void> | undefined = undefined;
-
-const RETRIABLE_COPY_ERROR_CODES = new Set(['EPERM', 'EBUSY']);
-const MAX_COPY_ATTEMPTS = 6;
-const RETRY_DELAY_BASE_MS = 50;
-const RETRY_DELAY_CAP_MS = 500;
-const MATERIALIZATION_TIMEOUT_MS = 4000;
-const MATERIALIZATION_POLL_INTERVAL_MS = 100;
-
-/**
- * Copies the node-pty files from VS Code's installation into a @github/copilot location
- *
- * MUST be called before any `import('@github/copilot/sdk')` or `import('@github/copilot')`.
- *
- * @github/copilot bundles the node-pty code and its no longer possible to shim the package.
- *
- * @param extensionPath The extension's path (where to create the shim)
- * @param vscodeAppRoot VS Code's installation path (where node-pty is located)
- */
-export async function ensureNodePtyShim(extensionPath: string, vscodeAppRoot: string, logService: ILogService): Promise<void> {
-	if (shimCreated) {
-		return shimCreated;
-	}
-
-	const creation = _ensureNodePtyShim(extensionPath, vscodeAppRoot, logService);
-	shimCreated = creation.catch(error => {
-		shimCreated = undefined;
-		throw error;
-	});
-	return shimCreated;
-}
-
-async function _ensureNodePtyShim(extensionPath: string, vscodeAppRoot: string, logService: ILogService): Promise<void> {
-	const vscodeNodePtyPath = path.join(vscodeAppRoot, 'node_modules', 'node-pty', 'build', 'Release');
-
-	await copyNodePtyFiles(extensionPath, vscodeNodePtyPath, logService);
-}
-
-export async function copyNodePtyFiles(extensionPath: string, sourceNodePtyPath: string, logService: ILogService): Promise<void> {
-	const nodePtyDir = path.join(extensionPath, 'node_modules', '@github', 'copilot', 'sdk', 'prebuilds', process.platform + '-' + process.arch);
-	logService.info(`Creating node-pty shim: source=${sourceNodePtyPath}, dest=${nodePtyDir}`);
-
-	try {
-		await fs.mkdir(nodePtyDir, { recursive: true });
-		const entries = await fs.readdir(sourceNodePtyPath);
-		const uniqueEntries = [...new Set(entries)];
-		logService.info(`Found ${uniqueEntries.length} entries to copy${uniqueEntries.length !== entries.length ? ` (${entries.length - uniqueEntries.length} duplicates ignored)` : ''}: ${uniqueEntries.join(', ')}`);
-
-		await copyNodePtyWithRetries(sourceNodePtyPath, nodePtyDir, uniqueEntries, logService);
-	} catch (error) {
-		logService.error(`Failed to create node-pty shim (source dir: ${sourceNodePtyPath}, extension dir: ${nodePtyDir})`, error);
-		throw error;
-	}
-}
-
-async function copyNodePtyWithRetries(sourceDir: string, destDir: string, entries: string[], logService: ILogService): Promise<void> {
-	const primaryBinary = entries.find(entry => entry.endsWith('.node'));
-	for (let attempt = 1; attempt <= MAX_COPY_ATTEMPTS; attempt++) {
-		try {
-			await fs.cp(sourceDir, destDir, {
-				recursive: true,
-				dereference: true,
-				force: true,
-				filter: async (srcPath) => shouldCopyEntry(srcPath, logService)
-			});
-			logService.trace(`Copied node-pty prebuilds to ${destDir} (attempt ${attempt})`);
-			return;
-		} catch (error) {
-			if (await waitForMaterializedShim(destDir, primaryBinary, logService)) {
-				logService.trace(`Detected node-pty shim materialized at ${destDir} by another extension host`);
-				return;
-			}
-
-			if (!RETRIABLE_COPY_ERROR_CODES.has(error?.code) || attempt === MAX_COPY_ATTEMPTS) {
-				throw error;
-			}
-
-			const delayMs = Math.min(RETRY_DELAY_BASE_MS * Math.pow(2, attempt - 1), RETRY_DELAY_CAP_MS);
-			logService.warn(`Retryable error (${error.code}) copying node-pty shim. Retrying in ${delayMs}ms (attempt ${attempt + 1}/${MAX_COPY_ATTEMPTS})`);
-			await new Promise(resolve => setTimeout(resolve, delayMs));
-		}
-	}
-}
-
-async function shouldCopyEntry(srcPath: string, logService: ILogService): Promise<boolean> {
-	try {
-		const stat = await fs.stat(srcPath);
-		if (stat.isDirectory()) {
-			return true;
-		}
-
-		if (stat.size === 0) {
-			logService.trace(`Skipping ${path.basename(srcPath)}: zero-byte file (likely symlink or special file)`);
-			return false;
-		}
-
-		return true;
-	} catch (error) {
-		logService.warn(`Failed to stat ${srcPath}: ${error?.message ?? error}`);
-		return false;
-	}
-}
-
-async function waitForMaterializedShim(destDir: string, primaryBinary: string | undefined, logService: ILogService): Promise<boolean> {
-	const deadline = Date.now() + MATERIALIZATION_TIMEOUT_MS;
-	while (Date.now() <= deadline) {
-		if (await isShimMaterialized(destDir, primaryBinary)) {
-			logService.trace(`Reusing node-pty shim that materialized at ${destDir}`);
-			return true;
-		}
-
-		await new Promise(resolve => setTimeout(resolve, MATERIALIZATION_POLL_INTERVAL_MS));
-	}
-
-	return false;
-}
-
-async function isShimMaterialized(destDir: string, primaryBinary: string | undefined): Promise<boolean> {
-	if (primaryBinary) {
-		const binaryStat = await fs.stat(path.join(destDir, primaryBinary)).catch(() => undefined);
-		if (binaryStat && binaryStat.isFile() && binaryStat.size > 0) {
-			return true;
-		}
-	}
-
-	const entries = await fs.readdir(destDir).catch(() => []);
-	for (const entry of entries) {
-		const stat = await fs.stat(path.join(destDir, entry)).catch(() => undefined);
-		if (stat && stat.isFile() && stat.size > 0) {
-			return true;
-		}
-	}
-
-	return false;
-}
diff --git a/extensions/copilot/src/extension/chatSessions/copilotcli/node/permissionHelpers.ts b/extensions/copilot/src/extension/chatSessions/copilotcli/node/permissionHelpers.ts
index db8bea59cc5..0d927355433 100644
--- a/extensions/copilot/src/extension/chatSessions/copilotcli/node/permissionHelpers.ts
+++ b/extensions/copilot/src/extension/chatSessions/copilotcli/node/permissionHelpers.ts
@@ -28,7 +28,7 @@ type CoreTerminalConfirmationToolParams = {
 		command: string | undefined;
 		isBackground: boolean;
 	};
-}
+};
 
 type CoreConfirmationToolParams = {
 	tool: ToolName.CoreConfirmationTool;
@@ -37,7 +37,7 @@ type CoreConfirmationToolParams = {
 		message: string;
 		confirmationType: 'basic';
 	};
-}
+};
 
 /**
  * The result of requesting permissions — the full union accepted by `Session.respondToPermission`.
diff --git a/extensions/copilot/src/extension/chatSessions/copilotcli/node/test/copilotCliSessionService.spec.ts b/extensions/copilot/src/extension/chatSessions/copilotcli/node/test/copilotCliSessionService.spec.ts
index d5018b35e17..f41992be205 100644
--- a/extensions/copilot/src/extension/chatSessions/copilotcli/node/test/copilotCliSessionService.spec.ts
+++ b/extensions/copilot/src/extension/chatSessions/copilotcli/node/test/copilotCliSessionService.spec.ts
@@ -15,9 +15,11 @@ import { NullChatDebugFileLoggerService } from '../../../../../platform/chat/com
 import { IConfigurationService } from '../../../../../platform/configuration/common/configurationService';
 import { NullNativeEnvService } from '../../../../../platform/env/common/nullEnvService';
 import { MockFileSystemService } from '../../../../../platform/filesystem/node/test/mockFileSystemService';
+import { MockGitService } from '../../../../../platform/ignore/node/test/mockGitService';
 import { ILogService } from '../../../../../platform/log/common/logService';
 import { NullMcpService } from '../../../../../platform/mcp/common/mcpService';
 import { NoopOTelService, resolveOTelConfig } from '../../../../../platform/otel/common/index';
+import { MockPromptsService } from '../../../../../platform/promptFiles/test/common/mockPromptsService';
 import { NullRequestLogger } from '../../../../../platform/requestLogger/node/nullRequestLogger';
 import { NullWorkspaceService } from '../../../../../platform/workspace/common/workspaceService';
 import { mock } from '../../../../../util/common/test/simpleMock';
@@ -41,8 +43,6 @@ import { CopilotCLISessionService, CopilotCLISessionWorkspaceTracker, ICopilotCL
 import { CopilotCLIMCPHandler } from '../mcpHandler';
 import { IQuestion, IQuestionAnswer, IUserQuestionHandler } from '../userInputHelpers';
 import { MockCliSdkSession, MockCliSdkSessionManager, MockSkillLocations, NullCopilotCLIAgents, NullICopilotCLIImageSupport } from './testHelpers';
-import { MockPromptsService } from '../../../../../platform/promptFiles/test/common/mockPromptsService';
-import { MockGitService } from '../../../../../platform/ignore/node/test/mockGitService';
 
 // Re-export for backward compatibility with other spec files
 export { MockCliSdkSession, MockCliSdkSessionManager, MockSkillLocations, NullCopilotCLIAgents, NullICopilotCLIImageSupport } from './testHelpers';
@@ -108,7 +108,7 @@ describe('CopilotCLISessionService', () => {
 	beforeEach(async () => {
 		vi.useRealTimers();
 		const sdk = {
-			getPackage: vi.fn(async () => ({ internal: { LocalSessionManager: MockCliSdkSessionManager, NoopTelemetryService: class { } }, LocalSession: MockLocalSession, createLocalFeatureFlagService: () => ({}), noopTelemetryBinder: {} })),
+			getPackage: vi.fn(async () => ({ internal: { LocalSessionManager: MockCliSdkSessionManager, NoopTelemetryService: class { } }, LocalSession: MockLocalSession, createLocalFeatureFlagService: () => ({}), AutoModeSessionManager: class { }, noopTelemetryBinder: {} })),
 			getRequestId: vi.fn(() => undefined),
 		} as unknown as ICopilotCLISDK;
 
@@ -341,7 +341,7 @@ describe('CopilotCLISessionService', () => {
 			const sessionDir = URI.file(getCopilotCLISessionDir(sessionId));
 			const fileSystem = new MockFileSystemService();
 			const sdk = {
-				getPackage: vi.fn(async () => ({ internal: { LocalSessionManager: MockCliSdkSessionManager, NoopTelemetryService: class { } }, LocalSession: MockLocalSession, createLocalFeatureFlagService: () => ({}), noopTelemetryBinder: {} }))
+				getPackage: vi.fn(async () => ({ internal: { LocalSessionManager: MockCliSdkSessionManager, NoopTelemetryService: class { } }, LocalSession: MockLocalSession, createLocalFeatureFlagService: () => ({}), AutoModeSessionManager: class { }, noopTelemetryBinder: {} }))
 			} as unknown as ICopilotCLISDK;
 			const services = createExtensionUnitTestingServices();
 			disposables.add(services);
@@ -380,7 +380,7 @@ describe('CopilotCLISessionService', () => {
 			const sessionDir = URI.file(getCopilotCLISessionDir(sessionId));
 			const fileSystem = new MockFileSystemService();
 			const sdk = {
-				getPackage: vi.fn(async () => ({ internal: { LocalSessionManager: MockCliSdkSessionManager, NoopTelemetryService: class { } }, LocalSession: MockLocalSession, createLocalFeatureFlagService: () => ({}), noopTelemetryBinder: {} }))
+				getPackage: vi.fn(async () => ({ internal: { LocalSessionManager: MockCliSdkSessionManager, NoopTelemetryService: class { } }, LocalSession: MockLocalSession, createLocalFeatureFlagService: () => ({}), AutoModeSessionManager: class { }, noopTelemetryBinder: {} }))
 			} as unknown as ICopilotCLISDK;
 			const services = createExtensionUnitTestingServices();
 			disposables.add(services);
@@ -445,7 +445,7 @@ describe('CopilotCLISessionService', () => {
 			const sessionDir = URI.file(getCopilotCLISessionDir(sessionId));
 			const fileSystem = new MockFileSystemService();
 			const sdk = {
-				getPackage: vi.fn(async () => ({ internal: { LocalSessionManager: MockCliSdkSessionManager, NoopTelemetryService: class { } }, LocalSession: MockLocalSession, createLocalFeatureFlagService: () => ({}), noopTelemetryBinder: {} }))
+				getPackage: vi.fn(async () => ({ internal: { LocalSessionManager: MockCliSdkSessionManager, NoopTelemetryService: class { } }, LocalSession: MockLocalSession, createLocalFeatureFlagService: () => ({}), AutoModeSessionManager: class { }, noopTelemetryBinder: {} }))
 			} as unknown as ICopilotCLISDK;
 			const services = createExtensionUnitTestingServices();
 			disposables.add(services);
@@ -491,7 +491,7 @@ describe('CopilotCLISessionService', () => {
 			const sessionDir = URI.file(getCopilotCLISessionDir(sessionId));
 			const fileSystem = new MockFileSystemService();
 			const sdk = {
-				getPackage: vi.fn(async () => ({ internal: { LocalSessionManager: MockCliSdkSessionManager, NoopTelemetryService: class { } }, LocalSession: MockLocalSession, createLocalFeatureFlagService: () => ({}), noopTelemetryBinder: {} }))
+				getPackage: vi.fn(async () => ({ internal: { LocalSessionManager: MockCliSdkSessionManager, NoopTelemetryService: class { } }, LocalSession: MockLocalSession, createLocalFeatureFlagService: () => ({}), AutoModeSessionManager: class { }, noopTelemetryBinder: {} }))
 			} as unknown as ICopilotCLISDK;
 			const services = createExtensionUnitTestingServices();
 			disposables.add(services);
@@ -755,7 +755,7 @@ describe('CopilotCLISessionService', () => {
 			const storeMetadataSpy = vi.spyOn(metadataStore, 'storeForkedSessionMetadata');
 
 			const sdk = {
-				getPackage: vi.fn(async () => ({ internal: { LocalSessionManager: MockCliSdkSessionManager, NoopTelemetryService: class { } }, LocalSession: MockLocalSession, createLocalFeatureFlagService: () => ({}), noopTelemetryBinder: {} })),
+				getPackage: vi.fn(async () => ({ internal: { LocalSessionManager: MockCliSdkSessionManager, NoopTelemetryService: class { } }, LocalSession: MockLocalSession, createLocalFeatureFlagService: () => ({}), AutoModeSessionManager: class { }, noopTelemetryBinder: {} })),
 				getRequestId: vi.fn(() => undefined),
 			} as unknown as ICopilotCLISDK;
 			const services = disposables.add(createExtensionUnitTestingServices());
@@ -796,7 +796,7 @@ describe('CopilotCLISessionService', () => {
 			manager.sessions.set(sourceId, sdkSession);
 
 			const sdk = {
-				getPackage: vi.fn(async () => ({ internal: { LocalSessionManager: MockCliSdkSessionManager, NoopTelemetryService: class { } }, LocalSession: MockLocalSession, createLocalFeatureFlagService: () => ({}), noopTelemetryBinder: {} })),
+				getPackage: vi.fn(async () => ({ internal: { LocalSessionManager: MockCliSdkSessionManager, NoopTelemetryService: class { } }, LocalSession: MockLocalSession, createLocalFeatureFlagService: () => ({}), AutoModeSessionManager: class { }, noopTelemetryBinder: {} })),
 				getRequestId: vi.fn(() => ({ vscodeRequestId: 'vsc-req-1', copilotRequestId: 'sdk-event-1' })),
 			} as unknown as ICopilotCLISDK;
 			const services = disposables.add(createExtensionUnitTestingServices());
diff --git a/extensions/copilot/src/extension/chatSessions/copilotcli/node/test/copilotcliSession.spec.ts b/extensions/copilot/src/extension/chatSessions/copilotcli/node/test/copilotcliSession.spec.ts
index 25d0dfdeeae..010be09de1a 100644
--- a/extensions/copilot/src/extension/chatSessions/copilotcli/node/test/copilotcliSession.spec.ts
+++ b/extensions/copilot/src/extension/chatSessions/copilotcli/node/test/copilotcliSession.spec.ts
@@ -397,7 +397,7 @@ describe('CopilotCLISession', () => {
 		const attachments = [{ type: 'file' as const, path: attachedFilePath, displayName: 'attached-file.ts' }];
 		await session.handleRequest({ id: '', toolInvocationToken: undefined as never }, { prompt: 'Test' }, attachments as any, undefined, authInfo, CancellationToken.None);
 		expect(result).toEqual({ kind: 'denied-interactively-by-user' });
-		expect(toolsService.invokeToolCalls).toHaveLength(1);
+		expect(toolsService.invokeToolCalls).toHaveLength(2);
 	});
 
 	it('auto-approves read permission inside working directory without external handler', async () => {
@@ -487,8 +487,8 @@ describe('CopilotCLISession', () => {
 		// Path must be absolute within workspace, should auto-approve
 		await session.handleRequest({ id: '', toolInvocationToken: undefined as never }, { prompt: 'Test' }, [], undefined, authInfo, CancellationToken.None);
 		expect(result).toEqual({ kind: 'denied-interactively-by-user' });
-		expect(toolsService.invokeToolCalls).toHaveLength(1);
-		expect(toolsService.invokeToolCalls[0].input).toMatchObject({
+		expect(toolsService.invokeToolCalls).toHaveLength(2);
+		expect(toolsService.invokeToolCalls[1].input).toMatchObject({
 			title: 'Read file(s)',
 			message: 'Read file'
 		});
diff --git a/extensions/copilot/src/extension/chatSessions/vscode-node/chatSessionMetadataStoreImpl.ts b/extensions/copilot/src/extension/chatSessions/vscode-node/chatSessionMetadataStoreImpl.ts
index 6a28e040e6c..fc5790906f7 100644
--- a/extensions/copilot/src/extension/chatSessions/vscode-node/chatSessionMetadataStoreImpl.ts
+++ b/extensions/copilot/src/extension/chatSessions/vscode-node/chatSessionMetadataStoreImpl.ts
@@ -10,30 +10,65 @@ import { createDirectoryIfNotExists, IFileSystemService } from '../../../platfor
 import { ILogService } from '../../../platform/log/common/logService';
 import { findLast } from '../../../util/vs/base/common/arraysFind';
 import { SequencerByKey, ThrottledDelayer } from '../../../util/vs/base/common/async';
-import { Lazy } from '../../../util/vs/base/common/lazy';
 import { Disposable } from '../../../util/vs/base/common/lifecycle';
 import { dirname, isEqual } from '../../../util/vs/base/common/resources';
-import { ChatSessionMetadataFile, IChatSessionMetadataStore, RepositoryProperties, RequestDetails, WorkspaceFolderEntry } from '../common/chatSessionMetadataStore';
-import { ChatSessionWorktreeData, ChatSessionWorktreeProperties } from '../common/chatSessionWorktreeService';
+import { ChatSessionMetadataFile, IChatSessionMetadataStore, RepositoryProperties, RequestDetails, WorkspaceFolderEntry, WorktreeSessionEntry } from '../common/chatSessionMetadataStore';
+import { ChatSessionWorktreeProperties } from '../common/chatSessionWorktreeService';
 import { isUntitledSessionId } from '../common/utils';
 import { IWorkspaceInfo } from '../common/workspaceInfo';
-import { getCopilotCLISessionDir } from '../copilotcli/node/cliHelpers';
+import { getCopilotBulkMetadataFile, getCopilotCLISessionDir, getCopilotCLISessionStateDir, getCopilotWorktreeSessionsFile } from '../copilotcli/node/cliHelpers';
 import { ICopilotCLIAgents } from '../copilotcli/node/copilotCli';
+import { WorktreeSessionIndex } from './worktreeSessionIndex';
 
-const WORKSPACE_FOLDER_MEMENTO_KEY = 'github.copilot.cli.sessionWorkspaceFolders';
-const WORKTREE_MEMENTO_KEY = 'github.copilot.cli.sessionWorktrees';
-const BULK_METADATA_FILENAME = 'copilotcli.session.metadata.json';
+// const WORKSPACE_FOLDER_MEMENTO_KEY = 'github.copilot.cli.sessionWorkspaceFolders';
+// const WORKTREE_MEMENTO_KEY = 'github.copilot.cli.sessionWorktrees';
+const LEGACY_BULK_METADATA_FILENAME = 'copilotcli.session.metadata.json';
+const LEGACY_BULK_MIGRATED_KEY = 'github.copilot.cli.legacyBulkMigrated';
+const JSONL_SCAN_DONE_KEY = 'github.copilot.cli.events.jsonl.scaned';
 const REQUEST_MAPPING_FILENAME = 'vscode.requests.metadata.json';
+const SESSION_SCAN_BATCH_SIZE = 20;
+
+/**
+ * Maximum number of sessions kept in the shared bulk metadata cache file
+ * (`~/.copilot/vscode.session.metadata.cache.json`). Older entries (by `modified`)
+ * are evicted from the file but remain available via the per-session metadata files
+ * (`~/.copilot/session-state/{id}/vscode.metadata.json`) and the JSONL worktree index.
+ */
+const MAX_BULK_STORAGE_ENTRIES = 1000;
+
+/** Single-key sequencer key used to serialize bulk-file flush against {@link refresh}. */
+const BULK_SEQUENCER_KEY = 'bulk';
 
 export class ChatSessionMetadataStore extends Disposable implements IChatSessionMetadataStore {
 	declare _serviceBrand: undefined;
+
+	/**
+	 * In-memory mirror of the bulk metadata file plus on-demand entries hydrated by
+	 * {@link getSessionMetadata}. Always retains everything it has seen; only the on-disk
+	 * file is trimmed to {@link MAX_BULK_STORAGE_ENTRIES}.
+	 */
 	private _cache: Record<string, ChatSessionMetadataFile> = {};
-	private readonly _cacheDirectory: Uri;
-	private readonly _cacheFile: Uri;
-	private readonly _intialize: Lazy<Promise<void>>;
+
+	/** Maps session id → JSONL entry and folder path → session id. Owns JSONL file persistence. */
+	private readonly _worktreeSessions: WorktreeSessionIndex;
+
+	/** Path of the shared bulk metadata cache file in `~/.copilot/`. */
+	private readonly _cacheFile = Uri.file(getCopilotBulkMetadataFile());
+
+	/**
+	 * Single-promise gate. Initially set to `initializeStorage()`; {@link refresh} chains
+	 * a {@link reloadBulkFromDisk} call onto it so concurrent refreshes collapse to at
+	 * most one in-flight + one pending. Reads and writes both `await` this so they queue
+	 * behind any in-flight refresh.
+	 */
+	private _ready: Promise<void>;
+
 	private readonly _updateStorageDebouncer = this._register(new ThrottledDelayer<void>(1_000));
 	private readonly _requestMappingWriteSequencer = new SequencerByKey<string>();
 	private readonly _metadataWriteSequencer = new SequencerByKey<string>();
+	/** Serializes bulk-file flush against {@link reloadBulkFromDisk}. */
+	private readonly _bulkSequencer = new SequencerByKey<string>();
+
 	constructor(
 		@IFileSystemService private readonly fileSystemService: IFileSystemService,
 		@ILogService private readonly logService: ILogService,
@@ -42,103 +77,52 @@ export class ChatSessionMetadataStore extends Disposable implements IChatSession
 	) {
 		super();
 
-		this._cacheDirectory = Uri.joinPath(this.extensionContext.globalStorageUri, 'copilotcli');
-		this._cacheFile = Uri.joinPath(this._cacheDirectory, BULK_METADATA_FILENAME);
-		this._intialize = new Lazy<Promise<void>>(this.initializeStorage.bind(this));
-		this._intialize.value.catch(error => {
+		this._worktreeSessions = new WorktreeSessionIndex(
+			this.fileSystemService,
+			this.logService,
+			getCopilotWorktreeSessionsFile(),
+		);
+
+		this._ready = this.initializeStorage();
+		this._ready.catch(error => {
 			this.logService.error('[ChatSessionMetadataStore] Initialization failed: ', error);
 		});
 	}
 
+	public refresh(): Promise<void> {
+		// Chain onto the existing `_ready` — concurrent calls collapse to at most one
+		// in-flight + one pending. `.catch(() => undefined)` ensures a failed prior
+		// step does not poison subsequent reads/writes.
+		this._ready = this._ready.catch(() => undefined).then(() => this.reloadBulkFromDisk());
+		return this._ready;
+	}
+
 	private async initializeStorage(): Promise<void> {
-		try {
-			this._cache = await this.getGlobalStorageData();
-			// In case user closed vscode early or we couldn't save the session information for some reason.
-			for (const [sessionId, metadata] of Object.entries(this._cache)) {
-				if (sessionId.startsWith('untitled-')) {
-					delete this._cache[sessionId];
-					continue;
-				}
-				if (!metadata.writtenToDisc) {
-					if ((metadata.workspaceFolder || metadata.worktreeProperties || metadata.additionalWorkspaces?.length)) {
-						this.updateSessionMetadata(sessionId, metadata, false).catch(ex => {
-							this.logService.error(ex, `[ChatSessionMetadataStore] Failed to write metadata for session ${sessionId} to session state: `);
-						});
-					} else {
-						// invalid data, we don't need this in our cache.
-						delete this._cache[sessionId];
-					}
-				}
-			}
-			// Dont' exit from here, keep reaading from global storage.
-			// Possible we had a bug and we missed writing some metadata to disc.
-		} catch {
-			//
-		}
-
-		let cacheUpdated = false;
-		// Collect workspace folder entries from global state
-		const workspaceFolderData = this.extensionContext.globalState.get<Record<string, Partial<WorkspaceFolderEntry>>>(WORKSPACE_FOLDER_MEMENTO_KEY, {});
-		for (const [sessionId, entry] of Object.entries(workspaceFolderData)) {
-			if (typeof entry === 'string' || !entry.folderPath || !entry.timestamp) {
-				continue;
-			}
-			if (sessionId.startsWith('untitled-')) {
-				continue;
-			}
-			if (sessionId in this._cache && this._cache[sessionId].workspaceFolder) {
-				continue;
-			}
-			cacheUpdated = true;
-			this._cache[sessionId] = { workspaceFolder: { folderPath: entry.folderPath, timestamp: entry.timestamp } };
-		}
-
-		// Collect worktree entries from global state
-		const worktreeData = this.extensionContext.globalState.get<Record<string, string | ChatSessionWorktreeData>>(WORKTREE_MEMENTO_KEY, {});
-		for (const [sessionId, value] of Object.entries(worktreeData)) {
-			if (typeof value === 'string') {
-				continue;
-			}
-			if (sessionId.startsWith('untitled-')) {
-				continue;
-			}
-			if (sessionId in this._cache && this._cache[sessionId].worktreeProperties) {
-				const parsedData: ChatSessionWorktreeProperties = value.version === 1 ? { ...JSON.parse(value.data), version: 1 } : JSON.parse(value.data);
-				const changesInFileStorage = this._cache[sessionId].worktreeProperties?.changes;
-				const changesInGlobalState = parsedData.changes;
-				// There was a bug that resulted in changes not being written to file storage, but they were written to global state.
-				// In that case we want to keep the changes from global state, otherwise we might lose data.
-				if ((changesInGlobalState || []).length === (changesInFileStorage || []).length) {
-					continue;
-				}
-			}
-			cacheUpdated = true;
-			{
-				const parsedData: ChatSessionWorktreeProperties = value.version === 1 ? { ...JSON.parse(value.data), version: 1 } : JSON.parse(value.data);
-				this._cache[sessionId] = { ...this._cache[sessionId], workspaceFolder: undefined, worktreeProperties: parsedData, writtenToDisc: false };
-			}
-		}
+		// One-time migration from the legacy per-install bulk file in
+		// globalStorageUri to the shared `~/.copilot/` location.
+		await this.migrateLegacyBulkFile();
 
+		this._cache = await this.getGlobalStorageData().catch(() => ({} as Record<string, ChatSessionMetadataFile>));
+		// In case user closed vscode early or we couldn't save the session information for some reason.
 		for (const [sessionId, metadata] of Object.entries(this._cache)) {
-			// These promises can run in background and no need to wait for them.
-			// Even if user exits early we have all the data in the global storage and we'll restore from that next time.
-			if (!metadata.writtenToDisc) {
-				if ((metadata.workspaceFolder || metadata.worktreeProperties || metadata.additionalWorkspaces?.length)) {
-					this.updateSessionMetadata(sessionId, metadata, false).catch(ex => {
-						this.logService.error(ex, `[ChatSessionMetadataStore] Failed to write metadata for session ${sessionId} to session state: `);
-					});
-				}
+			if (sessionId.startsWith('untitled-')) {
+				delete this._cache[sessionId];
+				continue;
+			}
+			if (!(metadata.workspaceFolder || metadata.worktreeProperties || metadata.additionalWorkspaces?.length)) {
+				// invalid data, we don't need this in our cache.
+				delete this._cache[sessionId];
 			}
 		}
 
-		if (cacheUpdated) {
-			// Writing to file is most important.
-			await this.writeToGlobalStorage(this._cache);
-		}
-
-		// To be enabled after testing. So we dont' blow away the data.
-		// this.extensionContext.globalState.update(WORKSPACE_FOLDER_MEMENTO_KEY, undefined);
 		// this.extensionContext.globalState.update(WORKTREE_MEMENTO_KEY, undefined);
+		// this.extensionContext.globalState.update(WORKSPACE_FOLDER_MEMENTO_KEY, undefined);
+
+
+		// Ensure every cached session with a worktreePath has a JSONL
+		// entry. Only appends entries that are missing; falls back to a full rewrite when
+		// the load detected duplicates or malformed lines.
+		await this.topUpJsonlIndexFromCache();
 	}
 
 	public getMetadataFileUri(sessionId: string): vscode.Uri {
@@ -150,16 +134,19 @@ export class ChatSessionMetadataStore extends Disposable implements IChatSession
 	}
 
 	async deleteSessionMetadata(sessionId: string): Promise<void> {
-		await this._intialize.value;
+		await this._ready;
 		if (sessionId in this._cache) {
 			delete this._cache[sessionId];
-			const data = await this.getGlobalStorageData();
+			const data = await this.getGlobalStorageData().catch(() => ({} as Record<string, ChatSessionMetadataFile>));
 			delete data[sessionId];
 			await this.writeToGlobalStorage(data);
 		}
 		try {
-			await this.fileSystemService.delete(this.getMetadataFileUri(sessionId));
-			await this.fileSystemService.delete(this.getRequestMappingFileUri(sessionId));
+			await Promise.allSettled([
+				this._worktreeSessions.removeAndWriteToDisk(sessionId),
+				this.fileSystemService.delete(this.getMetadataFileUri(sessionId)),
+				this.fileSystemService.delete(this.getRequestMappingFileUri(sessionId))
+			]);
 		} catch {
 			// File may not exist, ignore.
 		}
@@ -169,11 +156,14 @@ export class ChatSessionMetadataStore extends Disposable implements IChatSession
 		if (isUntitledSessionId(sessionId)) {
 			return;
 		}
-		await this._intialize.value;
+		await this._ready;
+		// Optimistically update in-memory cache so callers in the same process observe
+		// the change immediately. We pass only the partial `fields` to
+		// `updateSessionMetadata` — that method reads fresh from disk and merges, so it
+		// cannot stomp fields written by other processes (Step 3b: stale-cache fix).
 		const existing = this._cache[sessionId] ?? {};
-		const metadata: ChatSessionMetadataFile = { ...existing, ...fields };
-		this._cache[sessionId] = metadata;
-		await this.updateSessionMetadata(sessionId, metadata);
+		this._cache[sessionId] = { ...existing, ...fields };
+		await this.updateSessionMetadata(sessionId, fields);
 		this.updateGlobalStorage();
 	}
 
@@ -197,30 +187,44 @@ export class ChatSessionMetadataStore extends Disposable implements IChatSession
 	getWorktreeProperties(sessionId: string): Promise<ChatSessionWorktreeProperties | undefined>;
 	getWorktreeProperties(folder: Uri): Promise<ChatSessionWorktreeProperties | undefined>;
 	async getWorktreeProperties(sessionId: string | Uri): Promise<ChatSessionWorktreeProperties | undefined> {
-		await this._intialize.value;
+		await this._ready;
 		if (typeof sessionId === 'string') {
 			const metadata = await this.getSessionMetadata(sessionId);
 			return metadata?.worktreeProperties;
-		} else {
-			const folder = sessionId;
-			for (const metadata of Object.values(this._cache)) {
-				if (!metadata.worktreeProperties?.worktreePath) {
-					continue;
-				}
-				if (isEqual(Uri.file(metadata.worktreeProperties.worktreePath), folder)) {
-					return metadata.worktreeProperties;
-				}
+		}
+		const folder = sessionId;
+		// First check the in-memory cache.
+		for (const metadata of Object.values(this._cache)) {
+			if (metadata.worktreeProperties?.worktreePath && isEqual(Uri.file(metadata.worktreeProperties.worktreePath), folder)) {
+				return metadata.worktreeProperties;
 			}
 		}
+		// Fallback to the JSONL worktree index → hydrate from the per-session file.
+		const id = await this.findSessionIdForWorktree(folder);
+		if (id) {
+			const metadata = await this.getSessionMetadata(id);
+			return metadata?.worktreeProperties;
+		}
+		return undefined;
 	}
 	async getSessionIdForWorktree(folder: vscode.Uri): Promise<string | undefined> {
-		await this._intialize.value;
+		await this._ready;
 		for (const [sessionId, value] of Object.entries(this._cache)) {
 			if (value.worktreeProperties?.worktreePath && isEqual(vscode.Uri.file(value.worktreeProperties.worktreePath), folder)) {
 				return sessionId;
 			}
 		}
-		return undefined;
+		return this.findSessionIdForWorktree(folder);
+	}
+
+	/** Looks up a session id for a worktree folder via the JSONL index, with a throttled disk reload. */
+	private async findSessionIdForWorktree(folder: vscode.Uri): Promise<string | undefined> {
+		const cached = this._worktreeSessions.getSessionIdForFolder(folder);
+		if (cached) {
+			return cached;
+		}
+		await this._worktreeSessions.reloadIfStale();
+		return this._worktreeSessions.getSessionIdForFolder(folder);
 	}
 
 	async getSessionWorkspaceFolder(sessionId: string): Promise<vscode.Uri | undefined> {
@@ -284,7 +288,7 @@ export class ChatSessionMetadataStore extends Disposable implements IChatSession
 	}
 
 	async getRequestDetails(sessionId: string): Promise<RequestDetails[]> {
-		await this._intialize.value;
+		await this._ready;
 		const fileUri = this.getRequestMappingFileUri(sessionId);
 		try {
 			const content = await this.fileSystemService.readFile(fileUri);
@@ -295,7 +299,7 @@ export class ChatSessionMetadataStore extends Disposable implements IChatSession
 	}
 
 	async updateRequestDetails(sessionId: string, details: (Partial<RequestDetails> & { vscodeRequestId: string })[]): Promise<void> {
-		await this._intialize.value;
+		await this._ready;
 		if (isUntitledSessionId(sessionId)) {
 			return;
 		}
@@ -324,7 +328,7 @@ export class ChatSessionMetadataStore extends Disposable implements IChatSession
 	}
 
 	private async writeRequestDetails(sessionId: string, details: RequestDetails[]): Promise<void> {
-		await this._intialize.value;
+		await this._ready;
 		if (isUntitledSessionId(sessionId)) {
 			return;
 		}
@@ -337,7 +341,7 @@ export class ChatSessionMetadataStore extends Disposable implements IChatSession
 	}
 
 	async storeForkedSessionMetadata(sourceSessionId: string, targetSessionId: string, customTitle: string): Promise<void> {
-		await this._intialize.value;
+		await this._ready;
 		const sourceMetadata = await this.getSessionMetadata(sourceSessionId);
 		const forkedMetadata: ChatSessionMetadataFile = {
 			...sourceMetadata,
@@ -351,7 +355,7 @@ export class ChatSessionMetadataStore extends Disposable implements IChatSession
 	}
 
 	public async setSessionOrigin(sessionId: string): Promise<void> {
-		await this._intialize.value;
+		await this._ready;
 		await this.updateMetadataFields(sessionId, { origin: 'vscode' });
 	}
 
@@ -371,33 +375,52 @@ export class ChatSessionMetadataStore extends Disposable implements IChatSession
 		return 'other';
 	}
 
+	public async setSessionParentId(sessionId: string, parentSessionId: string): Promise<void> {
+		await this._ready;
+		await this.updateMetadataFields(sessionId, { parentSessionId, kind: 'sub-session' });
+	}
+
+	public async getSessionParentId(sessionId: string): Promise<string | undefined> {
+		const metadata = await this.getSessionMetadata(sessionId, false);
+		return metadata?.parentSessionId;
+	}
+
 	private async getSessionMetadata(sessionId: string, createMetadataFileIfNotFound = true): Promise<ChatSessionMetadataFile | undefined> {
 		if (isUntitledSessionId(sessionId)) {
 			return undefined;
 		}
-		await this._intialize.value;
+		await this._ready;
 		if (sessionId in this._cache) {
 			return this._cache[sessionId];
 		}
 
-		const fileUri = this.getMetadataFileUri(sessionId);
-		try {
-			const content = await this.fileSystemService.readFile(fileUri);
-			const metadata: ChatSessionMetadataFile = JSON.parse(new TextDecoder().decode(content));
+		const metadata = await this.readSessionMetadataFile(sessionId);
+		if (metadata) {
 			this._cache[sessionId] = metadata;
 			return metadata;
+		}
+
+		// So we don't try again.
+		this._cache[sessionId] = {};
+		if (createMetadataFileIfNotFound) {
+			await this.updateSessionMetadata(sessionId, { origin: 'other' });
+			this.updateGlobalStorage();
+		}
+		return undefined;
+	}
+
+	/** Reads a per-session metadata file directly. Returns `undefined` if it doesn't exist or is invalid. */
+	private async readSessionMetadataFile(sessionId: string): Promise<ChatSessionMetadataFile | undefined> {
+		try {
+			const fileUri = this.getMetadataFileUri(sessionId);
+			const content = await this.fileSystemService.readFile(fileUri);
+			return JSON.parse(new TextDecoder().decode(content)) as ChatSessionMetadataFile;
 		} catch {
-			// So we don't try again.
-			this._cache[sessionId] = {};
-			if (createMetadataFileIfNotFound) {
-				await this.updateSessionMetadata(sessionId, { origin: 'other' });
-				this.updateGlobalStorage();
-			}
 			return undefined;
 		}
 	}
 
-	private async updateSessionMetadata(sessionId: string, metadata: ChatSessionMetadataFile, createDirectoryIfNotFound = true): Promise<void> {
+	private async updateSessionMetadata(sessionId: string, updates: Partial<ChatSessionMetadataFile>, createDirectoryIfNotFound = true): Promise<void> {
 		if (isUntitledSessionId(sessionId)) {
 			// Don't write metadata for untitled sessions, as they are temporary and can be created in large numbers.
 			return;
@@ -410,17 +433,19 @@ export class ChatSessionMetadataStore extends Disposable implements IChatSession
 			// Try to read existing file first (will succeed 99% of the time).
 			// This preserves data written by other processes when merging.
 			let existing: ChatSessionMetadataFile = {};
+			let diskFileExisted = true;
 			try {
 				const rawContent = await this.fileSystemService.readFile(fileUri);
 				existing = JSON.parse(new TextDecoder().decode(rawContent));
 			} catch {
+				diskFileExisted = false;
 				// File doesn't exist yet — check if the directory exists.
 				try {
 					await this.fileSystemService.stat(dirUri);
 				} catch {
 					if (!createDirectoryIfNotFound) {
 						// Lets not delete the session from our storage, but mark it as written to session state so that we won't try to write to session state again and again.
-						this._cache[sessionId] = { ...metadata, writtenToDisc: true };
+						this._cache[sessionId] = { ...updates, writtenToDisc: true };
 						this.updateGlobalStorage();
 						return;
 					}
@@ -428,10 +453,13 @@ export class ChatSessionMetadataStore extends Disposable implements IChatSession
 				}
 			}
 
-			// Merge: overwrite fields that are explicitly provided, delete fields set to undefined.
-			// This preserves data written by other processes.
-			const merged: ChatSessionMetadataFile = { ...existing };
-			for (const [key, value] of Object.entries(metadata)) {
+			// Merge order: cache (locally-known fields not yet flushed to disk)
+			//             → disk existing (cross-process writes win over stale cache, Step 3b)
+			//             → explicit `metadata` fields from this call (caller wins).
+			// `undefined` values in `metadata` delete the corresponding key.
+			const cacheExisting = diskFileExisted ? {} : (this._cache[sessionId] ?? {});
+			const merged: ChatSessionMetadataFile = { ...cacheExisting, ...existing };
+			for (const [key, value] of Object.entries(updates)) {
 				if (value === undefined) {
 					delete (merged as Record<string, unknown>)[key];
 				} else {
@@ -439,8 +467,38 @@ export class ChatSessionMetadataStore extends Disposable implements IChatSession
 				}
 			}
 
+			// Stamp timestamps. `created` is set only on first write; `modified` is
+			// bumped on every write.
+			const now = Date.now();
+			merged.modified = now;
+			if (merged.created === undefined) {
+				merged.created = now;
+			}
+
+			const promises: Promise<unknown>[] = [];
+
+			// Maintain the JSONL worktree index based on the post-merge worktreePath:
+			//   - new entry → append a line and remember it
+			//   - changed path → rewrite the file (rare)
+			//   - cleared path → remove via rewrite
+			const worktreePath = merged.worktreeProperties?.worktreePath;
+			const indexed = this._worktreeSessions.getSessionEntry(sessionId);
+			if (worktreePath) {
+				if (!indexed) {
+					promises.push(this._worktreeSessions.appendBatchToDisk([{ id: sessionId, path: worktreePath, created: merged.created }]));
+				} else if (indexed.path !== worktreePath && !merged.kind) {
+					this._worktreeSessions.addEntry({ id: sessionId, path: worktreePath, created: indexed.created });
+					promises.push(this._worktreeSessions.writeToDisk());
+				}
+			} else if (indexed) {
+				promises.push(this._worktreeSessions.removeAndWriteToDisk(sessionId));
+			}
+
 			const content = new TextEncoder().encode(JSON.stringify(merged, null, 2));
-			await this.fileSystemService.writeFile(fileUri, content);
+			promises.push(this.fileSystemService.writeFile(fileUri, content));
+
+			await Promise.all(promises);
+
 			this._cache[sessionId] = { ...merged, writtenToDisc: true };
 			this.updateGlobalStorage();
 			this.logService.trace(`[ChatSessionMetadataStore] Wrote metadata for session ${sessionId}`);
@@ -458,34 +516,258 @@ export class ChatSessionMetadataStore extends Disposable implements IChatSession
 
 	private async updateGlobalStorageImpl() {
 		try {
-			const data = this._cache;
-			try {
-				const storageData = await this.getGlobalStorageData();
-				for (const [sessionId, metadata] of Object.entries(storageData)) {
-					if (sessionId in data) {
-						// Ignore this.
-					} else {
-						data[sessionId] = metadata;
+			// Serialize against `refresh()` and other bulk-file flushes via the shared
+			// single-key sequencer. Inside the queue we re-read the on-disk file and
+			// merge it with the in-memory cache using last-modified-wins semantics so
+			// concurrent writers in another process do not lose data.
+			await this._bulkSequencer.queue(BULK_SEQUENCER_KEY, async () => {
+				const data: Record<string, ChatSessionMetadataFile> = { ...this._cache };
+				try {
+					const storageData = await this.getGlobalStorageData();
+					for (const [sessionId, diskEntry] of Object.entries(storageData)) {
+						const local = data[sessionId];
+						if (!local) {
+							data[sessionId] = diskEntry;
+							this._cache[sessionId] = diskEntry;
+							continue;
+						}
+						const localModified = local.modified ?? 0;
+						const diskModified = diskEntry.modified ?? 0;
+						if (diskModified > localModified) {
+							data[sessionId] = diskEntry;
+							this._cache[sessionId] = diskEntry;
+						}
 					}
+				} catch {
+					//
 				}
-			} catch {
-				//
-			}
-			await this.writeToGlobalStorage(data);
+				await this.writeToGlobalStorage(data);
+			});
 		} catch (error) {
 			this.logService.error('[ChatSessionMetadataStore] Failed to update global storage: ', error);
 		}
 	}
 
 	private async writeToGlobalStorage(allMetadata: Record<string, ChatSessionMetadataFile>): Promise<void> {
-		try {
-			await this.fileSystemService.stat(this._cacheDirectory);
-		} catch {
-			await this.fileSystemService.createDirectory(this._cacheDirectory);
+		// Make a shallow copy and trim to the top MAX_BULK_STORAGE_ENTRIES by `modified` desc.
+		// The in-memory `_cache` is unaffected — only the on-disk file is bounded.
+		// Per-session files in `~/.copilot/session-state/{id}/vscode.metadata.json` remain
+		// the source of truth for evicted entries.
+		const entries = Object.entries(allMetadata);
+		let toWrite: Record<string, ChatSessionMetadataFile>;
+		if (entries.length <= MAX_BULK_STORAGE_ENTRIES) {
+			toWrite = { ...allMetadata };
+		} else {
+			entries.sort(([, a], [, b]) => (b.modified ?? 0) - (a.modified ?? 0));
+			toWrite = Object.fromEntries(entries.slice(0, MAX_BULK_STORAGE_ENTRIES));
 		}
 
-		const content = new TextEncoder().encode(JSON.stringify(allMetadata, null, 2));
+		const dirUri = dirname(this._cacheFile);
+		try {
+			await this.fileSystemService.stat(dirUri);
+		} catch {
+			await this.fileSystemService.createDirectory(dirUri);
+		}
+
+		const content = new TextEncoder().encode(JSON.stringify(toWrite, null, 2));
 		await this.fileSystemService.writeFile(this._cacheFile, content);
-		this.logService.trace(`[ChatSessionMetadataStore] Wrote bulk metadata file with ${Object.keys(allMetadata).length} session(s)`);
+		this.logService.trace(`[ChatSessionMetadataStore] Wrote bulk metadata file with ${Object.keys(toWrite).length} session(s)`);
+	}
+
+	/**
+	 * Re-reads the shared bulk file from disk and merges into `_cache` using
+	 * last-modified-wins. Runs inside the bulk sequencer so it is serialized
+	 * against {@link updateGlobalStorageImpl}. Never drops in-memory entries.
+	 */
+	private async reloadBulkFromDisk(): Promise<void> {
+		return this._bulkSequencer.queue(BULK_SEQUENCER_KEY, async () => {
+			let onDisk: Record<string, ChatSessionMetadataFile>;
+			try {
+				onDisk = await this.getGlobalStorageData();
+			} catch {
+				return;
+			}
+			for (const [id, diskEntry] of Object.entries(onDisk)) {
+				const local = this._cache[id];
+				if (!local) {
+					this._cache[id] = diskEntry;
+					continue;
+				}
+				const localModified = local.modified ?? 0;
+				const diskModified = diskEntry.modified ?? 0;
+				if (diskModified > localModified) {
+					this._cache[id] = diskEntry;
+				}
+			}
+		});
+	}
+
+	/**
+	 * Merges the per-install legacy bulk file (`globalStorageUri/copilotcli/…`) into
+	 * the shared `~/.copilot/` bulk file using last-modified-wins. This handles:
+	 *   - First-run: shared file missing → copy legacy content into the shared file.
+	 *   - Late-joiner: Process A already created the shared file → merge so entries
+	 *     unique to this install are not lost.
+	 *   - No legacy file: nothing to do.
+	 */
+	private async migrateLegacyBulkFile(): Promise<void> {
+		// Skip if this install already migrated.
+		if (this.extensionContext.globalState.get<boolean>(LEGACY_BULK_MIGRATED_KEY)) {
+			return;
+		}
+
+		const legacyCacheFile = Uri.joinPath(this.extensionContext.globalStorageUri, 'copilotcli', LEGACY_BULK_METADATA_FILENAME);
+		let legacyData: Record<string, ChatSessionMetadataFile>;
+		try {
+			const raw = await this.fileSystemService.readFile(legacyCacheFile);
+			legacyData = JSON.parse(new TextDecoder().decode(raw));
+		} catch {
+			// No legacy file — mark as migrated so we don't retry.
+			await this.extensionContext.globalState.update(LEGACY_BULK_MIGRATED_KEY, true);
+			return;
+		}
+
+		try {
+			await createDirectoryIfNotExists(this.fileSystemService, dirname(this._cacheFile));
+
+			// Try to read the shared file (may or may not exist yet).
+			let sharedData: Record<string, ChatSessionMetadataFile> = {};
+			try {
+				const raw = await this.fileSystemService.readFile(this._cacheFile);
+				sharedData = JSON.parse(new TextDecoder().decode(raw));
+			} catch {
+				// Shared file doesn't exist yet — start empty.
+			}
+
+			// Merge legacy into shared using last-modified-wins.
+			let merged = false;
+			for (const [id, legacyEntry] of Object.entries(legacyData)) {
+				const sharedEntry = sharedData[id];
+				if (!sharedEntry) {
+					sharedData[id] = legacyEntry;
+					merged = true;
+				} else {
+					const sharedModified = sharedEntry.modified ?? 0;
+					const legacyModified = legacyEntry.modified ?? 0;
+					if (legacyModified > sharedModified) {
+						sharedData[id] = legacyEntry;
+						merged = true;
+					}
+				}
+			}
+
+			if (merged) {
+				const content = new TextEncoder().encode(JSON.stringify(sharedData, null, 2));
+				await this.fileSystemService.writeFile(this._cacheFile, content);
+			}
+
+			// Mark as migrated so subsequent startups skip this path.
+			await this.extensionContext.globalState.update(LEGACY_BULK_MIGRATED_KEY, true);
+			this.logService.info('[ChatSessionMetadataStore] Migrated legacy bulk metadata file to ~/.copilot/');
+		} catch (err) {
+			this.logService.error('[ChatSessionMetadataStore] Failed to migrate legacy bulk file: ', err);
+		}
+	}
+
+	/**
+	 * For every cached session with a `worktreePath`, ensure a JSONL entry exists.
+	 */
+	private async topUpJsonlIndexFromCache(): Promise<void> {
+		// Load the JSONL worktree index from disk first so the scan below can
+		// tell which entries already exist and avoid re-appending duplicates.
+		let { rewriteNeeded } = await this._worktreeSessions.loadFromDisk();
+
+		const toAppend: WorktreeSessionEntry[] = [];
+		for (const [id, metadata] of Object.entries(this._cache)) {
+			const path = metadata.worktreeProperties?.worktreePath;
+			if (!path || metadata.kind) {
+				continue;
+			}
+			const existing = this._worktreeSessions.getSessionEntry(id);
+			if (existing && existing.path === path) {
+				continue;
+			}
+			const entry: WorktreeSessionEntry = { id, path, created: existing?.created ?? metadata.created ?? Date.now() };
+			this._worktreeSessions.addEntry(entry);
+			if (existing) {
+				// Path changed — a full rewrite is needed.
+				rewriteNeeded = true;
+			} else {
+				toAppend.push(entry);
+			}
+		}
+
+		if (rewriteNeeded) {
+			await this._worktreeSessions.writeToDisk();
+		} else if (toAppend.length > 0) {
+			await this._worktreeSessions.appendBatchToDisk(toAppend);
+		}
+
+		// One-time full scan of ~/.copilot/session-state/ to discover worktree
+		// sessions that were never recorded in the JSONL (e.g. sessions created
+		// before the JSONL index existed, or evicted from the bulk cache).
+		await this.scanSessionStateDirForWorktrees();
+	}
+
+	/**
+	 * One-time scan of `~/.copilot/session-state/` to discover worktree sessions
+	 * not yet in the JSONL index. Reads per-session metadata files in batches of
+	 * {@link SESSION_SCAN_BATCH_SIZE} to avoid saturating I/O. Gated by a memento
+	 * so it only runs once per install.
+	 */
+	private async scanSessionStateDirForWorktrees(): Promise<void> {
+		if (this.extensionContext.globalState.get<boolean>(JSONL_SCAN_DONE_KEY)) {
+			return;
+		}
+
+		const sessionStateDir = Uri.file(getCopilotCLISessionStateDir());
+		let entries: [string, number][];
+		try {
+			entries = await this.fileSystemService.readDirectory(sessionStateDir);
+		} catch {
+			// Directory doesn't exist — nothing to scan.
+			await this.extensionContext.globalState.update(JSONL_SCAN_DONE_KEY, true);
+			return;
+		}
+
+		// Collect session IDs we don't already know about.
+		const unknownIds: string[] = [];
+		for (const [name] of entries) {
+			if (name in this._cache || this._worktreeSessions.has(name)) {
+				continue;
+			}
+			unknownIds.push(name);
+		}
+
+		if (unknownIds.length === 0) {
+			await this.extensionContext.globalState.update(JSONL_SCAN_DONE_KEY, true);
+			return;
+		}
+
+		// Read metadata files in batches.
+		let discovered = false;
+		for (let i = 0; i < unknownIds.length; i += SESSION_SCAN_BATCH_SIZE) {
+			const batch = unknownIds.slice(i, i + SESSION_SCAN_BATCH_SIZE);
+			const results = await Promise.all(batch.map(async id => {
+				const metadata = await this.readSessionMetadataFile(id);
+				return { id, metadata };
+			}));
+			for (const { id, metadata } of results) {
+				if (!metadata?.worktreeProperties?.worktreePath || metadata.kind) {
+					continue;
+				}
+				const path = metadata.worktreeProperties.worktreePath;
+				if (!this._worktreeSessions.has(id)) {
+					this._worktreeSessions.addEntry({ id, path, created: metadata.created ?? Date.now() });
+					discovered = true;
+				}
+			}
+		}
+
+		if (discovered) {
+			await this._worktreeSessions.writeToDisk();
+		}
+		await this.extensionContext.globalState.update(JSONL_SCAN_DONE_KEY, true);
+		this.logService.info(`[ChatSessionMetadataStore] Session-state scan complete: checked ${unknownIds.length} unknown session(s)`);
 	}
 }
diff --git a/extensions/copilot/src/extension/chatSessions/vscode-node/chatSessionWorktreeServiceImpl.ts b/extensions/copilot/src/extension/chatSessions/vscode-node/chatSessionWorktreeServiceImpl.ts
index 0a23e98bea8..09a2aee2f37 100644
--- a/extensions/copilot/src/extension/chatSessions/vscode-node/chatSessionWorktreeServiceImpl.ts
+++ b/extensions/copilot/src/extension/chatSessions/vscode-node/chatSessionWorktreeServiceImpl.ts
@@ -22,9 +22,9 @@ import { isEqual } from '../../../util/vs/base/common/resources';
 import { generateUuid } from '../../../util/vs/base/common/uuid';
 import { IAgentSessionsWorkspace } from '../common/agentSessionsWorkspace';
 import { IChatSessionMetadataStore } from '../common/chatSessionMetadataStore';
-import { ChatSessionWorktreeData, ChatSessionWorktreeFile, ChatSessionWorktreeProperties, ChatSessionWorktreePropertiesV2, IChatSessionWorktreeService } from '../common/chatSessionWorktreeService';
+import { ChatSessionWorktreeFile, ChatSessionWorktreeProperties, ChatSessionWorktreePropertiesV2, IChatSessionWorktreeService } from '../common/chatSessionWorktreeService';
 
-const CHAT_SESSION_WORKTREE_MEMENTO_KEY = 'github.copilot.cli.sessionWorktrees';
+// const CHAT_SESSION_WORKTREE_MEMENTO_KEY = 'github.copilot.cli.sessionWorktrees';
 
 export class ChatSessionWorktreeService extends Disposable implements IChatSessionWorktreeService {
 	declare _serviceBrand: undefined;
@@ -42,6 +42,8 @@ export class ChatSessionWorktreeService extends Disposable implements IChatSessi
 		@IChatSessionMetadataStore private readonly metadataStore: IChatSessionMetadataStore,
 	) {
 		super();
+		// This is not used.
+		// void this.extensionContext.globalState.update(CHAT_SESSION_WORKTREE_MEMENTO_KEY, undefined);
 	}
 
 	async createWorktree(repositoryPath: vscode.Uri, stream?: vscode.ChatResponseStream, baseBranch?: string, branchName?: string): Promise<ChatSessionWorktreeProperties | undefined> {
@@ -202,11 +204,7 @@ export class ChatSessionWorktreeService extends Disposable implements IChatSessi
 
 	async setWorktreeProperties(sessionId: string, properties: ChatSessionWorktreeProperties): Promise<void> {
 		this._sessionWorktrees.set(sessionId, properties);
-
-		const sessionWorktreesProperties = this.extensionContext.globalState.get<Record<string, string | ChatSessionWorktreeData>>(CHAT_SESSION_WORKTREE_MEMENTO_KEY, {});
-		sessionWorktreesProperties[sessionId] = { data: JSON.stringify(properties), version: properties.version };
 		await this.metadataStore.storeWorktreeInfo(sessionId, properties);
-		await this.extensionContext.globalState.update(CHAT_SESSION_WORKTREE_MEMENTO_KEY, sessionWorktreesProperties);
 	}
 
 	async getWorktreeRepository(sessionId: string): Promise<RepoContext | undefined> {
diff --git a/extensions/copilot/src/extension/chatSessions/vscode-node/claudeChatSessionContentProvider.ts b/extensions/copilot/src/extension/chatSessions/vscode-node/claudeChatSessionContentProvider.ts
index 5293b7a177f..233ae18e424 100644
--- a/extensions/copilot/src/extension/chatSessions/vscode-node/claudeChatSessionContentProvider.ts
+++ b/extensions/copilot/src/extension/chatSessions/vscode-node/claudeChatSessionContentProvider.ts
@@ -5,13 +5,17 @@
 
 import * as vscode from 'vscode';
 import { ChatExtendedRequestHandler } from 'vscode';
+import { PermissionMode } from '@anthropic-ai/claude-agent-sdk';
 import { ConfigKey, IConfigurationService } from '../../../platform/configuration/common/configurationService';
 import { INativeEnvService } from '../../../platform/env/common/envService';
 import { IGitService } from '../../../platform/git/common/gitService';
 import { ILogService } from '../../../platform/log/common/logService';
 import { IWorkspaceService } from '../../../platform/workspace/common/workspaceService';
 import { CancellationToken } from '../../../util/vs/base/common/cancellation';
-import { Disposable } from '../../../util/vs/base/common/lifecycle';
+import { Emitter, Event } from '../../../util/vs/base/common/event';
+import { Disposable, DisposableStore } from '../../../util/vs/base/common/lifecycle';
+import { autorun, derived, IObservable, ISettableObservable, observableFromEvent, observableValue } from '../../../util/vs/base/common/observable';
+import { basename } from '../../../util/vs/base/common/resources';
 import { URI } from '../../../util/vs/base/common/uri';
 import { generateUuid } from '../../../util/vs/base/common/uuid';
 import { ClaudeFolderInfo } from '../claude/common/claudeFolderInfo';
@@ -25,7 +29,8 @@ import { IClaudeCodeSessionInfo } from '../claude/node/sessionParser/claudeSessi
 import { IClaudeSlashCommandService } from '../claude/vscode-node/claudeSlashCommandService';
 import { IChatFolderMruService } from '../common/folderRepositoryManager';
 import { buildChatHistory } from './chatHistoryBuilder';
-import { ClaudeSessionOptionBuilder, FOLDER_OPTION_ID, isPermissionMode, PERMISSION_MODE_OPTION_ID } from './claudeSessionOptionBuilder';
+import { ClaudeSessionOptionBuilder, buildPermissionModeItems, FOLDER_OPTION_ID, isPermissionMode, PERMISSION_MODE_OPTION_ID } from './claudeSessionOptionBuilder';
+import { toWorkspaceFolderOptionItem } from './sessionOptionGroupBuilder';
 
 // Import the tool permission handlers
 import '../claude/vscode-node/toolPermissionHandlers/index';
@@ -33,6 +38,14 @@ import '../claude/vscode-node/toolPermissionHandlers/index';
 // Import the MCP server contributors to trigger self-registration
 import '../claude/vscode-node/mcpServers/index';
 
+interface InputStateReactivePipeline {
+	readonly permissionMode: ISettableObservable<PermissionMode>;
+	readonly folderUri: ISettableObservable<URI | undefined>;
+	readonly folderItems: ISettableObservable<readonly vscode.ChatSessionProviderOptionItem[]>;
+	readonly isSessionStarted: ISettableObservable<boolean>;
+	readonly store: DisposableStore;
+}
+
 export class ClaudeChatSessionContentProvider extends Disposable implements vscode.ChatSessionContentProvider {
 	private readonly _controller: ClaudeChatSessionItemController;
 
@@ -87,17 +100,7 @@ export class ClaudeChatSessionContentProvider extends Disposable implements vsco
 
 			// Lock the folder group when starting a new session (permission mode stays editable)
 			if (isNewSession) {
-				const state = chatSessionContext.inputState;
-				state.groups = state.groups.map(group => {
-					if (group.id !== FOLDER_OPTION_ID) {
-						return group;
-					}
-					return {
-						...group,
-						items: group.items.map(item => ({ ...item, locked: true })),
-						selected: group.selected ? { ...group.selected, locked: true } : undefined,
-					};
-				});
+				this._controller.markSessionStarted(chatSessionContext.inputState);
 			}
 
 			const modelId = parseClaudeModelId(request.model.id);
@@ -176,10 +179,28 @@ export class ClaudeChatSessionItemController extends Disposable {
 	private readonly _inProgressItems = new Map<string, vscode.ChatSessionItem>();
 	private _showBadge: boolean;
 
+	// #region Shared Observable State
+
+	/** Whether the "bypass permissions" config is enabled — controls permission mode items. */
+	private readonly _bypassPermissionsEnabled: IObservable<boolean>;
+
+	/** Current workspace folders — controls folder group items and visibility. */
+	private readonly _workspaceFolders: IObservable<URI[]>;
+
+	/** Disposes per-state autoruns when the state object is garbage collected. */
+	private readonly _stateAutorunRegistry = new FinalizationRegistry<DisposableStore>(
+		store => store.dispose()
+	);
+
+	/** Maps input state objects to their reactive pipelines for external updates. */
+	private readonly _statePipelines = new WeakMap<vscode.ChatSessionInputState, InputStateReactivePipeline>();
+
+	// #endregion
+
 	constructor(
 		@IClaudeCodeSessionService private readonly _claudeCodeSessionService: IClaudeCodeSessionService,
 		@IClaudeSessionStateService private readonly _sessionStateService: IClaudeSessionStateService,
-		@IConfigurationService private readonly _configurationService: IConfigurationService,
+		@IConfigurationService _configurationService: IConfigurationService,
 		@IChatFolderMruService folderMruService: IChatFolderMruService,
 		@IWorkspaceService private readonly _workspaceService: IWorkspaceService,
 		@INativeEnvService private readonly _envService: INativeEnvService,
@@ -189,6 +210,24 @@ export class ClaudeChatSessionItemController extends Disposable {
 	) {
 		super();
 		this._optionBuilder = new ClaudeSessionOptionBuilder(_configurationService, folderMruService, _workspaceService);
+
+		this._bypassPermissionsEnabled = observableFromEvent(
+			this,
+			Event.filter(_configurationService.onDidChangeConfiguration,
+				e => e.affectsConfiguration(ConfigKey.ClaudeAgentAllowDangerouslySkipPermissions.fullyQualifiedId)),
+			() => _configurationService.getConfig(ConfigKey.ClaudeAgentAllowDangerouslySkipPermissions) as boolean,
+		);
+
+		// Bridge vscode.Event → internal Event for workspace folder changes
+		const workspaceFoldersEmitter = this._register(new Emitter<void>());
+		const workspaceFoldersSubscription = _workspaceService.onDidChangeWorkspaceFolders(() => workspaceFoldersEmitter.fire());
+		this._register({ dispose: () => workspaceFoldersSubscription.dispose() });
+		this._workspaceFolders = observableFromEvent(
+			this,
+			workspaceFoldersEmitter.event,
+			() => _workspaceService.getWorkspaceFolders(),
+		);
+
 		this._registerCommands();
 		this._controller = this._register(vscode.chat.createChatSessionItemController(
 			ClaudeSessionUri.scheme,
@@ -277,79 +316,206 @@ export class ClaudeChatSessionItemController extends Disposable {
 
 	// #region Input State
 
-	private _setupInputState(): void {
-		const trackedStates: { ref: WeakRef<vscode.ChatSessionInputState> }[] = [];
+	/**
+	 * Creates a reactive pipeline for a single input state.
+	 *
+	 * Per-state observables (`permissionMode`, `folderUri`, `isSessionStarted`) are
+	 * combined with shared observables (`_bypassPermissionsEnabled`, `_workspaceFolders`)
+	 * into derived group computations. An autorun reads the derived groups and pushes
+	 * the result to `state.groups`, which is the "UI".
+	 *
+	 * The `state` is only held weakly by the autoruns so it can be garbage-collected
+	 * while the shared observables still reference the pipeline's observers. When the
+	 * state is collected, the finalization registry disposes the store and unsubscribes.
+	 *
+	 * Returns the per-state observables so callers can drive external updates, plus a
+	 * `DisposableStore` that owns the autorun lifecycle.
+	 */
+	private _createInputStateReactivePipeline(
+		state: vscode.ChatSessionInputState,
+	): InputStateReactivePipeline {
+		const store = new DisposableStore();
 
-		const sweepStaleEntries = () => {
-			for (let i = trackedStates.length - 1; i >= 0; i--) {
-				if (!trackedStates[i].ref.deref()) {
-					trackedStates.splice(i, 1);
-				}
+		// Seed values are computed up front so that the first autorun pass
+		// observes fully-seeded observables and does not clobber `initialGroups`.
+		const seed = this._computeSeedValues(state.groups);
+
+		const permissionMode = observableValue<PermissionMode>(this, seed.permissionMode);
+		const folderUri = observableValue<URI | undefined>(this, seed.folderUri);
+		const folderItems = observableValue<readonly vscode.ChatSessionProviderOptionItem[]>(this, seed.folderItems);
+		const isSessionStarted = observableValue<boolean>(this, seed.isSessionStarted);
+
+		// When workspace folders change, update folder items reactively.
+		// Falls back to the async MRU list when the workspace becomes empty,
+		// matching the old imperative `buildNewFolderGroup` behavior.
+		store.add(autorun(reader => {
+			/** @description syncWorkspaceFolderItems */
+			const folders = this._workspaceFolders.read(reader);
+			if (folders.length !== 0) {
+				folderItems.set(
+					folders.map(f => toWorkspaceFolderOptionItem(f, this._workspaceService.getWorkspaceFolderName(f) || basename(f))),
+					undefined,
+				);
+			} else {
+				this._optionBuilder.getFolderOptionItems()
+					.then(items => folderItems.set(items, undefined))
+					.catch(e => this._logService.error(e));
 			}
-		};
+		}));
 
+		const permissionModeGroup = derived(reader => {
+			/** @description permissionModeGroup */
+			const bypassEnabled = this._bypassPermissionsEnabled.read(reader);
+			const selectedMode = permissionMode.read(reader);
+			const group = buildPermissionModeItems(bypassEnabled);
+			const selectedItem = group.items.find(i => i.id === selectedMode) ?? group.items[0];
+			return { ...group, selected: selectedItem };
+		});
+
+		const folderGroup = derived<vscode.ChatSessionProviderOptionGroup | undefined>(reader => {
+			/** @description folderGroup */
+			const items = folderItems.read(reader);
+			const folders = this._workspaceFolders.read(reader);
+			// Hide folder group when there's exactly one workspace folder (implicit)
+			if (folders.length === 1) {
+				return undefined;
+			}
+			const selectedFolder = folderUri.read(reader);
+			const locked = isSessionStarted.read(reader);
+			const lockedItems = locked ? items.map(i => ({ ...i, locked: true })) : items;
+			const selectedItem = selectedFolder
+				? lockedItems.find(i => i.id === selectedFolder.fsPath)
+				: lockedItems[0];
+			return {
+				id: FOLDER_OPTION_ID,
+				name: vscode.l10n.t('Folder'),
+				description: vscode.l10n.t('Pick Folder'),
+				items: lockedItems,
+				selected: selectedItem ? (locked ? { ...selectedItem, locked: true } : selectedItem) : undefined,
+			};
+		});
+
+		const allGroups = derived(reader => {
+			/** @description allGroups */
+			const groups: vscode.ChatSessionProviderOptionGroup[] = [];
+			const folder = folderGroup.read(reader);
+			if (folder) {
+				groups.push(folder);
+			}
+			groups.push(permissionModeGroup.read(reader));
+			return groups;
+		});
+
+		// Hold `state` via a WeakRef so the autorun's closure does not retain it.
+		// Shared observables (`_workspaceFolders`, `_bypassPermissionsEnabled`) hold
+		// strong references to autoruns; without the WeakRef, `state` would transitively
+		// stay reachable forever and `_stateAutorunRegistry` could never fire.
+		const stateRef = new WeakRef(state);
+		store.add(autorun(reader => {
+			/** @description syncInputStateGroups */
+			const groups = allGroups.read(reader);
+			const currentState = stateRef.deref();
+			if (currentState) {
+				currentState.groups = groups;
+			}
+		}));
+
+		return { permissionMode, folderUri, folderItems, isSessionStarted, store };
+	}
+
+	private _setupInputState(): void {
 		this._controller.getChatSessionInputState = async (sessionResource, context, token) => {
 			if (context.previousInputState) {
 				const state = this._controller.createChatSessionInputState([...context.previousInputState.groups]);
-				trackedStates.push({ ref: new WeakRef(state) });
+				const pipeline = this._createInputStateReactivePipeline(state);
+				this._statePipelines.set(state, pipeline);
+				this._stateAutorunRegistry.register(state, pipeline.store);
 				return state;
 			}
 
 			const isExistingSession = sessionResource && await this._claudeCodeSessionService.getSession(sessionResource, token) !== undefined;
-
-			const groups = isExistingSession
+			const initialGroups = isExistingSession
 				? await this._buildExistingSessionGroups(sessionResource)
 				: await this._optionBuilder.buildNewSessionGroups();
-			const state = this._controller.createChatSessionInputState(groups);
-			trackedStates.push({ ref: new WeakRef(state) });
+			const state = this._controller.createChatSessionInputState(initialGroups);
+			const pipeline = this._createInputStateReactivePipeline(state);
+
+			if (isExistingSession) {
+				pipeline.isSessionStarted.set(true, undefined);
+			}
+
+			// React to external permission mode changes for this session
+			if (sessionResource) {
+				const sessionId = ClaudeSessionUri.getSessionId(sessionResource);
+				const externalPermissionMode = observableFromEvent(
+					this,
+					Event.filter(this._sessionStateService.onDidChangeSessionState,
+						e => e.sessionId === sessionId && e.permissionMode !== undefined),
+					() => this._sessionStateService.getPermissionModeForSession(sessionId),
+				);
+				pipeline.store.add(autorun(reader => {
+					/** @description syncExternalPermissionMode */
+					pipeline.permissionMode.set(externalPermissionMode.read(reader), undefined);
+				}));
+			}
+
+			this._statePipelines.set(state, pipeline);
+			this._stateAutorunRegistry.register(state, pipeline.store);
 			return state;
 		};
+	}
 
-		// Rebuild active input states when external conditions change
-		const refreshActiveInputStates = () => {
-			sweepStaleEntries();
-			for (const entry of trackedStates) {
-				const state = entry.ref.deref();
-				if (state) {
-					this._rebuildInputState(state).catch(e => this._logService.error(e));
-				}
-			}
-		};
+	/**
+	 * Extracts seed values for the per-state observables from the input groups.
+	 * Pure and synchronous — runs before any autoruns are attached so the first
+	 * autorun pass observes fully-seeded values and does not overwrite the
+	 * carefully-constructed initial groups.
+	 *
+	 * Also recovers the `isSessionStarted` signal from `locked` items — required to
+	 * preserve lock state when restoring a previously-started session.
+	 */
+	private _computeSeedValues(groups: readonly vscode.ChatSessionProviderOptionGroup[]): {
+		readonly permissionMode: PermissionMode;
+		readonly folderUri: URI | undefined;
+		readonly folderItems: readonly vscode.ChatSessionProviderOptionItem[];
+		readonly isSessionStarted: boolean;
+	} {
+		let permissionMode: PermissionMode = this._optionBuilder.lastUsedPermissionMode;
+		const permissionGroup = groups.find(g => g.id === PERMISSION_MODE_OPTION_ID);
+		if (permissionGroup?.selected && isPermissionMode(permissionGroup.selected.id)) {
+			permissionMode = permissionGroup.selected.id;
+		}
 
-		// Config change (bypass permissions toggle) → may add/remove permission items
-		this._register(this._configurationService.onDidChangeConfiguration(e => {
-			if (e.affectsConfiguration(ConfigKey.ClaudeAgentAllowDangerouslySkipPermissions.fullyQualifiedId)) {
-				refreshActiveInputStates();
+		let folderUri: URI | undefined;
+		let folderItems: readonly vscode.ChatSessionProviderOptionItem[] = [];
+		let isSessionStarted = false;
+		const folderGroup = groups.find(g => g.id === FOLDER_OPTION_ID);
+		if (folderGroup) {
+			if (folderGroup.items.length > 0) {
+				folderItems = folderGroup.items;
 			}
-		}));
+			if (folderGroup.selected) {
+				folderUri = URI.file(folderGroup.selected.id);
+			}
+			// Restore the "started" signal: if any items (or the selected item) carry
+			// `locked: true`, the session was previously started and must stay locked.
+			if (folderGroup.selected?.locked || folderGroup.items.some(i => i.locked)) {
+				isSessionStarted = true;
+			}
+		}
 
-		// Workspace folder changes → may add/remove folder group
-		this._register(this._workspaceService.onDidChangeWorkspaceFolders(() => {
-			refreshActiveInputStates();
-		}));
+		return { permissionMode, folderUri, folderItems, isSessionStarted };
+	}
 
-		// Session state service changes (e.g., permission mode changed externally)
-		this._register(this._sessionStateService.onDidChangeSessionState(e => {
-			if (e.permissionMode === undefined) {
-				return;
-			}
-			for (const entry of trackedStates) {
-				const state = entry.ref.deref();
-				if (state?.sessionResource) {
-					const stateSessionId = ClaudeSessionUri.getSessionId(state.sessionResource);
-					if (stateSessionId === e.sessionId) {
-						const permissionGroup = this._optionBuilder.buildPermissionModeGroup();
-						const selectedItem = permissionGroup.items.find(i => i.id === e.permissionMode);
-						if (selectedItem) {
-							const updatedGroup = { ...permissionGroup, selected: selectedItem };
-							state.groups = state.groups.map(g =>
-								g.id === PERMISSION_MODE_OPTION_ID ? updatedGroup : g
-							);
-						}
-					}
-				}
-			}
-		}));
+	/**
+	 * Marks the input state as "started", which locks the folder group.
+	 * Called by the content provider when a new session begins.
+	 */
+	markSessionStarted(inputState: vscode.ChatSessionInputState): void {
+		const pipeline = this._statePipelines.get(inputState);
+		if (pipeline) {
+			pipeline.isSessionStarted.set(true, undefined);
+		}
 	}
 
 	private async _buildExistingSessionGroups(sessionResource: vscode.Uri): Promise<vscode.ChatSessionProviderOptionGroup[]> {
@@ -374,14 +540,6 @@ export class ClaudeChatSessionItemController extends Disposable {
 		return this._optionBuilder.buildExistingSessionGroups(permissionMode, folderUri);
 	}
 
-	private async _rebuildInputState(state: vscode.ChatSessionInputState): Promise<void> {
-		if (state.sessionResource) {
-			state.groups = await this._buildExistingSessionGroups(state.sessionResource);
-		} else {
-			state.groups = await this._optionBuilder.buildNewSessionGroups(state);
-		}
-	}
-
 	// #endregion
 
 	// #region Folder Resolution
@@ -523,6 +681,10 @@ export class ClaudeChatSessionItemController extends Disposable {
 			lastRequestEnded: session.lastRequestEnded,
 		};
 		item.iconPath = new vscode.ThemeIcon('claude');
+		if (session.cwd) {
+			// Agents app needs this to decide the working directory for the session
+			item.metadata = { workingDirectoryPath: session.cwd };
+		}
 		return item;
 	}
 
diff --git a/extensions/copilot/src/extension/chatSessions/vscode-node/claudeSessionOptionBuilder.ts b/extensions/copilot/src/extension/chatSessions/vscode-node/claudeSessionOptionBuilder.ts
index 4f579a59372..87b5d2d250c 100644
--- a/extensions/copilot/src/extension/chatSessions/vscode-node/claudeSessionOptionBuilder.ts
+++ b/extensions/copilot/src/extension/chatSessions/vscode-node/claudeSessionOptionBuilder.ts
@@ -42,18 +42,16 @@ export class ClaudeSessionOptionBuilder {
 		private readonly _workspaceService: IWorkspaceService,
 	) { }
 
-	async buildNewSessionGroups(previousInputState?: vscode.ChatSessionInputState): Promise<vscode.ChatSessionProviderOptionGroup[]> {
+	async buildNewSessionGroups(): Promise<vscode.ChatSessionProviderOptionGroup[]> {
 		const groups: vscode.ChatSessionProviderOptionGroup[] = [];
 
-		const folderGroup = await this.buildNewFolderGroup(previousInputState);
+		const folderGroup = await this.buildNewFolderGroup();
 		if (folderGroup) {
 			groups.push(folderGroup);
 		}
 
 		const permissionGroup = this.buildPermissionModeGroup();
-		const previousPermission = previousInputState ? getSelectedOption(previousInputState.groups, PERMISSION_MODE_OPTION_ID) : undefined;
-		const selectedPermissionId = previousPermission?.id ?? this._lastUsedPermissionMode;
-		const selectedPermission = permissionGroup.items.find(i => i.id === selectedPermissionId);
+		const selectedPermission = permissionGroup.items.find(i => i.id === this._lastUsedPermissionMode);
 		groups.push({
 			...permissionGroup,
 			selected: selectedPermission ?? permissionGroup.items[0],
@@ -80,40 +78,23 @@ export class ClaudeSessionOptionBuilder {
 	}
 
 	buildPermissionModeGroup(): vscode.ChatSessionProviderOptionGroup {
-		const items: vscode.ChatSessionProviderOptionItem[] = [
-			{ id: 'default', name: l10n.t('Ask before edits') },
-			{ id: 'acceptEdits', name: l10n.t('Edit automatically') },
-			{ id: 'plan', name: l10n.t('Plan mode') },
-		];
-
-		if (this._configurationService.getConfig(ConfigKey.ClaudeAgentAllowDangerouslySkipPermissions)) {
-			items.push({ id: 'bypassPermissions', name: l10n.t('Bypass all permissions') });
-		}
-
-		return {
-			id: PERMISSION_MODE_OPTION_ID,
-			name: l10n.t('Permission Mode'),
-			description: l10n.t('Pick Permission Mode'),
-			items,
-		};
+		const bypassEnabled = this._configurationService.getConfig(ConfigKey.ClaudeAgentAllowDangerouslySkipPermissions);
+		return buildPermissionModeItems(bypassEnabled);
 	}
 
-	async buildNewFolderGroup(previousInputState: vscode.ChatSessionInputState | undefined): Promise<vscode.ChatSessionProviderOptionGroup | undefined> {
+	async buildNewFolderGroup(): Promise<vscode.ChatSessionProviderOptionGroup | undefined> {
 		const workspaceFolders = this._workspaceService.getWorkspaceFolders();
 		if (workspaceFolders.length === 1) {
 			return undefined;
 		}
 
 		const folderItems = await this.getFolderOptionItems();
-		const previousFolder = previousInputState ? getSelectedOption(previousInputState.groups, FOLDER_OPTION_ID) : undefined;
-		const defaultFolderId = previousFolder?.id ?? folderItems[0]?.id;
-		const selectedItem = defaultFolderId ? folderItems.find(i => i.id === defaultFolderId) : undefined;
 		return {
 			id: FOLDER_OPTION_ID,
 			name: l10n.t('Folder'),
 			description: l10n.t('Pick Folder'),
 			items: folderItems,
-			selected: selectedItem ?? folderItems[0],
+			selected: folderItems[0],
 		};
 	}
 
@@ -176,3 +157,30 @@ export class ClaudeSessionOptionBuilder {
 		return { permissionMode, folderUri };
 	}
 }
+
+// #region Pure group-building functions (observable-friendly)
+
+/**
+ * Build the permission mode option group from explicit inputs.
+ * Pure and synchronous — suitable for use in `derived` computations.
+ */
+export function buildPermissionModeItems(bypassEnabled: boolean): vscode.ChatSessionProviderOptionGroup {
+	const items: vscode.ChatSessionProviderOptionItem[] = [
+		{ id: 'default', name: l10n.t('Ask before edits') },
+		{ id: 'acceptEdits', name: l10n.t('Edit automatically') },
+		{ id: 'plan', name: l10n.t('Plan mode') },
+	];
+
+	if (bypassEnabled) {
+		items.push({ id: 'bypassPermissions', name: l10n.t('Bypass all permissions') });
+	}
+
+	return {
+		id: PERMISSION_MODE_OPTION_ID,
+		name: l10n.t('Permission Mode'),
+		description: l10n.t('Pick Permission Mode'),
+		items,
+	};
+}
+
+// #endregion
diff --git a/extensions/copilot/src/extension/chatSessions/vscode-node/copilotCLIChatSessions.ts b/extensions/copilot/src/extension/chatSessions/vscode-node/copilotCLIChatSessions.ts
index 4e15302e761..27a48a7ab4a 100644
--- a/extensions/copilot/src/extension/chatSessions/vscode-node/copilotCLIChatSessions.ts
+++ b/extensions/copilot/src/extension/chatSessions/vscode-node/copilotCLIChatSessions.ts
@@ -155,6 +155,7 @@ export class CopilotCLIChatSessionContentProvider extends Disposable implements
 			}
 			isRefreshing = true;
 			const stopwatch = new StopWatch();
+			void this._metadataStore.refresh().catch(error => this.logService.error(error, 'Failed to refresh session metadata store during session list refresh'));
 			try {
 				const sessions = await this.sessionService.getAllSessions(CancellationToken.None);
 				const items = await Promise.all(sessions.map(async session => this.toChatSessionItem(session)));
@@ -405,7 +406,10 @@ export class CopilotCLIChatSessionContentProvider extends Disposable implements
 		workingDirectory: vscode.Uri | undefined,
 	): Promise<{ readonly [key: string]: unknown }> {
 		if (worktreeProperties) {
+			const sessionParentId = await this._metadataStore.getSessionParentId(sessionId);
+
 			return {
+				sessionParentId,
 				autoCommit: worktreeProperties.autoCommit !== false,
 				baseCommit: worktreeProperties?.baseCommit,
 				baseBranchName: worktreeProperties.version === 2
@@ -451,7 +455,8 @@ export class CopilotCLIChatSessionContentProvider extends Disposable implements
 			} satisfies { readonly [key: string]: unknown };
 		}
 
-		const [sessionRequestDetails, repositoryProperties] = await Promise.all([
+		const [sessionParentId, sessionRequestDetails, repositoryProperties] = await Promise.all([
+			this._metadataStore.getSessionParentId(sessionId),
 			this._metadataStore.getRequestDetails(sessionId),
 			this._metadataStore.getRepositoryProperties(sessionId)
 		]);
@@ -470,6 +475,7 @@ export class CopilotCLIChatSessionContentProvider extends Disposable implements
 			: undefined;
 
 		return {
+			sessionParentId,
 			isolationMode: IsolationMode.Workspace,
 			repositoryPath: repositoryProperties?.repositoryPath,
 			branchName: repositoryProperties?.branchName,
diff --git a/extensions/copilot/src/extension/chatSessions/vscode-node/copilotCLIChatSessionsContribution.ts b/extensions/copilot/src/extension/chatSessions/vscode-node/copilotCLIChatSessionsContribution.ts
index 0368336f844..b9f2a2ae63c 100644
--- a/extensions/copilot/src/extension/chatSessions/vscode-node/copilotCLIChatSessionsContribution.ts
+++ b/extensions/copilot/src/extension/chatSessions/vscode-node/copilotCLIChatSessionsContribution.ts
@@ -61,6 +61,7 @@ const REPOSITORY_OPTION_ID = 'repository';
 const _sessionWorktreeIsolationCache = new Map<string, boolean>();
 const BRANCH_OPTION_ID = 'branch';
 const ISOLATION_OPTION_ID = 'isolation';
+const PARENT_SESSION_OPTION_ID = 'parentSessionId';
 const LAST_USED_ISOLATION_OPTION_KEY = 'github.copilot.cli.lastUsedIsolationOption';
 const OPEN_REPOSITORY_COMMAND_ID = 'github.copilot.cli.sessions.openRepository';
 const OPEN_IN_COPILOT_CLI_COMMAND_ID = 'github.copilot.cli.openInCopilotCLI';
@@ -211,10 +212,15 @@ export class CopilotCLIChatSessionItemProvider extends Disposable implements vsc
 	}
 
 	public notifySessionsChange(): void {
+		// Refresh the bulk metadata cache from disk so cross-process writes
+		// (e.g. another VS Code window editing the same session) become visible
+		// before consumers re-read items.
+		this.chatSessionMetadataStore.refresh().catch(() => { /* logged inside */ });
 		this._onDidChangeChatSessionItems.fire();
 	}
 
 	public async refreshSession(refreshOptions: { reason: 'update'; sessionId: string } | { reason: 'update'; sessionIds: string[] } | { reason: 'delete'; sessionId: string }): Promise<void> {
+		await this.chatSessionMetadataStore.refresh().catch(() => { /* logged inside */ });
 		this._onDidChangeChatSessionItems.fire();
 	}
 
@@ -308,9 +314,12 @@ export class CopilotCLIChatSessionItemProvider extends Disposable implements vsc
 		// repository state which we are passing along through the metadata
 		worktreeProperties = await this.worktreeManager.getWorktreeProperties(session.id);
 
+		const sessionParentId = await this.chatSessionMetadataStore.getSessionParentId(session.id);
+
 		if (worktreeProperties) {
 			// Worktree
 			metadata = {
+				sessionParentId,
 				autoCommit: worktreeProperties.autoCommit !== false,
 				baseCommit: worktreeProperties?.baseCommit,
 				baseBranchName: worktreeProperties.version === 2
@@ -373,6 +382,7 @@ export class CopilotCLIChatSessionItemProvider extends Disposable implements vsc
 				: undefined;
 
 			metadata = {
+				sessionParentId,
 				isolationMode: IsolationMode.Workspace,
 				repositoryPath: repositoryProperties?.repositoryPath,
 				branchName: repositoryProperties?.branchName,
@@ -1267,6 +1277,7 @@ export class CopilotCLIChatSessionParticipant extends Disposable {
 		let { chatSessionContext } = context;
 		const disposables = new DisposableStore();
 		let sessionId: string | undefined = undefined;
+		let sessionParentId: string | undefined = undefined;
 		let sdkSessionId: string | undefined = undefined;
 		try {
 
@@ -1284,6 +1295,8 @@ export class CopilotCLIChatSessionParticipant extends Disposable {
 							_sessionBranch.set(sessionId, value);
 						} else if (opt.optionId === ISOLATION_OPTION_ID && value) {
 							_sessionIsolation.set(sessionId, value as IsolationMode);
+						} else if (opt.optionId === PARENT_SESSION_OPTION_ID && value) {
+							sessionParentId = value;
 						}
 					}
 				}
@@ -1369,7 +1382,7 @@ export class CopilotCLIChatSessionParticipant extends Disposable {
 			};
 			const newBranch = (isUntitled && request.prompt && this.branchNameGenerator) ? this.branchNameGenerator.generateBranchName(fakeContext, token) : undefined;
 
-			const sessionResult = await this.getOrCreateSession(request, chatSessionContext, stream, { model, agent, newBranch }, disposables, token);
+			const sessionResult = await this.getOrCreateSession(request, chatSessionContext, stream, { model, agent, newBranch, sessionParentId }, disposables, token);
 			const session = sessionResult.session;
 			if (session) {
 				disposables.add(session);
@@ -1729,7 +1742,7 @@ export class CopilotCLIChatSessionParticipant extends Disposable {
 		}
 	}
 
-	private async getOrCreateSession(request: vscode.ChatRequest, chatSessionContext: vscode.ChatSessionContext, stream: vscode.ChatResponseStream, options: { model: { model: string; reasoningEffort?: string } | undefined; agent: SweCustomAgent | undefined; newBranch?: Promise<string | undefined> }, disposables: DisposableStore, token: vscode.CancellationToken): Promise<{ session: IReference<ICopilotCLISession> | undefined; trusted: boolean }> {
+	private async getOrCreateSession(request: vscode.ChatRequest, chatSessionContext: vscode.ChatSessionContext, stream: vscode.ChatResponseStream, options: { model: { model: string; reasoningEffort?: string } | undefined; agent: SweCustomAgent | undefined; newBranch?: Promise<string | undefined>; sessionParentId?: string }, disposables: DisposableStore, token: vscode.CancellationToken): Promise<{ session: IReference<ICopilotCLISession> | undefined; trusted: boolean }> {
 		const { resource } = chatSessionContext.chatSessionItem;
 		const existingSessionId = this.sessionItemProvider.untitledSessionIdMapping.get(SessionIdForCLI.parse(resource));
 		const id = existingSessionId ?? SessionIdForCLI.parse(resource);
@@ -1747,7 +1760,7 @@ export class CopilotCLIChatSessionParticipant extends Disposable {
 		const debugTargetSessionIds = extractDebugTargetSessionIds(request.references);
 		const mcpServerMappings = buildMcpServerMappings(request.tools);
 		const session = isNewSession ?
-			await this.sessionService.createSession({ model: model?.model, reasoningEffort: model?.reasoningEffort, workspace: workspaceInfo, agent, debugTargetSessionIds, mcpServerMappings }, token) :
+			await this.sessionService.createSession({ model: model?.model, reasoningEffort: model?.reasoningEffort, workspace: workspaceInfo, agent, debugTargetSessionIds, mcpServerMappings, sessionParentId: options.sessionParentId }, token) :
 			await this.sessionService.getSession({ sessionId: id, model: model?.model, reasoningEffort: model?.reasoningEffort, workspace: workspaceInfo, agent, debugTargetSessionIds, mcpServerMappings }, token);
 		this.sessionItemProvider.notifySessionsChange();
 		// TODO @DonJayamanne We need to refresh to add this new session, but we need a label.
diff --git a/extensions/copilot/src/extension/chatSessions/vscode-node/test/chatSessionMetadataStoreImpl.spec.ts b/extensions/copilot/src/extension/chatSessions/vscode-node/test/chatSessionMetadataStoreImpl.spec.ts
index 40a7bd4b9ed..4df78020aee 100644
--- a/extensions/copilot/src/extension/chatSessions/vscode-node/test/chatSessionMetadataStoreImpl.spec.ts
+++ b/extensions/copilot/src/extension/chatSessions/vscode-node/test/chatSessionMetadataStoreImpl.spec.ts
@@ -12,23 +12,30 @@ import { ILogService } from '../../../../platform/log/common/logService';
 import { mock } from '../../../../util/common/test/simpleMock';
 import { Emitter } from '../../../../util/vs/base/common/event';
 import { URI } from '../../../../util/vs/base/common/uri';
-import { eventToPromise } from '../../../completions-core/vscode-node/lib/src/prompt/asyncUtils';
-import { ChatSessionWorktreeData, ChatSessionWorktreeProperties } from '../../common/chatSessionWorktreeService';
+import { ChatSessionWorktreeProperties } from '../../common/chatSessionWorktreeService';
 import { IWorkspaceInfo } from '../../common/workspaceInfo';
 import { getCopilotCLISessionDir } from '../../copilotcli/node/cliHelpers';
 import { NullCopilotCLIAgents } from '../../copilotcli/node/test/testHelpers';
 import { ChatSessionMetadataStore } from '../chatSessionMetadataStoreImpl';
 
+// Hoisted holder lets each test point the JSONL helper at its own mock path.
+const jsonlPathHolder = vi.hoisted(() => {
+	const p = '/mock/copilot-home/worktree.jsonl';
+	return { get: () => p };
+});
+
 vi.mock('../../copilotcli/node/cliHelpers', async (importOriginal) => {
 	const actual = await importOriginal<typeof import('../../copilotcli/node/cliHelpers')>();
 	return {
 		...actual,
 		getCopilotCLISessionDir: (sessionId: string) => `/mock/session-state/${sessionId}`,
+		getCopilotCLISessionStateDir: () => '/mock/session-state',
+		// New shared bulk + JSONL paths — all go through the mocked IFileSystemService.
+		getCopilotBulkMetadataFile: () => '/mock/copilot-home/vscode.session.metadata.cache.json',
+		getCopilotWorktreeSessionsFile: () => jsonlPathHolder.get(),
 	};
 });
 
-const WORKSPACE_FOLDER_MEMENTO_KEY = 'github.copilot.cli.sessionWorkspaceFolders';
-const WORKTREE_MEMENTO_KEY = 'github.copilot.cli.sessionWorktrees';
 
 class MockGlobalState implements vscode.Memento {
 	private data = new Map<string, unknown>();
@@ -82,8 +89,12 @@ class MockLogService extends mock<ILogService>() {
 }
 
 // Paths used by the store
-const GLOBAL_STORAGE_DIR = Uri.joinPath(Uri.file('/mock/global/storage'), 'copilotcli');
-const BULK_METADATA_FILE = Uri.joinPath(GLOBAL_STORAGE_DIR, 'copilotcli.session.metadata.json');
+// New shared bulk file (top-N cache). Lives at `~/.copilot/...` in production but is
+// mocked above so the IFileSystemService mock can intercept reads/writes.
+const BULK_METADATA_FILE = Uri.file('/mock/copilot-home/vscode.session.metadata.cache.json');
+// Legacy bulk file location in the per-install globalStorageUri — used only by the
+// one-time migration in `initializeStorage()`.
+const LEGACY_BULK_METADATA_FILE = Uri.joinPath(Uri.file('/mock/global/storage'), 'copilotcli', 'copilotcli.session.metadata.json');
 
 function sessionDirectoryUri(sessionId: string): Uri {
 	return Uri.file(getCopilotCLISessionDir(sessionId));
@@ -121,9 +132,6 @@ function makeWorktreeV2Props(overrides?: Partial<ChatSessionWorktreeProperties>)
 	} as ChatSessionWorktreeProperties;
 }
 
-function makeWorktreeData(props: ChatSessionWorktreeProperties): ChatSessionWorktreeData {
-	return { data: JSON.stringify(props), version: props.version };
-}
 
 class MockFileSystemServiceWithMotification extends MockFileSystemService {
 	onDidCreateFile = new Emitter<Uri>();
@@ -145,14 +153,14 @@ describe('ChatSessionMetadataStore', () => {
 	let logService: MockLogService;
 	let extensionContext: MockExtensionContext;
 
-	beforeEach(() => {
+	beforeEach(async () => {
 		vi.useFakeTimers();
 		mockFs = new MockFileSystemServiceWithMotification();
 		logService = new MockLogService();
 		extensionContext = new MockExtensionContext();
 	});
 
-	afterEach(() => {
+	afterEach(async () => {
 		mockFs.dispose();
 		vi.useRealTimers();
 		vi.restoreAllMocks();
@@ -160,7 +168,7 @@ describe('ChatSessionMetadataStore', () => {
 
 	/**
 	 * Creates the store and waits for initialization to complete.
-	 * Constructor eagerly triggers lazy init; we flush microtasks so it settles.
+	 * Constructor eagerly triggers init; we flush microtasks so it settles.
 	 */
 	async function createStore(): Promise<ChatSessionMetadataStore> {
 		const store = new ChatSessionMetadataStore(
@@ -169,8 +177,11 @@ describe('ChatSessionMetadataStore', () => {
 			extensionContext,
 			new NullCopilotCLIAgents(),
 		);
-		// Flush microtasks to let initialization settle
-		await vi.advanceTimersByTimeAsync(0);
+		// Flush enough microtask rounds so that initializeStorage() —
+		// which chains several async I/O steps — fully settles.
+		for (let i = 0; i < 5; i++) {
+			await vi.advanceTimersByTimeAsync(0);
+		}
 		return store;
 	}
 
@@ -194,158 +205,6 @@ describe('ChatSessionMetadataStore', () => {
 			store.dispose();
 		});
 
-		it('should also read global state memento keys to pick up missing entries when bulk file exists', async () => {
-			// Global state has data not yet in the bulk file — it should be merged in
-			extensionContext.globalState.seed(WORKSPACE_FOLDER_MEMENTO_KEY, {
-				'session-x': { folderPath: Uri.file('/from/global/state').fsPath, timestamp: 999 },
-			});
-			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify({}));
-
-			const getSpy = vi.spyOn(extensionContext.globalState, 'get');
-			const store = await createStore();
-
-			// globalState.get SHOULD now be called for the memento keys
-			const mementoCalls = getSpy.mock.calls.filter(
-				c => c[0] === WORKSPACE_FOLDER_MEMENTO_KEY || c[0] === WORKTREE_MEMENTO_KEY,
-			);
-			expect(mementoCalls.length).toBeGreaterThan(0);
-
-			// session-x should now be accessible since it was merged from global state
-			const folder = await store.getSessionWorkspaceFolder('session-x');
-			expect(folder?.fsPath).toBe(Uri.file('/from/global/state').fsPath);
-			store.dispose();
-		});
-
-		it('should not overwrite entries already in bulk file from global state', async () => {
-			// Bulk file already has session-x with one path; global state has a different path
-			const existingData = {
-				'session-x': { workspaceFolder: { folderPath: Uri.file('/from/bulk').fsPath, timestamp: 100 } },
-			};
-			extensionContext.globalState.seed(WORKSPACE_FOLDER_MEMENTO_KEY, {
-				'session-x': { folderPath: Uri.file('/from/global/state').fsPath, timestamp: 999 },
-			});
-			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify(existingData));
-
-			const store = await createStore();
-
-			// Should keep the bulk file version, not the global state version
-			const folder = await store.getSessionWorkspaceFolder('session-x');
-			expect(folder?.fsPath).toBe(Uri.file('/from/bulk').fsPath);
-			store.dispose();
-		});
-
-		it('should attempt to write per-session files for entries not yet writtenToDisc', async () => {
-			const existingData = {
-				'session-1': { workspaceFolder: { folderPath: Uri.file('/workspace/a').fsPath, timestamp: 100 } },
-			};
-			const fileUri = sessionMetadataFileUri('session-1');
-			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify(existingData));
-			mockFs.mockDirectory(fileUri, []);
-
-			// Pre-create the session directory so the write succeeds
-			await mockFs.createDirectory(sessionDirectoryUri('session-1'));
-			const fileCreated = eventToPromise(mockFs.onDidCreateFile.event);
-
-			const store = await createStore();
-
-			// wait for file to get created.
-			await fileCreated;
-			const rawContent = await mockFs.readFile(fileUri);
-			const written = JSON.parse(new TextDecoder().decode(rawContent));
-			expect(written.workspaceFolder?.folderPath).toBe(Uri.file('/workspace/a').fsPath);
-			store.dispose();
-		});
-
-		it('should not attempt to write per-session files for entries already marked writtenToDisc', async () => {
-			const existingData = {
-				'session-1': { workspaceFolder: { folderPath: Uri.file('/workspace/a').fsPath, timestamp: 100 }, writtenToDisc: true },
-			};
-			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify(existingData));
-
-			const writeSpy = vi.spyOn(mockFs, 'writeFile');
-			const store = await createStore();
-			await vi.advanceTimersByTimeAsync(0);
-
-			// No writes to per-session files should have occurred
-			const perSessionWrites = writeSpy.mock.calls.filter(
-				c => c[0].toString().includes('vscode.metadata.json'),
-			);
-			expect(perSessionWrites).toHaveLength(0);
-			store.dispose();
-		});
-
-		it('should skip per-session file write gracefully when directory does not exist during retry', async () => {
-			const existingData = {
-				'session-1': { workspaceFolder: { folderPath: Uri.file('/workspace/a').fsPath, timestamp: 100 } },
-			};
-			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify(existingData));
-			// Do NOT create the session directory
-
-			const createDirSpy = vi.spyOn(mockFs, 'createDirectory');
-			const store = await createStore();
-			await vi.advanceTimersByTimeAsync(0);
-
-			// createDirectory should NOT have been called for the per-session dir
-			// because createDirectoryIfNotFound=false during retry
-			const perSessionDirCalls = createDirSpy.mock.calls.filter(
-				c => c[0].toString().includes('session-1'),
-			);
-			expect(perSessionDirCalls).toHaveLength(0);
-
-			// Entry should still be accessible from cache
-			const folder = await store.getSessionWorkspaceFolder('session-1');
-			expect(folder?.fsPath).toBe(Uri.file('/workspace/a').fsPath);
-			store.dispose();
-		});
-
-		it('should keep worktree cache entry unchanged when global state has same number of changes', async () => {
-			const cachedProps = makeWorktreeV1Props({
-				changes: [{ filePath: '/a.ts', originalFilePath: '/a.ts', modifiedFilePath: '/a.ts', statistics: { additions: 1, deletions: 0 } }],
-			});
-			const globalStateProps = makeWorktreeV1Props({
-				branchName: 'from-global-state',
-				changes: [{ filePath: '/b.ts', originalFilePath: '/b.ts', modifiedFilePath: '/b.ts', statistics: { additions: 2, deletions: 1 } }],
-			});
-			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify({
-				'session-wt': { worktreeProperties: cachedProps },
-			}));
-			extensionContext.globalState.seed(WORKTREE_MEMENTO_KEY, {
-				'session-wt': makeWorktreeData(globalStateProps),
-			});
-
-			const store = await createStore();
-
-			// Cache entry should keep its original data (not replaced by global state)
-			const wt = await store.getWorktreeProperties('session-wt');
-			expect(wt?.branchName).toBe(cachedProps.branchName);
-			store.dispose();
-		});
-
-		it('should update worktree cache entry when global state has more changes', async () => {
-			const cachedProps = makeWorktreeV1Props({ changes: undefined });
-			const globalStateProps = makeWorktreeV1Props({
-				branchName: 'from-global-state',
-				changes: [
-					{ filePath: '/a.ts', originalFilePath: '/a.ts', modifiedFilePath: '/a.ts', statistics: { additions: 1, deletions: 0 } },
-					{ filePath: '/b.ts', originalFilePath: '/b.ts', modifiedFilePath: '/b.ts', statistics: { additions: 2, deletions: 1 } },
-				],
-			});
-			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify({
-				'session-wt': { worktreeProperties: cachedProps },
-			}));
-			extensionContext.globalState.seed(WORKTREE_MEMENTO_KEY, {
-				'session-wt': makeWorktreeData(globalStateProps),
-			});
-
-			const store = await createStore();
-
-			// Even when global state has more changes, cache entry is preserved (both paths continue)
-			const wt = await store.getWorktreeProperties('session-wt');
-			expect(wt?.branchName).toBe(globalStateProps.branchName);
-			expect(wt?.changes).toEqual(globalStateProps.changes);
-			store.dispose();
-		});
-
 		it('should not retry entries with no workspaceFolder, worktreeProperties, or additionalWorkspaces', async () => {
 			const existingData = {
 				'session-empty': {},
@@ -366,378 +225,6 @@ describe('ChatSessionMetadataStore', () => {
 			store.dispose();
 		});
 
-		it('should retry entries that only have additionalWorkspaces (not delete as invalid data)', async () => {
-			// A session with only additionalWorkspaces and writtenToDisc: false
-			// must be retried, not deleted from cache — otherwise data is lost after a crash.
-			const existingData = {
-				'session-only-additional': {
-					additionalWorkspaces: [
-						{ workspaceFolder: { folderPath: Uri.file('/extra/workspace').fsPath, timestamp: 100 } },
-					],
-				},
-			};
-			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify(existingData));
-
-			// Pre-create the session directory so the recovery write can succeed
-			await mockFs.createDirectory(sessionDirectoryUri('session-only-additional'));
-			const fileCreated = eventToPromise(mockFs.onDidCreateFile.event);
-
-			const store = await createStore();
-			await fileCreated;
-
-			const fileUri = sessionMetadataFileUri('session-only-additional');
-			const rawContent = await mockFs.readFile(fileUri);
-			const written = JSON.parse(new TextDecoder().decode(rawContent));
-			expect(written.additionalWorkspaces).toHaveLength(1);
-			store.dispose();
-		});
-	});
-
-	// ──────────────────────────────────────────────────────────────────────────
-	// initializeStorage — migration path: bulk file missing, read from global state
-	// ──────────────────────────────────────────────────────────────────────────
-	describe('initializeStorage - migration from global state', () => {
-		it('should migrate workspace folder entries to bulk file', async () => {
-			extensionContext.globalState.seed(WORKSPACE_FOLDER_MEMENTO_KEY, {
-				'session-1': { folderPath: Uri.file('/workspace/a').fsPath, timestamp: 100 },
-				'session-2': { folderPath: Uri.file('/workspace/b').fsPath, timestamp: 200 },
-			});
-
-			const store = await createStore();
-
-			const folder1 = await store.getSessionWorkspaceFolder('session-1');
-			expect(folder1?.fsPath).toBe(Uri.file('/workspace/a').fsPath);
-			const folder2 = await store.getSessionWorkspaceFolder('session-2');
-			expect(folder2?.fsPath).toBe(Uri.file('/workspace/b').fsPath);
-			store.dispose();
-		});
-
-		it('should migrate worktree entries to bulk file', async () => {
-			const v1Props = makeWorktreeV1Props();
-			extensionContext.globalState.seed(WORKTREE_MEMENTO_KEY, {
-				'session-wt': makeWorktreeData(v1Props),
-			});
-
-			const store = await createStore();
-
-			const wt = await store.getWorktreeProperties('session-wt');
-			expect(wt).toBeDefined();
-			expect(wt!.version).toBe(1);
-			expect(wt!.branchName).toBe(v1Props.branchName);
-			store.dispose();
-		});
-
-		it('should parse version 1 worktree data with explicit version override', async () => {
-			// For version 1, the code spreads JSON.parse(data) and sets version: 1
-			const rawProps = { baseCommit: 'c1', branchName: 'b1', repositoryPath: '/r', worktreePath: '/w', autoCommit: false };
-			extensionContext.globalState.seed(WORKTREE_MEMENTO_KEY, {
-				'session-v1': { data: JSON.stringify(rawProps), version: 1 } satisfies ChatSessionWorktreeData,
-			});
-
-			const store = await createStore();
-			const wt = await store.getWorktreeProperties('session-v1');
-			expect(wt?.version).toBe(1);
-			expect(wt?.baseCommit).toBe('c1');
-			store.dispose();
-		});
-
-		it('should parse version 2 worktree data directly from data string', async () => {
-			const v2Props = makeWorktreeV2Props();
-			extensionContext.globalState.seed(WORKTREE_MEMENTO_KEY, {
-				'session-v2': { data: JSON.stringify(v2Props), version: 2 } satisfies ChatSessionWorktreeData,
-			});
-
-			const store = await createStore();
-			const wt = await store.getWorktreeProperties('session-v2');
-			expect(wt?.version).toBe(2);
-			expect(wt?.version === 2 ? wt.baseBranchName : '').toBe('main');
-			store.dispose();
-		});
-
-		it('should give worktree precedence over workspace folder for same session', async () => {
-			const v1Props = makeWorktreeV1Props();
-			extensionContext.globalState.seed(WORKSPACE_FOLDER_MEMENTO_KEY, {
-				'session-both': { folderPath: Uri.file('/workspace/shared').fsPath, timestamp: 100 },
-			});
-			extensionContext.globalState.seed(WORKTREE_MEMENTO_KEY, {
-				'session-both': makeWorktreeData(v1Props),
-			});
-
-			const store = await createStore();
-
-			// worktree takes precedence: getSessionWorkspaceFolder returns undefined when worktree exists
-			const folder = await store.getSessionWorkspaceFolder('session-both');
-			expect(folder).toBeUndefined();
-
-			const wt = await store.getWorktreeProperties('session-both');
-			expect(wt).toBeDefined();
-			store.dispose();
-		});
-
-		it.skip('should clear global state keys after successful migration', async () => {
-			extensionContext.globalState.seed(WORKSPACE_FOLDER_MEMENTO_KEY, {
-				'session-1': { folderPath: Uri.file('/workspace/a').fsPath, timestamp: 100 },
-			});
-			extensionContext.globalState.seed(WORKTREE_MEMENTO_KEY, {
-				'session-2': makeWorktreeData(makeWorktreeV1Props()),
-			});
-
-			const store = await createStore();
-
-			expect(extensionContext.globalState.has(WORKSPACE_FOLDER_MEMENTO_KEY)).toBe(false);
-			expect(extensionContext.globalState.has(WORKTREE_MEMENTO_KEY)).toBe(false);
-			store.dispose();
-		});
-
-		it('should write migrated data to bulk metadata file', async () => {
-			extensionContext.globalState.seed(WORKSPACE_FOLDER_MEMENTO_KEY, {
-				'session-1': { folderPath: Uri.file('/workspace/a').fsPath, timestamp: 100 },
-			});
-
-			const store = await createStore();
-
-			// Read the bulk file directly to verify it was written
-			const rawContent = await mockFs.readFile(BULK_METADATA_FILE);
-			const written = JSON.parse(new TextDecoder().decode(rawContent));
-			expect(written['session-1']).toBeDefined();
-			expect(written['session-1'].workspaceFolder.folderPath).toBe(Uri.file('/workspace/a').fsPath);
-			store.dispose();
-		});
-
-		it('should write per-session metadata files during migration when directory exists', async () => {
-			extensionContext.globalState.seed(WORKSPACE_FOLDER_MEMENTO_KEY, {
-				'session-1': { folderPath: Uri.file('/workspace/a').fsPath, timestamp: 100 },
-			});
-
-			// Pre-create the session directory so the write succeeds
-			// (migration uses createDirectoryIfNotFound=false)
-			await mockFs.createDirectory(sessionDirectoryUri('session-1'));
-
-			const store = await createStore();
-			// Wait for the fire-and-forget per-session writes
-			await vi.advanceTimersByTimeAsync(0);
-
-			const fileUri = sessionMetadataFileUri('session-1');
-			const rawContent = await mockFs.readFile(fileUri);
-			const written = JSON.parse(new TextDecoder().decode(rawContent));
-			expect(written.workspaceFolder?.folderPath).toBe(Uri.file('/workspace/a').fsPath);
-			store.dispose();
-		});
-
-		it('should skip per-session file write when directory does not exist during migration', async () => {
-			extensionContext.globalState.seed(WORKSPACE_FOLDER_MEMENTO_KEY, {
-				'session-1': { folderPath: Uri.file('/workspace/a').fsPath, timestamp: 100 },
-			});
-			// Do NOT create the session directory
-
-			const writeSpy = vi.spyOn(mockFs, 'writeFile');
-			const store = await createStore();
-			await vi.advanceTimersByTimeAsync(0);
-
-			// No per-session file write should occur since dir is missing and createDirectoryIfNotFound=false
-			const perSessionWrites = writeSpy.mock.calls.filter(
-				c => c[0].toString().includes('session-1') && c[0].toString().includes('vscode.metadata.json'),
-			);
-			expect(perSessionWrites).toHaveLength(0);
-
-			// Data should still be accessible from cache
-			const folder = await store.getSessionWorkspaceFolder('session-1');
-			expect(folder?.fsPath).toBe(Uri.file('/workspace/a').fsPath);
-			store.dispose();
-		});
-
-		it('should mark migrated worktree entries with writtenToDisc false and attempt per-session write', async () => {
-			const v1Props = makeWorktreeV1Props();
-			extensionContext.globalState.seed(WORKTREE_MEMENTO_KEY, {
-				'session-wt-migrate': makeWorktreeData(v1Props),
-			});
-
-			// Pre-create the session directory so the retry write succeeds
-			await mockFs.createDirectory(sessionDirectoryUri('session-wt-migrate'));
-			const fileCreated = eventToPromise(mockFs.onDidCreateFile.event);
-
-			const store = await createStore();
-
-			// Wait for the per-session file write triggered by writtenToDisc: false
-			await fileCreated;
-			const fileUri = sessionMetadataFileUri('session-wt-migrate');
-			const rawContent = await mockFs.readFile(fileUri);
-			const written = JSON.parse(new TextDecoder().decode(rawContent));
-			expect(written.worktreeProperties?.branchName).toBe(v1Props.branchName);
-			store.dispose();
-		});
-	});
-
-	// ──────────────────────────────────────────────────────────────────────────
-	// initializeStorage — filtering edge cases
-	// ──────────────────────────────────────────────────────────────────────────
-	describe('initializeStorage - filtering', () => {
-		it('should skip workspace folder entries with untitled- prefix', async () => {
-			extensionContext.globalState.seed(WORKSPACE_FOLDER_MEMENTO_KEY, {
-				'untitled-session': { folderPath: Uri.file('/workspace/skip').fsPath, timestamp: 100 },
-				'session-keep': { folderPath: Uri.file('/workspace/keep').fsPath, timestamp: 200 },
-			});
-
-			const store = await createStore();
-
-			const skipFolder = await store.getSessionWorkspaceFolder('untitled-session');
-			expect(skipFolder).toBeUndefined();
-			const keepFolder = await store.getSessionWorkspaceFolder('session-keep');
-			expect(keepFolder?.fsPath).toBe(Uri.file('/workspace/keep').fsPath);
-			store.dispose();
-		});
-
-		it('should skip worktree entries with untitled- prefix', async () => {
-			extensionContext.globalState.seed(WORKTREE_MEMENTO_KEY, {
-				'untitled-wt': makeWorktreeData(makeWorktreeV1Props()),
-				'session-wt': makeWorktreeData(makeWorktreeV1Props()),
-			});
-
-			const store = await createStore();
-
-			const skipWt = await store.getWorktreeProperties('untitled-wt');
-			expect(skipWt).toBeUndefined();
-			const keepWt = await store.getWorktreeProperties('session-wt');
-			expect(keepWt).toBeDefined();
-			store.dispose();
-		});
-
-		it('should skip workspace folder entries that are raw strings (legacy format)', async () => {
-			extensionContext.globalState.seed(WORKSPACE_FOLDER_MEMENTO_KEY, {
-				'session-legacy': Uri.file('/old/string/path').fsPath,
-				'session-good': { folderPath: Uri.file('/workspace/good').fsPath, timestamp: 100 },
-			});
-
-			const store = await createStore();
-
-			const legacy = await store.getSessionWorkspaceFolder('session-legacy');
-			expect(legacy).toBeUndefined();
-			const good = await store.getSessionWorkspaceFolder('session-good');
-			expect(good?.fsPath).toBe(Uri.file('/workspace/good').fsPath);
-			store.dispose();
-		});
-
-		it('should skip workspace folder entries missing folderPath', async () => {
-			extensionContext.globalState.seed(WORKSPACE_FOLDER_MEMENTO_KEY, {
-				'session-no-path': { timestamp: 100 },
-			});
-
-			const store = await createStore();
-
-			const folder = await store.getSessionWorkspaceFolder('session-no-path');
-			expect(folder).toBeUndefined();
-			store.dispose();
-		});
-
-		it('should skip workspace folder entries missing timestamp', async () => {
-			extensionContext.globalState.seed(WORKSPACE_FOLDER_MEMENTO_KEY, {
-				'session-no-ts': { folderPath: Uri.file('/workspace/no-ts').fsPath },
-			});
-
-			const store = await createStore();
-
-			const folder = await store.getSessionWorkspaceFolder('session-no-ts');
-			expect(folder).toBeUndefined();
-			store.dispose();
-		});
-
-		it('should skip worktree entries that are raw strings (legacy format)', async () => {
-			extensionContext.globalState.seed(WORKTREE_MEMENTO_KEY, {
-				'session-old': 'some-old-string',
-				'session-new': makeWorktreeData(makeWorktreeV1Props()),
-			});
-
-			const store = await createStore();
-
-			const oldWt = await store.getWorktreeProperties('session-old');
-			expect(oldWt).toBeUndefined();
-			const newWt = await store.getWorktreeProperties('session-new');
-			expect(newWt).toBeDefined();
-			store.dispose();
-		});
-	});
-
-	// ──────────────────────────────────────────────────────────────────────────
-	// initializeStorage — migration failure safety (CRITICAL)
-	// ──────────────────────────────────────────────────────────────────────────
-	describe('initializeStorage - failure safety', () => {
-		it('should NOT clear global state when writeToGlobalStorage fails', async () => {
-			extensionContext.globalState.seed(WORKSPACE_FOLDER_MEMENTO_KEY, {
-				'session-1': { folderPath: Uri.file('/workspace/a').fsPath, timestamp: 100 },
-			});
-			extensionContext.globalState.seed(WORKTREE_MEMENTO_KEY, {
-				'session-2': makeWorktreeData(makeWorktreeV1Props()),
-			});
-
-			// Make writeFile throw so writeToGlobalStorage fails
-			vi.spyOn(mockFs, 'writeFile').mockRejectedValue(new Error('disk full'));
-
-			const store = await createStore();
-
-			// Global state should be preserved since writing to file failed
-			expect(extensionContext.globalState.has(WORKSPACE_FOLDER_MEMENTO_KEY)).toBe(true);
-			expect(extensionContext.globalState.has(WORKTREE_MEMENTO_KEY)).toBe(true);
-
-			// Initialization failure should be logged
-			expect(logService.error).toHaveBeenCalled();
-			store.dispose();
-		});
-
-		it('should NOT clear global state when createDirectory fails during writeToGlobalStorage', async () => {
-			extensionContext.globalState.seed(WORKSPACE_FOLDER_MEMENTO_KEY, {
-				'session-1': { folderPath: Uri.file('/workspace/a').fsPath, timestamp: 100 },
-			});
-
-			// stat throws (dir missing) and createDirectory also throws
-			vi.spyOn(mockFs, 'stat').mockRejectedValue(new Error('ENOENT'));
-			vi.spyOn(mockFs, 'createDirectory').mockRejectedValue(new Error('permission denied'));
-
-			const store = await createStore();
-
-			expect(extensionContext.globalState.has(WORKSPACE_FOLDER_MEMENTO_KEY)).toBe(true);
-			store.dispose();
-		});
-
-		it.skip('should still clear global state even when per-session file writes fail', async () => {
-			extensionContext.globalState.seed(WORKSPACE_FOLDER_MEMENTO_KEY, {
-				'session-1': { folderPath: Uri.file('/workspace/a').fsPath, timestamp: 100 },
-			});
-
-			// Allow bulk file write to succeed but track per-session writes
-			let writeCallCount = 0;
-			const origWriteFile = mockFs.writeFile.bind(mockFs);
-			vi.spyOn(mockFs, 'writeFile').mockImplementation(async (uri, content) => {
-				writeCallCount++;
-				// Let the bulk metadata file write succeed (first or second write)
-				if (uri.toString().includes('copilotcli.session.metadata.json')) {
-					return origWriteFile(uri, content);
-				}
-				// Fail per-session writes
-				throw new Error('per-session write failed');
-			});
-
-			const store = await createStore();
-
-			// Global state should be cleared because bulk file write succeeded
-			// (per-session writes are fire-and-forget via Promise.allSettled)
-			expect(extensionContext.globalState.has(WORKSPACE_FOLDER_MEMENTO_KEY)).toBe(false);
-			store.dispose();
-		});
-
-		it('should log error when initialization fails', async () => {
-			extensionContext.globalState.seed(WORKSPACE_FOLDER_MEMENTO_KEY, {
-				'session-1': { folderPath: Uri.file('/workspace/a').fsPath, timestamp: 100 },
-			});
-			vi.spyOn(mockFs, 'writeFile').mockRejectedValue(new Error('disk full'));
-
-			const store = await createStore();
-
-			expect(logService.error).toHaveBeenCalledWith(
-				'[ChatSessionMetadataStore] Initialization failed: ',
-				expect.any(Error),
-			);
-			store.dispose();
-		});
 	});
 
 	// ──────────────────────────────────────────────────────────────────────────
@@ -1125,7 +612,7 @@ describe('ChatSessionMetadataStore', () => {
 			const fileUri = sessionMetadataFileUri('session-no-file');
 			const rawContent = await mockFs.readFile(fileUri);
 			const written = JSON.parse(new TextDecoder().decode(rawContent));
-			expect(written).toEqual({ origin: 'other' });
+			expect(written).toEqual(expect.objectContaining({ origin: 'other' }));
 			store.dispose();
 		});
 	});
@@ -1244,14 +731,14 @@ describe('ChatSessionMetadataStore', () => {
 
 			// Before debounce fires, count writes to bulk file
 			const bulkWritesBefore = writeSpy.mock.calls.filter(
-				c => c[0].toString().includes('copilotcli.session.metadata.json'),
+				c => c[0].toString().includes('vscode.session.metadata.cache.json'),
 			).length;
 
 			// Advance past debounce
 			await vi.advanceTimersByTimeAsync(1_100);
 
 			const bulkWritesAfter = writeSpy.mock.calls.filter(
-				c => c[0].toString().includes('copilotcli.session.metadata.json'),
+				c => c[0].toString().includes('vscode.session.metadata.cache.json'),
 			).length;
 
 			// Should have exactly one new bulk write after debounce (coalesced)
@@ -1530,33 +1017,19 @@ describe('ChatSessionMetadataStore', () => {
 			store.dispose();
 		});
 
-		it('should survive crash recovery: entry with only additionalWorkspaces is re-persisted not deleted', async () => {
-			// Simulate VS Code crash: bulk file has the entry but writtenToDisc is falsy
-			// (updateSessionMetadata never completed before the crash).
+		it('should keep entries with additionalWorkspaces in cache even without writtenToDisc flag', async () => {
+			// Bulk file has the entry but writtenToDisc is falsy — it should still
+			// be kept in the in-memory cache and accessible via the API.
 			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify({
 				'session-crash': {
 					additionalWorkspaces: [
 						{ workspaceFolder: { folderPath: Uri.file('/extra/workspace').fsPath, timestamp: 100 } },
 					],
-					// writtenToDisc intentionally absent (falsy) — simulates crash before write completed
 				},
 			}));
 
-			// Pre-create session directory so recovery write can succeed
-			await mockFs.createDirectory(sessionDirectoryUri('session-crash'));
-			const fileCreated = eventToPromise(mockFs.onDidCreateFile.event);
-
 			const store = await createStore();
-			await fileCreated;
 
-			// Entry should have been re-persisted to per-session file
-			const fileUri = sessionMetadataFileUri('session-crash');
-			const rawContent = await mockFs.readFile(fileUri);
-			const written = JSON.parse(new TextDecoder().decode(rawContent));
-			expect(written.additionalWorkspaces).toHaveLength(1);
-			expect(written.additionalWorkspaces[0].workspaceFolder?.folderPath).toBe(Uri.file('/extra/workspace').fsPath);
-
-			// And still readable via the API
 			const result = await store.getAdditionalWorkspaces('session-crash');
 			expect(result).toHaveLength(1);
 			store.dispose();
@@ -1768,21 +1241,15 @@ describe('ChatSessionMetadataStore', () => {
 	// Constructor & edge cases
 	// ──────────────────────────────────────────────────────────────────────────
 	describe('constructor and edge cases', () => {
-		it('should handle initialization failure gracefully when writeFile fails and cache was updated', async () => {
-			// Bulk file read fails, falls through to global state
-			// Global state has data, so cacheUpdated = true, writeToGlobalStorage is called but writeFile fails
-			extensionContext.globalState.seed(WORKSPACE_FOLDER_MEMENTO_KEY, {
-				'session-1': { folderPath: Uri.file('/workspace/a').fsPath, timestamp: 100 },
-			});
+		it('should handle initialization gracefully when bulk file read fails', async () => {
+			// Bulk file read fails — store starts with empty cache, no fatal error
 			vi.spyOn(mockFs, 'readFile').mockRejectedValue(new Error('ENOENT'));
-			vi.spyOn(mockFs, 'writeFile').mockRejectedValue(new Error('disk error'));
 
 			const store = await createStore();
 
-			expect(logService.error).toHaveBeenCalledWith(
-				'[ChatSessionMetadataStore] Initialization failed: ',
-				expect.any(Error),
-			);
+			// Cache should be empty but usable
+			const folder = await store.getSessionWorkspaceFolder('nonexistent');
+			expect(folder).toBeUndefined();
 			store.dispose();
 		});
 
@@ -1881,4 +1348,432 @@ describe('ChatSessionMetadataStore', () => {
 		});
 	});
 
+	// ──────────────────────────────────────────────────────────────────────────
+	// New behaviors: shared bulk file, refresh(), JSONL worktree index,
+	// last-modified-wins merge, top-N trim, legacy migration.
+	// Each test is intentionally small and self-contained.
+	// ──────────────────────────────────────────────────────────────────────────
+	describe('shared bulk file + refresh()', () => {
+		it('refresh() picks up a session written by another process to the shared bulk file', async () => {
+			vi.setSystemTime(new Date(0));
+			// Start with empty bulk file.
+			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify({}));
+			const store = await createStore();
+			expect(await store.getSessionWorkspaceFolder('cross-proc-session')).toBeUndefined();
+
+			// Simulate "other process" rewriting the shared bulk file. `modified: 999` is
+			// guaranteed to be > anything stamped locally because we pinned the clock to 0.
+			const externalEntry = {
+				'cross-proc-session': {
+					workspaceFolder: { folderPath: Uri.file('/external/folder').fsPath, timestamp: 42 },
+					modified: 999,
+				},
+			};
+			await mockFs.writeFile(BULK_METADATA_FILE, new TextEncoder().encode(JSON.stringify(externalEntry)));
+
+			await store.refresh();
+
+			expect((await store.getSessionWorkspaceFolder('cross-proc-session'))?.fsPath)
+				.toBe(Uri.file('/external/folder').fsPath);
+			store.dispose();
+		});
+
+		it('refresh() never drops in-memory entries that are not on disk', async () => {
+			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify({}));
+			const store = await createStore();
+			await store.storeWorkspaceFolderInfo('local-only', { folderPath: Uri.file('/local').fsPath, timestamp: 1 });
+			await vi.advanceTimersByTimeAsync(2000); // flush debounced bulk write
+
+			// Wipe the on-disk bulk file (simulating an external truncation).
+			await mockFs.writeFile(BULK_METADATA_FILE, new TextEncoder().encode(JSON.stringify({})));
+
+			await store.refresh();
+
+			expect((await store.getSessionWorkspaceFolder('local-only'))?.fsPath)
+				.toBe(Uri.file('/local').fsPath);
+			store.dispose();
+		});
+
+		it('refresh() failure does not poison subsequent reads (chained _ready)', async () => {
+			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify({}));
+			const store = await createStore();
+
+			// Make the next bulk read throw.
+			const readSpy = vi.spyOn(mockFs, 'readFile').mockImplementationOnce(async () => { throw new Error('boom'); });
+			await store.refresh(); // swallowed inside
+
+			readSpy.mockRestore();
+			await store.storeWorkspaceFolderInfo('after-fail', { folderPath: Uri.file('/after').fsPath, timestamp: 1 });
+			expect((await store.getSessionWorkspaceFolder('after-fail'))?.fsPath).toBe(Uri.file('/after').fsPath);
+			store.dispose();
+		});
+	});
+
+	describe('last-modified-wins merge', () => {
+		it('keeps the entry with the higher `modified` timestamp', async () => {
+			vi.setSystemTime(new Date(0));
+			// Bulk file holds an OLDER copy of session-1.
+			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify({
+				'session-1': {
+					workspaceFolder: { folderPath: Uri.file('/old/path').fsPath, timestamp: 1 },
+					modified: 100,
+				},
+			}));
+			const store = await createStore();
+
+			// Another process writes a NEWER version directly to disk.
+			await mockFs.writeFile(BULK_METADATA_FILE, new TextEncoder().encode(JSON.stringify({
+				'session-1': {
+					workspaceFolder: { folderPath: Uri.file('/newer/path').fsPath, timestamp: 2 },
+					modified: 5000,
+				},
+			})));
+
+			await store.refresh();
+
+			expect((await store.getSessionWorkspaceFolder('session-1'))?.fsPath)
+				.toBe(Uri.file('/newer/path').fsPath);
+			store.dispose();
+		});
+
+		it('does not overwrite a fresher in-memory entry with an older disk entry', async () => {
+			vi.setSystemTime(new Date(10_000));
+			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify({}));
+			const store = await createStore();
+			await store.storeWorkspaceFolderInfo('session-fresh', { folderPath: Uri.file('/fresh').fsPath, timestamp: 100 });
+			await vi.advanceTimersByTimeAsync(2000);
+
+			// External writer puts an OLDER copy on disk (lower modified).
+			await mockFs.writeFile(BULK_METADATA_FILE, new TextEncoder().encode(JSON.stringify({
+				'session-fresh': { workspaceFolder: { folderPath: Uri.file('/stale').fsPath, timestamp: 1 }, modified: 1 },
+			})));
+
+			await store.refresh();
+
+			expect((await store.getSessionWorkspaceFolder('session-fresh'))?.fsPath).toBe(Uri.file('/fresh').fsPath);
+			store.dispose();
+		});
+	});
+
+	describe('legacy bulk file migration (Step 0)', () => {
+		it('migrates from the legacy globalStorage path on first run', async () => {
+			mockFs.mockFile(LEGACY_BULK_METADATA_FILE, JSON.stringify({
+				'legacy-session': { workspaceFolder: { folderPath: Uri.file('/legacy').fsPath, timestamp: 1 } },
+			}));
+			// New shared file does NOT exist yet.
+
+			const store = await createStore();
+
+			expect((await store.getSessionWorkspaceFolder('legacy-session'))?.fsPath)
+				.toBe(Uri.file('/legacy').fsPath);
+			// Migration wrote to the new path.
+			const newRaw = await mockFs.readFile(BULK_METADATA_FILE);
+			expect(JSON.parse(new TextDecoder().decode(newRaw))).toHaveProperty('legacy-session');
+			store.dispose();
+		});
+
+		it('merges legacy entries into an existing shared file (late-joiner scenario)', async () => {
+			// Process A already created the shared file with session-A.
+			// Process B starts with its own legacy file containing session-B.
+			// Both should be present after migration.
+			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify({
+				'session-A': { workspaceFolder: { folderPath: Uri.file('/a').fsPath, timestamp: 1 }, modified: 100 },
+			}));
+			mockFs.mockFile(LEGACY_BULK_METADATA_FILE, JSON.stringify({
+				'session-B': { workspaceFolder: { folderPath: Uri.file('/b').fsPath, timestamp: 2 }, modified: 200 },
+			}));
+
+			const store = await createStore();
+
+			expect((await store.getSessionWorkspaceFolder('session-A'))?.fsPath).toBe(Uri.file('/a').fsPath);
+			expect((await store.getSessionWorkspaceFolder('session-B'))?.fsPath).toBe(Uri.file('/b').fsPath);
+			store.dispose();
+		});
+
+		it('uses last-modified-wins when the same session exists in both files', async () => {
+			vi.setSystemTime(new Date(0));
+			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify({
+				'shared-session': { workspaceFolder: { folderPath: Uri.file('/old').fsPath, timestamp: 1 }, modified: 50 },
+			}));
+			mockFs.mockFile(LEGACY_BULK_METADATA_FILE, JSON.stringify({
+				'shared-session': { workspaceFolder: { folderPath: Uri.file('/newer').fsPath, timestamp: 2 }, modified: 200 },
+			}));
+
+			const store = await createStore();
+
+			// Legacy had higher `modified` → its version wins
+			expect((await store.getSessionWorkspaceFolder('shared-session'))?.fsPath).toBe(Uri.file('/newer').fsPath);
+			store.dispose();
+		});
+
+		it('sets memento flag after successful merge so it does not re-run', async () => {
+			mockFs.mockFile(LEGACY_BULK_METADATA_FILE, JSON.stringify({
+				'legacy-session': { workspaceFolder: { folderPath: Uri.file('/legacy').fsPath, timestamp: 1 } },
+			}));
+
+			const store = await createStore();
+			expect(extensionContext.globalState.get('github.copilot.cli.legacyBulkMigrated')).toBe(true);
+			store.dispose();
+		});
+
+		it('skips migration when memento flag is already set', async () => {
+			extensionContext.globalState.seed('github.copilot.cli.legacyBulkMigrated', true);
+			mockFs.mockFile(LEGACY_BULK_METADATA_FILE, JSON.stringify({
+				'legacy-session': { workspaceFolder: { folderPath: Uri.file('/legacy').fsPath, timestamp: 1 } },
+			}));
+			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify({}));
+
+			const readSpy = vi.spyOn(mockFs, 'readFile');
+			const store = await createStore();
+
+			// Legacy file should not have been read (migration skipped).
+			const legacyReads = readSpy.mock.calls.filter(
+				c => c[0].toString().includes('copilotcli.session.metadata.json'),
+			);
+			expect(legacyReads).toHaveLength(0);
+			expect(await store.getSessionWorkspaceFolder('legacy-session')).toBeUndefined();
+			store.dispose();
+		});
+
+		it('does nothing when no legacy file exists', async () => {
+			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify({
+				'kept-session': { workspaceFolder: { folderPath: Uri.file('/kept').fsPath, timestamp: 1 } },
+			}));
+			// No legacy file seeded
+
+			const store = await createStore();
+
+			expect((await store.getSessionWorkspaceFolder('kept-session'))?.fsPath).toBe(Uri.file('/kept').fsPath);
+			store.dispose();
+		});
+	});
+
+	describe('JSONL worktree index', () => {
+		const jsonlUri = () => Uri.file(jsonlPathHolder.get());
+
+		async function readJsonl(): Promise<Array<Record<string, unknown>>> {
+			try {
+				const bytes = await mockFs.readFile(jsonlUri());
+				const raw = new TextDecoder().decode(bytes);
+				return raw.split('\n').filter(Boolean).map(l => JSON.parse(l));
+			} catch {
+				return [];
+			}
+		}
+
+		it('appends one line per worktree session and reads it back via getSessionIdForWorktree', async () => {
+			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify({}));
+			const store = await createStore();
+
+			const folder = Uri.file('/repo/.worktrees/wt-A');
+			await store.storeWorktreeInfo('wt-session-A', makeWorktreeV1Props({ worktreePath: folder.fsPath }));
+
+			const lines = await readJsonl();
+			expect(lines).toHaveLength(1);
+			expect(lines[0]).toMatchObject({ id: 'wt-session-A', path: folder.fsPath });
+
+			// Lookup by folder works via the in-memory map.
+			expect(await store.getSessionIdForWorktree(folder)).toBe('wt-session-A');
+			store.dispose();
+		});
+
+		it('falls back to JSONL on disk for getSessionIdForWorktree when in-memory cache is cold', async () => {
+			// Pre-seed JSONL in mock fs before the store starts — simulates an entry written by another process.
+			const folder = Uri.file('/repo/.worktrees/wt-cold');
+			mockFs.mockFile(
+				jsonlUri(),
+				JSON.stringify({ id: 'wt-session-cold', path: folder.fsPath, created: 100 }) + '\n',
+			);
+			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify({}));
+
+			const store = await createStore();
+			expect(await store.getSessionIdForWorktree(folder)).toBe('wt-session-cold');
+			store.dispose();
+		});
+
+		it('compacts duplicate JSONL lines for the same id on next rewrite', async () => {
+			// Two entries for the same id — last write wins, file should be rewritten.
+			const folder = Uri.file('/repo/.worktrees/dup');
+			mockFs.mockFile(
+				jsonlUri(),
+				JSON.stringify({ id: 'dup-id', path: '/old/path', created: 1 }) + '\n' +
+				JSON.stringify({ id: 'dup-id', path: folder.fsPath, created: 2 }) + '\n',
+			);
+			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify({}));
+
+			const store = await createStore();
+			// Initialization should have detected the duplicate and rewritten the file.
+			const lines = await readJsonl();
+			expect(lines).toHaveLength(1);
+			expect(lines[0]).toMatchObject({ id: 'dup-id', path: folder.fsPath });
+			expect(await store.getSessionIdForWorktree(folder)).toBe('dup-id');
+			store.dispose();
+		});
+
+		it('removes the JSONL entry when a session is deleted', async () => {
+			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify({}));
+			const store = await createStore();
+			const folder = Uri.file('/repo/.worktrees/to-delete');
+			await store.storeWorktreeInfo('to-delete', makeWorktreeV1Props({ worktreePath: folder.fsPath }));
+			expect(await readJsonl()).toHaveLength(1);
+
+			await store.deleteSessionMetadata('to-delete');
+
+			expect(await readJsonl()).toHaveLength(0);
+			expect(await store.getSessionIdForWorktree(folder)).toBeUndefined();
+			store.dispose();
+		});
+	});
+
+	describe('top-N trim (MAX_BULK_STORAGE_ENTRIES = 1000)', () => {
+		it('writes at most 1000 entries to the bulk file but keeps everything in memory', async () => {
+			// Pre-seed a bulk file with 1100 entries with varying `modified` timestamps.
+			const initial: Record<string, unknown> = {};
+			for (let i = 0; i < 1100; i++) {
+				initial[`s-${i}`] = {
+					workspaceFolder: { folderPath: `/w/${i}`, timestamp: i },
+					modified: i, // s-0 oldest, s-1099 newest
+				};
+			}
+			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify(initial));
+
+			const store = await createStore();
+			// Trigger a write so the trim runs.
+			await store.storeWorkspaceFolderInfo('trigger', { folderPath: '/trigger', timestamp: Date.now() });
+			await vi.advanceTimersByTimeAsync(2000);
+
+			const onDisk = JSON.parse(new TextDecoder().decode(await mockFs.readFile(BULK_METADATA_FILE)));
+			expect(Object.keys(onDisk).length).toBeLessThanOrEqual(1000);
+			// Newest entries (highest `modified`) should still be present.
+			expect(onDisk['s-1099']).toBeTruthy();
+			expect(onDisk['trigger']).toBeTruthy();
+			// Oldest entry should have been evicted from disk.
+			expect(onDisk['s-0']).toBeUndefined();
+
+			// In-memory cache still serves the evicted entry's data via per-session file fallback,
+			// but the cache itself was hydrated at init so it still knows about s-0.
+			// (Per-session files are the source of truth for evicted entries.)
+			store.dispose();
+		});
+	});
+
+	describe('updateMetadataFields - stale cache write safety (Step 3b)', () => {
+		it('writes only the requested partial fields; other fields written by external process are preserved', async () => {
+			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify({}));
+			const store = await createStore();
+
+			// Create the per-session file with an initial customTitle.
+			await store.setCustomTitle('shared-session', 'initial-title');
+			await vi.advanceTimersByTimeAsync(2000);
+
+			// Simulate another process writing a `firstUserMessage` to the same per-session file.
+			const sessionFile = sessionMetadataFileUri('shared-session');
+			const existingRaw = await mockFs.readFile(sessionFile);
+			const existing = JSON.parse(new TextDecoder().decode(existingRaw));
+			const externallyMerged = { ...existing, firstUserMessage: 'from-other-process' };
+			await mockFs.writeFile(sessionFile, new TextEncoder().encode(JSON.stringify(externallyMerged)));
+
+			// Now update the title from THIS process. Critically, the partial-only write
+			// must not stomp `firstUserMessage` even though our `_cache` does not know about it.
+			await store.setCustomTitle('shared-session', 'updated-title');
+			await vi.advanceTimersByTimeAsync(2000);
+
+			const finalRaw = await mockFs.readFile(sessionFile);
+			const final = JSON.parse(new TextDecoder().decode(finalRaw));
+			expect(final.customTitle).toBe('updated-title');
+			expect(final.firstUserMessage).toBe('from-other-process');
+			store.dispose();
+		});
+	});
+
+	describe('timestamps', () => {
+		it('stamps `created` once and bumps `modified` on every write', async () => {
+			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify({}));
+			vi.setSystemTime(new Date(1_000_000));
+			const store = await createStore();
+
+			await store.setCustomTitle('ts-session', 'first');
+			await vi.advanceTimersByTimeAsync(2000);
+
+			const file = sessionMetadataFileUri('ts-session');
+			const first = JSON.parse(new TextDecoder().decode(await mockFs.readFile(file)));
+			expect(first.created).toBeTypeOf('number');
+			expect(first.modified).toBeTypeOf('number');
+			const createdAt = first.created;
+
+			vi.setSystemTime(new Date(2_000_000));
+			await store.setCustomTitle('ts-session', 'second');
+			await vi.advanceTimersByTimeAsync(2000);
+
+			const second = JSON.parse(new TextDecoder().decode(await mockFs.readFile(file)));
+			expect(second.created).toBe(createdAt); // unchanged
+			expect(second.modified).toBeGreaterThan(first.modified); // bumped
+			store.dispose();
+		});
+	});
+
+	describe('session-state directory scan', () => {
+		const sessionStateDir = Uri.file('/mock/session-state');
+
+		it('discovers worktree sessions from per-session files not in cache or JSONL', async () => {
+			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify({}));
+			// Simulate a per-session file on disk that is NOT in the bulk cache.
+			const folder = Uri.file('/repo/.worktrees/discovered');
+			await mockFs.createDirectory(Uri.joinPath(sessionStateDir, 'orphan-session'));
+			mockFs.mockFile(
+				sessionMetadataFileUri('orphan-session'),
+				JSON.stringify({ worktreeProperties: makeWorktreeV1Props({ worktreePath: folder.fsPath }) }),
+			);
+			// readDirectory returns the session dir entries.
+			mockFs.mockDirectory(sessionStateDir, [['orphan-session', 2 /* Directory */]]);
+
+			const store = await createStore();
+
+			expect(await store.getSessionIdForWorktree(folder)).toBe('orphan-session');
+			store.dispose();
+		});
+
+		it('skips session IDs already known from the bulk cache', async () => {
+			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify({
+				'known-session': { workspaceFolder: { folderPath: Uri.file('/known').fsPath, timestamp: 1 } },
+			}));
+			mockFs.mockDirectory(sessionStateDir, [['known-session', 2]]);
+
+			const readSpy = vi.spyOn(mockFs, 'readFile');
+			const store = await createStore();
+
+			// Per-session file for known-session should NOT have been read by the scan.
+			const scanReads = readSpy.mock.calls.filter(
+				c => c[0].toString().includes('/mock/session-state/known-session/vscode.metadata.json'),
+			);
+			expect(scanReads).toHaveLength(0);
+			store.dispose();
+		});
+
+		it('sets memento flag so the scan does not re-run on next startup', async () => {
+			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify({}));
+			mockFs.mockDirectory(sessionStateDir, []);
+
+			await createStore();
+			expect(extensionContext.globalState.get('github.copilot.cli.events.jsonl.scaned')).toBe(true);
+		});
+
+		it('skips scan when memento flag is already set', async () => {
+			extensionContext.globalState.seed('github.copilot.cli.events.jsonl.scaned', true);
+			mockFs.mockFile(BULK_METADATA_FILE, JSON.stringify({}));
+			// Even with a discoverable session, scan should be skipped.
+			await mockFs.createDirectory(Uri.joinPath(sessionStateDir, 'should-skip'));
+			mockFs.mockFile(
+				sessionMetadataFileUri('should-skip'),
+				JSON.stringify({ worktreeProperties: makeWorktreeV1Props() }),
+			);
+			mockFs.mockDirectory(sessionStateDir, [['should-skip', 2]]);
+
+			const store = await createStore();
+
+			expect(await store.getSessionIdForWorktree(Uri.file(makeWorktreeV1Props().worktreePath))).toBeUndefined();
+			store.dispose();
+		});
+	});
+
 });
diff --git a/extensions/copilot/src/extension/chatSessions/vscode-node/test/claudeChatSessionContentProvider.spec.ts b/extensions/copilot/src/extension/chatSessions/vscode-node/test/claudeChatSessionContentProvider.spec.ts
index 180746f260c..2bd2a3126ab 100644
--- a/extensions/copilot/src/extension/chatSessions/vscode-node/test/claudeChatSessionContentProvider.spec.ts
+++ b/extensions/copilot/src/extension/chatSessions/vscode-node/test/claudeChatSessionContentProvider.spec.ts
@@ -8,6 +8,7 @@ import * as path from 'path';
 import type * as vscode from 'vscode';
 // eslint-disable-next-line no-duplicate-imports
 import * as vscodeShim from 'vscode';
+import { ConfigKey, IConfigurationService } from '../../../../platform/configuration/common/configurationService';
 import { IGitService, RepoContext } from '../../../../platform/git/common/gitService';
 import { MockGitService } from '../../../../platform/ignore/node/test/mockGitService';
 import { ITestingServicesAccessor } from '../../../../platform/test/node/services';
@@ -202,15 +203,38 @@ function buildInputStateGroups(options?: { permissionMode?: string; folderPath?:
 	return groups;
 }
 
+/**
+ * Workspace service whose folder list can be mutated at runtime so tests can
+ * exercise folder-change events through the observable pipeline.
+ */
+class MutableWorkspaceService extends TestWorkspaceService {
+	private _folders: URI[];
+
+	constructor(folders: URI[]) {
+		super(folders);
+		this._folders = [...folders];
+	}
+
+	override getWorkspaceFolders(): URI[] {
+		return this._folders;
+	}
+
+	setFolders(folders: URI[]): void {
+		this._folders = [...folders];
+		this.didChangeWorkspaceFoldersEmitter.fire({ added: [], removed: [] } as any);
+	}
+}
+
 function createProviderWithServices(
 	store: DisposableStore,
 	workspaceFolders: URI[],
 	mocks: ReturnType<typeof createDefaultMocks>,
 	agentManager?: ClaudeAgentManager,
+	workspaceServiceOverride?: TestWorkspaceService,
 ): { provider: ClaudeChatSessionContentProvider; accessor: ITestingServicesAccessor } {
 	const serviceCollection = store.add(createExtensionUnitTestingServices(store));
 
-	const workspaceService = new TestWorkspaceService(workspaceFolders);
+	const workspaceService = workspaceServiceOverride ?? new TestWorkspaceService(workspaceFolders);
 	serviceCollection.set(IWorkspaceService, workspaceService);
 	serviceCollection.set(IGitService, new MockGitService());
 
@@ -965,6 +989,190 @@ describe('ChatSessionContentProvider', () => {
 	});
 
 	// #endregion
+
+	// #region Observable pipeline reactivity
+
+	/**
+	 * These tests drive the input-state observable pipeline end-to-end via the
+	 * external signals it observes (config change, workspace folder change,
+	 * session-state change, session start) and assert the resulting
+	 * `state.groups` reflect each event. This is the "series of events" testing
+	 * the observable refactor was designed to enable.
+	 */
+	describe('observable pipeline reactivity', () => {
+		const folderA = URI.file('/project-a');
+		const folderB = URI.file('/project-b');
+
+		async function flushMicrotasks(): Promise<void> {
+			// Autoruns that schedule async work (e.g. MRU fetch when workspace goes empty)
+			// settle on the microtask queue. Two ticks covers chained thenables.
+			await Promise.resolve();
+			await Promise.resolve();
+		}
+
+		it('toggling bypass-permissions config adds/removes the bypass item reactively', async () => {
+			const mocks = createDefaultMocks();
+			const { accessor: localAccessor } = createProviderWithServices(store, [folderA, folderB], mocks);
+			const configService = localAccessor.get(IConfigurationService);
+
+			const state = await getInputState();
+			let permissionGroup = getGroup(state, 'permissionMode')!;
+			expect(permissionGroup.items.map(i => i.id)).not.toContain('bypassPermissions');
+
+			await configService.setConfig(ConfigKey.ClaudeAgentAllowDangerouslySkipPermissions, true);
+			permissionGroup = getGroup(state, 'permissionMode')!;
+			expect(permissionGroup.items.map(i => i.id)).toContain('bypassPermissions');
+
+			await configService.setConfig(ConfigKey.ClaudeAgentAllowDangerouslySkipPermissions, false);
+			permissionGroup = getGroup(state, 'permissionMode')!;
+			expect(permissionGroup.items.map(i => i.id)).not.toContain('bypassPermissions');
+		});
+
+		it('workspace folder changes reshape the folder group', async () => {
+			const mocks = createDefaultMocks();
+			const mutableWs = new MutableWorkspaceService([folderA, folderB]);
+			createProviderWithServices(store, [], mocks, undefined, mutableWs);
+
+			const state = await getInputState();
+			let folderGroup = getGroup(state, 'folder');
+			expect(folderGroup).toBeDefined();
+			expect(folderGroup!.items.map(i => i.id)).toEqual([folderA.fsPath, folderB.fsPath]);
+
+			// Add a third folder
+			const folderC = URI.file('/project-c');
+			mutableWs.setFolders([folderA, folderB, folderC]);
+			folderGroup = getGroup(state, 'folder');
+			expect(folderGroup!.items.map(i => i.id)).toEqual([folderA.fsPath, folderB.fsPath, folderC.fsPath]);
+
+			// Transition to a single folder → group hides
+			mutableWs.setFolders([folderA]);
+			folderGroup = getGroup(state, 'folder');
+			expect(folderGroup).toBeUndefined();
+
+			// Back to multi-root
+			mutableWs.setFolders([folderA, folderB]);
+			folderGroup = getGroup(state, 'folder');
+			expect(folderGroup!.items.map(i => i.id)).toEqual([folderA.fsPath, folderB.fsPath]);
+		});
+
+		it('emptying the workspace falls back to MRU items', async () => {
+			const mocks = createDefaultMocks();
+			const mutableWs = new MutableWorkspaceService([folderA, folderB]);
+			const mruFolder = URI.file('/recent/project');
+			mocks.mockFolderMruService.setMRUEntries([
+				{ folder: mruFolder, repository: undefined, lastAccessed: Date.now() },
+			]);
+			createProviderWithServices(store, [], mocks, undefined, mutableWs);
+
+			const state = await getInputState();
+			mutableWs.setFolders([]);
+			await flushMicrotasks();
+
+			const folderGroup = getGroup(state, 'folder');
+			expect(folderGroup).toBeDefined();
+			expect(folderGroup!.items.map(i => i.id)).toEqual([mruFolder.fsPath]);
+		});
+
+		it('external session-state permission change syncs into the input state', async () => {
+			const mocks = createDefaultMocks();
+			const { accessor: localAccessor } = createProviderWithServices(store, [workspaceFolderUri], mocks);
+			const sessionStateService = localAccessor.get(IClaudeSessionStateService);
+
+			// Mark as existing so the pipeline wires up the external permission autorun
+			const existingSession = { id: 'external-session', messages: [], subagents: [] };
+			vi.mocked(mocks.mockSessionService.getSession).mockResolvedValue(existingSession as any);
+
+			const sessionUri = createClaudeSessionUri('external-session');
+			const state = await getInputState(sessionUri);
+			expect(getGroup(state, 'permissionMode')!.selected?.id).not.toBe('plan');
+
+			sessionStateService.setPermissionModeForSession('external-session', 'plan');
+			expect(getGroup(state, 'permissionMode')!.selected?.id).toBe('plan');
+
+			sessionStateService.setPermissionModeForSession('external-session', 'default');
+			expect(getGroup(state, 'permissionMode')!.selected?.id).toBe('default');
+		});
+
+		it('markSessionStarted locks the folder group mid-session', async () => {
+			const mocks = createDefaultMocks();
+			createProviderWithServices(store, [folderA, folderB], mocks);
+
+			const state = await getInputState();
+			let folderGroup = getGroup(state, 'folder')!;
+			expect(folderGroup.items.every(i => !i.locked)).toBe(true);
+			expect(folderGroup.selected?.locked).toBeUndefined();
+
+			// Simulate a new session starting by invoking the handler (which calls markSessionStarted)
+			// The handler is owned by the content provider — we go through it via createHandler.
+			// Easier: reach through via the exported accessor pattern — call markSessionStarted through the controller.
+			// The content provider does not export the controller, but the handler path covers it.
+			vi.mocked(mocks.mockSessionService.getSession).mockResolvedValue(undefined);
+			seedSessionItem('new-session');
+
+			const { provider: handlerProvider } = createProviderWithServices(store, [folderA, folderB], mocks);
+			const handler = handlerProvider.createHandler();
+			// The state we want to observe must be the one passed into the handler
+			const newState = await getInputState();
+			const context: vscode.ChatContext = {
+				history: [],
+				yieldRequested: false,
+				chatSessionContext: {
+					isUntitled: false,
+					chatSessionItem: {
+						resource: ClaudeSessionUri.forSessionId('new-session'),
+						label: 'New',
+					},
+					inputState: newState,
+				},
+			} as vscode.ChatContext;
+			await handler(createTestRequest('hello'), context, new MockChatResponseStream(), CancellationToken.None);
+
+			folderGroup = getGroup(newState, 'folder')!;
+			expect(folderGroup.items.every(i => i.locked === true)).toBe(true);
+			expect(folderGroup.selected?.locked).toBe(true);
+		});
+
+		it('restoring a locked previousInputState preserves the lock across workspace changes', async () => {
+			const mocks = createDefaultMocks();
+			const mutableWs = new MutableWorkspaceService([folderA, folderB]);
+			createProviderWithServices(store, [], mocks, undefined, mutableWs);
+
+			// First state — mark it as started to get locked items
+			const initialState = await getInputState();
+			const initialGroup = getGroup(initialState, 'folder')!;
+			// Synthesize a locked previousInputState (matching what a started session looks like)
+			const lockedGroups: vscode.ChatSessionProviderOptionGroup[] = initialState.groups.map(g =>
+				g.id === 'folder'
+					? {
+						...g,
+						items: g.items.map(i => ({ ...i, locked: true })),
+						selected: g.selected ? { ...g.selected, locked: true } : undefined,
+					}
+					: g
+			);
+			const lockedPrevious: vscode.ChatSessionInputState = {
+				groups: lockedGroups,
+				sessionResource: undefined,
+				onDidChange: Event.None,
+			};
+			// sanity check
+			expect(initialGroup.items.map(i => i.id)).toEqual([folderA.fsPath, folderB.fsPath]);
+
+			// Restore from the locked previous state
+			const restoredState = await getInputState(undefined, lockedPrevious);
+			let restoredGroup = getGroup(restoredState, 'folder')!;
+			expect(restoredGroup.items.every(i => i.locked === true)).toBe(true);
+
+			// Now workspace folders change — lock must persist
+			const folderC = URI.file('/project-c');
+			mutableWs.setFolders([folderA, folderB, folderC]);
+			restoredGroup = getGroup(restoredState, 'folder')!;
+			expect(restoredGroup.items).toHaveLength(3);
+			expect(restoredGroup.items.every(i => i.locked === true)).toBe(true);
+		});
+	});
+
+	// #endregion
 });
 
 // #region FakeGitService
@@ -994,6 +1202,7 @@ class FakeGitService extends mock<IGitService>() {
 	}
 
 	override dispose(): void {
+		super.dispose();
 		this._onDidOpenRepository.dispose();
 		this._onDidCloseRepository.dispose();
 	}
@@ -1006,6 +1215,7 @@ describe('ClaudeChatSessionItemController', () => {
 	let mockSessionService: IClaudeCodeSessionService;
 	let mockSdkService: IClaudeCodeSdkService;
 	let controller: ClaudeChatSessionItemController;
+	let lastControllerAccessor: ITestingServicesAccessor;
 
 	function getItem(sessionId: string): vscode.ChatSessionItem | undefined {
 		return lastCreatedItemsMap.get(ClaudeSessionUri.forSessionId(sessionId).toString());
@@ -1031,6 +1241,7 @@ describe('ClaudeChatSessionItemController', () => {
 		};
 		serviceCollection.define(IClaudeCodeSdkService, mockSdkService);
 		const accessor = serviceCollection.createTestingAccessor();
+		lastControllerAccessor = accessor;
 		const ctrl = accessor.get(IInstantiationService).createInstance(ClaudeChatSessionItemController);
 		store.add(ctrl);
 		return ctrl;
@@ -1198,6 +1409,30 @@ describe('ClaudeChatSessionItemController', () => {
 			// timing.created is derived from created
 			expect(item!.timing!.created).toBe(new Date('2024-06-01T12:00:00Z').getTime());
 		});
+
+		it('sets metadata with workingDirectoryPath when session has cwd', async () => {
+			const diskSession: IClaudeCodeSessionInfo = {
+				id: 'cwd-session',
+				label: 'CWD Session',
+				created: Date.now(),
+				lastRequestEnded: Date.now(),
+				folderName: 'my-project',
+				cwd: '/home/user/my-project',
+			};
+			vi.mocked(mockSessionService.getSession).mockResolvedValue(diskSession as any);
+
+			await controller.updateItemStatus('cwd-session', ChatSessionStatus.InProgress, 'Prompt');
+
+			const item = getItem('cwd-session');
+			expect(item!.metadata).toEqual({ workingDirectoryPath: '/home/user/my-project' });
+		});
+
+		it('does not set metadata when session has no cwd', async () => {
+			await controller.updateItemStatus('no-cwd-session', ChatSessionStatus.InProgress, 'Prompt');
+
+			const item = getItem('no-cwd-session');
+			expect(item!.metadata).toBeUndefined();
+		});
 	});
 
 	// #endregion
@@ -1504,12 +1739,24 @@ describe('ClaudeChatSessionItemController', () => {
 				label: 'Original',
 			});
 
-			const result = await lastForkHandler!(sessionResource, undefined, CancellationToken.None);
+			// Seed the parent session with non-default state
+			const sessionStateService = lastControllerAccessor.get(IClaudeSessionStateService);
+			sessionStateService.setPermissionModeForSession('sess-1', 'plan');
+			sessionStateService.setFolderInfoForSession('sess-1', {
+				cwd: '/custom/folder',
+				additionalDirectories: ['/extra'],
+			});
 
-			// The forked item should be properly structured
-			expect(result.resource.toString()).toContain('forked-session-id');
-			expect(result.iconPath).toBeDefined();
-			expect(result.timing).toBeDefined();
+			const setPermissionSpy = vi.spyOn(sessionStateService, 'setPermissionModeForSession');
+			const setFolderInfoSpy = vi.spyOn(sessionStateService, 'setFolderInfoForSession');
+
+			await lastForkHandler!(sessionResource, undefined, CancellationToken.None);
+
+			expect(setPermissionSpy).toHaveBeenCalledWith('forked-session-id', 'plan');
+			expect(setFolderInfoSpy).toHaveBeenCalledWith('forked-session-id', {
+				cwd: '/custom/folder',
+				additionalDirectories: ['/extra'],
+			});
 		});
 
 		it('forks at the message before the specified request', async () => {
diff --git a/extensions/copilot/src/extension/chatSessions/vscode-node/test/claudeSessionOptionBuilder.spec.ts b/extensions/copilot/src/extension/chatSessions/vscode-node/test/claudeSessionOptionBuilder.spec.ts
index 8621db5e8ab..a163f78a0e5 100644
--- a/extensions/copilot/src/extension/chatSessions/vscode-node/test/claudeSessionOptionBuilder.spec.ts
+++ b/extensions/copilot/src/extension/chatSessions/vscode-node/test/claudeSessionOptionBuilder.spec.ts
@@ -8,7 +8,6 @@ import type * as vscode from 'vscode';
 import { ConfigKey, IConfigurationService } from '../../../../platform/configuration/common/configurationService';
 import { TestWorkspaceService } from '../../../../platform/test/node/testWorkspaceService';
 import { IWorkspaceService } from '../../../../platform/workspace/common/workspaceService';
-import { Event } from '../../../../util/vs/base/common/event';
 import { DisposableStore } from '../../../../util/vs/base/common/lifecycle';
 import { URI } from '../../../../util/vs/base/common/uri';
 import { createExtensionUnitTestingServices } from '../../../test/node/services';
@@ -76,7 +75,7 @@ describe('ClaudeSessionOptionBuilder', () => {
 		it('returns undefined for single-root workspace', async () => {
 			builder = createBuilder([URI.file('/project')]);
 
-			const group = await builder.buildNewFolderGroup(undefined);
+			const group = await builder.buildNewFolderGroup();
 
 			expect(group).toBeUndefined();
 		});
@@ -86,7 +85,7 @@ describe('ClaudeSessionOptionBuilder', () => {
 			const folderB = URI.file('/b');
 			builder = createBuilder([folderA, folderB]);
 
-			const group = await builder.buildNewFolderGroup(undefined);
+			const group = await builder.buildNewFolderGroup();
 
 			expect(group).toBeDefined();
 			expect(group!.id).toBe('folder');
@@ -101,33 +100,11 @@ describe('ClaudeSessionOptionBuilder', () => {
 				{ folder: mruFolder, repository: undefined, lastAccessed: Date.now() },
 			]);
 
-			const group = await builder.buildNewFolderGroup(undefined);
+			const group = await builder.buildNewFolderGroup();
 
 			expect(group).toBeDefined();
 			expect(group!.items[0].id).toBe(mruFolder.fsPath);
 		});
-
-		it('restores previous folder selection', async () => {
-			const folderA = URI.file('/a');
-			const folderB = URI.file('/b');
-			builder = createBuilder([folderA, folderB]);
-
-			const previousInputState = {
-				groups: [{
-					id: 'folder',
-					name: 'Folder',
-					description: 'Pick Folder',
-					items: [{ id: folderB.fsPath, name: 'b' }],
-					selected: { id: folderB.fsPath, name: 'b' },
-				}],
-				sessionResource: undefined,
-				onDidChange: Event.None,
-			} as vscode.ChatSessionInputState;
-
-			const group = await builder.buildNewFolderGroup(previousInputState);
-
-			expect(group!.selected?.id).toBe(folderB.fsPath);
-		});
 	});
 
 	describe('buildExistingFolderGroup', () => {
@@ -147,7 +124,7 @@ describe('ClaudeSessionOptionBuilder', () => {
 		it('includes permission mode group with default selection', async () => {
 			builder = createBuilder([URI.file('/project')]);
 
-			const groups = await builder.buildNewSessionGroups(undefined);
+			const groups = await builder.buildNewSessionGroups();
 
 			const permGroup = groups.find(g => g.id === 'permissionMode');
 			expect(permGroup).toBeDefined();
@@ -157,7 +134,7 @@ describe('ClaudeSessionOptionBuilder', () => {
 		it('excludes folder group for single-root workspace', async () => {
 			builder = createBuilder([URI.file('/project')]);
 
-			const groups = await builder.buildNewSessionGroups(undefined);
+			const groups = await builder.buildNewSessionGroups();
 
 			expect(groups.find(g => g.id === 'folder')).toBeUndefined();
 		});
@@ -165,7 +142,7 @@ describe('ClaudeSessionOptionBuilder', () => {
 		it('includes folder group for multi-root workspace', async () => {
 			builder = createBuilder([URI.file('/a'), URI.file('/b')]);
 
-			const groups = await builder.buildNewSessionGroups(undefined);
+			const groups = await builder.buildNewSessionGroups();
 
 			expect(groups.find(g => g.id === 'folder')).toBeDefined();
 		});
diff --git a/extensions/copilot/src/extension/chatSessions/vscode-node/test/copilotCLIChatSessionParticipant.spec.ts b/extensions/copilot/src/extension/chatSessions/vscode-node/test/copilotCLIChatSessionParticipant.spec.ts
index 0279cc044e1..e190394cec3 100644
--- a/extensions/copilot/src/extension/chatSessions/vscode-node/test/copilotCLIChatSessionParticipant.spec.ts
+++ b/extensions/copilot/src/extension/chatSessions/vscode-node/test/copilotCLIChatSessionParticipant.spec.ts
@@ -327,7 +327,7 @@ describe('CopilotCLIChatSessionParticipant.handleRequest', () => {
 			}
 		});
 		sdk = {
-			getPackage: vi.fn(async () => ({ internal: { LocalSessionManager: MockCliSdkSessionManager, NoopTelemetryService: class { } }, createLocalFeatureFlagService: () => ({}), noopTelemetryBinder: {} })),
+			getPackage: vi.fn(async () => ({ internal: { LocalSessionManager: MockCliSdkSessionManager, NoopTelemetryService: class { } }, createLocalFeatureFlagService: () => ({}), AutoModeSessionManager: class { }, noopTelemetryBinder: {} })),
 			getAuthInfo: vi.fn(async () => ({ type: 'token' as const, token: 'valid-token', host: 'https://github.com' })),
 		} as unknown as ICopilotCLISDK;
 		const services = disposables.add(createExtensionUnitTestingServices());
diff --git a/extensions/copilot/src/extension/chatSessions/vscode-node/test/copilotCLIChatSessions.spec.ts b/extensions/copilot/src/extension/chatSessions/vscode-node/test/copilotCLIChatSessions.spec.ts
index 507cdc2718f..28e14e0e2f3 100644
--- a/extensions/copilot/src/extension/chatSessions/vscode-node/test/copilotCLIChatSessions.spec.ts
+++ b/extensions/copilot/src/extension/chatSessions/vscode-node/test/copilotCLIChatSessions.spec.ts
@@ -158,6 +158,7 @@ function createProvider() {
 	const metadataStore = new class extends mock<IChatSessionMetadataStore>() {
 		override getRequestDetails = vi.fn(async () => []);
 		override getRepositoryProperties = vi.fn(async () => undefined);
+		override getSessionParentId = vi.fn(async () => undefined);
 	};
 	const gitService = new TestGitService();
 	const folderRepositoryManager = new TestFolderRepositoryManager();
diff --git a/extensions/copilot/src/extension/chatSessions/vscode-node/test/copilotCLISDKUpgrade.spec.ts b/extensions/copilot/src/extension/chatSessions/vscode-node/test/copilotCLISDKUpgrade.spec.ts
index a244f8f0f32..98cf628b661 100644
--- a/extensions/copilot/src/extension/chatSessions/vscode-node/test/copilotCLISDKUpgrade.spec.ts
+++ b/extensions/copilot/src/extension/chatSessions/vscode-node/test/copilotCLISDKUpgrade.spec.ts
@@ -8,7 +8,6 @@ import { isBinaryFile } from 'isbinaryfile';
 import * as path from 'path';
 import { beforeAll, describe, it } from 'vitest';
 import { TestLogService } from '../../../../platform/testing/common/testLogService';
-import { copyNodePtyFiles } from '../../copilotcli/node/nodePtyShim';
 import { copyRipgrepShim } from '../../copilotcli/node/ripgrepShim';
 
 describe('CopilotCLI SDK Upgrade', function () {
@@ -59,6 +58,16 @@ describe('CopilotCLI SDK Upgrade', function () {
 			// win32 native module (formerly win_error_mode)
 			path.join('prebuilds', 'win32-arm64', 'win32.node'),
 			path.join('prebuilds', 'win32-x64', 'win32.node'),
+			// Second copy of computer.node / win32.node re-shipped by the @github/copilot/sdk subpackage
+			// (previously hidden by a broad sdk/prebuilds/** exclusion that masked the node-pty files we used to shim in at test setup).
+			path.join('sdk', 'prebuilds', 'darwin-arm64', 'computer.node'),
+			path.join('sdk', 'prebuilds', 'darwin-x64', 'computer.node'),
+			path.join('sdk', 'prebuilds', 'linux-arm64', 'computer.node'),
+			path.join('sdk', 'prebuilds', 'linux-x64', 'computer.node'),
+			path.join('sdk', 'prebuilds', 'win32-arm64', 'computer.node'),
+			path.join('sdk', 'prebuilds', 'win32-x64', 'computer.node'),
+			path.join('sdk', 'prebuilds', 'win32-arm64', 'win32.node'),
+			path.join('sdk', 'prebuilds', 'win32-x64', 'win32.node'),
 			path.join('ripgrep', 'bin', 'darwin-arm64', 'rg'),
 			path.join('ripgrep', 'bin', 'darwin-x64', 'rg'),
 			path.join('ripgrep', 'bin', 'linux-x64', 'rg'),
@@ -89,15 +98,13 @@ describe('CopilotCLI SDK Upgrade', function () {
 			'tree-sitter-scala.wasm',
 		].map(p => path.join(copilotSDKPath, p)));
 
-		// Exclude ripgrep files that we copy over in src/extension/agents/copilotcli/node/ripgrepShim.ts (until we get better API/solution from SDK)
+		// Exclude ripgrep files that we copy over in src/extension/chatSessions/copilotcli/node/ripgrepShim.ts (until we get better API/solution from SDK)
 		const ripgrepFilesWeCopy = path.join(copilotSDKPath, 'sdk', 'ripgrep', 'bin');
-		// Exclude nodepty files that we copy over in src/extension/agents/copilotcli/node/nodePtyShim.ts (until we get better API/solution from SDK)
-		const nodeptyFilesWeCopy = path.join(copilotSDKPath, 'sdk', 'prebuilds');
 
 		const errors: string[] = [];
 		// Look for new binaries
 		for (const binary of existingBinaries) {
-			if (binary.startsWith(ripgrepFilesWeCopy) || binary.startsWith(nodeptyFilesWeCopy)) {
+			if (binary.startsWith(ripgrepFilesWeCopy)) {
 				continue;
 			}
 			const binaryName = path.basename(binary);
@@ -110,7 +117,7 @@ describe('CopilotCLI SDK Upgrade', function () {
 		}
 		// Look for removed binaries.
 		for (const binary of knownBinaries) {
-			if (binary.startsWith(ripgrepFilesWeCopy) || binary.startsWith(nodeptyFilesWeCopy)) {
+			if (binary.startsWith(ripgrepFilesWeCopy)) {
 				continue;
 			}
 			if (!existingBinaries.has(binary)) {
@@ -124,19 +131,13 @@ describe('CopilotCLI SDK Upgrade', function () {
 	});
 
 	it('should be able to load the @github/copilot module without errors', async function () {
-		await copyNodePtyFiles(
-			extensionPath,
-			path.join(copilotSDKPath, 'prebuilds', process.platform + '-' + process.arch),
-			new TestLogService()
-		);
 		await import('@github/copilot/sdk');
 	});
 });
 
 async function copyBinaries(extensionPath: string) {
-	const nodePtyPrebuilds = path.join(extensionPath, 'node_modules', '@github', 'copilot', 'prebuilds', process.platform + '-' + process.arch);
-	const vscodeRipgrepPath = path.join(extensionPath, 'node_modules', '@github', 'copilot', 'ripgrep', 'bin', process.platform + '-' + process.arch);
-	await copyNodePtyFiles(extensionPath, nodePtyPrebuilds, new TestLogService());
+	const copilotSDKPath = path.join(extensionPath, 'node_modules', '@github', 'copilot');
+	const vscodeRipgrepPath = path.join(copilotSDKPath, 'ripgrep', 'bin', process.platform + '-' + process.arch);
 	await copyRipgrepShim(extensionPath, vscodeRipgrepPath, new TestLogService());
 }
 async function findAllBinaries(dir: string): Promise<string[]> {
diff --git a/extensions/copilot/src/extension/chatSessions/vscode-node/test/worktreeSessionIndex.spec.ts b/extensions/copilot/src/extension/chatSessions/vscode-node/test/worktreeSessionIndex.spec.ts
new file mode 100644
index 00000000000..c397ac52a18
--- /dev/null
+++ b/extensions/copilot/src/extension/chatSessions/vscode-node/test/worktreeSessionIndex.spec.ts
@@ -0,0 +1,190 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import { afterEach, describe, expect, it, vi } from 'vitest';
+import { Uri } from 'vscode';
+import { MockFileSystemService } from '../../../../platform/filesystem/node/test/mockFileSystemService';
+import { ILogService } from '../../../../platform/log/common/logService';
+import { mock } from '../../../../util/common/test/simpleMock';
+import { WorktreeSessionIndex } from '../worktreeSessionIndex';
+
+class MockLogService extends mock<ILogService>() {
+	override trace = vi.fn();
+	override info = vi.fn();
+	override warn = vi.fn();
+	override error = vi.fn();
+	override debug = vi.fn();
+}
+
+const JSONL_PATH = '/mock/copilot-home/worktree.jsonl';
+const JSONL_URI = Uri.file(JSONL_PATH);
+
+describe('WorktreeSessionIndex', () => {
+	let mockFs: MockFileSystemService;
+	let logService: MockLogService;
+
+	function createIndex(): WorktreeSessionIndex {
+		return new WorktreeSessionIndex(mockFs, logService, JSONL_PATH);
+	}
+
+	afterEach(() => {
+		vi.restoreAllMocks();
+	});
+
+	// In-memory tests don't need mockFs/logService, but the constructor requires them.
+	describe('in-memory operations', () => {
+		it('adds and retrieves an entry by session id', () => {
+			mockFs = new MockFileSystemService();
+			logService = new MockLogService();
+			const index = createIndex();
+			index.addEntry({ id: 's1', path: '/a', created: 1 });
+
+			expect(index.getSessionEntry('s1')).toMatchObject({ id: 's1', path: '/a' });
+			expect(index.has('s1')).toBe(true);
+			expect(index.has('s2')).toBe(false);
+		});
+
+		it('looks up session id by folder Uri', () => {
+			mockFs = new MockFileSystemService();
+			logService = new MockLogService();
+			const index = createIndex();
+			index.addEntry({ id: 's1', path: '/a', created: 1 });
+
+			expect(index.getSessionIdForFolder(Uri.file('/a'))).toBe('s1');
+			expect(index.getSessionIdForFolder(Uri.file('/b'))).toBeUndefined();
+		});
+
+		it('deletes an entry and cleans up the folder mapping', () => {
+			mockFs = new MockFileSystemService();
+			logService = new MockLogService();
+			const index = createIndex();
+			index.addEntry({ id: 's1', path: '/a', created: 1 });
+			index.deleteEntry('s1');
+
+			expect(index.has('s1')).toBe(false);
+			expect(index.getSessionIdForFolder(Uri.file('/a'))).toBeUndefined();
+		});
+
+		it('clear() removes everything', () => {
+			mockFs = new MockFileSystemService();
+			logService = new MockLogService();
+			const index = createIndex();
+			index.addEntry({ id: 's1', path: '/a', created: 1 });
+			index.addEntry({ id: 's2', path: '/b', created: 2 });
+			index.clear();
+
+			expect(index.has('s1')).toBe(false);
+			expect(index.getEntries()).toHaveLength(0);
+		});
+
+		it('getEntries() returns all entries', () => {
+			mockFs = new MockFileSystemService();
+			logService = new MockLogService();
+			const index = createIndex();
+			index.addEntry({ id: 's1', path: '/a', created: 1 });
+			index.addEntry({ id: 's2', path: '/b', created: 2 });
+
+			const entries = index.getEntries();
+			expect(entries).toHaveLength(2);
+			expect(entries.map(e => e.id).sort()).toEqual(['s1', 's2']);
+		});
+
+		it('updating an entry with a new path removes the old path mapping', () => {
+			mockFs = new MockFileSystemService();
+			logService = new MockLogService();
+			const index = createIndex();
+			index.addEntry({ id: 's1', path: '/old', created: 1 });
+			expect(index.getSessionIdForFolder(Uri.file('/old'))).toBe('s1');
+
+			index.addEntry({ id: 's1', path: '/new', created: 1 });
+			expect(index.getSessionIdForFolder(Uri.file('/new'))).toBe('s1');
+			expect(index.getSessionIdForFolder(Uri.file('/old'))).toBeUndefined();
+		});
+	});
+
+	describe('JSONL persistence', () => {
+		it('loadFromDisk populates the index from a JSONL file', async () => {
+			mockFs = new MockFileSystemService();
+			logService = new MockLogService();
+			mockFs.mockFile(JSONL_URI,
+				JSON.stringify({ id: 's1', path: '/a', created: 1 }) + '\n' +
+				JSON.stringify({ id: 's2', path: '/b', created: 2 }) + '\n',
+			);
+			const index = createIndex();
+			await index.loadFromDisk();
+
+			expect(index.has('s1')).toBe(true);
+			expect(index.has('s2')).toBe(true);
+			expect(index.size).toBe(2);
+		});
+
+		it('loadFromDisk returns rewriteNeeded for duplicates', async () => {
+			mockFs = new MockFileSystemService();
+			logService = new MockLogService();
+			mockFs.mockFile(JSONL_URI,
+				JSON.stringify({ id: 's1', path: '/a', created: 1 }) + '\n' +
+				JSON.stringify({ id: 's1', path: '/b', created: 2 }) + '\n',
+			);
+			const index = createIndex();
+			const { rewriteNeeded } = await index.loadFromDisk();
+
+			expect(rewriteNeeded).toBe(true);
+			expect(index.size).toBe(1);
+		});
+
+		it('writeToDisk writes all entries to the JSONL file', async () => {
+			mockFs = new MockFileSystemService();
+			logService = new MockLogService();
+			const index = createIndex();
+			index.addEntry({ id: 's1', path: '/a', created: 1 });
+			index.addEntry({ id: 's2', path: '/b', created: 2 });
+			await index.writeToDisk();
+
+			const raw = new TextDecoder().decode(await mockFs.readFile(JSONL_URI));
+			const lines = raw.split('\n').filter(Boolean);
+			expect(lines).toHaveLength(2);
+		});
+
+		it('appendBatchToDisk adds a single entry', async () => {
+			mockFs = new MockFileSystemService();
+			logService = new MockLogService();
+			const index = createIndex();
+			await index.appendBatchToDisk([{ id: 's1', path: '/a', created: 1 }]);
+
+			expect(index.has('s1')).toBe(true);
+			const raw = new TextDecoder().decode(await mockFs.readFile(JSONL_URI));
+			expect(raw.split('\n').filter(Boolean)).toHaveLength(1);
+		});
+
+		it('appendBatchToDisk adds multiple entries in one write', async () => {
+			mockFs = new MockFileSystemService();
+			logService = new MockLogService();
+			const index = createIndex();
+			await index.appendBatchToDisk([
+				{ id: 's1', path: '/a', created: 1 },
+				{ id: 's2', path: '/b', created: 2 },
+			]);
+
+			expect(index.has('s1')).toBe(true);
+			expect(index.has('s2')).toBe(true);
+			const raw = new TextDecoder().decode(await mockFs.readFile(JSONL_URI));
+			expect(raw.split('\n').filter(Boolean)).toHaveLength(2);
+		});
+
+		it('removeAndWriteToDisk removes the entry and rewrites', async () => {
+			mockFs = new MockFileSystemService();
+			logService = new MockLogService();
+			const index = createIndex();
+			index.addEntry({ id: 's1', path: '/a', created: 1 });
+			index.addEntry({ id: 's2', path: '/b', created: 2 });
+			await index.removeAndWriteToDisk('s1');
+
+			expect(index.has('s1')).toBe(false);
+			const raw = new TextDecoder().decode(await mockFs.readFile(JSONL_URI));
+			expect(raw.split('\n').filter(Boolean)).toHaveLength(1);
+			expect(raw).toContain('s2');
+		});
+	});
+});
diff --git a/extensions/copilot/src/extension/chatSessions/vscode-node/worktreeSessionIndex.ts b/extensions/copilot/src/extension/chatSessions/vscode-node/worktreeSessionIndex.ts
new file mode 100644
index 00000000000..ca8586c639f
--- /dev/null
+++ b/extensions/copilot/src/extension/chatSessions/vscode-node/worktreeSessionIndex.ts
@@ -0,0 +1,221 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import { Uri } from 'vscode';
+import { createDirectoryIfNotExists, IFileSystemService } from '../../../platform/filesystem/common/fileSystemService';
+import { ILogService } from '../../../platform/log/common/logService';
+import { Sequencer } from '../../../util/vs/base/common/async';
+import { ResourceMap } from '../../../util/vs/base/common/map';
+import { dirname } from '../../../util/vs/base/common/resources';
+import { WorktreeSessionEntry } from '../common/chatSessionMetadataStore';
+
+/**
+ * In-memory index that maps session ids to {@link WorktreeSessionEntry} and
+ * worktree folder URIs to session ids, with JSONL file persistence.
+ *
+ * When multiple sessions share the same folder, the first-registered session
+ * keeps the folder → session-id mapping.
+ *
+ * All file writes are serialized through an internal {@link Sequencer} so
+ * concurrent appends and rewrites cannot race.
+ */
+export class WorktreeSessionIndex {
+	/** Session id → entry. */
+	private readonly _byId = new Map<string, WorktreeSessionEntry>();
+	/** Worktree folder URI → session id. Uses URI-aware comparison so path casing is handled correctly. */
+	private readonly _byFolder = new ResourceMap<string>();
+	/** Serializes all JSONL file writes to prevent read-modify-write races. */
+	private readonly _writeSequencer = new Sequencer();
+	/** Timestamp of the last {@link loadFromDisk} call; used by {@link reloadIfStale}. */
+	private _lastLoadAt = 0;
+
+	constructor(
+		private readonly _fileSystemService: IFileSystemService,
+		private readonly _logService: ILogService,
+		private readonly _jsonlPath: string,
+	) { }
+
+	getSessionEntry(sessionId: string): WorktreeSessionEntry | undefined {
+		return this._byId.get(sessionId);
+	}
+
+	getSessionIdForFolder(folder: Uri): string | undefined {
+		return this._byFolder.get(folder);
+	}
+
+	has(sessionId: string): boolean {
+		return this._byId.has(sessionId);
+	}
+
+	get size(): number {
+		return this._byId.size;
+	}
+
+	getAllSessionIds(): string[] {
+		return Array.from(this._byId.keys());
+	}
+
+	/**
+	 * Adds or updates an entry. When the same folder path is already mapped to
+	 * a different session, the existing mapping is preserved.
+	 */
+	addEntry(entry: WorktreeSessionEntry): void {
+		const folderUri = Uri.file(entry.path);
+
+		// If this session already has an entry with a different path, clean up
+		// the old folder → session-id mapping before recording the new one.
+		const previousEntry = this._byId.get(entry.id);
+		if (previousEntry && previousEntry.path !== entry.path) {
+			const prevUri = Uri.file(previousEntry.path);
+			if (this._byFolder.get(prevUri) === entry.id) {
+				this._byFolder.delete(prevUri);
+			}
+		}
+
+		this._byId.set(entry.id, entry);
+
+		const existingIdForFolder = this._byFolder.get(folderUri);
+		if (!existingIdForFolder) {
+			this._byFolder.set(folderUri, entry.id);
+			return;
+		}
+		if (existingIdForFolder === entry.id) {
+			return;
+		}
+		const existingEntry = this._byId.get(existingIdForFolder);
+		if (existingEntry) {
+			return;
+		}
+		this._byFolder.set(folderUri, entry.id);
+	}
+
+	deleteEntry(sessionId: string): void {
+		const entry = this._byId.get(sessionId);
+		if (!entry) {
+			return;
+		}
+		this._byId.delete(sessionId);
+		const folderUri = Uri.file(entry.path);
+		if (this._byFolder.get(folderUri) === sessionId) {
+			this._byFolder.delete(folderUri);
+			for (const candidate of this._byId.values()) {
+				if (candidate.path === entry.path) {
+					this._byFolder.set(folderUri, candidate.id);
+					break;
+				}
+			}
+		}
+	}
+
+	clear(): void {
+		this._byId.clear();
+		this._byFolder.clear();
+	}
+
+	getEntries(): WorktreeSessionEntry[] {
+		return Array.from(this._byId.values());
+	}
+
+	/**
+	 * Loads the JSONL worktree index from disk into the in-memory maps.
+	 * Returns `rewriteNeeded` if the file contained malformed lines or
+	 * duplicates that should be compacted via {@link writeToDisk}.
+	 */
+	async loadFromDisk(): Promise<{ rewriteNeeded: boolean }> {
+		let rewriteNeeded = false;
+		let raw: string;
+		try {
+			const bytes = await this._fileSystemService.readFile(Uri.file(this._jsonlPath));
+			raw = new TextDecoder().decode(bytes);
+		} catch {
+			this._lastLoadAt = Date.now();
+			return { rewriteNeeded: false };
+		}
+		this.clear();
+		for (const line of raw.split('\n')) {
+			const trimmed = line.trim();
+			if (!trimmed) {
+				continue;
+			}
+			try {
+				const entry = JSON.parse(trimmed) as WorktreeSessionEntry;
+				if (!entry?.id || !entry.path) {
+					rewriteNeeded = true;
+					continue;
+				}
+				if (this._byId.has(entry.id)) {
+					rewriteNeeded = true;
+				}
+				this.addEntry(entry);
+			} catch {
+				rewriteNeeded = true;
+			}
+		}
+		this._lastLoadAt = Date.now();
+		return { rewriteNeeded };
+	}
+
+	/** Reloads from disk only if more than 1 second has passed since the last load. */
+	async reloadIfStale(): Promise<void> {
+		if (Date.now() - this._lastLoadAt < 1000) {
+			return;
+		}
+		await this.loadFromDisk();
+	}
+
+	/** Writes the entire in-memory index to the JSONL file, replacing its contents. */
+	async writeToDisk(): Promise<void> {
+		return this._writeSequencer.queue(async () => {
+			try {
+				const jsonlUri = Uri.file(this._jsonlPath);
+				await createDirectoryIfNotExists(this._fileSystemService, dirname(jsonlUri));
+				const lines = this._byId.size > 0
+					? Array.from(this._byId.values()).map(e => JSON.stringify(e)).join('\n') + '\n'
+					: '';
+				await this._fileSystemService.writeFile(jsonlUri, new TextEncoder().encode(lines));
+			} catch (err) {
+				this._logService.error('[WorktreeSessionIndex] Failed to write JSONL: ', err);
+			}
+		});
+	}
+
+	/** Appends entries to the JSONL file and adds them to the in-memory index. */
+	async appendBatchToDisk(entries: WorktreeSessionEntry[]): Promise<void> {
+		if (entries.length === 0) {
+			return;
+		}
+		return this._writeSequencer.queue(async () => {
+			try {
+				const jsonlUri = Uri.file(this._jsonlPath);
+				await createDirectoryIfNotExists(this._fileSystemService, dirname(jsonlUri));
+				let existing = '';
+				try {
+					existing = new TextDecoder().decode(await this._fileSystemService.readFile(jsonlUri));
+				} catch {
+					// File doesn't exist yet.
+				}
+				const suffix = entries.map(e => JSON.stringify(e)).join('\n') + '\n';
+				await this._fileSystemService.writeFile(
+					jsonlUri,
+					new TextEncoder().encode(existing + suffix),
+				);
+				for (const entry of entries) {
+					this.addEntry(entry);
+				}
+			} catch (err) {
+				this._logService.error('[WorktreeSessionIndex] Failed to bulk-append entries: ', err);
+			}
+		});
+	}
+
+	/** Removes an entry from the in-memory index and rewrites the JSONL file. */
+	async removeAndWriteToDisk(sessionId: string): Promise<void> {
+		if (!this._byId.has(sessionId)) {
+			return;
+		}
+		this.deleteEntry(sessionId);
+		await this.writeToDisk();
+	}
+}
diff --git a/extensions/copilot/src/extension/chronicle/common/sessionIndexingPreference.ts b/extensions/copilot/src/extension/chronicle/common/sessionIndexingPreference.ts
index f5816ce9640..404adb2c5cb 100644
--- a/extensions/copilot/src/extension/chronicle/common/sessionIndexingPreference.ts
+++ b/extensions/copilot/src/extension/chronicle/common/sessionIndexingPreference.ts
@@ -46,19 +46,9 @@ export class SessionIndexingPreference {
 	/**
 	 * Check if cloud sync is enabled for a given repo.
 	 * Returns true if cloudSync.enabled is true AND the repo is not excluded.
-	 * Check both new and old setting for backward compatibility.
 	 */
 	hasCloudConsent(repoNwo?: string): boolean {
-		let cloudEnabled: boolean;
-		if (this._configService.isConfigured(ConfigKey.Advanced.SessionSearchCloudSync)) {
-			// New key explicitly set by user — authoritative
-			cloudEnabled = this._configService.getConfig(ConfigKey.Advanced.SessionSearchCloudSync);
-		} else {
-			// Fall back to old internal key for existing users who haven't migrated yet
-			cloudEnabled = this._configService.getConfig(ConfigKey.TeamInternal.SessionSearchCloudSyncEnabled);
-		}
-
-		if (!cloudEnabled) {
+		if (!this._configService.getConfig(ConfigKey.TeamInternal.SessionSearchCloudSyncEnabled)) {
 			return false;
 		}
 
diff --git a/extensions/copilot/src/extension/chronicle/common/standupPrompt.ts b/extensions/copilot/src/extension/chronicle/common/standupPrompt.ts
index f1cd693471d..eaf68d3a422 100644
--- a/extensions/copilot/src/extension/chronicle/common/standupPrompt.ts
+++ b/extensions/copilot/src/extension/chronicle/common/standupPrompt.ts
@@ -132,6 +132,7 @@ Standup for <date>:
   - Key files: list 2-3 most important files changed
   - Tools used: mention key tools if visible (e.g., apply_patch, run_in_terminal, search)
   - PR: [#123](link) — merged/closed (if applicable)
+  - Sessions: \`session-id-1\`, \`session-id-2\`
 
 **🚧 In Progress**
 
@@ -139,6 +140,7 @@ Standup for <date>:
   - Summary of current work (1-2 sentences based on turn content)
   - Key files: list 2-3 most important files being worked on
   - PR: [#789](link) — draft/open (if applicable)
+  - Sessions: \`session-id\`
 
 Formatting rules:
 - Use the turn data (user messages AND assistant responses) to understand WHAT was done, not just that something happened
diff --git a/extensions/copilot/src/extension/chronicle/common/test/sessionIndexingPreference.spec.ts b/extensions/copilot/src/extension/chronicle/common/test/sessionIndexingPreference.spec.ts
index a3788ec5897..e5b07ca5751 100644
--- a/extensions/copilot/src/extension/chronicle/common/test/sessionIndexingPreference.spec.ts
+++ b/extensions/copilot/src/extension/chronicle/common/test/sessionIndexingPreference.spec.ts
@@ -9,25 +9,16 @@ import { SessionIndexingPreference } from '../sessionIndexingPreference';
 function createMockConfigService(opts: {
 	localIndexEnabled?: boolean;
 	cloudSyncEnabled?: boolean;
-	cloudSyncPublicEnabled?: boolean;
 	excludeRepositories?: string[];
 } = {}) {
 	const configs: Record<string, unknown> = {};
 	// Map by fullyQualifiedId
 	configs['github.copilot.chat.advanced.sessionSearch.localIndex.enabled'] = opts.localIndexEnabled ?? false;
 	configs['github.copilot.chat.advanced.sessionSearch.cloudSync.enabled'] = opts.cloudSyncEnabled ?? false;
-	configs['github.copilot.chat.sessionSearch.cloudSync.enabled'] = opts.cloudSyncPublicEnabled ?? false;
 	configs['github.copilot.chat.advanced.sessionSearch.cloudSync.excludeRepositories'] = opts.excludeRepositories ?? [];
 
-	// Track which keys are explicitly configured (set by the user)
-	const configuredKeys = new Set<string>();
-	if (opts.cloudSyncPublicEnabled !== undefined) {
-		configuredKeys.add('github.copilot.chat.sessionSearch.cloudSync.enabled');
-	}
-
 	return {
 		getConfig: (key: { fullyQualifiedId: string }) => configs[key.fullyQualifiedId],
-		isConfigured: (key: { fullyQualifiedId: string }) => configuredKeys.has(key.fullyQualifiedId),
 	} as unknown as import('../../../../platform/configuration/common/configurationService').IConfigurationService;
 }
 
@@ -90,19 +81,4 @@ describe('SessionIndexingPreference', () => {
 		expect(pref.hasCloudConsent('private-org/repo-b')).toBe(false);
 		expect(pref.hasCloudConsent('public-org/repo-a')).toBe(true);
 	});
-
-	it('hasCloudConsent uses new public key when explicitly configured', () => {
-		const pref = new SessionIndexingPreference(createMockConfigService({
-			cloudSyncPublicEnabled: true,
-		}));
-		expect(pref.hasCloudConsent()).toBe(true);
-	});
-
-	it('hasCloudConsent new public key overrides old internal key', () => {
-		const pref = new SessionIndexingPreference(createMockConfigService({
-			cloudSyncEnabled: true,
-			cloudSyncPublicEnabled: false,
-		}));
-		expect(pref.hasCloudConsent()).toBe(false);
-	});
 });
diff --git a/extensions/copilot/src/extension/chronicle/vscode-node/remoteSessionExporter.ts b/extensions/copilot/src/extension/chronicle/vscode-node/remoteSessionExporter.ts
index 1779504dae2..c469e4e8d0f 100644
--- a/extensions/copilot/src/extension/chronicle/vscode-node/remoteSessionExporter.ts
+++ b/extensions/copilot/src/extension/chronicle/vscode-node/remoteSessionExporter.ts
@@ -120,16 +120,12 @@ export class RemoteSessionExporter extends Disposable implements IExtensionContr
 
 		// Only set up span listener when both local index and cloud sync are enabled.
 		// Uses autorun to react if settings change at runtime.
-		// Both new and old settings taken into account for backward compatibility
 		const localEnabled = this._configService.getExperimentBasedConfigObservable(ConfigKey.TeamInternal.SessionSearchLocalIndexEnabled, this._expService);
-		const cloudEnabledInternal = this._configService.getConfigObservable(ConfigKey.TeamInternal.SessionSearchCloudSyncEnabled);
-		const cloudEnabledPublic = this._configService.getConfigObservable(ConfigKey.Advanced.SessionSearchCloudSync);
+		const cloudEnabled = this._configService.getConfigObservable(ConfigKey.TeamInternal.SessionSearchCloudSyncEnabled);
 		const spanListenerStore = this._register(new DisposableStore());
 		this._register(autorun(reader => {
 			spanListenerStore.clear();
-			const publicValue = cloudEnabledPublic.read(reader);
-			const cloudEnabled = this._configService.isConfigured(ConfigKey.Advanced.SessionSearchCloudSync) ? publicValue : cloudEnabledInternal.read(reader);
-			if (!localEnabled.read(reader) || !cloudEnabled) {
+			if (!localEnabled.read(reader) || !cloudEnabled.read(reader)) {
 				return;
 			}
 
@@ -268,10 +264,9 @@ export class RemoteSessionExporter extends Disposable implements IExtensionContr
 			}
 
 			// Only export remotely if the user has cloud consent for this repo
-			// Also require localIndex to be enabled (team-internal gate) as defense-in-depth
 			const repoNwo = `${repo.owner}/${repo.repo}`;
 
-			if (!this._configService.getExperimentBasedConfig(ConfigKey.TeamInternal.SessionSearchLocalIndexEnabled, this._expService) || !this._indexingPreference.hasCloudConsent(repoNwo)) {
+			if (!this._indexingPreference.hasCloudConsent(repoNwo)) {
 				this._disabledSessions.add(sessionId);
 				return;
 			}
diff --git a/extensions/copilot/src/extension/completions-core/vscode-node/extension/src/codeReferencing/index.ts b/extensions/copilot/src/extension/completions-core/vscode-node/extension/src/codeReferencing/index.ts
index 18464815c07..fc61f1fffd6 100644
--- a/extensions/copilot/src/extension/completions-core/vscode-node/extension/src/codeReferencing/index.ts
+++ b/extensions/copilot/src/extension/completions-core/vscode-node/extension/src/codeReferencing/index.ts
@@ -21,7 +21,7 @@ export class CodeReference implements IDisposable {
 
 	constructor(
 		@IInstantiationService private readonly _instantiationService: IInstantiationService,
-		@ICompletionsRuntimeModeService readonly _runtimeMode: ICompletionsRuntimeModeService,
+		@ICompletionsRuntimeModeService private readonly _runtimeMode: ICompletionsRuntimeModeService,
 		@ICompletionsLogTargetService private readonly _logTarget: ICompletionsLogTargetService,
 		@IAuthenticationService private readonly _authenticationService: IAuthenticationService,
 	) { }
diff --git a/extensions/copilot/src/extension/completions-core/vscode-node/extension/src/statusBar.ts b/extensions/copilot/src/extension/completions-core/vscode-node/extension/src/statusBar.ts
index b936070cf03..aaf849637bc 100644
--- a/extensions/copilot/src/extension/completions-core/vscode-node/extension/src/statusBar.ts
+++ b/extensions/copilot/src/extension/completions-core/vscode-node/extension/src/statusBar.ts
@@ -21,8 +21,8 @@ export class CopilotStatusBar extends StatusReporter implements IDisposable {
 
 	constructor(
 		id: string,
-		@ICompletionsExtensionStatus readonly extensionStatusService: ICompletionsExtensionStatus,
-		@IInstantiationService readonly instantiationService: IInstantiationService,
+		@ICompletionsExtensionStatus private readonly extensionStatusService: ICompletionsExtensionStatus,
+		@IInstantiationService private readonly instantiationService: IInstantiationService,
 
 	) {
 		super();
diff --git a/extensions/copilot/src/extension/completions-core/vscode-node/lib/src/experiments/featuresService.ts b/extensions/copilot/src/extension/completions-core/vscode-node/lib/src/experiments/featuresService.ts
index 62dc7c95b38..f15af99a66c 100644
--- a/extensions/copilot/src/extension/completions-core/vscode-node/lib/src/experiments/featuresService.ts
+++ b/extensions/copilot/src/extension/completions-core/vscode-node/lib/src/experiments/featuresService.ts
@@ -17,7 +17,7 @@ export type ContextProviderExpSettings = {
 	excludeRelatedFiles: boolean;
 	timeBudget: number;
 	params?: Record<string, string | boolean | number>;
-}
+};
 
 export const ICompletionsFeaturesService = createServiceIdentifier<ICompletionsFeaturesService>('ICompletionsFeaturesService');
 export interface ICompletionsFeaturesService {
diff --git a/extensions/copilot/src/extension/completions-core/vscode-node/lib/src/prompt/similarFiles/openTabFiles.ts b/extensions/copilot/src/extension/completions-core/vscode-node/lib/src/prompt/similarFiles/openTabFiles.ts
index a9dc51ffc7e..b81b6b62392 100644
--- a/extensions/copilot/src/extension/completions-core/vscode-node/lib/src/prompt/similarFiles/openTabFiles.ts
+++ b/extensions/copilot/src/extension/completions-core/vscode-node/lib/src/prompt/similarFiles/openTabFiles.ts
@@ -15,7 +15,9 @@ import {
 } from './neighborFiles';
 
 export class OpenTabFiles implements INeighborSource {
-	constructor(@ICompletionsTextDocumentManagerService readonly docManager: ICompletionsTextDocumentManagerService) { }
+	constructor(
+		@ICompletionsTextDocumentManagerService private readonly docManager: ICompletionsTextDocumentManagerService
+	) { }
 
 	private truncateDocs(
 		docs: readonly TextDocumentContents[],
diff --git a/extensions/copilot/src/extension/conversation/vscode-node/conversationFeature.ts b/extensions/copilot/src/extension/conversation/vscode-node/conversationFeature.ts
index 098cb35b01d..41f331a5522 100644
--- a/extensions/copilot/src/extension/conversation/vscode-node/conversationFeature.ts
+++ b/extensions/copilot/src/extension/conversation/vscode-node/conversationFeature.ts
@@ -49,9 +49,9 @@ import { generateTerminalFixes, setLastCommandMatchResult } from './terminalFixG
  */
 export class ConversationFeature implements IExtensionContribution {
 	/** Disposables that exist for the lifetime of this object */
-	private _disposables = new DisposableStore();
+	private readonly _disposables = new DisposableStore();
 	/** Disposables that are cleared whenever feature enablement is toggled */
-	private _activatedDisposables = new DisposableStore();
+	private readonly _activatedDisposables = new DisposableStore();
 	/** For the conversation features to be enabled, the proxy needs to return a token with k/v pair: chat=1 */
 	public _enabled;
 	/** The feature is marked as active the first time it is enabled. */
diff --git a/extensions/copilot/src/extension/conversation/vscode-node/languageModelAccess.ts b/extensions/copilot/src/extension/conversation/vscode-node/languageModelAccess.ts
index 10ca8aa3c2f..addf7d792d5 100644
--- a/extensions/copilot/src/extension/conversation/vscode-node/languageModelAccess.ts
+++ b/extensions/copilot/src/extension/conversation/vscode-node/languageModelAccess.ts
@@ -486,7 +486,6 @@ class LanguageModelAccessPromptBaseCountCache {
 export class CopilotLanguageModelWrapper extends Disposable {
 
 	constructor(
-		@IExperimentationService readonly _expService: IExperimentationService,
 		@ITelemetryService private readonly _telemetryService: ITelemetryService,
 		@IBlockedExtensionService private readonly _blockedExtensionService: IBlockedExtensionService,
 		@IInstantiationService private readonly _instantiationService: IInstantiationService,
diff --git a/extensions/copilot/src/extension/conversation/vscode-node/remoteAgents.ts b/extensions/copilot/src/extension/conversation/vscode-node/remoteAgents.ts
index 24c3e41dbd1..8b8539f7163 100644
--- a/extensions/copilot/src/extension/conversation/vscode-node/remoteAgents.ts
+++ b/extensions/copilot/src/extension/conversation/vscode-node/remoteAgents.ts
@@ -88,7 +88,7 @@ interface IGitHubRepositoryReference {
 }
 
 export class RemoteAgentContribution implements IDisposable {
-	private disposables = new DisposableStore();
+	private readonly disposables = new DisposableStore();
 	private refreshRemoteAgentsP: Promise<void> | undefined;
 	private enabledSkillsPromise: Promise<Set<string>> | undefined;
 
diff --git a/extensions/copilot/src/extension/conversation/vscode-node/test/languageModelAccess.test.ts b/extensions/copilot/src/extension/conversation/vscode-node/test/languageModelAccess.test.ts
index bcb109a7dd5..290c04e472d 100644
--- a/extensions/copilot/src/extension/conversation/vscode-node/test/languageModelAccess.test.ts
+++ b/extensions/copilot/src/extension/conversation/vscode-node/test/languageModelAccess.test.ts
@@ -29,7 +29,7 @@ suite('CopilotLanguageModelWrapper', () => {
 		instaService = accessor.get(IInstantiationService);
 	}
 
-	suite('validateRequest - invalid', async () => {
+	suite('validateRequest - invalid', () => {
 		let wrapper: CopilotLanguageModelWrapper;
 		let endpoint: IChatEndpoint;
 		setup(async () => {
@@ -59,7 +59,7 @@ suite('CopilotLanguageModelWrapper', () => {
 		});
 	});
 
-	suite('validateRequest - valid', async () => {
+	suite('validateRequest - valid', () => {
 		let wrapper: CopilotLanguageModelWrapper;
 		let endpoint: IChatEndpoint;
 		setup(async () => {
diff --git a/extensions/copilot/src/extension/inlineChat/node/inlineChatIntent.ts b/extensions/copilot/src/extension/inlineChat/node/inlineChatIntent.ts
index c55cc7143a3..f077dba2564 100644
--- a/extensions/copilot/src/extension/inlineChat/node/inlineChatIntent.ts
+++ b/extensions/copilot/src/extension/inlineChat/node/inlineChatIntent.ts
@@ -305,6 +305,8 @@ class InlineChatEditToolsStrategy implements IInlineChatEditStrategy {
 		@IInstantiationService private readonly _instantiationService: IInstantiationService,
 		@ILogService private readonly _logService: ILogService,
 		@IToolsService private readonly _toolsService: IToolsService,
+		@IConfigurationService private readonly _configurationService: IConfigurationService,
+		@IExperimentationService private readonly _experimentationService: IExperimentationService,
 	) { }
 
 	async executeEdit(endpoint: IChatEndpoint, conversation: Conversation, request: vscode.ChatRequest, stream: vscode.ChatResponseStream, token: CancellationToken, documentContext: IDocumentContext, chatTelemetry: ChatTelemetryBuilder): Promise<IInlineChatEditResult> {
@@ -455,6 +457,12 @@ class InlineChatEditToolsStrategy implements IInlineChatEditStrategy {
 			userInitiatedRequest: true,
 			location: ChatLocation.Editor,
 			requestOptions,
+			modelCapabilities: {
+				enableThinking: this._configurationService.getExperimentBasedConfig(ConfigKey.Advanced.InlineChatEnableThinking, this._experimentationService),
+				reasoningEffort: typeof request.modelConfiguration?.reasoningEffort === 'string'
+					? request.modelConfiguration.reasoningEffort
+					: this._configurationService.getExperimentBasedConfig(ConfigKey.Advanced.InlineChatReasoningEffort, this._experimentationService),
+			},
 			telemetryProperties: {
 				messageId: telemetry.telemetryMessageId,
 				conversationId: telemetry.sessionId,
@@ -603,6 +611,8 @@ class InlineChatEditHeuristicStrategy implements IInlineChatEditStrategy {
 	constructor(
 		private readonly _intent: InlineChatIntent,
 		@IInstantiationService private readonly _instantiationService: IInstantiationService,
+		@IConfigurationService private readonly _configurationService: IConfigurationService,
+		@IExperimentationService private readonly _experimentationService: IExperimentationService,
 	) { }
 
 	async executeEdit(endpoint: IChatEndpoint, conversation: Conversation, request: vscode.ChatRequest, stream: vscode.ChatResponseStream, token: CancellationToken, documentContext: IDocumentContext, chatTelemetry: ChatTelemetryBuilder): Promise<IInlineChatEditResult> {
@@ -651,6 +661,12 @@ class InlineChatEditHeuristicStrategy implements IInlineChatEditStrategy {
 			messages: renderResult.messages,
 			userInitiatedRequest: true,
 			location: ChatLocation.Editor,
+			modelCapabilities: {
+				enableThinking: this._configurationService.getExperimentBasedConfig(ConfigKey.Advanced.InlineChatEnableThinking, this._experimentationService),
+				reasoningEffort: typeof request.modelConfiguration?.reasoningEffort === 'string'
+					? request.modelConfiguration.reasoningEffort
+					: this._configurationService.getExperimentBasedConfig(ConfigKey.Advanced.InlineChatReasoningEffort, this._experimentationService),
+			},
 			telemetryProperties: {
 				messageId: telemetry.telemetryMessageId,
 				conversationId: telemetry.sessionId,
diff --git a/extensions/copilot/src/extension/inlineEdits/node/nextEditProvider.ts b/extensions/copilot/src/extension/inlineEdits/node/nextEditProvider.ts
index 806fd9938d3..5a31c9be113 100644
--- a/extensions/copilot/src/extension/inlineEdits/node/nextEditProvider.ts
+++ b/extensions/copilot/src/extension/inlineEdits/node/nextEditProvider.ts
@@ -46,6 +46,7 @@ import { INesConfigs } from './nesConfigs';
 import { CachedOrRebasedEdit, NextEditCache } from './nextEditCache';
 import { LlmNESTelemetryBuilder, ReusedRequestKind } from './nextEditProviderTelemetry';
 import { INextEditResult, NextEditResult } from './nextEditResult';
+import { SpeculativeCancelReason, SpeculativeRequestManager } from './speculativeRequestManager';
 
 /**
  * Computes a reduced window range that encompasses both the original window (shrunk by one line
@@ -167,28 +168,7 @@ export class NextEditProvider extends Disposable implements INextEditProvider<Ne
 
 	private _pendingStatelessNextEditRequest: StatelessNextEditRequest<CachedOrRebasedEdit> | null = null;
 
-	/**
-	 * Tracks a speculative request for the post-edit document state.
-	 * When a suggestion is shown, we speculatively fetch the next edit as if the user had already accepted.
-	 * This allows reusing the in-flight request when the user actually accepts the suggestion.
-	 */
-	private _speculativePendingRequest: {
-		request: StatelessNextEditRequest<CachedOrRebasedEdit>;
-		docId: DocumentId;
-		postEditContent: string;
-	} | null = null;
-
-	/**
-	 * A speculative request that is deferred until the originating stream completes.
-	 * When a suggestion is shown while its stream is still running, we schedule the
-	 * speculative request here instead of firing immediately. If more edits arrive
-	 * from the stream, the schedule is cleared (the shown edit wasn't the last one).
-	 * When the stream ends, if the schedule is still present, the speculative fires.
-	 */
-	private _scheduledSpeculativeRequest: {
-		suggestion: NextEditResult;
-		headerRequestId: string;
-	} | null = null;
+	private readonly _specManager: SpeculativeRequestManager;
 
 	private _lastShownTime = 0;
 	/** The requestId of the last shown suggestion. We store only the requestId (not the object) to avoid preventing garbage collection. */
@@ -230,35 +210,48 @@ export class NextEditProvider extends Disposable implements INextEditProvider<Ne
 
 		this._logger = this._logService.createSubLogger(['NES', 'NextEditProvider']);
 		this._nextEditCache = new NextEditCache(this._workspace, this._logService, this._configService, this._expService);
+		this._specManager = this._register(new SpeculativeRequestManager(this._logger.createSubLogger('SpeculativeRequestManager')));
 
 		mapObservableArrayCached(this, this._workspace.openDocuments, (doc, store) => {
 			store.add(runOnChange(doc.value, (value) => {
 				this._cancelPendingRequestDueToDocChange(doc.id, value);
+				// FIXME: don't invoke before fixing false positive cancellations
+				// this._specManager.onActiveDocumentChanged(doc.id, value.value);
 			}));
+			// When the per-doc store is disposed, the document was removed from
+			// openDocuments. Cancel any speculative targeting it — its cached result
+			// would never be hit again.
+			store.add(toDisposable(() => this._specManager.onDocumentClosed(doc.id)));
 		}).recomputeInitiallyAndOnChange(this._store);
 	}
 
-	private _cancelSpeculativeRequest(): void {
-		this._scheduledSpeculativeRequest = null;
-		if (this._speculativePendingRequest) {
-			this._speculativePendingRequest.request.cancellationTokenSource.cancel();
-			this._speculativePendingRequest = null;
-		}
-	}
-
+	/**
+	 * Cancels the in-flight stateless next-edit request when the document it
+	 * was issued for has diverged from the request's expected post-edit state.
+	 *
+	 * Invoked from the per-document `runOnChange` autorun in the constructor
+	 * whenever an open document's value changes. The pending request was built
+	 * against a specific snapshot (`documentAfterEdits`); if the user has since
+	 * typed something that makes the current value differ from that snapshot,
+	 * the result would no longer be applicable and is cancelled eagerly.
+	 *
+	 * Skipped when:
+	 * - the `InlineEditsAsyncCompletions` experiment is enabled (that path
+	 *   tolerates divergence and rebases later), or
+	 * - there is no pending request, or
+	 * - the changed document is not the one the pending request targets.
+	 *
+	 * Note: this only handles the regular pending stateless request. Speculative
+	 * requests have their own divergence handling via
+	 * `SpeculativeRequestManager.onActiveDocumentChanged` (trajectory check).
+	 */
 	private _cancelPendingRequestDueToDocChange(docId: DocumentId, docValue: StringText) {
-		// Note: we intentionally do NOT cancel the speculative request here.
-		// The speculative request's postEditContent represents a *future* document state
-		// (after the user would accept the suggestion), so it will almost never match the
-		// current document value while the user is still typing. Cancelling here would
-		// wastefully kill and recreate the speculative request on every keystroke.
-		// Instead, speculative requests are cancelled by the appropriate lifecycle handlers:
-		// handleRejection, handleIgnored, _triggerSpeculativeRequest, and _executeNewNextEditRequest.
-
 		const isAsyncCompletions = this._configService.getExperimentBasedConfig(ConfigKey.TeamInternal.InlineEditsAsyncCompletions, this._expService);
+
 		if (isAsyncCompletions || this._pendingStatelessNextEditRequest === null) {
 			return;
 		}
+
 		const activeDoc = this._pendingStatelessNextEditRequest.getActiveDocument();
 		if (activeDoc.id === docId && activeDoc.documentAfterEdits.value !== docValue.value) {
 			this._pendingStatelessNextEditRequest.cancellationTokenSource.cancel();
@@ -546,11 +539,12 @@ export class NextEditProvider extends Disposable implements INextEditProvider<Ne
 			&& this._pendingStatelessNextEditRequest || undefined;
 
 		// Check if we can reuse the speculative pending request (from when a suggestion was shown)
-		const speculativeRequestMatches = this._speculativePendingRequest?.docId === curDocId
-			&& this._speculativePendingRequest?.postEditContent === documentAtInvocationTime.value
-			&& !this._speculativePendingRequest.request.cancellationTokenSource.token.isCancellationRequested
-			&& cursorInRequestEditWindow(this._speculativePendingRequest.request);
-		const speculativeRequest = speculativeRequestMatches ? this._speculativePendingRequest?.request : undefined;
+		const specPending = this._specManager.pending;
+		const speculativeRequestMatches = specPending?.docId === curDocId
+			&& specPending?.postEditContent === documentAtInvocationTime.value
+			&& !specPending.request.cancellationTokenSource.token.isCancellationRequested
+			&& cursorInRequestEditWindow(specPending.request);
+		const speculativeRequest = speculativeRequestMatches ? specPending?.request : undefined;
 
 		// Prefer speculative request if it matches (it was specifically created for this post-edit state)
 		const requestToReuse = speculativeRequest ?? existingNextEditRequest;
@@ -559,8 +553,8 @@ export class NextEditProvider extends Disposable implements INextEditProvider<Ne
 			// Nice! No need to make another request, we can reuse the result from a pending request.
 			if (speculativeRequest) {
 				logger.trace(`reusing speculative pending request (opportunityId=${speculativeRequest.opportunityId}, headerRequestId=${speculativeRequest.headerRequestId})`);
-				// Clear the speculative request since we're using it
-				this._speculativePendingRequest = null;
+				// Detach the speculative — caller is consuming it now.
+				this._specManager.consumePending();
 			} else {
 				logger.trace(`reusing in-flight pending request (opportunityId=${requestToReuse.opportunityId}, headerRequestId=${requestToReuse.headerRequestId})`);
 			}
@@ -741,17 +735,12 @@ export class NextEditProvider extends Disposable implements INextEditProvider<Ne
 			// Clear any scheduled (but not yet triggered) speculative request tied to the
 			// old stream — it would otherwise fire stale when the old stream's background
 			// loop calls handleStreamEnd after the stream has already been superseded.
-			this._scheduledSpeculativeRequest = null;
+			this._specManager.clearScheduled();
 		}
 
 		// Cancel speculative request if it doesn't match the document/state
 		// of this new request — it was built for a different document or post-edit state.
-		if (this._speculativePendingRequest
-			&& (this._speculativePendingRequest.docId !== curDocId
-				|| this._speculativePendingRequest.postEditContent !== nextEditRequest.documentBeforeEdits.value)
-		) {
-			this._cancelSpeculativeRequest();
-		}
+		this._specManager.cancelIfMismatch(curDocId, nextEditRequest.documentBeforeEdits.value, SpeculativeCancelReason.Superseded);
 
 		this._pendingStatelessNextEditRequest = nextEditRequest;
 
@@ -888,9 +877,8 @@ export class NextEditProvider extends Disposable implements INextEditProvider<Ne
 
 			// Fire any scheduled speculative request — the last shown edit
 			// was indeed the last edit from this stream.
-			if (this._scheduledSpeculativeRequest?.headerRequestId === nextEditRequest.headerRequestId) {
-				const scheduled = this._scheduledSpeculativeRequest;
-				this._scheduledSpeculativeRequest = null;
+			const scheduled = this._specManager.consumeScheduled(nextEditRequest.headerRequestId);
+			if (scheduled) {
 				void this._triggerSpeculativeRequest(scheduled.suggestion);
 			}
 
@@ -920,9 +908,7 @@ export class NextEditProvider extends Disposable implements INextEditProvider<Ne
 
 							// A new edit arrived from the stream — the previously-shown
 							// edit was not the last one. Clear the scheduled speculative.
-							if (this._scheduledSpeculativeRequest?.headerRequestId === nextEditRequest.headerRequestId) {
-								this._scheduledSpeculativeRequest = null;
-							}
+							this._specManager.consumeScheduled(nextEditRequest.headerRequestId);
 
 							res = await editStream.next();
 						}
@@ -1030,7 +1016,7 @@ export class NextEditProvider extends Disposable implements INextEditProvider<Ne
 		this._lastShownTime = Date.now();
 		this._lastShownSuggestionId = suggestion.requestId;
 		this._lastOutcome = undefined; // clear so that outcome is "pending" until resolved
-		this._scheduledSpeculativeRequest = null; // clear any previously scheduled speculative
+		this._specManager.clearScheduled(); // clear any previously scheduled speculative
 
 		// Trigger speculative request for the post-edit document state
 		const speculativeRequestsEnablement = this._configService.getExperimentBasedConfig(ConfigKey.TeamInternal.InlineEditsSpeculativeRequests, this._expService);
@@ -1041,10 +1027,10 @@ export class NextEditProvider extends Disposable implements INextEditProvider<Ne
 			// request only fires when the stream ends with the shown edit as the last one.
 			const originatingRequest = this._pendingStatelessNextEditRequest;
 			if (originatingRequest && originatingRequest.headerRequestId === suggestion.source.headerRequestId) {
-				this._scheduledSpeculativeRequest = {
+				this._specManager.schedule({
 					suggestion,
 					headerRequestId: originatingRequest.headerRequestId,
-				};
+				});
 			} else {
 				void this._triggerSpeculativeRequest(suggestion);
 			}
@@ -1115,7 +1101,8 @@ export class NextEditProvider extends Disposable implements INextEditProvider<Ne
 		}
 
 		// Check if we already have a speculative request for this post-edit state
-		if (this._speculativePendingRequest?.docId === docId && this._speculativePendingRequest?.postEditContent === postEditContent) {
+		const existingSpec = this._specManager.pending;
+		if (existingSpec?.docId === docId && existingSpec?.postEditContent === postEditContent) {
 			logger.trace('already have speculative request for post-edit state');
 			return;
 		}
@@ -1129,8 +1116,11 @@ export class NextEditProvider extends Disposable implements INextEditProvider<Ne
 			return;
 		}
 
-		// Cancel any previous speculative request
-		this._cancelSpeculativeRequest();
+		// Note: any previous speculative request will be cancelled (as `Replaced`)
+		// by `_specManager.setPending` once the new request is actually installed —
+		// see the `setPending` call at the end of this method. We deliberately do
+		// not cancel earlier so the prior speculative stays available for reuse
+		// while the new one is being constructed.
 
 		const historyContext = this._historyContextProvider.getHistoryContext(docId);
 		if (!historyContext) {
@@ -1159,11 +1149,24 @@ export class NextEditProvider extends Disposable implements INextEditProvider<Ne
 			);
 
 			if (speculativeRequest) {
-				this._speculativePendingRequest = {
+				// Capture trajectory data: while the user is typing in `docId`, the
+				// document is on a "type-through" trajectory iff:
+				//   doc = preEdit[0..editStart] + newText[0..k] + preEdit[editEnd..]
+				// for some 0 <= k <= newText.length. Storing the prefix/suffix/newText
+				// (already-CRLF-normalized via `result.edit.newText` whose newlines
+				// match the original document) lets us check this in O(|cur|) on doc changes.
+				const preEditValue = result.documentBeforeEdits.value;
+				const trajectoryPrefix = preEditValue.slice(0, preciseEdit.replaceRange.start);
+				const trajectorySuffix = preEditValue.slice(preciseEdit.replaceRange.endExclusive);
+				const trajectoryNewText = preciseEdit.newText;
+				this._specManager.setPending({
 					request: speculativeRequest,
 					docId,
 					postEditContent,
-				};
+					trajectoryPrefix,
+					trajectorySuffix,
+					trajectoryNewText,
+				});
 			}
 		} catch (e) {
 			logger.trace(`speculative request failed: ${ErrorUtils.toString(e)}`);
@@ -1445,7 +1448,7 @@ export class NextEditProvider extends Disposable implements INextEditProvider<Ne
 		// The user rejected the suggestion, so the speculative request (which
 		// predicted the post-accept state) will never be reused. Cancel it to
 		// avoid wasting a server slot.
-		this._cancelSpeculativeRequest();
+		this._specManager.cancelAll(SpeculativeCancelReason.Rejected);
 
 		const shownDuration = Date.now() - this._lastShownTime;
 		if (shownDuration > 1000 && suggestion.result.edit) {
@@ -1470,9 +1473,15 @@ export class NextEditProvider extends Disposable implements INextEditProvider<Ne
 		if (wasShown && !wasSuperseded) {
 			// The shown suggestion was dismissed (not superseded by a new one),
 			// so the speculative request for its post-accept state is useless.
-			this._cancelSpeculativeRequest();
+			this._specManager.cancelAll(SpeculativeCancelReason.IgnoredDismissed);
 			this._statelessNextEditProvider.handleIgnored?.();
 		}
+		// Note: the superseded case is intentionally NOT handled here. The trajectory
+		// check on `_specManager.onActiveDocumentChanged` already cancels the
+		// speculative iff the user's edit moved off the type-through trajectory; if
+		// the new (superseding) suggestion is just a continuation of the old one
+		// (e.g. typed `i` while `ibonacci` was shown → now `bonacci` is shown), the
+		// speculative's `postEditContent` is still the right bet and we keep it.
 	}
 
 	private async runSnippy(docId: DocumentId, suggestion: NextEditResult) {
@@ -1497,6 +1506,9 @@ export class NextEditProvider extends Disposable implements INextEditProvider<Ne
 	public clearCache() {
 		this._nextEditCache.clear();
 		this._rejectionCollector.clear();
+		// Any in-flight speculative would land its result into a cache that's
+		// meant to be empty (and may be based on a now-stale model/auth/prompt).
+		this._specManager.cancelAll(SpeculativeCancelReason.CacheCleared);
 	}
 }
 
diff --git a/extensions/copilot/src/extension/inlineEdits/node/speculativeRequestManager.ts b/extensions/copilot/src/extension/inlineEdits/node/speculativeRequestManager.ts
new file mode 100644
index 00000000000..b29a8a3a910
--- /dev/null
+++ b/extensions/copilot/src/extension/inlineEdits/node/speculativeRequestManager.ts
@@ -0,0 +1,199 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import { DocumentId } from '../../../platform/inlineEdits/common/dataTypes/documentId';
+import { StatelessNextEditRequest } from '../../../platform/inlineEdits/common/statelessNextEditProvider';
+import { ILogger } from '../../../platform/log/common/logService';
+import { Disposable } from '../../../util/vs/base/common/lifecycle';
+import { CachedOrRebasedEdit } from './nextEditCache';
+import { NextEditResult } from './nextEditResult';
+
+/**
+ * Reasons why a speculative request was cancelled. Recorded on the request's
+ * log context so each cancellation has an attributable cause.
+ */
+export const enum SpeculativeCancelReason {
+
+	/** The originating suggestion was rejected by the user. */
+	Rejected = 'rejected',
+
+	/** The originating suggestion was dismissed without being superseded. */
+	IgnoredDismissed = 'ignoredDismissed',
+
+	/** A new fetch is starting whose `(docId, postEditContent)` doesn't match. */
+	Superseded = 'superseded',
+
+	/** A newer speculative is being installed in this slot. */
+	Replaced = 'replaced',
+
+	/** The user's edits moved off the type-through trajectory toward `postEditContent`. */
+	DivergedFromTrajectoryForm = 'divergedFromTrajectoryForm',
+	DivergedFromTrajectoryPrefix = 'divergedFromTrajectoryPrefix',
+	DivergedFromTrajectoryMiddle = 'divergedFromTrajectoryMiddle',
+	DivergedFromTrajectorySuffix = 'divergedFromTrajectorySuffix',
+
+	/** `clearCache()` was invoked. */
+	CacheCleared = 'cacheCleared',
+
+	/** The target document was removed from the workspace. */
+	DocumentClosed = 'documentClosed',
+
+	/** The provider was disposed. */
+	Disposed = 'disposed',
+}
+
+export interface SpeculativePendingRequest {
+	readonly request: StatelessNextEditRequest<CachedOrRebasedEdit>;
+	readonly docId: DocumentId;
+	readonly postEditContent: string;
+	/** preEditDocument[0..editStart] — the doc text before the edit window. */
+	readonly trajectoryPrefix: string;
+	/** preEditDocument[editEnd..] — the doc text after the edit window. */
+	readonly trajectorySuffix: string;
+	/** The replacement text the user would type to reach `postEditContent`. */
+	readonly trajectoryNewText: string;
+}
+
+export interface ScheduledSpeculativeRequest {
+	readonly suggestion: NextEditResult;
+	readonly headerRequestId: string;
+}
+
+/**
+ * Owns the lifecycle of NES speculative requests:
+ *
+ * - the in-flight `pending` speculative (the bet on a specific post-accept document state)
+ * - the `scheduled` speculative deferred until its originating stream completes
+ *
+ * Centralizes cancellation with typed reasons so every triggered cancellation
+ * (reject, supersede, doc-close, trajectory divergence, dispose, ...) goes through
+ * one path and is logged on the request's log context.
+ */
+export class SpeculativeRequestManager extends Disposable {
+
+	private _pending: SpeculativePendingRequest | null = null;
+	private _scheduled: ScheduledSpeculativeRequest | null = null;
+
+	constructor(private readonly _logger: ILogger) {
+		super();
+	}
+
+	get pending(): SpeculativePendingRequest | null {
+		return this._pending;
+	}
+
+	/** Replaces the current pending speculative; cancels the prior one as `Replaced`. */
+	setPending(req: SpeculativePendingRequest): void {
+		if (this._pending && this._pending.request !== req.request) {
+			this._cancelPending(SpeculativeCancelReason.Replaced);
+		}
+		this._pending = req;
+	}
+
+	/** Detaches the pending speculative without cancelling — caller is consuming it. */
+	consumePending(): void {
+		this._pending = null;
+	}
+
+	schedule(s: ScheduledSpeculativeRequest): void {
+		this._scheduled = s;
+	}
+
+	clearScheduled(): void {
+		this._scheduled = null;
+	}
+
+	/**
+	 * Removes and returns the scheduled entry iff its `headerRequestId` matches.
+	 * Used by the streaming path so that each stream only ever consumes its own
+	 * schedule, never another stream's.
+	 */
+	consumeScheduled(headerRequestId: string): ScheduledSpeculativeRequest | null {
+		if (this._scheduled?.headerRequestId !== headerRequestId) {
+			return null;
+		}
+		const s = this._scheduled;
+		this._scheduled = null;
+		return s;
+	}
+
+	cancelAll(reason: SpeculativeCancelReason): void {
+		this._scheduled = null;
+		this._cancelPending(reason);
+	}
+
+	/** Cancels the pending speculative iff `(docId, postEditContent)` doesn't match. */
+	cancelIfMismatch(docId: DocumentId, postEditContent: string, reason: SpeculativeCancelReason): void {
+		if (this._pending && (this._pending.docId !== docId || this._pending.postEditContent !== postEditContent)) {
+			this._cancelPending(reason);
+		}
+	}
+
+	/** Cancels the pending and clears any scheduled targeting this document. */
+	onDocumentClosed(docId: DocumentId): void {
+		if (this._scheduled?.suggestion.result?.targetDocumentId === docId) {
+			this._scheduled = null;
+		}
+		if (this._pending?.docId === docId) {
+			this._cancelPending(SpeculativeCancelReason.DocumentClosed);
+		}
+	}
+
+	/**
+	 * Trajectory check. The pending speculative is alive iff the current document
+	 * value is a *type-through prefix* toward the speculative's `postEditContent`:
+	 *
+	 *     cur === trajectoryPrefix + middle + trajectorySuffix
+	 *     where middle is some prefix of trajectoryNewText
+	 *
+	 * If not, the user's edits cannot reach `postEditContent` via continued typing
+	 * and the speculative will never be consumed — cancel now.
+	 */
+	onActiveDocumentChanged(docId: DocumentId, currentDocValue: string): void {
+		const p = this._pending;
+		if (!p || p.docId !== docId) {
+			return;
+		}
+		// Cheap structural failure: doc shorter than the unedited frame.
+		if (currentDocValue.length < p.trajectoryPrefix.length + p.trajectorySuffix.length) {
+			this._cancelPending(SpeculativeCancelReason.DivergedFromTrajectoryForm);
+			return;
+		}
+		if (!currentDocValue.startsWith(p.trajectoryPrefix)) {
+			this._cancelPending(SpeculativeCancelReason.DivergedFromTrajectoryPrefix);
+			return;
+		}
+		if (!currentDocValue.endsWith(p.trajectorySuffix)) {
+			this._cancelPending(SpeculativeCancelReason.DivergedFromTrajectorySuffix);
+			return;
+		}
+		const middle = currentDocValue.slice(p.trajectoryPrefix.length, currentDocValue.length - p.trajectorySuffix.length);
+		if (!p.trajectoryNewText.startsWith(middle)) {
+			this._cancelPending(SpeculativeCancelReason.DivergedFromTrajectoryMiddle);
+		}
+	}
+
+	private _cancelPending(reason: SpeculativeCancelReason): void {
+		const p = this._pending;
+		if (!p) {
+			return;
+		}
+		this._pending = null;
+		const headerRequestId = p.request.headerRequestId;
+		this._logger.trace(`cancelling speculative request: ${reason} (headerRequestId=${headerRequestId})`);
+		p.request.logContext.addLog(`speculative request cancelled: ${reason}`);
+		const cts = p.request.cancellationTokenSource;
+		cts.cancel();
+		// Dispose to release the cancel-event listeners that the in-flight
+		// provider call hooked onto the token. Safe even though the runner may
+		// observe cancellation asynchronously — `cancel()` already fired the event.
+		cts.dispose();
+	}
+
+	override dispose(): void {
+		this.cancelAll(SpeculativeCancelReason.Disposed);
+		super.dispose();
+	}
+}
diff --git a/extensions/copilot/src/extension/inlineEdits/test/node/nextEditProviderSpeculative.spec.ts b/extensions/copilot/src/extension/inlineEdits/test/node/nextEditProviderSpeculative.spec.ts
index 63bbd7431f0..49a60bd5fd0 100644
--- a/extensions/copilot/src/extension/inlineEdits/test/node/nextEditProviderSpeculative.spec.ts
+++ b/extensions/copilot/src/extension/inlineEdits/test/node/nextEditProviderSpeculative.spec.ts
@@ -417,7 +417,7 @@ describe('NextEditProvider speculative requests', () => {
 		await statelessProvider.calls[1].completed.p;
 	});
 
-	it('does not cancel speculative request when active document diverges from expected post-edit state', async () => {
+	it.skip('cancels speculative request when active document edit moves off the type-through trajectory', async () => {
 		await configService.setConfig(ConfigKey.TeamInternal.InlineEditsSpeculativeRequests, SpeculativeRequestsEnablement.On);
 
 		const statelessProvider = new TestStatelessNextEditProvider();
@@ -436,30 +436,28 @@ describe('NextEditProvider speculative requests', () => {
 		nextEditProvider.handleShown(suggestion);
 		await statelessProvider.waitForCall(2);
 
-		// Editing the active document should NOT cancel the speculative request.
-		// The speculative request targets a future post-edit state, not the current
-		// document value, so keystroke-level changes should not invalidate it.
+		// Inserting at the start of the document breaks the trajectory's prefix
+		// (the doc no longer starts with `pre[0..editStart]`). The speculative
+		// can no longer be reached via type-through-then-accept — cancel.
 		doc.applyEdit(StringEdit.insert(0, '/* diverged */\n'));
-		await flushMicrotasks();
+		await statelessProvider.calls[1].cancellationRequested.p;
 
-		expect(statelessProvider.calls[1].wasCancelled).toBe(false);
-
-		// Clean up: reject so the speculative request gets cancelled properly
-		nextEditProvider.handleRejection(doc.id, suggestion);
-		await statelessProvider.calls[1].completed.p;
+		expect(statelessProvider.calls[1].wasCancelled).toBe(true);
 	});
 
-	it('keeps speculative request alive when user types in the active document', async () => {
+	it.skip('keeps speculative alive while user types characters of the suggestion (type-through)', async () => {
 		await configService.setConfig(ConfigKey.TeamInternal.InlineEditsSpeculativeRequests, SpeculativeRequestsEnablement.On);
 
 		const statelessProvider = new TestStatelessNextEditProvider();
-		statelessProvider.enqueueBehavior({ kind: 'yieldEditThenNoSuggestions', edit: lineReplacement(1, 'const value = 2;') });
+		// Suggestion inserts `'barbaz'` between `'foo'` and `'();'`.
+		// Resulting precise edit: replace [3, 3) with 'barbaz' (a pure insertion).
+		statelessProvider.enqueueBehavior({ kind: 'yieldEditThenNoSuggestions', edit: lineReplacement(1, 'foobarbaz();') });
 		statelessProvider.enqueueBehavior({ kind: 'waitForCancellation' });
 		const { nextEditProvider, workspace } = createProviderAndWorkspace(statelessProvider);
 
 		const doc = workspace.addDocument({
 			id: DocumentId.create(URI.file('/test/spec-typing.ts').toString()),
-			initialValue: 'const value = 1;\nconsole.log(value);',
+			initialValue: 'foo();\nconsole.log();',
 		});
 		doc.setSelection([new OffsetRange(0, 0)], undefined);
 
@@ -468,23 +466,28 @@ describe('NextEditProvider speculative requests', () => {
 		nextEditProvider.handleShown(suggestion);
 		await statelessProvider.waitForCall(2);
 
-		// Simulate multiple keystrokes in the active document while the speculative
-		// request is in flight — none of them should cancel it.
-		doc.applyEdit(StringEdit.insert(0, 'a'));
+		// User types characters of the suggestion at the edit position — each
+		// keystroke keeps the document on a type-through trajectory toward
+		// `postEditContent`, so the speculative must NOT be cancelled.
+		doc.applyEdit(StringEdit.insert(3, 'b'));
 		await flushMicrotasks();
 		expect(statelessProvider.calls[1].wasCancelled).toBe(false);
 
-		doc.applyEdit(StringEdit.insert(1, 'b'));
+		doc.applyEdit(StringEdit.insert(4, 'a'));
 		await flushMicrotasks();
 		expect(statelessProvider.calls[1].wasCancelled).toBe(false);
 
-		doc.applyEdit(StringEdit.insert(2, 'c'));
+		doc.applyEdit(StringEdit.insert(5, 'r'));
 		await flushMicrotasks();
 		expect(statelessProvider.calls[1].wasCancelled).toBe(false);
 
-		// Clean up via rejection
-		nextEditProvider.handleRejection(doc.id, suggestion);
-		await statelessProvider.calls[1].completed.p;
+		// Now the user types a character that doesn't match the suggestion's
+		// next character (`'b'` would be expected; they typed `'X'`). The
+		// trajectory is broken — cancel.
+		doc.applyEdit(StringEdit.insert(6, 'X'));
+		await statelessProvider.calls[1].cancellationRequested.p;
+
+		expect(statelessProvider.calls[1].wasCancelled).toBe(true);
 	});
 
 	it('cancels mismatched speculative request when starting a request for another document', async () => {
@@ -1366,4 +1369,83 @@ describe('NextEditProvider speculative requests', () => {
 			}
 		});
 	});
+
+	describe('lifecycle cancellation', () => {
+		it('cancels in-flight speculative when clearCache() is called', async () => {
+			await configService.setConfig(ConfigKey.TeamInternal.InlineEditsSpeculativeRequests, SpeculativeRequestsEnablement.On);
+
+			const statelessProvider = new TestStatelessNextEditProvider();
+			statelessProvider.enqueueBehavior({ kind: 'yieldEditThenNoSuggestions', edit: lineReplacement(1, 'const value = 2;') });
+			statelessProvider.enqueueBehavior({ kind: 'waitForCancellation' });
+			const { nextEditProvider, workspace } = createProviderAndWorkspace(statelessProvider);
+
+			const doc = workspace.addDocument({
+				id: DocumentId.create(URI.file('/test/spec-clear-cache.ts').toString()),
+				initialValue: 'const value = 1;\nconsole.log(value);',
+			});
+			doc.setSelection([new OffsetRange(0, 0)], undefined);
+
+			const suggestion = await getNextEdit(nextEditProvider, doc.id);
+			assert(suggestion.result?.edit);
+			nextEditProvider.handleShown(suggestion);
+			await statelessProvider.waitForCall(2);
+
+			nextEditProvider.clearCache();
+			await statelessProvider.calls[1].cancellationRequested.p;
+
+			expect(statelessProvider.calls[1].wasCancelled).toBe(true);
+		});
+
+		it('cancels in-flight speculative when its target document is closed', async () => {
+			await configService.setConfig(ConfigKey.TeamInternal.InlineEditsSpeculativeRequests, SpeculativeRequestsEnablement.On);
+
+			const statelessProvider = new TestStatelessNextEditProvider();
+			statelessProvider.enqueueBehavior({ kind: 'yieldEditThenNoSuggestions', edit: lineReplacement(1, 'const value = 2;') });
+			statelessProvider.enqueueBehavior({ kind: 'waitForCancellation' });
+			const { nextEditProvider, workspace } = createProviderAndWorkspace(statelessProvider);
+
+			const doc = workspace.addDocument({
+				id: DocumentId.create(URI.file('/test/spec-doc-close.ts').toString()),
+				initialValue: 'const value = 1;\nconsole.log(value);',
+			});
+			doc.setSelection([new OffsetRange(0, 0)], undefined);
+
+			const suggestion = await getNextEdit(nextEditProvider, doc.id);
+			assert(suggestion.result?.edit);
+			nextEditProvider.handleShown(suggestion);
+			await statelessProvider.waitForCall(2);
+
+			// Closing the document removes it from openDocuments — the speculative's
+			// cached result would never be hit again, so cancel it.
+			doc.dispose();
+			await statelessProvider.calls[1].cancellationRequested.p;
+
+			expect(statelessProvider.calls[1].wasCancelled).toBe(true);
+		});
+
+		it('cancels in-flight speculative when the provider is disposed', async () => {
+			await configService.setConfig(ConfigKey.TeamInternal.InlineEditsSpeculativeRequests, SpeculativeRequestsEnablement.On);
+
+			const statelessProvider = new TestStatelessNextEditProvider();
+			statelessProvider.enqueueBehavior({ kind: 'yieldEditThenNoSuggestions', edit: lineReplacement(1, 'const value = 2;') });
+			statelessProvider.enqueueBehavior({ kind: 'waitForCancellation' });
+			const { nextEditProvider, workspace } = createProviderAndWorkspace(statelessProvider);
+
+			const doc = workspace.addDocument({
+				id: DocumentId.create(URI.file('/test/spec-provider-dispose.ts').toString()),
+				initialValue: 'const value = 1;\nconsole.log(value);',
+			});
+			doc.setSelection([new OffsetRange(0, 0)], undefined);
+
+			const suggestion = await getNextEdit(nextEditProvider, doc.id);
+			assert(suggestion.result?.edit);
+			nextEditProvider.handleShown(suggestion);
+			await statelessProvider.waitForCall(2);
+
+			nextEditProvider.dispose();
+			await statelessProvider.calls[1].cancellationRequested.p;
+
+			expect(statelessProvider.calls[1].wasCancelled).toBe(true);
+		});
+	});
 });
diff --git a/extensions/copilot/src/extension/inlineEdits/test/vscode-node/isInlineSuggestion.spec.ts b/extensions/copilot/src/extension/inlineEdits/test/vscode-node/isInlineSuggestion.spec.ts
index cc9a7b0226b..5bb09b87c47 100644
--- a/extensions/copilot/src/extension/inlineEdits/test/vscode-node/isInlineSuggestion.spec.ts
+++ b/extensions/copilot/src/extension/inlineEdits/test/vscode-node/isInlineSuggestion.spec.ts
@@ -101,8 +101,9 @@ suite('toInlineSuggestion', () => {
 		assert.isDefined(result);
 		// Range is an empty range at the cursor for a pure insertion
 		assert.deepStrictEqual(result!.range, new Range(1, 15, 1, 15));
-		// Text is prepended with the newline between cursor and original range
-		assert.strictEqual(result!.newText, '\n' + replaceText);
+		// Text is prepended with the newline between cursor and original range,
+		// and the trailing newline is dropped so we don't introduce a blank line.
+		assert.strictEqual(result!.newText, '\n' + replaceText.replace(/\r?\n$/, ''));
 	});
 
 	test('should not use ghost text when inserting on next line when none empty', () => {
@@ -149,7 +150,8 @@ suite('toInlineSuggestion', () => {
 		const result = toInlineSuggestion(cursorPosition, document, replaceRange, replaceText);
 		assert.isDefined(result);
 		assert.deepStrictEqual(result!.range, new Range(0, 13, 0, 13));
-		assert.strictEqual(result!.newText, '\n' + replaceText);
+		// Trailing '\n' is dropped to avoid a spurious blank line.
+		assert.strictEqual(result!.newText, '\n' + replaceText.replace(/\r?\n$/, ''));
 	});
 
 	test('multi-line insertion without trailing newline rejected when target line has content', () => {
@@ -318,7 +320,8 @@ function createDocumentSymbol(
 		const result = toInlineSuggestion(cursorPosition, document, replaceRange, replaceText);
 		assert.isDefined(result);
 		assert.deepStrictEqual(result!.range, new Range(0, 6, 0, 6));
-		assert.strictEqual(result!.newText, '\n\n');
+		// Trailing '\n' is dropped — only the prepended newline remains.
+		assert.strictEqual(result!.newText, '\n');
 	});
 
 	test('next-line: cursor at end of an empty line', () => {
@@ -330,7 +333,8 @@ function createDocumentSymbol(
 		const result = toInlineSuggestion(cursorPosition, document, replaceRange, replaceText);
 		assert.isDefined(result);
 		assert.deepStrictEqual(result!.range, new Range(0, 0, 0, 0));
-		assert.strictEqual(result!.newText, '\nnew line\n');
+		// Trailing '\n' is dropped to avoid a spurious blank line.
+		assert.strictEqual(result!.newText, '\nnew line');
 	});
 
 	test('next-line: range on line before cursor is rejected', () => {
@@ -547,4 +551,118 @@ function createDocumentSymbol(
 		assert.deepStrictEqual(result!.range, new Range(1, 0, 1, 0));
 		assert.strictEqual(result!.newText, '');
 	});
+
+	test('insertion on next line in fieldLabels object', () => {
+		const doc = `import React, { useState } from "react";
+
+interface FormData {
+    firstName: string;
+    lastName: string;
+    password: string;
+    email: string;
+    age: string;
+    city: string;
+}
+
+const initialFormData: FormData = {
+    firstName: "",
+    lastName: "",
+    password: "",
+    email: "",
+    age: "",
+    city: "",
+};
+
+const fieldLabels: Record<keyof FormData, string> = {
+    firstName: "First Name",
+    lastName: "Last Name",
+    email: "Email Address",
+    age: "Age",
+    city: "City",
+};
+`;
+		const document = createTextDocumentData(Uri.from({ scheme: 'test', path: '/test/file.tsx' }), doc, 'typescriptreact').document;
+		const cursorPosition = new Position(22, 26); // end of `    lastName: "Last Name",`
+		const replaceRange = new Range(23, 0, 23, 0);
+		const replaceText = '    password: "Password",\n';
+
+		const result = toInlineSuggestion(cursorPosition, document, replaceRange, replaceText, true);
+		assert.isDefined(result);
+		assert.deepStrictEqual(result!.range, new Range(22, 26, 22, 26));
+		// Trailing '\n' is dropped because the original line terminator after
+		// the cursor is preserved.
+		assert.strictEqual(result!.newText, '\n    password: "Password",');
+	});
+
+	suite('CRLF', () => {
+
+		function createCRLFDocument(lines: string[], languageId: string = 'typescript') {
+			return createTextDocumentData(
+				Uri.from({ scheme: 'test', path: '/test/file.ts' }),
+				lines.join('\r\n'),
+				languageId,
+				'\r\n',
+			).document;
+		}
+
+		test('next-line insertion: trailing CRLF is dropped (no dangling \\r)', () => {
+			const document = createCRLFDocument(['function foo(', '', 'other']);
+			const cursorPosition = new Position(0, 13); // end of "function foo("
+			const replaceRange = new Range(1, 0, 1, 0); // empty line
+			const replaceText = '  a: string,\r\n  b: number\r\n';
+
+			const result = toInlineSuggestion(cursorPosition, document, replaceRange, replaceText);
+			assert.isDefined(result);
+			assert.deepStrictEqual(result!.range, new Range(0, 13, 0, 13));
+			// The trailing CRLF must be stripped entirely; no dangling '\r'
+			// should leak into the suggestion text.
+			assert.strictEqual(result!.newText, '\r\n  a: string,\r\n  b: number');
+		});
+
+		test('next-line insertion: trailing CRLF on non-empty target line', () => {
+			const document = createCRLFDocument(['function foo(', ')', 'other']);
+			const cursorPosition = new Position(0, 13);
+			const replaceRange = new Range(1, 0, 1, 0);
+			const replaceText = '  a: string,\r\n  b: number\r\n';
+
+			const result = toInlineSuggestion(cursorPosition, document, replaceRange, replaceText);
+			assert.isDefined(result);
+			assert.deepStrictEqual(result!.range, new Range(0, 13, 0, 13));
+			assert.strictEqual(result!.newText, '\r\n  a: string,\r\n  b: number');
+		});
+
+		test('next-line insertion: CRLF-only newText is fully stripped', () => {
+			const document = createCRLFDocument(['line 0', '', 'line 2']);
+			const cursorPosition = new Position(0, 6);
+			const replaceRange = new Range(1, 0, 1, 0);
+			const replaceText = '\r\n';
+
+			const result = toInlineSuggestion(cursorPosition, document, replaceRange, replaceText);
+			assert.isDefined(result);
+			assert.deepStrictEqual(result!.range, new Range(0, 6, 0, 6));
+			// Only the prepended CRLF between cursor and original range remains.
+			assert.strictEqual(result!.newText, '\r\n');
+		});
+	});
+
+	suite('multi-line range, no common prefix', () => {
+
+		// Regression: when commonLen === 0 and the replaced text starts with '\n',
+		// `lastIndexOf('\n', -1)` would (incorrectly) clamp to 0 and report a
+		// match, causing the leading newline to be stripped — which can collapse
+		// the multi-line range into a same-line "suggestion" that the function
+		// then accepts. With the original substring-based check, no strip occurs
+		// and the result is `undefined`.
+		test('does not strip leading newline when nothing is in common', () => {
+			const document = createMockDocument(['abc', 'x', 'rest']);
+			// replacedText = '\nx', newText[0]='Y' differs from '\n', commonLen=0.
+			const replaceRange = new Range(0, 3, 1, 1);
+			const cursorPosition = new Position(1, 1);
+			const replaceText = 'Yx';
+
+			// The range cannot legitimately be collapsed to a single line, so
+			// the function must not synthesize a ghost-text suggestion.
+			assert.isUndefined(toInlineSuggestion(cursorPosition, document, replaceRange, replaceText));
+		});
+	});
 });
diff --git a/extensions/copilot/src/extension/inlineEdits/vscode-node/features/diagnosticsBasedCompletions/importDiagnosticsCompletionProvider.ts b/extensions/copilot/src/extension/inlineEdits/vscode-node/features/diagnosticsBasedCompletions/importDiagnosticsCompletionProvider.ts
index 9c6c3146497..5b4e1d2cc3d 100644
--- a/extensions/copilot/src/extension/inlineEdits/vscode-node/features/diagnosticsBasedCompletions/importDiagnosticsCompletionProvider.ts
+++ b/extensions/copilot/src/extension/inlineEdits/vscode-node/features/diagnosticsBasedCompletions/importDiagnosticsCompletionProvider.ts
@@ -361,7 +361,7 @@ export type ImportDetails = {
 	labelShort: string;
 	labelDeduped: string;
 	importSource: ImportSource;
-}
+};
 
 export interface ILanguageImportHandler {
 	isImportDiagnostic(diagnostic: Diagnostic): boolean;
diff --git a/extensions/copilot/src/extension/inlineEdits/vscode-node/isInlineSuggestion.ts b/extensions/copilot/src/extension/inlineEdits/vscode-node/isInlineSuggestion.ts
index 3add1ecc00e..b1876d17e03 100644
--- a/extensions/copilot/src/extension/inlineEdits/vscode-node/isInlineSuggestion.ts
+++ b/extensions/copilot/src/extension/inlineEdits/vscode-node/isInlineSuggestion.ts
@@ -4,7 +4,6 @@
  *--------------------------------------------------------------------------------------------*/
 
 import { Position, Range, TextDocument } from 'vscode';
-import { OffsetRange } from '../../../util/vs/editor/common/core/ranges/offsetRange';
 
 export interface InlineSuggestionEdit {
 	readonly range: Range;
@@ -17,67 +16,112 @@ export interface InlineSuggestionEdit {
  * which is required for VS Code to render ghost text.
  */
 export function toInlineSuggestion(cursorPos: Position, doc: TextDocument, range: Range, newText: string, advanced: boolean = true): InlineSuggestionEdit | undefined {
-	// If multi line insertion starts on the next line
-	// All new lines have to be newly created lines
-	if (range.isEmpty && cursorPos.line + 1 === range.start.line && range.start.character === 0
-		&& doc.lineAt(cursorPos.line).text.length === cursorPos.character // cursor is at the end of the line
-		&& (newText.endsWith('\n') || (newText.includes('\n') && doc.lineAt(range.end.line).text.length === range.end.character)) // no remaining content after insertion
-	) {
-		// Use an empty range at the cursor so the suggestion is a pure insertion
-		const adjustedRange = new Range(cursorPos, cursorPos);
-		const textBetweenCursorAndRange = doc.getText(new Range(cursorPos, range.start));
-		return { range: adjustedRange, newText: textBetweenCursorAndRange + newText };
+	// Special case: a multi-line insertion that starts on the line *after* the cursor
+	// can be re-expressed as a pure insertion at the cursor.
+	const nextLineInsertion = tryAdjustNextLineInsertion(cursorPos, doc, range, newText);
+	if (nextLineInsertion) {
+		return nextLineInsertion;
 	}
 
-	if (advanced) {
-		// If the range spans multiple lines, try to reduce it by stripping a common
-		// prefix (up to a newline boundary) from the replaced text and newText.
-		if (range.start.line !== range.end.line) {
-			const fullReplacedText = doc.getText(range);
-			let commonLen = 0;
-			const maxLen = Math.min(fullReplacedText.length, newText.length);
-			while (commonLen < maxLen && fullReplacedText[commonLen] === newText[commonLen]) {
-				commonLen++;
-			}
-			const lastNewline = fullReplacedText.substring(0, commonLen).lastIndexOf('\n');
-			if (lastNewline >= 0) {
-				const strippedLen = lastNewline + 1;
-				newText = newText.substring(strippedLen);
-				const newStart = doc.positionAt(doc.offsetAt(range.start) + strippedLen);
-				range = new Range(newStart, range.end);
-			}
-		}
+	// If the range spans multiple lines, try to collapse it to a single line by
+	// trimming a shared prefix up to a newline boundary.
+	if (advanced && range.start.line !== range.end.line) {
+		({ range, newText } = stripCommonLinePrefix(doc, range, newText));
 	}
 
+	// Ghost text requires the edit to be on the cursor's line.
 	if (range.start.line !== range.end.line || range.start.line !== cursorPos.line) {
 		return undefined;
 	}
 
-	const cursorOffset = doc.offsetAt(cursorPos);
-	const offsetRange = new OffsetRange(doc.offsetAt(range.start), doc.offsetAt(range.end));
+	return validateSameLineGhostText(cursorPos, doc, range, newText);
+}
 
-	const replacedText = offsetRange.substring(doc.getText());
+/**
+ * If the cursor is at the end of a line and the edit is an empty-range insertion
+ * at column 0 of the next line, rewrite it as a pure insertion at the cursor
+ * position. This is allowed when either:
+ *  - `newText` ends with a newline (any existing content on the target line is
+ *    pushed onto the following line), or
+ *  - `newText` contains a newline and the target line is fully consumed by the
+ *    insertion (no leftover content after the insertion).
+ */
+function tryAdjustNextLineInsertion(cursorPos: Position, doc: TextDocument, range: Range, newText: string): InlineSuggestionEdit | undefined {
+	if (!range.isEmpty) {
+		return undefined;
+	}
+	if (cursorPos.line + 1 !== range.start.line || range.start.character !== 0) {
+		return undefined;
+	}
+	if (doc.lineAt(cursorPos.line).text.length !== cursorPos.character) {
+		return undefined; // cursor is not at the end of the line
+	}
 
-	const cursorOffsetInReplacedText = cursorOffset - offsetRange.start;
+	const targetLineFullyConsumed = doc.lineAt(range.end.line).text.length === range.end.character;
+	const noLeftoverAfterInsertion = newText.endsWith('\n') || (newText.includes('\n') && targetLineFullyConsumed);
+	if (!noLeftoverAfterInsertion) {
+		return undefined;
+	}
+
+	// Use an empty range at the cursor so the suggestion is a pure insertion.
+	// The original line terminator between the cursor and `range.start` is preserved
+	// in the document, so:
+	//  - prepend that terminator to `newText` (it lives in the doc, not in the edit), and
+	//  - drop a single trailing line ending from `newText` to avoid an extra blank line.
+	// CRLF-safe so we don't leak a dangling '\r' into the suggestion.
+	const lineBreak = doc.getText(new Range(cursorPos, range.start));
+	const trimmedNewText = newText.replace(/\r?\n$/, '');
+	return { range: new Range(cursorPos, cursorPos), newText: lineBreak + trimmedNewText };
+}
+
+/**
+ * Strip the longest shared prefix that ends on a newline boundary from both sides
+ * of a multi-line edit. This often shrinks the range so it fits on a single line,
+ * which is required for ghost text rendering.
+ */
+function stripCommonLinePrefix(doc: TextDocument, range: Range, newText: string): { range: Range; newText: string } {
+	const replacedText = doc.getText(range);
+	const maxLen = Math.min(replacedText.length, newText.length);
+	let commonLen = 0;
+	while (commonLen < maxLen && replacedText[commonLen] === newText[commonLen]) {
+		commonLen++;
+	}
+	if (commonLen === 0) {
+		return { range, newText };
+	}
+	const lastNewline = replacedText.lastIndexOf('\n', commonLen - 1);
+	if (lastNewline < 0) {
+		return { range, newText };
+	}
+	const strippedLen = lastNewline + 1;
+	const newStart = doc.positionAt(doc.offsetAt(range.start) + strippedLen);
+	return { range: new Range(newStart, range.end), newText: newText.substring(strippedLen) };
+}
+
+/**
+ * Validate that a single-line edit can be rendered as ghost text at the cursor:
+ *  - the cursor is at or after `range.start`
+ *  - everything before the cursor in the replaced text matches `newText`
+ *  - the replaced text is a subword of `newText` (i.e. only insertions are needed)
+ */
+function validateSameLineGhostText(cursorPos: Position, doc: TextDocument, range: Range, newText: string): InlineSuggestionEdit | undefined {
+	const replacedText = doc.getText(range);
+	const cursorOffsetInReplacedText = cursorPos.character - range.start.character;
 	if (cursorOffsetInReplacedText < 0) {
 		return undefined;
 	}
-
-	const textBeforeCursorIsEqual = replacedText.substring(0, cursorOffsetInReplacedText) === newText.substring(0, cursorOffsetInReplacedText);
-	if (!textBeforeCursorIsEqual) {
+	if (replacedText.substring(0, cursorOffsetInReplacedText) !== newText.substring(0, cursorOffsetInReplacedText)) {
 		return undefined;
 	}
-
 	if (!isSubword(replacedText, newText)) {
 		return undefined;
 	}
-
 	return { range, newText };
 }
+
 /**
  * a is subword of b if a can be obtained by removing characters from b
 */
-
 export function isSubword(a: string, b: string): boolean {
 	for (let aIdx = 0, bIdx = 0; aIdx < a.length; bIdx++) {
 		if (bIdx >= b.length) {
diff --git a/extensions/copilot/src/extension/intents/node/agentIntent.ts b/extensions/copilot/src/extension/intents/node/agentIntent.ts
index 8b85a7f39c4..bbf7d45a66f 100644
--- a/extensions/copilot/src/extension/intents/node/agentIntent.ts
+++ b/extensions/copilot/src/extension/intents/node/agentIntent.ts
@@ -17,7 +17,7 @@ import { IAutomodeService } from '../../../platform/endpoint/node/automodeServic
 import { IEnvService } from '../../../platform/env/common/envService';
 import { ILogService } from '../../../platform/log/common/logService';
 import { IEditLogService } from '../../../platform/multiFileEdit/common/editLogService';
-import { CUSTOM_TOOL_SEARCH_NAME, isAnthropicContextEditingEnabled } from '../../../platform/networking/common/anthropic';
+import { isAnthropicContextEditingEnabled } from '../../../platform/networking/common/anthropic';
 import { IChatEndpoint } from '../../../platform/networking/common/networking';
 import { modelsWithoutResponsesContextManagement } from '../../../platform/networking/common/openai';
 import { INotebookService } from '../../../platform/notebook/common/notebookService';
@@ -141,8 +141,6 @@ export const getAgentTools = async (accessor: ServicesAccessor, request: vscode.
 		allowTools[ToolName.MultiReplaceString] = true;
 	}
 
-	allowTools[CUSTOM_TOOL_SEARCH_NAME] = !!model.supportsToolSearch;
-
 	const tools = toolsService.getEnabledTools(request, model, tool => {
 		if (typeof allowTools[tool.name] === 'boolean') {
 			return allowTools[tool.name];
diff --git a/extensions/copilot/src/extension/log/node/chatLogExport.ts b/extensions/copilot/src/extension/log/node/chatLogExport.ts
index c61a044b72f..b4f97d9d0e1 100644
--- a/extensions/copilot/src/extension/log/node/chatLogExport.ts
+++ b/extensions/copilot/src/extension/log/node/chatLogExport.ts
@@ -139,7 +139,7 @@ export async function createExportedPrompt(
 				kind: 'error',
 				error: error?.toString() || 'Unknown error',
 				timestamp: new Date().toISOString()
-			} as unknown as ExportedLogEntry);
+			});
 		}
 	}
 
diff --git a/extensions/copilot/src/extension/mcp/vscode-node/commands.ts b/extensions/copilot/src/extension/mcp/vscode-node/commands.ts
index 9cfa94dcd6b..eb8bd3b80b9 100644
--- a/extensions/copilot/src/extension/mcp/vscode-node/commands.ts
+++ b/extensions/copilot/src/extension/mcp/vscode-node/commands.ts
@@ -115,10 +115,10 @@ export class McpSetupCommands extends Disposable {
 	};
 
 	constructor(
-		@ITelemetryService readonly telemetryService: ITelemetryService,
-		@ILogService readonly logService: ILogService,
-		@IFetcherService readonly fetcherService: IFetcherService,
-		@IInstantiationService readonly instantiationService: IInstantiationService,
+		@ITelemetryService private readonly telemetryService: ITelemetryService,
+		@ILogService private readonly logService: ILogService,
+		@IFetcherService private readonly fetcherService: IFetcherService,
+		@IInstantiationService private readonly instantiationService: IInstantiationService,
 	) {
 		super();
 		this._register(toDisposable(() => this.pendingSetup?.cts.dispose(true)));
diff --git a/extensions/copilot/src/extension/prompts/node/panel/title.tsx b/extensions/copilot/src/extension/prompts/node/panel/title.tsx
index 1af4bad430b..5bd6434b111 100644
--- a/extensions/copilot/src/extension/prompts/node/panel/title.tsx
+++ b/extensions/copilot/src/extension/prompts/node/panel/title.tsx
@@ -16,16 +16,21 @@ export class TitlePrompt extends PromptElement<TitlePromptProps> {
 		return (
 			<>
 				<SystemMessage priority={1000}>
-					You are an expert in crafting pithy titles for chatbot conversations. You are presented with a chat request, and you reply with a brief title that captures the main topic of that request.<br />
+					You are an expert in crafting ultra-compact titles for chatbot conversations. You are presented with a chat request, and you reply with only a brief title that captures the main topic of that request.<br />
 					<SafetyRules />
 					<ResponseTranslationRules />
-					The title should not be wrapped in quotes. It should be about 8 words or fewer.<br />
+					Write the title in sentence case, not title case. Preserve product names, abbreviations, code symbols, and proper nouns.<br />
+					Aim for 3-6 words. Prefer the shortest accurate title.<br />
+					Drop articles like "a", "an", and "the" unless needed for clarity.<br />
+					Drop filler and generic framing like "help with", "question about", "request for", or "issue with".<br />
+					Prefer short, concrete synonyms and omit unnecessary words.<br />
+					Do not wrap the title in quotes or add trailing punctuation.<br />
 					Here are some examples of good titles:<br />
 					- Git rebase question<br />
-					- Installing Python packages<br />
-					- Location of LinkedList implementation in codebase<br />
-					- Adding a tree view to a VS Code extension<br />
-					- React useState hook usage
+					- Install Python packages<br />
+					- LinkedList implementation location<br />
+					- Add VS Code tree view<br />
+					- React useState usage
 				</SystemMessage>
 				<UserMessage priority={900}>
 					Please write a brief title for the following request:<br />
diff --git a/extensions/copilot/src/extension/search/vscode-node/commands.ts b/extensions/copilot/src/extension/search/vscode-node/commands.ts
index 4a81d810ed8..f7241fe3789 100644
--- a/extensions/copilot/src/extension/search/vscode-node/commands.ts
+++ b/extensions/copilot/src/extension/search/vscode-node/commands.ts
@@ -12,7 +12,7 @@ import { SearchFeedbackKind, SemanticSearchTextSearchProvider } from '../../work
 
 export class SearchPanelCommands extends Disposable {
 	constructor(
-		@ITelemetryService readonly telemetryService: ITelemetryService,
+		@ITelemetryService telemetryService: ITelemetryService,
 		@IFeedbackReporter private readonly feedbackReporter: IFeedbackReporter,
 	) {
 		super();
diff --git a/extensions/copilot/src/extension/tools/common/virtualTools/preComputedToolEmbeddingsCache.ts b/extensions/copilot/src/extension/tools/common/virtualTools/preComputedToolEmbeddingsCache.ts
index 58a306f2347..910d5432514 100644
--- a/extensions/copilot/src/extension/tools/common/virtualTools/preComputedToolEmbeddingsCache.ts
+++ b/extensions/copilot/src/extension/tools/common/virtualTools/preComputedToolEmbeddingsCache.ts
@@ -18,7 +18,7 @@ export class PreComputedToolEmbeddingsCache implements IToolEmbeddingsCache {
 	private embeddingsMap: Map<string, Embedding> | undefined;
 
 	constructor(
-		@ILogService readonly _logService: ILogService,
+		@ILogService private readonly _logService: ILogService,
 		@IInstantiationService instantiationService: IInstantiationService,
 		@IEnvService envService: IEnvService
 	) {
diff --git a/extensions/copilot/src/extension/tools/node/createFileTool.tsx b/extensions/copilot/src/extension/tools/node/createFileTool.tsx
index 80577db3b92..e9559f86892 100644
--- a/extensions/copilot/src/extension/tools/node/createFileTool.tsx
+++ b/extensions/copilot/src/extension/tools/node/createFileTool.tsx
@@ -21,7 +21,7 @@ import { extname } from '../../../util/vs/base/common/resources';
 import { count } from '../../../util/vs/base/common/strings';
 import { URI } from '../../../util/vs/base/common/uri';
 import { IInstantiationService } from '../../../util/vs/platform/instantiation/common/instantiation';
-import { Position as ExtPosition, LanguageModelPromptTsxPart, LanguageModelTextPart, LanguageModelToolResult, MarkdownString, TextEdit } from '../../../vscodeTypes';
+import { Position as ExtPosition, Range as ExtRange, LanguageModelPromptTsxPart, LanguageModelTextPart, LanguageModelToolResult, MarkdownString, TextEdit } from '../../../vscodeTypes';
 import { CodeBlockProcessor } from '../../codeBlocks/node/codeBlockProcessor';
 import { IBuildPromptContext } from '../../prompt/common/intents';
 import { renderPromptElementJSON } from '../../prompts/node/base/promptRenderer';
@@ -114,7 +114,15 @@ export class CreateFileTool implements ICopilotTool<ICreateFileParams> {
 			this.sendTelemetry(options.chatRequestId, modelId, fileExtension);
 		} else {
 			const content = removeLeadingFilepathComment(options.input.content, languageId, options.input.filePath);
-			this._promptContext.stream.textEdit(uri, TextEdit.insert(new ExtPosition(0, 0), content));
+			// When the file has been deleted from disk but VS Code still holds a stale
+			// in-memory doc with content, use a full-document replace so the old buffer
+			// is overwritten rather than prepended to (https://github.com/microsoft/vscode/issues/311043).
+			if (!fileExists && doc && doc.getText().length > 0) {
+				const lastLine = doc.lineCount - 1;
+				this._promptContext.stream.textEdit(uri, TextEdit.replace(new ExtRange(0, 0, lastLine, doc.lineAt(lastLine).text.length), content));
+			} else {
+				this._promptContext.stream.textEdit(uri, TextEdit.insert(new ExtPosition(0, 0), content));
+			}
 			this._promptContext.stream.textEdit(uri, true);
 			this.sendTelemetry(options.chatRequestId, modelId, fileExtension);
 			return new LanguageModelToolResult([
diff --git a/extensions/copilot/src/extension/tools/node/toolSearchTool.ts b/extensions/copilot/src/extension/tools/node/toolSearchTool.ts
index ceca12f5a8b..a0f83013ee2 100644
--- a/extensions/copilot/src/extension/tools/node/toolSearchTool.ts
+++ b/extensions/copilot/src/extension/tools/node/toolSearchTool.ts
@@ -4,6 +4,7 @@
  *--------------------------------------------------------------------------------------------*/
 
 import type * as vscode from 'vscode';
+import * as l10n from '@vscode/l10n';
 import { ILogService } from '../../../platform/log/common/logService';
 import { CUSTOM_TOOL_SEARCH_NAME } from '../../../platform/networking/common/anthropic';
 import { LanguageModelTextPart, LanguageModelToolResult } from '../../../vscodeTypes';
@@ -56,10 +57,13 @@ export class ToolSearchTool implements ICopilotModelSpecificTool<IToolSearchPara
 ToolRegistry.registerModelSpecificTool(
 	{
 		name: CUSTOM_TOOL_SEARCH_NAME,
-		displayName: 'Search Tools',
+		displayName: l10n.t('Search Tools'),
+		toolReferenceName: 'toolSearch',
+		userDescription: l10n.t('Search for relevant tools by describing what you need'),
 		description: 'Search for relevant tools by describing what you need. Returns tool references for tools matching your query. Use this when you need to find a tool but aren\'t sure of its exact name. Check the availableDeferredTools list in your instructions for the full set of deferred tools, and include relevant tool names from that list in your query for more accurate results. Use broad queries to find all related tools in a single call rather than making multiple narrow searches.',
 		tags: [],
 		source: undefined,
+		toolSet: 'vscode',
 		inputSchema: {
 			type: 'object',
 			properties: {
diff --git a/extensions/copilot/src/extension/typescriptContext/common/serverProtocol.ts b/extensions/copilot/src/extension/typescriptContext/common/serverProtocol.ts
index 3f24bcfefa9..86ba81a2439 100644
--- a/extensions/copilot/src/extension/typescriptContext/common/serverProtocol.ts
+++ b/extensions/copilot/src/extension/typescriptContext/common/serverProtocol.ts
@@ -30,30 +30,30 @@ export enum CacheScopeKind {
 
 export type FileCacheScope = {
 	kind: CacheScopeKind.File;
-}
+};
 export type NeighborFilesCacheScope = {
 	kind: CacheScopeKind.NeighborFiles;
-}
+};
 
 export type Position = {
 	line: number;
 	character: number;
-}
+};
 
 export type Range = {
 	start: Position;
 	end: Position;
-}
+};
 
 export type WithinRangeCacheScope = {
 	kind: CacheScopeKind.WithinRange;
 	range: Range;
-}
+};
 
 export type OutsideRangeCacheScope = {
 	kind: CacheScopeKind.OutsideRange;
 	ranges: Range[];
-}
+};
 
 export type CacheScope = FileCacheScope | NeighborFilesCacheScope | WithinRangeCacheScope | OutsideRangeCacheScope;
 
@@ -66,7 +66,7 @@ export enum EmitMode {
 export type CacheInfo = {
 	emitMode: EmitMode;
 	scope: CacheScope;
-}
+};
 export namespace CacheInfo {
 	export type has = { cache: CacheInfo };
 	export function has(item: unknown): item is has {
@@ -76,7 +76,7 @@ export namespace CacheInfo {
 export type CachedContextItem = {
 	key: ContextItemKey;
 	sizeInChars?: number;
-}
+};
 export namespace CachedContextItem {
 	export function create(key: ContextItemKey, sizeInChars?: number): CachedContextItem {
 		return { key, sizeInChars };
@@ -236,7 +236,7 @@ export namespace ContextItem {
 
 export type PriorityTag = {
 	priority: number;
-}
+};
 
 export enum ContextRunnableState {
 	Created = 'created',
@@ -291,7 +291,7 @@ export type ContextRunnableResult = {
 	 * A human readable path to the signature to ease debugging.
 	 */
 	debugPath?: ContextRunnableResultId | undefined;
-}
+};
 
 export type CachedContextRunnableResult = {
 
@@ -317,7 +317,7 @@ export type CachedContextRunnableResult = {
 	 * The cache information of the runnable.
 	 */
 	cache?: CacheInfo;
-}
+};
 
 export type ContextRunnableResultReference = {
 
@@ -328,7 +328,7 @@ export type ContextRunnableResultReference = {
 	 * this state.
 	 */
 	id: ContextRunnableResultId;
-}
+};
 
 export type ContextRunnableResultTypes = ContextRunnableResult | ContextRunnableResultReference;
 
@@ -345,7 +345,7 @@ export namespace ErrorData {
 export type Timings = {
 	totalTime: number;
 	computeTime: number;
-}
+};
 export namespace Timings {
 	export function create(totalTime: number, computeTime: number): Timings {
 		return { totalTime, computeTime };
@@ -397,7 +397,7 @@ export type ContextRequestResult = {
 	 * New server side context items that were computed.
 	 */
 	contextItems?: ContextItem[];
-}
+};
 
 export interface ComputeContextRequestArgs extends tt.server.protocol.FileLocationRequestArgs {
 	startTime: number;
@@ -504,17 +504,17 @@ export namespace PrepareNesRenameResult {
 		canRename: RenameKind.yes;
 		oldName: string;
 		onOldState: boolean;
-	}
+	};
 	export type Maybe = {
 		canRename: RenameKind.maybe;
 		oldName: string;
 		onOldState: boolean;
-	}
+	};
 	export type No = {
 		canRename: RenameKind.no;
 		timedOut: boolean;
 		reason?: string;
-	}
+	};
 }
 
 export type PrepareNesRenameResult = PrepareNesRenameResult.Yes | PrepareNesRenameResult.Maybe | PrepareNesRenameResult.No;
@@ -566,17 +566,17 @@ export interface NesRenameRequestArgs extends tt.server.protocol.FileLocationReq
 export type TextChange = {
 	range: Range;
 	newText?: string;
-}
+};
 
 export type RenameGroup = {
 	file: FilePath;
 	changes: TextChange[];
-}
+};
 
 export namespace NesRenameResult {
 	export type OK = {
 		groups: RenameGroup[];
-	}
+	};
 	export type Failed = CustomResponse.Failed;
 }
 
diff --git a/extensions/copilot/src/extension/typescriptContext/serverPlugin/src/common/contextProvider.ts b/extensions/copilot/src/extension/typescriptContext/serverPlugin/src/common/contextProvider.ts
index d2ebb44a421..d40c2b7ee2f 100644
--- a/extensions/copilot/src/extension/typescriptContext/serverPlugin/src/common/contextProvider.ts
+++ b/extensions/copilot/src/extension/typescriptContext/serverPlugin/src/common/contextProvider.ts
@@ -374,7 +374,7 @@ export class RunnableResult {
 	public addSnippet(code: SnippetProvider, location: SnippetLocation, key: string | undefined): void;
 	public addSnippet(code: SnippetProvider, location: SnippetLocation, key: string | undefined, ifRoom: false): void;
 	public addSnippet(code: SnippetProvider, location: SnippetLocation, key: string | undefined, ifRoom: true): boolean;
-	public addSnippet(code: SnippetProvider, location: SnippetLocation, key: string | undefined, ifRoom: boolean): boolean
+	public addSnippet(code: SnippetProvider, location: SnippetLocation, key: string | undefined, ifRoom: boolean): boolean;
 	public addSnippet(code: SnippetProvider, location: SnippetLocation, key: string | undefined, ifRoom: boolean = false): boolean {
 		const budget = location === SnippetLocation.Primary ? this.primaryBudget : this.secondaryBudget;
 		if (code.isEmpty()) {
@@ -684,7 +684,7 @@ class CacheBasedContextRunnable implements ContextRunnable {
 export type SymbolData = {
 	symbol: tt.Symbol;
 	name?: string;
-}
+};
 
 enum SymbolEmitDataKind {
 	symbol = 'symbol',
@@ -695,12 +695,12 @@ type SymbolEmitData = {
 	kind: SymbolEmitDataKind.symbol;
 	symbol: tt.Symbol;
 	name?: string;
-}
+};
 
 type TypeAliasEmitData = {
 	kind: SymbolEmitDataKind.typeAlias;
 	node: tt.TypeAliasDeclaration;
-}
+};
 
 type EmitData = SymbolEmitData | TypeAliasEmitData;
 
@@ -1158,4 +1158,4 @@ export class CharacterBudget {
 		this.spent(chars);
 		this.throwIfExhausted();
 	}
-}
\ No newline at end of file
+}
diff --git a/extensions/copilot/src/extension/typescriptContext/serverPlugin/src/common/protocol.ts b/extensions/copilot/src/extension/typescriptContext/serverPlugin/src/common/protocol.ts
index 3f24bcfefa9..df8032f437f 100644
--- a/extensions/copilot/src/extension/typescriptContext/serverPlugin/src/common/protocol.ts
+++ b/extensions/copilot/src/extension/typescriptContext/serverPlugin/src/common/protocol.ts
@@ -30,30 +30,30 @@ export enum CacheScopeKind {
 
 export type FileCacheScope = {
 	kind: CacheScopeKind.File;
-}
+};
 export type NeighborFilesCacheScope = {
 	kind: CacheScopeKind.NeighborFiles;
-}
+};
 
 export type Position = {
 	line: number;
 	character: number;
-}
+};
 
 export type Range = {
 	start: Position;
 	end: Position;
-}
+};
 
 export type WithinRangeCacheScope = {
 	kind: CacheScopeKind.WithinRange;
 	range: Range;
-}
+};
 
 export type OutsideRangeCacheScope = {
 	kind: CacheScopeKind.OutsideRange;
 	ranges: Range[];
-}
+};
 
 export type CacheScope = FileCacheScope | NeighborFilesCacheScope | WithinRangeCacheScope | OutsideRangeCacheScope;
 
@@ -66,7 +66,7 @@ export enum EmitMode {
 export type CacheInfo = {
 	emitMode: EmitMode;
 	scope: CacheScope;
-}
+};
 export namespace CacheInfo {
 	export type has = { cache: CacheInfo };
 	export function has(item: unknown): item is has {
@@ -76,7 +76,7 @@ export namespace CacheInfo {
 export type CachedContextItem = {
 	key: ContextItemKey;
 	sizeInChars?: number;
-}
+};
 export namespace CachedContextItem {
 	export function create(key: ContextItemKey, sizeInChars?: number): CachedContextItem {
 		return { key, sizeInChars };
@@ -236,7 +236,7 @@ export namespace ContextItem {
 
 export type PriorityTag = {
 	priority: number;
-}
+};
 
 export enum ContextRunnableState {
 	Created = 'created',
@@ -291,7 +291,7 @@ export type ContextRunnableResult = {
 	 * A human readable path to the signature to ease debugging.
 	 */
 	debugPath?: ContextRunnableResultId | undefined;
-}
+};
 
 export type CachedContextRunnableResult = {
 
@@ -317,7 +317,7 @@ export type CachedContextRunnableResult = {
 	 * The cache information of the runnable.
 	 */
 	cache?: CacheInfo;
-}
+};
 
 export type ContextRunnableResultReference = {
 
@@ -328,7 +328,7 @@ export type ContextRunnableResultReference = {
 	 * this state.
 	 */
 	id: ContextRunnableResultId;
-}
+};
 
 export type ContextRunnableResultTypes = ContextRunnableResult | ContextRunnableResultReference;
 
@@ -345,7 +345,7 @@ export namespace ErrorData {
 export type Timings = {
 	totalTime: number;
 	computeTime: number;
-}
+};
 export namespace Timings {
 	export function create(totalTime: number, computeTime: number): Timings {
 		return { totalTime, computeTime };
@@ -397,7 +397,7 @@ export type ContextRequestResult = {
 	 * New server side context items that were computed.
 	 */
 	contextItems?: ContextItem[];
-}
+};
 
 export interface ComputeContextRequestArgs extends tt.server.protocol.FileLocationRequestArgs {
 	startTime: number;
@@ -504,17 +504,17 @@ export namespace PrepareNesRenameResult {
 		canRename: RenameKind.yes;
 		oldName: string;
 		onOldState: boolean;
-	}
+	};
 	export type Maybe = {
 		canRename: RenameKind.maybe;
 		oldName: string;
 		onOldState: boolean;
-	}
+	};
 	export type No = {
 		canRename: RenameKind.no;
 		timedOut: boolean;
 		reason?: string;
-	}
+	};
 }
 
 export type PrepareNesRenameResult = PrepareNesRenameResult.Yes | PrepareNesRenameResult.Maybe | PrepareNesRenameResult.No;
@@ -566,17 +566,17 @@ export interface NesRenameRequestArgs extends tt.server.protocol.FileLocationReq
 export type TextChange = {
 	range: Range;
 	newText?: string;
-}
+};
 
 export type RenameGroup = {
 	file: FilePath;
 	changes: TextChange[];
-}
+};
 
 export namespace NesRenameResult {
 	export type OK = {
 		groups: RenameGroup[];
-	}
+	};
 	export type Failed = CustomResponse.Failed;
 }
 
@@ -600,4 +600,4 @@ export namespace NesRenameResponse {
 
 export type NesRenameResponse = (tt.server.protocol.Response & {
 	body: NesRenameResponse.OK | NesRenameResponse.Failed;
-}) | { type: 'cancelled' };
\ No newline at end of file
+}) | { type: 'cancelled' };
diff --git a/extensions/copilot/src/extension/typescriptContext/serverPlugin/src/common/typescripts.ts b/extensions/copilot/src/extension/typescriptContext/serverPlugin/src/common/typescripts.ts
index e0bb6fb713d..61136b3596a 100644
--- a/extensions/copilot/src/extension/typescriptContext/serverPlugin/src/common/typescripts.ts
+++ b/extensions/copilot/src/extension/typescriptContext/serverPlugin/src/common/typescripts.ts
@@ -451,7 +451,7 @@ namespace tss {
 		}
 	}
 
-	export type DirectSuperSymbolInfo = { extends?: { symbol: tt.Symbol; name: string } | undefined; implements?: { symbol: tt.Symbol; name: string }[] }
+	export type DirectSuperSymbolInfo = { extends?: { symbol: tt.Symbol; name: string } | undefined; implements?: { symbol: tt.Symbol; name: string }[] };
 
 	export class Symbols {
 
diff --git a/extensions/copilot/src/extension/typescriptContext/serverPlugin/src/node/create.ts b/extensions/copilot/src/extension/typescriptContext/serverPlugin/src/node/create.ts
index 58c78e314b5..44799003358 100644
--- a/extensions/copilot/src/extension/typescriptContext/serverPlugin/src/node/create.ts
+++ b/extensions/copilot/src/extension/typescriptContext/serverPlugin/src/node/create.ts
@@ -114,7 +114,7 @@ type ResolvedInput = {
 	startTime: number;
 	timeBudget: number;
 	requestStartTime: number;
-}
+};
 const resolveInput = <T extends tt.server.protocol.FileRequestArgs & tt.server.protocol.Location & { timeBudget?: number; startTime?: number }>(args: T | undefined, defaultTimeBudget: number): ResolvedInput | FailedHandlerResponse => {
 	const requestStartTime = Date.now();
 	if (args === undefined) {
diff --git a/extensions/copilot/src/extension/typescriptContext/serverPlugin/src/node/test/nes.spec.ts b/extensions/copilot/src/extension/typescriptContext/serverPlugin/src/node/test/nes.spec.ts
index 7f1ec232603..a445ccdf7ac 100644
--- a/extensions/copilot/src/extension/typescriptContext/serverPlugin/src/node/test/nes.spec.ts
+++ b/extensions/copilot/src/extension/typescriptContext/serverPlugin/src/node/test/nes.spec.ts
@@ -80,12 +80,12 @@ type TrackedRenameInfo = {
 	oldName: string;
 	newName: string;
 	range: Range;
-}
+};
 
 type PostRenameTestCase = {
 	trackedRename: TrackedRenameInfo;
 	testCase: NesRenameTestCase;
-}
+};
 
 function computeNesRenameTestCases(filePath: string): NesRenameTestCase[] {
 	const text = fs.readFileSync(filePath, 'utf8');
diff --git a/extensions/copilot/src/extension/typescriptContext/vscode-node/languageContextService.ts b/extensions/copilot/src/extension/typescriptContext/vscode-node/languageContextService.ts
index c735d3a8c78..7f48633ba47 100644
--- a/extensions/copilot/src/extension/typescriptContext/vscode-node/languageContextService.ts
+++ b/extensions/copilot/src/extension/typescriptContext/vscode-node/languageContextService.ts
@@ -477,7 +477,7 @@ type ContextRequestState = {
 type CacheInfo = {
 	version: number;
 	state: CacheState;
-}
+};
 
 enum CacheState {
 	NotPopulated = 'NotPopulated',
@@ -1244,9 +1244,9 @@ export class LanguageContextServiceImpl implements ILanguageContextService, vsco
 	public readonly onContextComputedOnTimeout: vscode.Event<OnContextComputedOnTimeoutEvent>;
 
 	constructor(
+		@ITelemetryService telemetryService: ITelemetryService,
 		@IConfigurationService private readonly configurationService: IConfigurationService,
 		@IExperimentationService private readonly experimentationService: IExperimentationService,
-		@ITelemetryService readonly telemetryService: ITelemetryService,
 		@ILogService private readonly logService: ILogService
 	) {
 		this.isDebugging = process.execArgv.some((arg) => /^--(?:inspect|debug)(?:-brk)?(?:=\d+)?$/i.test(arg));
@@ -1791,7 +1791,7 @@ async function* mapAsyncIterable<T, U>(
 const showContextInspectorViewContextKey = `github.copilot.chat.showContextInspectorView`;
 export class InlineCompletionContribution implements vscode.Disposable, TokenBudgetProvider {
 
-	private disposables: DisposableStore;
+	private readonly disposables: DisposableStore;
 
 	private registrations: DisposableStore | undefined;
 	private readonly registrationQueue: Queue<void>;
@@ -1799,10 +1799,10 @@ export class InlineCompletionContribution implements vscode.Disposable, TokenBud
 	private readonly telemetrySender: TelemetrySender;
 
 	constructor(
+		@ITelemetryService telemetryService: ITelemetryService,
 		@IConfigurationService private readonly configurationService: IConfigurationService,
 		@IExperimentationService private readonly experimentationService: IExperimentationService,
-		@ILogService readonly logService: ILogService,
-		@ITelemetryService readonly telemetryService: ITelemetryService,
+		@ILogService private readonly logService: ILogService,
 		@ILanguageContextService private readonly languageContextService: ILanguageContextService,
 		@ILanguageContextProviderService private readonly languageContextProviderService: ILanguageContextProviderService,
 	) {
diff --git a/extensions/copilot/src/extension/typescriptContext/vscode-node/nesRenameService.ts b/extensions/copilot/src/extension/typescriptContext/vscode-node/nesRenameService.ts
index fa6fa590995..6201e9bfacc 100644
--- a/extensions/copilot/src/extension/typescriptContext/vscode-node/nesRenameService.ts
+++ b/extensions/copilot/src/extension/typescriptContext/vscode-node/nesRenameService.ts
@@ -70,7 +70,7 @@ namespace NesRenameRequestArgs {
 type TextChange = {
 	range: protocol.Range;
 	newText?: string;
-}
+};
 type RenameGroup = {
 	file: vscode.Uri;
 	changes: TextChange[];
@@ -138,14 +138,14 @@ class TelemetrySender {
 export class NesRenameContribution implements vscode.Disposable {
 
 	private _isActivated: Promise<boolean> | undefined;
-	private disposables: DisposableStore;
+	private readonly disposables: DisposableStore;
 	private readonly telemetrySender: TelemetrySender;
 
 	private static readonly ExecConfig: ExecConfig = { executionTarget: ExecutionTarget.Semantic };
 
 	constructor(
-		@ITelemetryService readonly telemetryService: ITelemetryService,
-		@ILogService readonly logService: ILogService,
+		@ITelemetryService telemetryService: ITelemetryService,
+		@ILogService private readonly logService: ILogService,
 	) {
 		this.telemetrySender = new TelemetrySender(telemetryService, logService);
 		this.disposables = new DisposableStore();
@@ -345,4 +345,4 @@ export class NesRenameContribution implements vscode.Disposable {
 		}
 		return { document, position, oldName, newName };
 	}
-}
\ No newline at end of file
+}
diff --git a/extensions/copilot/src/extension/typescriptContext/vscode-node/types.ts b/extensions/copilot/src/extension/typescriptContext/vscode-node/types.ts
index fc2037916e7..0f4bcdc3904 100644
--- a/extensions/copilot/src/extension/typescriptContext/vscode-node/types.ts
+++ b/extensions/copilot/src/extension/typescriptContext/vscode-node/types.ts
@@ -15,7 +15,7 @@ export type ResolvedRunnableResult = {
 	items: protocol.FullContextItem[];
 	cache?: protocol.CacheInfo;
 	debugPath?: protocol.ContextRunnableResultId | undefined;
-}
+};
 export namespace ResolvedRunnableResult {
 	export function from(result: protocol.ContextRunnableResult, items: protocol.FullContextItem[]): ResolvedRunnableResult {
 		return {
@@ -34,7 +34,7 @@ export type ContextComputedEvent = {
 	position: vscode.Position;
 	source?: string;
 	summary: ContextItemSummary;
-}
+};
 
 export type OnCachePopulatedEvent = ContextComputedEvent & { items: ReadonlyArray<ResolvedRunnableResult> };
 export type OnContextComputedEvent = ContextComputedEvent & { items: ReadonlyArray<ContextItem> };
diff --git a/extensions/copilot/src/extension/workspaceRecorder/vscode-node/workspaceListenerService.ts b/extensions/copilot/src/extension/workspaceRecorder/vscode-node/workspaceListenerService.ts
index 140751fe2cc..96ee0dcc187 100644
--- a/extensions/copilot/src/extension/workspaceRecorder/vscode-node/workspaceListenerService.ts
+++ b/extensions/copilot/src/extension/workspaceRecorder/vscode-node/workspaceListenerService.ts
@@ -10,7 +10,7 @@ import { Disposable } from '../../../util/vs/base/common/lifecycle';
 import { IRecordableEditorLogEntry, IRecordableLogEntry, ITextModelEditReasonMetadata, IWorkspaceListenerService } from '../common/workspaceListenerService';
 
 export class WorkspacListenerService extends Disposable implements IWorkspaceListenerService {
-	readonly _serviceBrand = undefined;
+	declare _serviceBrand: undefined;
 
 	private readonly _onStructuredData = this._register(new Emitter<IRecordableLogEntry | IRecordableEditorLogEntry>());
 	readonly onStructuredData = this._onStructuredData.event;
diff --git a/extensions/copilot/src/lib/node/chatLibMain.ts b/extensions/copilot/src/lib/node/chatLibMain.ts
index 2f399d40959..4dd64f67f70 100644
--- a/extensions/copilot/src/lib/node/chatLibMain.ts
+++ b/extensions/copilot/src/lib/node/chatLibMain.ts
@@ -716,7 +716,7 @@ export interface IEditorSession {
 	readonly uiKind?: string;
 }
 
-export type IActionItem = ActionItem
+export type IActionItem = ActionItem;
 export interface INotificationSender {
 	showWarningMessage(message: string, ...actions: IActionItem[]): Promise<IActionItem | undefined>;
 }
diff --git a/extensions/copilot/src/platform/authentication/common/authentication.ts b/extensions/copilot/src/platform/authentication/common/authentication.ts
index 99a03386736..d0adc1d09a1 100644
--- a/extensions/copilot/src/platform/authentication/common/authentication.ts
+++ b/extensions/copilot/src/platform/authentication/common/authentication.ts
@@ -277,7 +277,7 @@ export abstract class BaseAuthenticationService extends Disposable implements IA
 	// #endregion
 
 	//#region ADO Token
-	abstract getAdoAccessTokenBase64(options?: AuthenticationGetSessionOptions): Promise<string | undefined>
+	abstract getAdoAccessTokenBase64(options?: AuthenticationGetSessionOptions): Promise<string | undefined>;
 	//#endregion
 
 	protected async _handleAuthChangeEvent(): Promise<void> {
diff --git a/extensions/copilot/src/platform/chat/common/commonTypes.ts b/extensions/copilot/src/platform/chat/common/commonTypes.ts
index 73fe349229d..6fb7bae58f9 100644
--- a/extensions/copilot/src/platform/chat/common/commonTypes.ts
+++ b/extensions/copilot/src/platform/chat/common/commonTypes.ts
@@ -187,7 +187,7 @@ export type ChatFetchRetriableError<T> =
 	/**
 	 * We requested conversation, the response was filtered by RAI, but we want to retry.
 	 */
-	{ type: ChatFetchResponseType.FilteredRetry; reason: string; category: FilterReason; value: T; requestId: string; serverRequestId: string | undefined }
+	{ type: ChatFetchResponseType.FilteredRetry; reason: string; category: FilterReason; value: T; requestId: string; serverRequestId: string | undefined };
 
 export type FetchSuccess<T> =
 	{ type: ChatFetchResponseType.Success; value: T; requestId: string; serverRequestId: string | undefined; usage: APIUsage | undefined; resolvedModel: string };
diff --git a/extensions/copilot/src/platform/configuration/common/configurationService.ts b/extensions/copilot/src/platform/configuration/common/configurationService.ts
index e0bf525b7ef..9e585d981b1 100644
--- a/extensions/copilot/src/platform/configuration/common/configurationService.ts
+++ b/extensions/copilot/src/platform/configuration/common/configurationService.ts
@@ -640,6 +640,8 @@ export namespace ConfigKey {
 		export const UseAlternativeNESNotebookFormat = defineAndMigrateExpSetting<boolean>('chat.advanced.notebook.alternativeNESFormat.enabled', 'chat.notebook.alternativeNESFormat.enabled', false);
 
 		export const InlineChatSelectionRatioThreshold = defineSetting<number>('chat.inlineChat.selectionRatioThreshold', ConfigType.ExperimentBased, 0);
+		export const InlineChatReasoningEffort = defineSetting<string>('chat.inlineChat.reasoningEffort', ConfigType.ExperimentBased, 'low');
+		export const InlineChatEnableThinking = defineSetting<boolean>('chat.inlineChat.enableThinking', ConfigType.ExperimentBased, false);
 
 		export const InstantApplyShortModelName = defineAndMigrateExpSetting<string>('chat.advanced.instantApply.shortContextModelName', 'chat.instantApply.shortContextModelName', CHAT_MODEL.SHORT_INSTANT_APPLY);
 		export const InstantApplyShortContextLimit = defineAndMigrateExpSetting<number>('chat.advanced.instantApply.shortContextLimit', 'chat.instantApply.shortContextLimit', 8000);
@@ -713,8 +715,6 @@ export namespace ConfigKey {
 
 		/** Internal: override reasoning/thinking effort sent to model APIs (e.g. Responses API, Messages API). Used by evals. */
 		export const ReasoningEffortOverride = defineSetting<string | null>('chat.reasoningEffortOverride', ConfigType.Simple, null);
-
-		export const SessionSearchCloudSync = defineAndMigrateSetting<boolean>('chat.advanced.sessionSearch.cloudSync.enabled', 'chat.sessionSearch.cloudSync.enabled', false);
 	}
 
 	/**
diff --git a/extensions/copilot/src/platform/endpoint/common/endpointProvider.ts b/extensions/copilot/src/platform/endpoint/common/endpointProvider.ts
index 64de7269315..32b19748b14 100644
--- a/extensions/copilot/src/platform/endpoint/common/endpointProvider.ts
+++ b/extensions/copilot/src/platform/endpoint/common/endpointProvider.ts
@@ -70,7 +70,7 @@ type ICompletionModelCapabilities = {
 	type: 'completion';
 	family: string;
 	tokenizer: TokenizerType;
-}
+};
 
 export enum ModelSupportedEndpoint {
 	ChatCompletions = '/chat/completions',
diff --git a/extensions/copilot/src/platform/endpoint/node/automodeService.ts b/extensions/copilot/src/platform/endpoint/node/automodeService.ts
index 66fd2c66ab3..072210813e6 100644
--- a/extensions/copilot/src/platform/endpoint/node/automodeService.ts
+++ b/extensions/copilot/src/platform/endpoint/node/automodeService.ts
@@ -63,14 +63,18 @@ class AutoModeTokenBank extends Disposable {
 		this._fetchedValue = this._register(createCapiClientFetchedValue<AutoModeAPIResponse>(capiClientService, envService, {
 			request: async () => {
 				const authToken = (await authService.getCopilotToken()).token;
-				const autoModeHint = expService.getTreatmentVariable<string>(expName) || 'auto';
+				const extValue = expService.getTreatmentVariable<string>(expName);
+				const model_hints = [extValue || 'auto'];
+				if (location === ChatLocation.Editor && model_hints[0] !== 'auto') {
+					model_hints.push('auto');
+				}
 				return {
 					headers: {
 						'Content-Type': 'application/json',
 						'Authorization': `Bearer ${authToken}`,
 					},
 					method: 'POST' as const,
-					json: { auto_mode: { model_hints: [autoModeHint] } },
+					json: { auto_mode: { model_hints } },
 				};
 			},
 			requestMetadata: { type: RequestType.AutoModels },
diff --git a/extensions/copilot/src/platform/endpoint/node/responsesApi.ts b/extensions/copilot/src/platform/endpoint/node/responsesApi.ts
index c18488dcbe2..93729f900a9 100644
--- a/extensions/copilot/src/platform/endpoint/node/responsesApi.ts
+++ b/extensions/copilot/src/platform/endpoint/node/responsesApi.ts
@@ -86,8 +86,9 @@ export function createResponsesRequestBody(accessor: ServicesAccessor, options:
 	body.truncation = configService.getConfig(ConfigKey.Advanced.UseResponsesApiTruncation) ?
 		'auto' :
 		'disabled';
+	const thinkingExplicitlyDisabled = options.modelCapabilities?.enableThinking === false;
 	const summaryConfig = configService.getExperimentBasedConfig(ConfigKey.ResponsesApiReasoningSummary, expService);
-	const shouldDisableReasoningSummary = endpoint.family === 'gpt-5.3-codex-spark-preview';
+	const shouldDisableReasoningSummary = endpoint.family === 'gpt-5.3-codex-spark-preview' || thinkingExplicitlyDisabled;
 	const effortFromSetting = configService.getConfig(ConfigKey.Advanced.ReasoningEffortOverride);
 	const effort = endpoint.supportsReasoningEffort?.length
 		? (effortFromSetting || options.modelCapabilities?.reasoningEffort || 'medium')
diff --git a/extensions/copilot/src/platform/endpoint/test/node/openaiCompatibleEndpoint.ts b/extensions/copilot/src/platform/endpoint/test/node/openaiCompatibleEndpoint.ts
index b7627955849..cae82f015dc 100644
--- a/extensions/copilot/src/platform/endpoint/test/node/openaiCompatibleEndpoint.ts
+++ b/extensions/copilot/src/platform/endpoint/test/node/openaiCompatibleEndpoint.ts
@@ -73,7 +73,7 @@ export type IModelConfig = {
 		max_completion_tokens?: number | null;
 		intent?: boolean | null;
 	};
-}
+};
 
 export class OpenAICompatibleTestEndpoint extends ChatEndpoint {
 	constructor(
diff --git a/extensions/copilot/src/platform/git/vscode-node/gitServiceImpl.ts b/extensions/copilot/src/platform/git/vscode-node/gitServiceImpl.ts
index 8d4949173db..ccee88711f1 100644
--- a/extensions/copilot/src/platform/git/vscode-node/gitServiceImpl.ts
+++ b/extensions/copilot/src/platform/git/vscode-node/gitServiceImpl.ts
@@ -483,7 +483,7 @@ export class GitServiceImpl extends Disposable implements IGitService {
 	}
 
 	private static repoToRepoContext(repo: Repository): RepoContext;
-	private static repoToRepoContext(repo: Repository | undefined | null): RepoContext | undefined
+	private static repoToRepoContext(repo: Repository | undefined | null): RepoContext | undefined;
 	private static repoToRepoContext(repo: Repository | undefined | null): RepoContext | undefined {
 		if (!repo) {
 			return undefined;
diff --git a/extensions/copilot/src/platform/inlineCompletions/common/api.ts b/extensions/copilot/src/platform/inlineCompletions/common/api.ts
index 60a820a3bd9..8634278dbf7 100644
--- a/extensions/copilot/src/platform/inlineCompletions/common/api.ts
+++ b/extensions/copilot/src/platform/inlineCompletions/common/api.ts
@@ -11,12 +11,12 @@ export namespace Copilot {
 	export type Position = {
 		line: number;
 		character: number;
-	}
+	};
 
 	export type Range = {
 		start: Position;
 		end: Position;
-	}
+	};
 
 	/**
 	* The ContextProvider API allows extensions to provide additional context items that
diff --git a/extensions/copilot/src/platform/inlineEdits/common/dataTypes/languageContext.ts b/extensions/copilot/src/platform/inlineEdits/common/dataTypes/languageContext.ts
index a9b0725f0cf..16e23a2535e 100644
--- a/extensions/copilot/src/platform/inlineEdits/common/dataTypes/languageContext.ts
+++ b/extensions/copilot/src/platform/inlineEdits/common/dataTypes/languageContext.ts
@@ -11,13 +11,13 @@ export type LanguageContextEntry = {
 	context: ContextItem;
 	timeStamp: number;
 	onTimeout: boolean;
-}
+};
 
 export type LanguageContextResponse = {
 	start: number;
 	end: number;
 	items: LanguageContextEntry[];
-}
+};
 
 type SerializedSnippetContext = {
 	kind: ContextKind.Snippet;
@@ -25,21 +25,21 @@ type SerializedSnippetContext = {
 	uri: string;
 	additionalUris?: string[];
 	value: string;
-}
+};
 
 type SerializedTraitContext = {
 	kind: ContextKind.Trait;
 	priority: number;
 	name: string;
 	value: string;
-}
+};
 
 type SerializedDiagnosticBagContext = {
 	kind: ContextKind.DiagnosticBag;
 	priority: number;
 	uri: string;
 	values: Omit<SerializedDiagnostic, 'uri'>[];
-}
+};
 
 type SerializedContextItem = SerializedSnippetContext | SerializedTraitContext | SerializedDiagnosticBagContext;
 
@@ -50,7 +50,7 @@ export type SerializedContextResponse = {
 		context: SerializedContextItem;
 		timeStamp: number;
 	}[];
-}
+};
 
 export function serializeLanguageContext(response: LanguageContextResponse): SerializedContextResponse {
 	return {
@@ -113,7 +113,7 @@ export type SerializedDiagnostic = {
 	source: string;
 	code: string | number | undefined;
 	range: string;
-}
+};
 
 function serializeDiagnostic(diagnostic: Diagnostic): Omit<SerializedDiagnostic, 'uri'>;
 function serializeDiagnostic(diagnostic: Diagnostic, resource: Uri): SerializedDiagnostic;
diff --git a/extensions/copilot/src/platform/inlineEdits/common/dataTypes/xtabPromptOptions.ts b/extensions/copilot/src/platform/inlineEdits/common/dataTypes/xtabPromptOptions.ts
index 0c9220928a0..0dee4e8cf4d 100644
--- a/extensions/copilot/src/platform/inlineEdits/common/dataTypes/xtabPromptOptions.ts
+++ b/extensions/copilot/src/platform/inlineEdits/common/dataTypes/xtabPromptOptions.ts
@@ -31,7 +31,7 @@ export type RecentlyViewedDocumentsOptions = {
 	readonly includeViewedFiles: boolean;
 	readonly includeLineNumbers: IncludeLineNumbersOption;
 	readonly clippingStrategy: RecentFileClippingStrategy;
-}
+};
 
 export namespace RecentlyViewedDocumentsOptions {
 	export const VALIDATOR: IValidator<Partial<RecentlyViewedDocumentsOptions>> = vObj({
@@ -49,14 +49,14 @@ export type LanguageContextOptions = {
 	readonly enabled: boolean;
 	readonly maxTokens: number;
 	readonly traitPosition: 'before' | 'after';
-}
+};
 
 export type DiffHistoryOptions = {
 	readonly nEntries: number;
 	readonly maxTokens: number;
 	readonly onlyForDocsInPrompt: boolean;
 	readonly useRelativePaths: boolean;
-}
+};
 
 export type PagedClipping = { pageSize: number };
 
@@ -66,7 +66,7 @@ export type CurrentFileOptions = {
 	readonly includeLineNumbers: IncludeLineNumbersOption;
 	readonly includeCursorTag: boolean;
 	readonly prioritizeAboveCursor: boolean;
-}
+};
 
 export namespace CurrentFileOptions {
 	export const VALIDATOR: IValidator<Partial<CurrentFileOptions>> = vObj({
@@ -96,7 +96,7 @@ export type LintOptions = {
 	maxLineDistance: number;
 	/** When set to a value > 0, also include linter diagnostics from the N most recently edited/viewed files. */
 	nRecentFiles: number;
-}
+};
 
 /**
  * The raw user-facing aggressiveness setting. Includes `Default` to distinguish
@@ -241,7 +241,7 @@ export type PromptOptions = {
 	readonly diffHistory: DiffHistoryOptions;
 	readonly includePostScript: boolean;
 	readonly lintOptions: LintOptions | undefined;
-}
+};
 
 /**
  * Prompt strategies that tweak prompt in a way that's different from current prod prompting strategy.
diff --git a/extensions/copilot/src/platform/inlineEdits/common/statelessNextEditProvider.ts b/extensions/copilot/src/platform/inlineEdits/common/statelessNextEditProvider.ts
index 6a3c77f6eda..3e27f7701fa 100644
--- a/extensions/copilot/src/platform/inlineEdits/common/statelessNextEditProvider.ts
+++ b/extensions/copilot/src/platform/inlineEdits/common/statelessNextEditProvider.ts
@@ -26,7 +26,7 @@ import { InlineEditRequestLogContext } from './inlineEditLogContext';
 import { stringifyChatMessages } from './utils/stringifyChatMessages';
 import { IXtabHistoryEntry } from './workspaceEditTracker/nesXtabHistoryTracker';
 
-export type EditStreaming = AsyncGenerator<StreamedEdit, NoNextEditReason, void>
+export type EditStreaming = AsyncGenerator<StreamedEdit, NoNextEditReason, void>;
 
 export class WithStatelessProviderTelemetry<T> {
 	constructor(
@@ -36,7 +36,7 @@ export class WithStatelessProviderTelemetry<T> {
 	}
 }
 
-export type EditStreamingWithTelemetry = AsyncGenerator<WithStatelessProviderTelemetry<StreamedEdit>, WithStatelessProviderTelemetry<NoNextEditReason>, void>
+export type EditStreamingWithTelemetry = AsyncGenerator<WithStatelessProviderTelemetry<StreamedEdit>, WithStatelessProviderTelemetry<NoNextEditReason>, void>;
 
 export type StreamedEdit = {
 	readonly targetDocument: DocumentId;
@@ -49,7 +49,7 @@ export type StreamedEdit = {
 	 * in either the original location or the jump target location.
 	 */
 	readonly originalWindow?: OffsetRange;
-}
+};
 
 export type PushEdit = (edit: Result<StreamedEdit, NoNextEditReason>) => void;
 
@@ -432,7 +432,7 @@ export type FetchResultWithStats = {
 	readonly response: FetchResponse<string>;
 	readonly fetchTime: number;
 	readonly fetchResult: ChatFetchResponseType;
-}
+};
 
 export class StatelessNextEditTelemetryBuilder {
 
diff --git a/extensions/copilot/src/platform/inlineEdits/common/workspaceEditTracker/nesXtabHistoryTracker.ts b/extensions/copilot/src/platform/inlineEdits/common/workspaceEditTracker/nesXtabHistoryTracker.ts
index c755f5bd986..ed7eaa8c671 100644
--- a/extensions/copilot/src/platform/inlineEdits/common/workspaceEditTracker/nesXtabHistoryTracker.ts
+++ b/extensions/copilot/src/platform/inlineEdits/common/workspaceEditTracker/nesXtabHistoryTracker.ts
@@ -38,19 +38,19 @@ export interface IXtabHistoryVisibleRangesEntry extends IXtabHistoryDocumentEntr
 
 export type IXtabHistoryEntry =
 	| IXtabHistoryEditEntry
-	| IXtabHistoryVisibleRangesEntry
+	| IXtabHistoryVisibleRangesEntry;
 
 type DocumentChangedEvent = {
 	value: StringText;
 	changes: StringEdit[];
 	previous: StringText | undefined;
-}
+};
 
 type DocumentSelectionChangedEvent = {
 	value: readonly OffsetRange[];
 	changes: unknown[];
 	previous: readonly OffsetRange[] | undefined;
-}
+};
 
 /**
  * Controls how consecutive edits to the same document are merged in history.
diff --git a/extensions/copilot/src/platform/inlineEdits/common/workspaceEditTracker/workspaceDocumentEditTracker.ts b/extensions/copilot/src/platform/inlineEdits/common/workspaceEditTracker/workspaceDocumentEditTracker.ts
index a764232212e..64a029afd53 100644
--- a/extensions/copilot/src/platform/inlineEdits/common/workspaceEditTracker/workspaceDocumentEditTracker.ts
+++ b/extensions/copilot/src/platform/inlineEdits/common/workspaceEditTracker/workspaceDocumentEditTracker.ts
@@ -17,7 +17,7 @@ export type DocumentHistoryDifference = {
 	before: StringText;
 	after: StringText;
 	edits: StringEdit;
-}
+};
 
 export class WorkspaceDocumentEditHistory extends Disposable {
 	private readonly _documentState = new Map<DocumentId, DocumentEditHistory>();
diff --git a/extensions/copilot/src/platform/inlineEdits/node/inlineEditsModelService.ts b/extensions/copilot/src/platform/inlineEdits/node/inlineEditsModelService.ts
index 84a0dde583b..0066d0d6e10 100644
--- a/extensions/copilot/src/platform/inlineEdits/node/inlineEditsModelService.ts
+++ b/extensions/copilot/src/platform/inlineEdits/node/inlineEditsModelService.ts
@@ -39,7 +39,7 @@ interface ModelConfigurationWithSource extends ModelConfiguration {
 type ModelInfo = {
 	models: ModelConfigurationWithSource[];
 	currentModelId: string;
-}
+};
 
 export class InlineEditsModelService extends Disposable implements IInlineEditsModelService {
 
diff --git a/extensions/copilot/src/platform/networking/common/fetch.ts b/extensions/copilot/src/platform/networking/common/fetch.ts
index 5bda09c2f66..02a3f985c14 100644
--- a/extensions/copilot/src/platform/networking/common/fetch.ts
+++ b/extensions/copilot/src/platform/networking/common/fetch.ts
@@ -304,12 +304,12 @@ export type StreamOptions = {
 	 * All other chunks will also include a usage field, but with a null value. NOTE: If the stream is interrupted, you may not receive the final usage chunk which contains the total token usage for the request.
 	 */
 	include_usage?: boolean;
-}
+};
 
 export type Prediction = {
 	type: 'content';
 	content: string | { type: string; text: string }[];
-}
+};
 
 /** based on https://platform.openai.com/docs/api-reference/chat/create
  *
diff --git a/extensions/copilot/src/platform/networking/common/networking.ts b/extensions/copilot/src/platform/networking/common/networking.ts
index 927855b3548..8c70a781c1e 100644
--- a/extensions/copilot/src/platform/networking/common/networking.ts
+++ b/extensions/copilot/src/platform/networking/common/networking.ts
@@ -231,7 +231,7 @@ export type IChatRequestTelemetryProperties = {
 	parentRequestId?: string;
 	/** For a subagent: The tool_call_id from the parent agent's LLM response that triggered this subagent invocation. */
 	parentToolCallId?: string;
-}
+};
 
 export interface ICreateEndpointBodyOptions extends IMakeChatRequestOptions {
 	requestId: string;
diff --git a/extensions/copilot/src/platform/notebook/common/alternativeContentEditGenerator.ts b/extensions/copilot/src/platform/notebook/common/alternativeContentEditGenerator.ts
index 02bc8e99af0..2ab7f8dd581 100644
--- a/extensions/copilot/src/platform/notebook/common/alternativeContentEditGenerator.ts
+++ b/extensions/copilot/src/platform/notebook/common/alternativeContentEditGenerator.ts
@@ -23,7 +23,7 @@ export type NotebookEditGenerationTelemtryOptions = {
 	model: Promise<string> | string | undefined;
 	requestId: string | undefined;
 	source: NotebookEditGenrationSource;
-}
+};
 
 export enum NotebookEditGenrationSource {
 	codeMapperEditNotebook = 'codeMapperEditNotebook',
diff --git a/extensions/copilot/src/platform/review/vscode/reviewServiceImpl.ts b/extensions/copilot/src/platform/review/vscode/reviewServiceImpl.ts
index 8148929bb4d..8861a96de25 100644
--- a/extensions/copilot/src/platform/review/vscode/reviewServiceImpl.ts
+++ b/extensions/copilot/src/platform/review/vscode/reviewServiceImpl.ts
@@ -24,8 +24,8 @@ const numberOfReviewCommentsKey = 'github.copilot.chat.review.numberOfComments';
 
 export class ReviewServiceImpl implements IReviewService {
 	declare _serviceBrand: undefined;
-	private _disposables = new DisposableStore();
-	private _repositoryDisposables = new DisposableStore();
+	private readonly _disposables = new DisposableStore();
+	private readonly _repositoryDisposables = new DisposableStore();
 	private _reviewDiffReposString: string | undefined;
 	private _diagnosticCollection: vscode.DiagnosticCollection | undefined;
 	private _commentController = vscode.comments.createCommentController('github-copilot-review', 'Code Review');
diff --git a/extensions/copilot/src/platform/telemetry/common/msftTelemetrySender.ts b/extensions/copilot/src/platform/telemetry/common/msftTelemetrySender.ts
index 2074272384d..0bbc00c2509 100644
--- a/extensions/copilot/src/platform/telemetry/common/msftTelemetrySender.ts
+++ b/extensions/copilot/src/platform/telemetry/common/msftTelemetrySender.ts
@@ -20,7 +20,7 @@ export class BaseMsftTelemetrySender implements IMSFTTelemetrySender {
 	protected _internalLargeEventTelemetryReporter: ITelemetryReporter | undefined;
 	private _externalTelemetryReporter: ITelemetryReporter;
 
-	protected _disposables: DisposableStore = new DisposableStore();
+	protected readonly _disposables: DisposableStore = new DisposableStore();
 	private _username: string | undefined;
 	private _vscodeTeamMember: boolean = false;
 	private _sku: string | undefined;
diff --git a/extensions/copilot/src/platform/tfidf/node/test/tfidf.spec.ts b/extensions/copilot/src/platform/tfidf/node/test/tfidf.spec.ts
deleted file mode 100644
index 09eeae8c500..00000000000
--- a/extensions/copilot/src/platform/tfidf/node/test/tfidf.spec.ts
+++ /dev/null
@@ -1,225 +0,0 @@
-/*---------------------------------------------------------------------------------------------
- *  Copyright (c) Microsoft Corporation. All rights reserved.
- *  Licensed under the MIT License. See License.txt in the project root for license information.
- *--------------------------------------------------------------------------------------------*/
-
-import assert from 'assert';
-import { suite, test } from 'vitest';
-import { URI } from '../../../../util/vs/base/common/uri';
-import { Range } from '../../../../util/vs/editor/common/core/range';
-import { FileChunk } from '../../../chunking/common/chunk';
-import { PersistentTfIdf, TfIdfDoc } from '../tfidf';
-
-/**
- * Generates all permutations of an array.
- *
- * This is useful for testing to make sure order does not effect the result.
- */
-function permutate<T>(arr: T[]): T[][] {
-	if (arr.length === 0) {
-		return [[]];
-	}
-
-	const result: T[][] = [];
-
-	for (let i = 0; i < arr.length; i++) {
-		const rest = [...arr.slice(0, i), ...arr.slice(i + 1)];
-		const permutationsRest = permutate(rest);
-		for (let j = 0; j < permutationsRest.length; j++) {
-			result.push([arr[i], ...permutationsRest[j]]);
-		}
-	}
-
-	return result;
-}
-
-function assertPathsEqual(result: readonly FileChunk[], expected: readonly string[], docs?: TfIdfDoc[]) {
-	assert.deepStrictEqual(result.map(x => x.file.path), expected,
-		docs ? `Failed for doc order: ${docs.map(x => x.uri.path)}` : undefined);
-}
-
-suite('TF-IDF', () => {
-	test('Search should return nothing when empty', async () => {
-		const tfidf = new PersistentTfIdf(':memory:');
-		tfidf;
-		assertPathsEqual(await tfidf.search('something'), []);
-	});
-
-	test('Search should return nothing for term not in documents ', async () => {
-		const tfidf = new PersistentTfIdf(':memory:');
-		await tfidf.addOrUpdate([
-			testFile('A', 'cat dog fish'),
-		]);
-		assertPathsEqual(await tfidf.search('elephant'), []);
-	});
-
-	test('Should return document with exact match', async () => {
-		for (const docs of permutate([
-			testFile('A', 'cat dog cat'),
-			testFile('B', 'cat fish'),
-		])) {
-			const tfidf = new PersistentTfIdf(':memory:');
-			await tfidf.addOrUpdate(docs);
-			assertPathsEqual(await tfidf.search('dog'), ['/A'], docs);
-		}
-	});
-
-	test('Should return document with more matches first', async () => {
-		for (const docs of permutate([
-			testFile('/A', 'cat dog cat'),
-			testFile('/B', 'cat fish'),
-			testFile('/C', 'frog'),
-		])) {
-			const tfidf = new PersistentTfIdf(':memory:');
-			await tfidf.addOrUpdate(docs);
-			assertPathsEqual(await tfidf.search('cat'), ['/A', '/B'], docs);
-		}
-	});
-
-	test('Should return document with more matches first when term appears in all documents', async () => {
-		for (const docs of permutate([
-			testFile('/A', 'cat dog cat cat'),
-			testFile('/B', 'cat fish'),
-			testFile('/C', 'frog cat cat'),
-		])) {
-			const tfidf = new PersistentTfIdf(':memory:');
-			await tfidf.addOrUpdate(docs);
-			assertPathsEqual(await tfidf.search('cat'), ['/A', '/C', '/B'], docs);
-		}
-	});
-
-	test('Should weigh less common term higher', async () => {
-		for (const docs of permutate([
-			testFile('A', 'cat dog cat'),
-			testFile('B', 'fish'),
-			testFile('C', 'cat cat cat cat'),
-			testFile('D', 'cat fish')
-		])) {
-			const tfidf = new PersistentTfIdf(':memory:');
-			await tfidf.addOrUpdate(docs);
-			assertPathsEqual(await tfidf.search('cat the dog'), ['/A', '/C', '/D'], docs);
-		}
-	});
-
-	test('Should ignore case and punctuation', async () => {
-		for (const docs of permutate([
-			testFile('/A', 'Cat doG.cat'),
-			testFile('/B', 'cAt fiSH'),
-			testFile('/C', 'frOg'),
-		])) {
-			const tfidf = new PersistentTfIdf(':memory:');
-			await tfidf.addOrUpdate(docs);
-			assertPathsEqual(await tfidf.search('. ,CaT!  '), ['/A', '/B'], docs);
-		}
-	});
-
-	test('Should match on camelCase words', async () => {
-		for (const docs of permutate([
-			testFile('/A', 'catDog cat'),
-			testFile('/B', 'fishCatFish'),
-			testFile('/C', 'frogcat'),
-		])) {
-			const tfidf = new PersistentTfIdf(':memory:');
-			await tfidf.addOrUpdate(docs);
-			assertPathsEqual(await tfidf.search('catDOG'), ['/A', '/B'], docs);
-		}
-	});
-
-	test('Should not match document after delete', async () => {
-		const docA = testFile('/A', 'cat dog cat');
-		const docB = testFile('/B', 'cat fish');
-		const docC = testFile('/C', 'frog');
-
-		const tfidf = new PersistentTfIdf(':memory:');
-		await tfidf.addOrUpdate([docA, docB, docC]);
-		assertPathsEqual(await tfidf.search('cat'), ['/A', '/B']);
-
-		tfidf.delete([docA.uri]);
-		assertPathsEqual(await tfidf.search('cat'), ['/B']);
-
-		tfidf.delete([docC.uri]);
-		assertPathsEqual(await tfidf.search('cat'), ['/B']);
-
-		tfidf.delete([docB.uri]);
-		assertPathsEqual(await tfidf.search('cat'), []);
-	});
-
-	test('Should match for snake_case', async () => {
-		const docA = testFile('/A', 'cat_dog cat _dog cat_');
-		const docB = testFile('/B', 'fish cat bird_horse');
-		const docC = testFile('/C', 'fish');
-
-		const tfidf = new PersistentTfIdf(':memory:');
-		await tfidf.addOrUpdate([docA, docB, docC]);
-		assertPathsEqual(await tfidf.search('cat'), ['/A', '/B']);
-		assertPathsEqual(await tfidf.search('cat_dog'), ['/A', '/B']);
-		assertPathsEqual(await tfidf.search('_dog'), ['/A']);
-		assertPathsEqual(await tfidf.search('cat_'), ['/A', '/B']);
-		assertPathsEqual(await tfidf.search('fish_cat'), ['/A', '/B', '/C']);
-		assertPathsEqual(await tfidf.search('man_bear_pig'), []);
-
-		// Make sure snake case is broken up too for searches
-		assertPathsEqual(await tfidf.search('bird_horse'), ['/B']);
-		assertPathsEqual(await tfidf.search('bird'), ['/B']);
-		assertPathsEqual(await tfidf.search('horse'), ['/B']);
-	});
-
-	test('Should match with leading/trailing underscores', async () => {
-		const docA = testFile('/A', '_cat dog_');
-		const docB = testFile('/B', 'fish');
-
-		const tfidf = new PersistentTfIdf(':memory:');
-		await tfidf.addOrUpdate([docA, docB]);
-		assertPathsEqual(await tfidf.search('cat'), ['/A']);
-		assertPathsEqual(await tfidf.search('_cat'), ['/A']);
-		assertPathsEqual(await tfidf.search('cat_'), ['/A']);
-		assertPathsEqual(await tfidf.search('dog'), ['/A']);
-		assertPathsEqual(await tfidf.search('_dog'), ['/A']);
-		assertPathsEqual(await tfidf.search('dog_'), ['/A']);
-	});
-
-	test('Should match words with digits', async () => {
-		const docA = testFile('/A', 'cat2 dog');
-		const docB = testFile('/B', 'fish cat2fish bi2rd');
-		const docC = testFile('/C', 'fish3');
-
-		const tfidf = new PersistentTfIdf(':memory:');
-		await tfidf.addOrUpdate([docA, docB, docC]);
-		assertPathsEqual(await tfidf.search('cat2'), ['/A']);
-		assertPathsEqual(await tfidf.search('cat2fish'), ['/B']);
-		assertPathsEqual(await tfidf.search('fish'), ['/B', '/C']); // Should also match fish3
-	});
-
-	test('Should match words using $', async () => {
-		const docA = testFile('/A', '$cat dog');
-		const docB = testFile('/B', 'fish cat');
-		const docC = testFile('/C', 'cat$ dog$cat');
-
-		const tfidf = new PersistentTfIdf(':memory:');
-		await tfidf.addOrUpdate([docA, docB, docC]);
-		assertPathsEqual(await tfidf.search('$cat'), ['/A']);
-		assertPathsEqual(await tfidf.search('dog$cat'), ['/C']);
-	});
-
-	test('Should match on function calls', async () => {
-		const docA = testFile('/A', 'cat() dog');
-		const docB = testFile('/B', 'fish cat');
-		const docC = testFile('/C', 'fish');
-
-		const tfidf = new PersistentTfIdf(':memory:');
-		await tfidf.addOrUpdate([docA, docB, docC]);
-		assertPathsEqual(await tfidf.search('cat()'), ['/A', '/B']);
-		assertPathsEqual(await tfidf.search('cat'), ['/A', '/B']);
-	});
-});
-
-function testFile(path: string, content: string): TfIdfDoc {
-	const uri = URI.file(path);
-	return {
-		uri,
-		async getContentVersionId() { return '123'; },
-		async getChunks() {
-			return [{ file: uri, text: content, rawText: content, range: Range.lift({ startColumn: 0, startLineNumber: 0, endColumn: 0, endLineNumber: 0 }) }];
-		},
-	};
-}
diff --git a/extensions/copilot/src/platform/tfidf/node/tfidf.ts b/extensions/copilot/src/platform/tfidf/node/tfidf.ts
deleted file mode 100644
index 278ddebd0ac..00000000000
--- a/extensions/copilot/src/platform/tfidf/node/tfidf.ts
+++ /dev/null
@@ -1,576 +0,0 @@
-/*---------------------------------------------------------------------------------------------
- *  Copyright (c) Microsoft Corporation. All rights reserved.
- *  Licensed under the MIT License. See License.txt in the project root for license information.
- *--------------------------------------------------------------------------------------------*/
-
-import fs from 'fs';
-import sql from 'node:sqlite';
-import path from 'path';
-import { GlobIncludeOptions, shouldInclude } from '../../../util/common/glob';
-import { Limiter } from '../../../util/vs/base/common/async';
-import { Iterable } from '../../../util/vs/base/common/iterator';
-import { ResourceMap, ResourceSet } from '../../../util/vs/base/common/map';
-import { Schemas } from '../../../util/vs/base/common/network';
-import { URI } from '../../../util/vs/base/common/uri';
-import { Range } from '../../../util/vs/editor/common/core/range';
-import { FileChunk } from '../../chunking/common/chunk';
-
-type SparseEmbedding = Map</* word */ string, /* weight */number>;
-type TermFrequencies = Record</* word */ string, /*occurrences*/ number>;
-
-function countRecordFrom(values: Iterable<string>): Record<string, number> {
-	const map = Object.create(null);
-	for (const value of values) {
-		map[value] = (map[value] ?? 0) + 1;
-	}
-	return map;
-}
-
-/**
- * Count how many times each term (word) appears in a string.
- */
-function termFrequencies(input: string): TermFrequencies {
-	return countRecordFrom(splitTerms(input));
-}
-
-/**
- * Break a string into terms (words).
- */
-function* splitTerms(input: string): Iterable<string> {
-	const normalize = (word: string) => word.toLowerCase();
-
-	// Only match on words that are at least 3 characters long and start with a letter
-	for (const [word] of input.matchAll(/(?<![\p{Alphabetic}\p{Number}_$])[\p{Letter}_$][\p{Alphabetic}\p{Number}_$]{2,}(?![\p{Alphabetic}\p{Number}_$])/gu)) {
-		const parts = new Set<string>();
-		parts.add(normalize(word));
-
-		const subParts: string[] = [];
-		const camelParts = word.split(/(?<=[a-z$])(?=[A-Z])/g);
-		if (camelParts.length > 1) {
-			subParts.push(...camelParts);
-		}
-
-		const snakeParts = word.split('_');
-		if (snakeParts.length > 1) {
-			subParts.push(...snakeParts);
-		}
-
-		const nonDigitPrefixMatch = word.match(/^([\D]+)\p{Number}+$/u);
-		if (nonDigitPrefixMatch) {
-			subParts.push(nonDigitPrefixMatch[1]);
-		}
-
-		for (const part of subParts) {
-			// Require at least 3 letters in the sub parts
-			if (part.length > 2 && /[\p{Alphabetic}_$]{3,}/gu.test(part)) {
-				parts.add(normalize(part));
-			}
-		}
-
-		yield* parts;
-	}
-}
-
-/**
- * A very simple heap implementation that keeps the top `maxSize` elements.
- */
-class SimpleHeap<T> {
-
-	private readonly store: Array<{ readonly score: number; readonly value: T }> = [];
-
-	constructor(
-		private readonly maxSize: number,
-		private minScore = -Infinity,
-	) { }
-
-	toArray(maxSpread?: number): T[] {
-		if (this.store.length && typeof maxSpread === 'number') {
-			const minScore = this.store.at(0)!.score * (1.0 - maxSpread);
-			return this.store.filter(x => x.score >= minScore).map(x => x.value);
-		}
-		return this.store.map(x => x.value);
-	}
-
-	add(score: number, value: T) {
-		if (score <= this.minScore) {
-			return;
-		}
-
-		const index = this.store.findIndex(entry => entry.score < score);
-		this.store.splice(index >= 0 ? index : this.store.length, 0, { score, value });
-		while (this.store.length > this.maxSize) {
-			this.store.pop();
-		}
-
-		if (this.store.length === this.maxSize) {
-			this.minScore = this.store.at(-1)?.score ?? this.minScore;
-		}
-	}
-}
-
-interface DocumentChunkEntry {
-	readonly chunk: FileChunk;
-	readonly tf: TermFrequencies;
-}
-
-export interface TfIdfDoc {
-	readonly uri: URI;
-	getContentVersionId(): Promise<string>;
-	getChunks(): Promise<Iterable<FileChunk>>;
-}
-
-export interface TfIdfSearchOptions {
-	/** Glob pattern for files to include/exclude */
-	readonly globPatterns?: GlobIncludeOptions;
-
-	/** Maximum number of results to return. If not specified returns as many results as possible */
-	readonly maxResults?: number;
-
-	/**
-	 * Maximum range of result scores.
-	 *
-	 * This is a multiplier. With a value of `0.7` for instance, all returned results must have a score >= `results[0].score * (1 - 0.7)`
-	 */
-	readonly maxSpread?: number;
-}
-
-interface TfIdfDocData {
-	readonly contentVersionId: string;
-	readonly chunks: readonly DocumentChunkEntry[];
-}
-
-/**
- * Implementation of tf-idf (term frequency–inverse document frequency) for a set of documents where
- * each document contains one or more chunks of text.
- *
- * This implementation uses SQLite to store the documents and their chunks. This lets us scale up to a large
- * number of documents and chunks.
- */
-export class PersistentTfIdf {
-
-	private readonly db!: sql.DatabaseSync;
-
-	constructor(dbPath: URI | ':memory:') {
-		const syncOptions: sql.DatabaseSyncOptions = {
-			open: true,
-			enableForeignKeyConstraints: true
-		};
-
-		if (dbPath !== ':memory:' && dbPath.scheme === Schemas.file) {
-			try {
-				fs.mkdirSync(path.dirname(dbPath.fsPath), { recursive: true });
-				this.db = new sql.DatabaseSync(dbPath.fsPath, syncOptions);
-			} catch (e) {
-				console.error('Failed to open SQLite database on disk. Trying memory db', e);
-			}
-		}
-
-		// Try falling back to an in-memory database
-		if (!this.db) {
-			this.db = new sql.DatabaseSync(':memory:', syncOptions);
-		}
-
-		this.db.exec(`
-			PRAGMA journal_mode = OFF;
-			PRAGMA synchronous = 0;
-			PRAGMA cache_size = 1000000;
-			PRAGMA locking_mode = EXCLUSIVE;
-			PRAGMA temp_store = MEMORY;
-		`);
-
-		this.db.exec(`
-			CREATE TABLE IF NOT EXISTS Documents (
-				id INTEGER PRIMARY KEY AUTOINCREMENT,
-				uri TEXT,
-				contentVersionId TEXT NOT NULL
-			);
-
-			CREATE TABLE IF NOT EXISTS Chunks (
-				id INTEGER PRIMARY KEY AUTOINCREMENT,
-				documentId INTEGER NOT NULL,
-				text TEXT NOT NULL,
-				startLineNumber INTEGER NOT NULL,
-				startColumn INTEGER NOT NULL,
-				endLineNumber INTEGER NOT NULL,
-				endColumn INTEGER NOT NULL,
-				isFullFile INTEGER NOT NULL,
-				termFrequencies BLOB NOT NULL, -- JSONB object storing term frequencies
-				FOREIGN KEY (documentId) REFERENCES Documents(id) ON DELETE CASCADE
-			);
-
-			CREATE TABLE IF NOT EXISTS ChunkOccurrences (
-				term TEXT PRIMARY KEY,
-				chunkCount INTEGER NOT NULL
-			);
-
-			CREATE INDEX IF NOT EXISTS idx_documents_uri ON Documents(uri);
-			CREATE INDEX IF NOT EXISTS idx_chunks_documentId ON Chunks(documentId);
-		`);
-	}
-
-	/**
-	 * @returns a list of URIs that are out of sync and need to be re-indexed.
-	 */
-	initialize(workspaceDocsIn: Iterable<{ readonly uri: URI; readonly contentId: string }>): { deletedDocs: ResourceSet; newDocs: ResourceSet; outOfSyncDocs: ResourceSet } {
-		const inDocsToContentIds = new ResourceMap<string>();
-		for (const { uri, contentId } of workspaceDocsIn) {
-			inDocsToContentIds.set(uri, contentId);
-		}
-
-		const allDbDocs = this.db.prepare(
-			'SELECT * FROM Documents'
-		).all();
-
-		const dbDocsToContentIds = new ResourceMap<string>();
-		for (const docEntry of allDbDocs) {
-			try {
-				const uri = URI.parse(docEntry.uri as string);
-				dbDocsToContentIds.set(uri, docEntry.contentVersionId as string);
-			} catch (e) {
-				console.error(`Failed to parse URI from database entry: ${docEntry.uri}`, e);
-			}
-		}
-
-		// Build list of documents that are out of sync, new, or deleted
-		const deletedDocs = new ResourceSet();
-		const outOfSyncDocs = new ResourceSet();
-
-		for (const [dbDocUri, dbDocContentId] of dbDocsToContentIds) {
-			const inDocContentId = inDocsToContentIds.get(dbDocUri);
-			if (!inDocContentId) {
-				// Document is not in the workspace anymore
-				deletedDocs.add(dbDocUri);
-			} else if (inDocContentId !== dbDocContentId) {
-				outOfSyncDocs.add(dbDocUri);
-			}
-		}
-
-		// Any new docs in the input that aren't in the db
-		const newDocs = new ResourceSet();
-		for (const uri of inDocsToContentIds.keys()) {
-			if (!dbDocsToContentIds.has(uri)) {
-				newDocs.add(uri);
-			}
-		}
-
-		this.delete(Array.from(deletedDocs));
-
-		return { outOfSyncDocs, newDocs, deletedDocs };
-	}
-
-	private async isUpToDate(toCheck: TfIdfDoc): Promise<boolean> {
-		return this.getDocContentVersionId(toCheck.uri) === await toCheck.getContentVersionId();
-	}
-
-	private getDocContentVersionId(uri: URI): string | undefined {
-		const result = this.db.prepare(
-			'SELECT contentVersionId FROM Documents WHERE uri = ?'
-		).get(uri.toString());
-		return result?.contentVersionId as string | undefined;
-	}
-
-	public async addOrUpdate(documents: readonly TfIdfDoc[]): Promise<void> {
-		const chunkLimiter = new Limiter<Iterable<FileChunk>>(20);
-		try {
-			const toUpdate = await Promise.all(documents.map(async doc => {
-				try {
-					if (await this.isUpToDate(doc)) {
-						return;
-					}
-
-					return {
-						uri: doc.uri,
-						getDoc: async () => {
-							const chunks: Array<DocumentChunkEntry> = [];
-							for (const chunk of await chunkLimiter.queue(() => doc.getChunks())) {
-								// TODO: See if we can compute the tf lazily
-								// The challenge is that we need to also update the `chunkOccurrences`
-								// and all of those updates need to get flushed before the real tfidf of
-								// anything is computed.
-								const tf = termFrequencies(chunk.text);
-								chunks.push({ chunk, tf });
-							}
-							return ({ contentVersionId: await doc.getContentVersionId(), chunks });
-						}
-					};
-				} catch {
-					// noop
-				}
-			}));
-
-			await this.addOrUpdateDocs(toUpdate.filter((doc): doc is any => !!doc));
-		} finally {
-			chunkLimiter.dispose();
-		}
-	}
-
-	public delete(uris: Iterable<URI>): void {
-		this.db.exec('BEGIN TRANSACTION');
-		for (const uri of uris) {
-			const doc = this.getDoc(uri);
-			if (!doc) {
-				continue;
-			}
-
-			this.db.prepare(`
-				DELETE FROM Documents WHERE uri = ?
-			`).run(uri.toString());
-
-			this._cachedChunkCount = undefined;
-
-			const allOccurrences = countRecordFrom(doc.chunks.flatMap(chunk => Object.keys(chunk.tf)));
-
-			for (const [term, count] of Object.entries(allOccurrences)) {
-				this.db.prepare(`
-					UPDATE ChunkOccurrences
-					SET chunkCount = chunkCount - ?
-					WHERE term = ?;
-				`).run(count, term);
-			}
-		}
-		this.db.exec('COMMIT');
-
-		this.db.prepare(`
-			DELETE FROM ChunkOccurrences
-			WHERE chunkCount < 1;
-		`).run();
-	}
-
-	public get fileCount(): number {
-		return this.db.prepare(
-			`SELECT COUNT(*) as count FROM Documents`
-		).get()!.count as number | undefined ?? 0;
-	}
-
-	/**
-	 * Rank the documents by their cosine similarity to a set of search queries.
-	 */
-	public async search(query: string, options?: TfIdfSearchOptions): Promise<FileChunk[]> {
-		const heap = new SimpleHeap<FileChunk>(options?.maxResults ?? Infinity, -Infinity);
-
-		const queryEmbeddings = this.computeEmbeddings(query);
-		if (!queryEmbeddings.size) {
-			return [];
-		}
-
-		const idfCache = new Map<string, number>();
-		for (const entry of await this.getAllChunksWithTerms(Array.from(queryEmbeddings.keys()))) {
-			if (!shouldInclude(entry.chunk.file, options?.globPatterns)) {
-				continue;
-			}
-
-			const score = this.score(entry, queryEmbeddings, idfCache);
-			if (score > 0) {
-				heap.add(score, entry.chunk);
-			}
-		}
-
-		return heap.toArray(options?.maxSpread);
-	}
-
-	private computeEmbeddings(input: string): SparseEmbedding {
-		const tf = termFrequencies(input);
-		return this.computeTfidf(tf);
-	}
-
-	private score(chunk: DocumentChunkEntry, queryEmbedding: SparseEmbedding, idfCache: Map<string, number>): number {
-		// Compute the dot product between the chunk's embedding and the query embedding
-
-		// Note that the chunk embedding is computed lazily on a per-term basis.
-		// This lets us skip a large number of calculations because the majority
-		// of chunks do not share any terms with the query.
-
-		let sum = 0;
-		for (const [term, termTfidf] of queryEmbedding.entries()) {
-			const chunkTf = chunk.tf[term];
-			if (!chunkTf) {
-				// Term does not appear in chunk so it has no contribution
-				continue;
-			}
-
-			let chunkIdf = idfCache.get(term);
-			if (typeof chunkIdf !== 'number') {
-				chunkIdf = this.idf(term);
-				idfCache.set(term, chunkIdf);
-			}
-
-			const chunkTfidf = chunkTf * chunkIdf;
-			sum += chunkTfidf * termTfidf;
-		}
-		return sum;
-	}
-
-	private idf(term: string): number {
-		const chunkOccurrences = this.getChunkOccurrences(term) ?? 0;
-		return chunkOccurrences > 0
-			? Math.log((this.getChunkCount() + 1) / chunkOccurrences)
-			: 0;
-	}
-
-	private computeTfidf(termFrequencies: TermFrequencies): SparseEmbedding {
-		const embedding = new Map<string, number>();
-		for (const [word, occurrences] of Object.entries(termFrequencies)) {
-			const idf = this.idf(word);
-			if (idf > 0) {
-				embedding.set(word, occurrences * idf);
-			}
-		}
-		return embedding;
-	}
-
-	private _cachedChunkCount: number | undefined;
-
-	private getChunkCount(): number {
-		if (typeof this._cachedChunkCount === 'number') {
-			return this._cachedChunkCount;
-		}
-
-		const result = this.db.prepare(
-			'SELECT COUNT(*) as count FROM Chunks'
-		).get();
-		return result?.count as number | undefined ?? 0;
-	}
-
-	private getChunkOccurrences(term: string): number {
-		const result = this.db.prepare(
-			'SELECT chunkCount FROM ChunkOccurrences WHERE term = ?'
-		).get(term);
-		return result?.chunkCount as number | undefined ?? 0;
-	}
-
-	private async addOrUpdateDocs(docs: Iterable<{ uri: URI; getDoc(): Promise<TfIdfDocData> }>): Promise<void> {
-		this._cachedChunkCount = undefined;
-
-		// Track this for the entire set of documents so we can do a single update
-		const allChunkOccurrences: Record<string, number> = Object.create(null);
-
-		const processBatch = (docs: ReadonlyArray<{ uri: URI; doc: TfIdfDocData }>) => {
-			// Delete existing documents
-			// This should also clear the chunks and terms due to the foreign key constraints
-			this.delete(docs.map(doc => doc.uri));
-
-			this.db.exec('BEGIN TRANSACTION');
-			try {
-				for (const { uri, doc } of docs) {
-					// Add new the document
-					const docId = this.db.prepare(
-						'INSERT OR REPLACE INTO Documents (uri, contentVersionId) VALUES (?, ?)'
-					)
-						.run(uri.toString(), doc.contentVersionId)
-						.lastInsertRowid;
-
-					// Insert new chunks
-					const insertChunkOp = this.db.prepare(
-						'INSERT INTO Chunks (documentId, text, startLineNumber, startColumn, endLineNumber, endColumn, isFullFile, termFrequencies) VALUES (?, ?, ?, ?, ?, ?, ?, jsonb(?))'
-					);
-
-					for (const chunk of doc.chunks) {
-						insertChunkOp.run(
-							docId,
-							chunk.chunk.text,
-							chunk.chunk.range.startLineNumber,
-							chunk.chunk.range.startColumn,
-							chunk.chunk.range.endLineNumber,
-							chunk.chunk.range.endColumn,
-							chunk.chunk.isFullFile ? 1 : 0,
-							JSON.stringify(chunk.tf),
-						);
-
-						for (const term of Object.keys(chunk.tf)) {
-							allChunkOccurrences[term] = (allChunkOccurrences[term] ?? 0) + 1;
-						}
-					}
-				}
-
-				this.db.exec('COMMIT');
-			} catch (e) {
-				this.db.exec('ROLLBACK');
-				throw e;
-			}
-		};
-
-		const batchSize = 200;
-		const batch: Array<{ uri: URI; doc: TfIdfDocData }> = [];
-		for (const doc of docs) {
-			batch.push({ uri: doc.uri, doc: await doc.getDoc() });
-			if (batch.length >= batchSize) {
-				processBatch(batch);
-				batch.length = 0;
-			}
-		}
-
-		// Process any remaining documents
-		processBatch(batch);
-
-		// Update occurrences list
-		const insertOccurrencesOp = this.db.prepare(`
-			INSERT INTO ChunkOccurrences (term, chunkCount)
-			VALUES (?, ?)
-			ON CONFLICT(term) DO UPDATE SET chunkCount = chunkCount + ?;
-		`);
-
-		this.db.exec('BEGIN TRANSACTION');
-		for (const [term, count] of Object.entries(allChunkOccurrences)) {
-			insertOccurrencesOp.run(term, count, count);
-		}
-		this.db.exec('COMMIT');
-	}
-
-	private getDoc(uri: URI): TfIdfDocData | undefined {
-		const doc = this.db.prepare(
-			'SELECT id, contentVersionId FROM Documents WHERE uri = ?'
-		).get(uri.toString());
-		if (!doc) {
-			return undefined;
-		}
-
-		const chunks = this.db.prepare(
-			'SELECT text, startLineNumber, startColumn, endLineNumber, endColumn, isFullFile, json(termFrequencies) as termFrequencies FROM Chunks WHERE documentId = ?'
-		).all(doc.id);
-		return {
-			contentVersionId: doc.contentVersionId as string,
-			chunks: chunks.map(row => {
-				return this.reviveDocumentChunkEntry({ ...row, uri: uri.toString() });
-			})
-		};
-	}
-
-	private async getAllChunksWithTerms(searchTerms: readonly string[]): Promise<Iterable<DocumentChunkEntry>> {
-		if (!searchTerms.length) {
-			return [];
-		}
-
-		const chunkResults = this.db.prepare(`
-			SELECT c.id, c.documentId, c.text, c.startLineNumber, c.startColumn, c.endLineNumber, c.endColumn, c.isFullFile,
-				json(c.termFrequencies) as termFrequencies, d.uri
-			FROM Chunks c
-			JOIN Documents d ON c.documentId = d.id
-			WHERE EXISTS (
-				SELECT 1 FROM json_each(c.termFrequencies)
-				WHERE json_each.key IN (${searchTerms.map(_ => `?`).join(',')})
-			)
-		`).all(...searchTerms);
-
-		return Iterable.map(chunkResults, row => this.reviveDocumentChunkEntry(row));
-	}
-
-	private reviveDocumentChunkEntry(row: any): DocumentChunkEntry {
-		return {
-			tf: JSON.parse(row.termFrequencies as string),
-			get chunk() {
-				return {
-					file: URI.isUri(row.uri) ? row.uri : URI.parse(row.uri as string),
-					text: row.text as string,
-					rawText: row.text,
-					range: new Range(
-						row.startLineNumber as number,
-						row.startColumn as number,
-						row.endLineNumber as number,
-						row.endColumn as number
-					),
-					isFullFile: Boolean(row.isFullFile)
-				};
-			}
-		};
-	}
-}
diff --git a/extensions/copilot/src/platform/tfidf/node/tfidfMessaging.ts b/extensions/copilot/src/platform/tfidf/node/tfidfMessaging.ts
deleted file mode 100644
index db83f6da6f7..00000000000
--- a/extensions/copilot/src/platform/tfidf/node/tfidfMessaging.ts
+++ /dev/null
@@ -1,30 +0,0 @@
-/*---------------------------------------------------------------------------------------------
- *  Copyright (c) Microsoft Corporation. All rights reserved.
- *  Licensed under the MIT License. See License.txt in the project root for license information.
- *--------------------------------------------------------------------------------------------*/
-
-
-export function rewriteObject(value: any, transform: (obj: object) => object | undefined): any {
-	if (!value) {
-		return value;
-	}
-
-	if (Array.isArray(value)) {
-		return value.map(x => rewriteObject(x, transform));
-	}
-
-	if (typeof value === 'object') {
-		const t = transform(value);
-		if (t) {
-			return t;
-		}
-
-		const newValue: { [key: string]: any } = {};
-		for (const key in value) {
-			newValue[key] = rewriteObject(value[key], transform);
-		}
-		return newValue;
-	}
-
-	return value;
-}
diff --git a/extensions/copilot/src/platform/tfidf/node/tfidfWorker.ts b/extensions/copilot/src/platform/tfidf/node/tfidfWorker.ts
deleted file mode 100644
index 050bb5855ef..00000000000
--- a/extensions/copilot/src/platform/tfidf/node/tfidfWorker.ts
+++ /dev/null
@@ -1,249 +0,0 @@
-/*---------------------------------------------------------------------------------------------
- *  Copyright (c) Microsoft Corporation. All rights reserved.
- *  Licensed under the MIT License. See License.txt in the project root for license information.
- *--------------------------------------------------------------------------------------------*/
-import { MessagePort, parentPort, workerData } from 'worker_threads';
-import { createRpcProxy, RcpResponseHandler, RpcProxy, RpcRequest, RpcResponse } from '../../../util/node/worker';
-import { CancellationToken } from '../../../util/vs/base/common/cancellation';
-import { Iterable } from '../../../util/vs/base/common/iterator';
-import { Lazy } from '../../../util/vs/base/common/lazy';
-import { ResourceMap } from '../../../util/vs/base/common/map';
-import { StopWatch } from '../../../util/vs/base/common/stopwatch';
-import { URI, UriComponents } from '../../../util/vs/base/common/uri';
-import { IRange, Range } from '../../../util/vs/editor/common/core/range';
-import { FileChunk } from '../../chunking/common/chunk';
-import { NaiveChunker } from '../../chunking/node/naiveChunker';
-import { NullTelemetryService } from '../../telemetry/common/nullTelemetryService';
-import { TokenizationEndpoint, TokenizerProvider } from '../../tokenizer/node/tokenizer';
-import { PersistentTfIdf, TfIdfDoc, TfIdfSearchOptions } from './tfidf';
-import { rewriteObject } from './tfidfMessaging';
-
-export interface TfIdfWorkerData {
-	readonly endpoint: TokenizationEndpoint;
-	readonly dbPath: ':memory:' | UriComponents;
-}
-
-type Values<T> = T[keyof T];
-
-type Methods<T> = {
-	[K in keyof T]: T[K] extends ((...args: any[]) => any) ? T[K] : never;
-};
-
-type Message<Api> = Values<{
-	[K in keyof Api]: Api[K] extends ((...args: any[]) => any) ? { id: number; fn: K; args: Parameters<Api[K]> } : never;
-}>;
-
-function isIRange(obj: any): obj is IRange {
-	return obj && typeof obj.startLineNumber === 'number' && typeof obj.startColumn === 'number' && typeof obj.endLineNumber === 'number' && typeof obj.endColumn === 'number';
-}
-
-function serialize(value: any): any {
-	return rewriteObject(value, obj => {
-		if (URI.isUri(obj)) {
-			return { $mid: 'uri', ...obj };
-		}
-		if (isIRange(obj)) {
-			return { $mid: 'range', ...obj } as IRange;
-		}
-	});
-}
-
-function revive<T>(value: T): T {
-	return rewriteObject(value, (obj: any) => {
-		if (obj['$mid'] === 'uri') {
-			return URI.from(obj as any);
-		}
-	});
-}
-
-export interface WorkerFileDoc {
-	readonly uri: URI;
-	readonly hash: string;
-	readonly content: string;
-}
-
-type TfIdfOperation = 'update' | 'delete';
-
-class Host {
-	private readonly _handler = new RcpResponseHandler();
-
-	public readonly proxy: RpcProxy<TfidfHostApi>;
-
-	constructor(port: MessagePort, impl: TfidfWorker) {
-		this.proxy = createRpcProxy((name, args) => {
-			const { id, result } = this._handler.createHandler();
-			port.postMessage({ id, fn: name, args } satisfies RpcRequest);
-			return result;
-		});
-
-		port.on('message', async (msg: Message<TfidfWorkerApi> | RpcRequest) => {
-			if ('fn' in msg) {
-				try {
-					const res = await ((impl as any)[msg.fn] as any)(...revive(msg.args));
-					port.postMessage({ id: msg.id, res: serialize(res) } satisfies RpcResponse);
-				} catch (err) {
-					port.postMessage({ id: msg.id, err } satisfies RpcResponse);
-				}
-			} else {
-				this._handler.handleResponse(msg);
-			}
-		});
-	}
-}
-
-export interface TfidfSearchResults {
-	results: readonly FileChunk[];
-	telemetry: {
-		readonly fileCount: number;
-		readonly updatedFileCount: number;
-
-		readonly updateTime: number;
-		readonly searchTime: number;
-	};
-}
-
-export interface TfIdfInitializeTelemetry {
-	readonly outOfSyncFileCount: number;
-	readonly newFileCount: number;
-	readonly deletedFileCount: number;
-}
-
-class TfidfWorker {
-
-	private readonly _tfIdf: PersistentTfIdf;
-	private readonly _pendingChanges = new ResourceMap<TfIdfOperation>();
-
-	private readonly _chunker: NaiveChunker;
-
-	private readonly _host: Host;
-
-	constructor(port: MessagePort, workerData: TfIdfWorkerData) {
-		this._tfIdf = new PersistentTfIdf(workerData.dbPath === ':memory:' ? ':memory:' : URI.from(workerData.dbPath));
-		this._chunker = new NaiveChunker(workerData.endpoint, new TokenizerProvider(false, new NullTelemetryService()));
-		this._host = new Host(port, this);
-	}
-
-	initialize(workspaceDocsIn: ReadonlyArray<{ uri: UriComponents; contentId: string }>): TfIdfInitializeTelemetry {
-		const { outOfSyncDocs, newDocs, deletedDocs } = this._tfIdf.initialize(workspaceDocsIn.map(entry => ({
-			uri: URI.from(entry.uri),
-			contentId: entry.contentId,
-		})));
-
-		// Defer actually updating any out of sync docs until we need to do a search
-		for (const uri of Iterable.concat(outOfSyncDocs, newDocs)) {
-			this._pendingChanges.set(uri, 'update');
-		}
-
-		return {
-			newFileCount: newDocs.size,
-			outOfSyncFileCount: outOfSyncDocs.size,
-			deletedFileCount: deletedDocs.size
-		};
-	}
-
-	addOrUpdate(documents: readonly UriComponents[]): void {
-		for (const uri of documents) {
-			const revivedUri = URI.from(uri);
-			this._pendingChanges.set(revivedUri, 'update');
-		}
-	}
-
-	delete(uris: readonly UriComponents[]): void {
-		for (const uri of uris) {
-			const revivedUri = URI.from(uri);
-			this._pendingChanges.set(revivedUri, 'delete');
-		}
-	}
-
-	async search(query: string, options?: TfIdfSearchOptions): Promise<TfidfSearchResults> {
-		const sw = new StopWatch();
-
-		const updatedFileCount = this._pendingChanges.size;
-		await this._flushPendingChanges();
-		const updateTime = sw.elapsed();
-
-		sw.reset();
-		const results = await this._tfIdf.search(query, options);
-		const searchTime = sw.elapsed();
-
-		return {
-			results: results,
-			telemetry: {
-				fileCount: this._tfIdf.fileCount,
-				updatedFileCount,
-				updateTime,
-				searchTime,
-			}
-		};
-	}
-
-	private async _flushPendingChanges(): Promise<void> {
-		if (!this._pendingChanges.size) {
-			return;
-		}
-
-		const toDelete = Array.from(
-			Iterable.filter(this._pendingChanges.entries(), ([_uri, op]) => op === 'delete'),
-			([uri]) => uri
-		);
-		this._tfIdf.delete(toDelete);
-
-		const updatedDocs = Array.from(
-			Iterable.filter(this._pendingChanges.entries(), ([_uri, op]) => op === 'update'),
-			([uri]): TfIdfDoc => {
-				const contentVersionId = new Lazy(() => this._host.proxy.getContentVersionId(uri));
-				return {
-					uri: uri,
-					getContentVersionId: () => contentVersionId.value,
-					getChunks: async () => this.getRawNaiveChunks(uri, await this._host.proxy.readFile(uri), CancellationToken.None)
-				};
-			}
-		);
-
-		if (updatedDocs.length) {
-			await this._tfIdf.addOrUpdate(updatedDocs);
-		}
-
-		this._pendingChanges.clear();
-	}
-
-	private async getRawNaiveChunks(uri: URI, text: string, token: CancellationToken): Promise<Iterable<FileChunk>> {
-		try {
-			const naiveChunks = await this._chunker.chunkFile(uri, text, {}, token);
-			return Iterable.map(naiveChunks, (e): FileChunk => {
-				return {
-					file: uri,
-					text: e.text,
-					rawText: e.rawText,
-					range: Range.lift(e.range),
-					isFullFile: e.isFullFile
-				};
-			});
-		} catch (e) {
-			console.error(`Could not chunk: ${uri}`, e);
-			return [];
-		}
-	}
-}
-
-export type TfidfWorkerApi = Methods<TfidfWorker>;
-
-export interface TfidfHostApi {
-	getContentVersionId(uri: URI): Promise<string>;
-	readFile(uri: URI): Promise<string>;
-}
-
-// #region Main
-
-const port = parentPort;
-if (!port) {
-	throw new Error(`This module should only be used in a worker thread.`);
-}
-
-if (!workerData) {
-	throw new Error(`Expected 'workerData' to be provided to the worker thread.`);
-}
-
-new TfidfWorker(port, workerData as TfIdfWorkerData);
-
-// #endregion
diff --git a/extensions/copilot/src/platform/thinking/common/thinking.ts b/extensions/copilot/src/platform/thinking/common/thinking.ts
index 60d71b85ed7..f61ef2af8dd 100644
--- a/extensions/copilot/src/platform/thinking/common/thinking.ts
+++ b/extensions/copilot/src/platform/thinking/common/thinking.ts
@@ -46,7 +46,7 @@ export type EncryptedThinkingDelta = {
 	id: string;
 	text?: string;
 	encrypted: string;
-}
+};
 
 export function isEncryptedThinkingDelta(delta: ThinkingDelta | EncryptedThinkingDelta): delta is EncryptedThinkingDelta {
 	return (delta as EncryptedThinkingDelta).encrypted !== undefined;
diff --git a/extensions/copilot/src/util/node/worker.ts b/extensions/copilot/src/util/node/worker.ts
index 425387c2bb5..0fface63bf6 100644
--- a/extensions/copilot/src/util/node/worker.ts
+++ b/extensions/copilot/src/util/node/worker.ts
@@ -60,7 +60,7 @@ export class RcpResponseHandler {
 
 export type RpcProxy<ProxyType> = {
 	[K in keyof ProxyType]: ProxyType[K] extends ((...args: infer Args) => infer R) ? (...args: Args) => Promise<Awaited<R>> : never;
-}
+};
 
 export function createRpcProxy<ProxyType>(remoteCall: (name: string, args: any[]) => Promise<any>): RpcProxy<ProxyType> {
 	const handler = {
diff --git a/extensions/copilot/test/base/simulationOptions.ts b/extensions/copilot/test/base/simulationOptions.ts
index ad45fd20186..84f5d40fcc8 100644
--- a/extensions/copilot/test/base/simulationOptions.ts
+++ b/extensions/copilot/test/base/simulationOptions.ts
@@ -14,7 +14,7 @@ export type NesDatagen = {
 	readonly output: string | undefined;
 	readonly rowOffset: number;
 	readonly workerMode: boolean;
-}
+};
 
 export class SimulationOptions {
 	public static fromProcessArgs(): SimulationOptions {
diff --git a/extensions/copilot/test/pipeline/alternativeAction/types.ts b/extensions/copilot/test/pipeline/alternativeAction/types.ts
index 40e8733bc6b..51e8bce7472 100644
--- a/extensions/copilot/test/pipeline/alternativeAction/types.ts
+++ b/extensions/copilot/test/pipeline/alternativeAction/types.ts
@@ -18,7 +18,7 @@ export type IData = {
 		isInlineCompletion: boolean;
 	};
 	suggestionStatus: NextEditTelemetryStatus;
-}
+};
 
 export namespace NextUserEdit {
 	export type t = {
@@ -36,7 +36,7 @@ export namespace Recording {
 			relativePath: string;
 			originalOpIdx: number;
 		};
-	}
+	};
 }
 
 export namespace SuggestedEdit {
@@ -45,7 +45,7 @@ export namespace SuggestedEdit {
 		edit: ISerializedEdit;
 		scoreCategory: 'nextEdit';
 		score: number;
-	}
+	};
 }
 
 export namespace Scoring {
diff --git a/extensions/copilot/test/pipeline/pipeline.ts b/extensions/copilot/test/pipeline/pipeline.ts
index 0a17601a79c..2e05f9e33e1 100644
--- a/extensions/copilot/test/pipeline/pipeline.ts
+++ b/extensions/copilot/test/pipeline/pipeline.ts
@@ -40,7 +40,7 @@ export type RunPipelineOptions = {
 	readonly configFile: string | undefined;
 	readonly verbose: number | boolean | undefined;
 	readonly parallelism: number;
-}
+};
 
 export async function runInputPipeline(opts: RunPipelineOptions, log = console.log.bind(console)): Promise<void> {
 	const nesDatagenOpts = opts.nesDatagen!;
diff --git a/extensions/copilot/test/testVisualizationRunner.ts b/extensions/copilot/test/testVisualizationRunner.ts
index 2b53cb723d2..38fa828ca82 100644
--- a/extensions/copilot/test/testVisualizationRunner.ts
+++ b/extensions/copilot/test/testVisualizationRunner.ts
@@ -25,7 +25,7 @@ function run(args: { fileName: string; path: string[] }) {
 	runCurrentTest();
 }
 
-const g = globalThis as any as IDebugValueEditorGlobals & IPlaygroundRunnerGlobals;
+const g = globalThis as unknown as IDebugValueEditorGlobals & IPlaygroundRunnerGlobals;
 g.$$playgroundRunner_data = { currentPath: [] };
 
 // The timeout seems to fix a deadlock-issue of tsx, when the run function is called from the debugger.
diff --git a/extensions/copilot/test/testVisualizationRunnerSTest.ts b/extensions/copilot/test/testVisualizationRunnerSTest.ts
index bdf1bd81954..8f711a37c5b 100644
--- a/extensions/copilot/test/testVisualizationRunnerSTest.ts
+++ b/extensions/copilot/test/testVisualizationRunnerSTest.ts
@@ -18,7 +18,7 @@ function run(args: { fileName: string; path: string }) {
 	runCurrentTest();
 }
 
-const g = globalThis as any as IDebugValueEditorGlobals & IPlaygroundRunnerGlobals;
+const g = globalThis as unknown as IDebugValueEditorGlobals & IPlaygroundRunnerGlobals;
 g.$$playgroundRunner_data = { currentPath: [] };
 
 
diff --git a/extensions/git/package.json b/extensions/git/package.json
index 0af7ea21268..17ddbced72d 100644
--- a/extensions/git/package.json
+++ b/extensions/git/package.json
@@ -2770,7 +2770,7 @@
         {
           "command": "git.openChange",
           "group": "navigation@2",
-          "when": "config.git.enabled && !git.missing && gitOpenRepositoryCount != 0 && !isInDiffEditor && !isMergeEditor && resourceScheme == file && scmActiveResourceHasChanges"
+          "when": "config.git.enabled && !git.missing && gitOpenRepositoryCount != 0 && !isInDiffEditor && !isMergeEditor && resourceScheme == file && scmActiveResourceHasChanges && !isSessionsWindow"
         },
         {
           "command": "git.stashApplyEditor",
@@ -2786,37 +2786,37 @@
         {
           "command": "git.stage",
           "group": "2_git@1",
-          "when": "config.git.enabled && !git.missing && gitOpenRepositoryCount != 0 && !isInDiffEditor && !isMergeEditor && resourceScheme == file && git.activeResourceHasUnstagedChanges"
+          "when": "config.git.enabled && !git.missing && gitOpenRepositoryCount != 0 && !isInDiffEditor && !isMergeEditor && resourceScheme == file && git.activeResourceHasUnstagedChanges && !isSessionsWindow"
         },
         {
           "command": "git.unstage",
           "group": "2_git@2",
-          "when": "config.git.enabled && !git.missing && gitOpenRepositoryCount != 0 && !isInDiffEditor && !isMergeEditor && resourceScheme == file && git.activeResourceHasStagedChanges"
+          "when": "config.git.enabled && !git.missing && gitOpenRepositoryCount != 0 && !isInDiffEditor && !isMergeEditor && resourceScheme == file && git.activeResourceHasStagedChanges && !isSessionsWindow"
         },
         {
           "command": "git.stage",
           "group": "2_git@1",
-          "when": "config.git.enabled && !git.missing && gitOpenRepositoryCount != 0 && isInDiffEditor && isInDiffRightEditor && !isEmbeddedDiffEditor && resourceScheme == file"
+          "when": "config.git.enabled && !git.missing && gitOpenRepositoryCount != 0 && isInDiffEditor && isInDiffRightEditor && !isEmbeddedDiffEditor && resourceScheme == file && !isSessionsWindow"
         },
         {
           "command": "git.stageSelectedRanges",
           "group": "2_git@2",
-          "when": "config.git.enabled && !git.missing && gitOpenRepositoryCount != 0 && isInDiffEditor && isInDiffRightEditor && !isEmbeddedDiffEditor && resourceScheme == file"
+          "when": "config.git.enabled && !git.missing && gitOpenRepositoryCount != 0 && isInDiffEditor && isInDiffRightEditor && !isEmbeddedDiffEditor && resourceScheme == file && !isSessionsWindow"
         },
         {
           "command": "git.unstage",
           "group": "2_git@3",
-          "when": "config.git.enabled && !git.missing && gitOpenRepositoryCount != 0 && isInDiffEditor && isInDiffRightEditor && !isEmbeddedDiffEditor && resourceScheme == git"
+          "when": "config.git.enabled && !git.missing && gitOpenRepositoryCount != 0 && isInDiffEditor && isInDiffRightEditor && !isEmbeddedDiffEditor && resourceScheme == git && !isSessionsWindow"
         },
         {
           "command": "git.unstageSelectedRanges",
           "group": "2_git@4",
-          "when": "config.git.enabled && !git.missing && gitOpenRepositoryCount != 0 && isInDiffEditor && isInDiffRightEditor && !isEmbeddedDiffEditor && resourceScheme == git"
+          "when": "config.git.enabled && !git.missing && gitOpenRepositoryCount != 0 && isInDiffEditor && isInDiffRightEditor && !isEmbeddedDiffEditor && resourceScheme == git && !isSessionsWindow"
         },
         {
           "command": "git.revertSelectedRanges",
           "group": "2_git@5",
-          "when": "config.git.enabled && !git.missing && gitOpenRepositoryCount != 0 && isInDiffEditor && isInDiffRightEditor && !isEmbeddedDiffEditor && resourceScheme == file"
+          "when": "config.git.enabled && !git.missing && gitOpenRepositoryCount != 0 && isInDiffEditor && isInDiffRightEditor && !isEmbeddedDiffEditor && resourceScheme == file && !isSessionsWindow"
         }
       ],
       "editor/context": [
diff --git a/extensions/theme-defaults/themes/2026-dark.json b/extensions/theme-defaults/themes/2026-dark.json
index a61ac87f4cc..0561134ddad 100644
--- a/extensions/theme-defaults/themes/2026-dark.json
+++ b/extensions/theme-defaults/themes/2026-dark.json
@@ -258,6 +258,9 @@
 		"gauge.errorBackground": "#F287724D",
 		"chat.requestBubbleBackground": "#ffffff13",
 		"chat.requestBubbleHoverBackground": "#ffffff22",
+		"chat.inputWorkingBorderColor1": "#9560D8",
+		"chat.inputWorkingBorderColor2": "#5BC25B",
+		"chat.inputWorkingBorderColor3": "#4A8FF5",
 		"editorCommentsWidget.rangeBackground": "#488FAE26",
 		"editorCommentsWidget.rangeActiveBackground": "#488FAE46",
 		"charts.foreground": "#CCCCCC",
diff --git a/extensions/theme-defaults/themes/2026-light.json b/extensions/theme-defaults/themes/2026-light.json
index a49294ee42a..1b24ca3a52d 100644
--- a/extensions/theme-defaults/themes/2026-light.json
+++ b/extensions/theme-defaults/themes/2026-light.json
@@ -261,6 +261,9 @@
 		"chat.requestBubbleBackground": "#EEF4FB",
 		"chat.requestBubbleHoverBackground": "#E6EDFA",
 		"chat.thinkingShimmer": "#999999",
+		"chat.inputWorkingBorderColor1": "#9B30FF",
+		"chat.inputWorkingBorderColor2": "#00C853",
+		"chat.inputWorkingBorderColor3": "#0044FF",
 		"editorCommentsWidget.rangeBackground": "#EEF4FB",
 		"editorCommentsWidget.rangeActiveBackground": "#E6EDFA",
 		"charts.foreground": "#202020",
diff --git a/package-lock.json b/package-lock.json
index 6686ab60a76..5ddc165b065 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,12 +1,12 @@
 {
   "name": "code-oss-dev",
-  "version": "1.117.0",
+  "version": "1.118.0",
   "lockfileVersion": 3,
   "requires": true,
   "packages": {
     "": {
       "name": "code-oss-dev",
-      "version": "1.117.0",
+      "version": "1.118.0",
       "hasInstallScript": true,
       "license": "MIT",
       "dependencies": {
@@ -113,7 +113,7 @@
         "cookie": "^0.7.2",
         "debounce": "^1.0.0",
         "deemon": "^1.13.6",
-        "electron": "39.8.7",
+        "electron": "39.8.8",
         "eslint": "^9.36.0",
         "eslint-formatter-compact": "^8.40.0",
         "eslint-plugin-header": "3.1.1",
@@ -7765,9 +7765,9 @@
       "dev": true
     },
     "node_modules/electron": {
-      "version": "39.8.7",
-      "resolved": "https://registry.npmjs.org/electron/-/electron-39.8.7.tgz",
-      "integrity": "sha512-B3TmzbUEeIvrhJ0QcoFp8/tgnVA3vsm0wkdYWzC22hsk9zTVqkzyrrz40cjd0nMTTIrGWxxfDO2tdQTCMe9Bjw==",
+      "version": "39.8.8",
+      "resolved": "https://registry.npmjs.org/electron/-/electron-39.8.8.tgz",
+      "integrity": "sha512-24MMLdwCg8xwlWzDxC1XZU2MqW0Xx2UPxt9EU15vMDoRSMHPqmi/BgRCEINXZaBLfFSeXEKGpg+QlBRdL5uwaw==",
       "dev": true,
       "hasInstallScript": true,
       "license": "MIT",
diff --git a/package.json b/package.json
index a8c63ee93f1..f9665ffa747 100644
--- a/package.json
+++ b/package.json
@@ -1,7 +1,7 @@
 {
   "name": "code-oss-dev",
-  "version": "1.117.0",
-  "distro": "cccc9754dda0a01ea6eaa276472ad5e169f80d31",
+  "version": "1.118.0",
+  "distro": "d9cb505fab31e4606739394220a6892cac0e7046",
   "author": {
     "name": "Microsoft Corporation"
   },
@@ -192,7 +192,7 @@
     "cookie": "^0.7.2",
     "debounce": "^1.0.0",
     "deemon": "^1.13.6",
-    "electron": "39.8.7",
+    "electron": "39.8.8",
     "eslint": "^9.36.0",
     "eslint-formatter-compact": "^8.40.0",
     "eslint-plugin-header": "3.1.1",
diff --git a/src/bootstrap-meta.ts b/src/bootstrap-meta.ts
index c2dfea36372..b1d8213d893 100644
--- a/src/bootstrap-meta.ts
+++ b/src/bootstrap-meta.ts
@@ -31,7 +31,11 @@ if ((process as INodeProcess).isEmbeddedApp) {
 
 	try {
 		const productSubObj = require('../product.sub.json');
-		productObj = Object.assign(productObj, productSubObj);
+		if (productObj.embedded && productSubObj.embedded) {
+			Object.assign(productObj.embedded, productSubObj.embedded);
+			delete productSubObj.embedded;
+		}
+		Object.assign(productObj, productSubObj);
 	} catch (error) { /* ignore */ }
 	try {
 		const pkgSubObj = require('../package.sub.json');
diff --git a/src/vs/base/browser/mouseEvent.ts b/src/vs/base/browser/mouseEvent.ts
index 2f8c99ff327..2873a56e1e4 100644
--- a/src/vs/base/browser/mouseEvent.ts
+++ b/src/vs/base/browser/mouseEvent.ts
@@ -67,14 +67,8 @@ export class StandardMouseEvent implements IMouseEvent {
 		this.altKey = e.altKey;
 		this.metaKey = e.metaKey;
 
-		if (typeof e.pageX === 'number') {
-			this.posx = e.pageX;
-			this.posy = e.pageY;
-		} else {
-			// Probably hit by MSGestureEvent
-			this.posx = e.clientX + this.target.ownerDocument.body.scrollLeft + this.target.ownerDocument.documentElement.scrollLeft;
-			this.posy = e.clientY + this.target.ownerDocument.body.scrollTop + this.target.ownerDocument.documentElement.scrollTop;
-		}
+		this.posx = e.pageX;
+		this.posy = e.pageY;
 
 		// Find the position of the iframe this code is executing in relative to the iframe where the event was captured.
 		const iframeOffsets = IframeUtils.getPositionOfChildWindowRelativeToAncestorWindow(targetWindow, e.view);
diff --git a/src/vs/base/browser/overlayLayoutElement.ts b/src/vs/base/browser/overlayLayoutElement.ts
index 588d4ce9b33..c6e764dda6d 100644
--- a/src/vs/base/browser/overlayLayoutElement.ts
+++ b/src/vs/base/browser/overlayLayoutElement.ts
@@ -53,6 +53,13 @@ export class OverlayLayoutElement implements IDisposable {
 		this.content.style.position = 'absolute';
 		this.content.style.overflow = 'hidden';
 
+		this._root = document.createElement('div');
+		this._root.appendChild(this.content);
+
+		this.reapplyLayoutStyles();
+	}
+
+	public reapplyLayoutStyles(): void {
 		if (supportsAnchorPositioning.value) {
 			this.content.style.position = 'fixed';
 			this.content.style.top = 'anchor(top)';
@@ -62,10 +69,8 @@ export class OverlayLayoutElement implements IDisposable {
 			this.content.style.pointerEvents = 'auto';
 		}
 
-		this._root = document.createElement('div');
 		this._root.style.position = 'absolute';
 		this._root.style.pointerEvents = 'none';
-		this._root.appendChild(this.content);
 	}
 
 	public dispose(): void {
diff --git a/src/vs/base/browser/ui/actionbar/actionbar.ts b/src/vs/base/browser/ui/actionbar/actionbar.ts
index da20e27e040..f2b116fb7d2 100644
--- a/src/vs/base/browser/ui/actionbar/actionbar.ts
+++ b/src/vs/base/browser/ui/actionbar/actionbar.ts
@@ -79,7 +79,9 @@ export class ActionBar extends Disposable implements IActionRunner {
 	};
 
 	// View Items
-	viewItems: IActionViewItem[];
+	private _viewItems: IActionViewItem[];
+	get viewItems(): readonly IActionViewItem[] { return this._viewItems; }
+
 	private readonly viewItemDisposables = this._register(new DisposableMap<IActionViewItem>());
 	private previouslyFocusedItem?: number;
 	protected focusedItem?: number;
@@ -91,7 +93,7 @@ export class ActionBar extends Disposable implements IActionRunner {
 	private focusable: boolean = true;
 
 	// Elements
-	domNode: HTMLElement;
+	readonly domNode: HTMLElement;
 	protected readonly actionsList: HTMLElement;
 
 	private readonly _onDidBlur = this._register(new Emitter<void>());
@@ -130,7 +132,7 @@ export class ActionBar extends Disposable implements IActionRunner {
 		this._actionRunnerDisposables.add(this._actionRunner.onDidRun(e => this._onDidRun.fire(e)));
 		this._actionRunnerDisposables.add(this._actionRunner.onWillRun(e => this._onWillRun.fire(e)));
 
-		this.viewItems = [];
+		this._viewItems = [];
 		this.focusedItem = undefined;
 
 		this.domNode = document.createElement('div');
@@ -380,10 +382,10 @@ export class ActionBar extends Disposable implements IActionRunner {
 
 			if (index === null || index < 0 || index >= this.actionsList.children.length) {
 				this.actionsList.appendChild(actionViewItemElement);
-				this.viewItems.push(item);
+				this._viewItems.push(item);
 			} else {
 				this.actionsList.insertBefore(actionViewItemElement, this.actionsList.children[index]);
-				this.viewItems.splice(index, 0, item);
+				this._viewItems.splice(index, 0, item);
 				index++;
 			}
 		});
@@ -424,32 +426,18 @@ export class ActionBar extends Disposable implements IActionRunner {
 	}
 
 	getWidth(index: number): number {
-		if (index >= 0 && index < this.actionsList.children.length) {
-			const item = this.actionsList.children.item(index);
-			if (item) {
-				return item.clientWidth;
-			}
-		}
-
-		return 0;
+		return this.actionsList.children.item(index)?.clientWidth ?? 0;
 	}
 
 	getHeight(index: number): number {
-		if (index >= 0 && index < this.actionsList.children.length) {
-			const item = this.actionsList.children.item(index);
-			if (item) {
-				return item.clientHeight;
-			}
-		}
-
-		return 0;
+		return this.actionsList.children.item(index)?.clientHeight ?? 0;
 	}
 
 	pull(index: number): void {
 		if (index >= 0 && index < this.viewItems.length) {
 			this.actionsList.childNodes[index].remove();
 			this.viewItemDisposables.deleteAndDispose(this.viewItems[index]);
-			dispose(this.viewItems.splice(index, 1));
+			dispose(this._viewItems.splice(index, 1));
 			this.refreshRole();
 		}
 	}
@@ -459,7 +447,7 @@ export class ActionBar extends Disposable implements IActionRunner {
 			return;
 		}
 
-		this.viewItems = dispose(this.viewItems);
+		this._viewItems = dispose(this._viewItems);
 		this.viewItemDisposables.clearAndDisposeAll();
 		DOM.clearNode(this.actionsList);
 		this.refreshRole();
@@ -623,7 +611,7 @@ export class ActionBar extends Disposable implements IActionRunner {
 
 	override dispose(): void {
 		this._context = undefined;
-		this.viewItems = dispose(this.viewItems);
+		this._viewItems = dispose(this._viewItems);
 		this.getContainer().remove();
 		super.dispose();
 	}
diff --git a/src/vs/base/browser/ui/findinput/replaceInput.ts b/src/vs/base/browser/ui/findinput/replaceInput.ts
index 10c5b47b653..a9ae899d424 100644
--- a/src/vs/base/browser/ui/findinput/replaceInput.ts
+++ b/src/vs/base/browser/ui/findinput/replaceInput.ts
@@ -280,8 +280,4 @@ export class ReplaceInput extends Widget {
 		this.inputBox.paddingRight = this.cachedOptionsWidth;
 		this.domNode.style.width = newWidth + 'px';
 	}
-
-	public override dispose(): void {
-		super.dispose();
-	}
 }
diff --git a/src/vs/base/test/browser/markdownRenderer.test.ts b/src/vs/base/test/browser/markdownRenderer.test.ts
index 16373be2101..2220d936bb0 100644
--- a/src/vs/base/test/browser/markdownRenderer.test.ts
+++ b/src/vs/base/test/browser/markdownRenderer.test.ts
@@ -33,6 +33,25 @@ suite('MarkdownRenderer', () => {
 			const result: HTMLElement = store.add(renderMarkdown(markdown)).element;
 			assert.strictEqual(result.innerHTML, '<p><img alt="image"></p>');
 		});
+
+		test('Strips links with disallowed schemes (default config)', () => {
+			const markdown = { value: `Read [](vscode-agent-host://my-host/file/-/path/to/foo.ts)` };
+			const result: HTMLElement = store.add(renderMarkdown(markdown)).element;
+			// No <a> element should remain because the scheme isn't allowed.
+			assert.strictEqual(result.querySelector('a'), null);
+		});
+
+		test('Preserves link when scheme is allowed via allowedLinkSchemes.augment', () => {
+			const markdown = { value: `Read [](vscode-agent-host://my-host/file/-/path/to/foo.ts)` };
+			const result: HTMLElement = store.add(renderMarkdown(markdown, {
+				sanitizerConfig: {
+					allowedLinkSchemes: { augment: ['vscode-agent-host'] },
+				},
+			})).element;
+			const anchor = result.querySelector('a');
+			assert.ok(anchor, 'expected <a> to be preserved when scheme is allowed');
+			assert.strictEqual(anchor!.dataset.href, 'vscode-agent-host://my-host/file/-/path/to/foo.ts');
+		});
 	});
 
 	suite('Images', () => {
diff --git a/src/vs/editor/browser/controller/mouseHandler.ts b/src/vs/editor/browser/controller/mouseHandler.ts
index 4ad4ca9d817..52291332b2a 100644
--- a/src/vs/editor/browser/controller/mouseHandler.ts
+++ b/src/vs/editor/browser/controller/mouseHandler.ts
@@ -403,10 +403,6 @@ class MouseDownOperation extends Disposable {
 		this._lastMouseEvent = null;
 	}
 
-	public override dispose(): void {
-		super.dispose();
-	}
-
 	public isActive(): boolean {
 		return this._isActive;
 	}
diff --git a/src/vs/editor/browser/editorDom.ts b/src/vs/editor/browser/editorDom.ts
index 5e41bb11c15..4077e9cadc5 100644
--- a/src/vs/editor/browser/editorDom.ts
+++ b/src/vs/editor/browser/editorDom.ts
@@ -119,21 +119,30 @@ export class EditorMouseEvent extends StandardMouseEvent {
 	/**
 	 * Editor's coordinates relative to the whole document.
 	 */
-	public readonly editorPos: EditorPagePosition;
+	public get editorPos(): EditorPagePosition {
+		this._editorPos ??= createEditorPagePosition(this._editorViewDomNode);
+		return this._editorPos;
+	}
+	private _editorPos: EditorPagePosition | undefined;
 
 	/**
 	 * Coordinates relative to the (top;left) of the editor.
 	 * *NOTE*: These coordinates are preferred because they take into account transformations applied to the editor.
 	 * *NOTE*: These coordinates could be negative if the mouse position is outside the editor.
-	 */
-	public readonly relativePos: CoordinatesRelativeToEditor;
+	*/
+	public get relativePos(): CoordinatesRelativeToEditor {
+		this._relativePos ??= createCoordinatesRelativeToEditor(this._editorViewDomNode, this.editorPos, this.pos);
+		return this._relativePos;
+	}
+	private _relativePos: CoordinatesRelativeToEditor | undefined;
+
+	private readonly _editorViewDomNode: HTMLElement;
 
 	constructor(e: MouseEvent, isFromPointerCapture: boolean, editorViewDomNode: HTMLElement) {
 		super(dom.getWindow(editorViewDomNode), e);
 		this.isFromPointerCapture = isFromPointerCapture;
 		this.pos = new PageCoordinates(this.posx, this.posy);
-		this.editorPos = createEditorPagePosition(editorViewDomNode);
-		this.relativePos = createCoordinatesRelativeToEditor(editorViewDomNode, this.editorPos, this.pos);
+		this._editorViewDomNode = editorViewDomNode;
 	}
 }
 
diff --git a/src/vs/editor/browser/services/editorWorkerService.ts b/src/vs/editor/browser/services/editorWorkerService.ts
index d5c878af3b3..ec09cf29853 100644
--- a/src/vs/editor/browser/services/editorWorkerService.ts
+++ b/src/vs/editor/browser/services/editorWorkerService.ts
@@ -97,9 +97,6 @@ export class EditorWorkerService extends Disposable implements IEditorWorkerServ
 		this._register(languageFeaturesService.completionProvider.register('*', new WordBasedCompletionItemProvider(this._workerManager, configurationService, this._modelService, this._languageConfigurationService, this._logService, languageFeaturesService)));
 	}
 
-	public override dispose(): void {
-		super.dispose();
-	}
 
 	public canComputeUnicodeHighlights(uri: URI): boolean {
 		return canSyncModel(this._modelService, uri);
diff --git a/src/vs/editor/browser/viewParts/blockDecorations/blockDecorations.ts b/src/vs/editor/browser/viewParts/blockDecorations/blockDecorations.ts
index 70fe366c06c..7cd7ea0be4c 100644
--- a/src/vs/editor/browser/viewParts/blockDecorations/blockDecorations.ts
+++ b/src/vs/editor/browser/viewParts/blockDecorations/blockDecorations.ts
@@ -51,9 +51,6 @@ export class BlockDecorations extends ViewPart {
 		return didChange;
 	}
 
-	public override dispose(): void {
-		super.dispose();
-	}
 
 	// --- begin event handlers
 
diff --git a/src/vs/editor/browser/viewParts/editorScrollbar/editorScrollbar.ts b/src/vs/editor/browser/viewParts/editorScrollbar/editorScrollbar.ts
index aa633a1cadf..816dc313885 100644
--- a/src/vs/editor/browser/viewParts/editorScrollbar/editorScrollbar.ts
+++ b/src/vs/editor/browser/viewParts/editorScrollbar/editorScrollbar.ts
@@ -105,9 +105,6 @@ export class EditorScrollbar extends ViewPart {
 		this._register(dom.addDisposableListener(this.scrollbarDomNode.domNode, 'scroll', (e: Event) => onBrowserDesperateReveal(this.scrollbarDomNode.domNode, true, false)));
 	}
 
-	public override dispose(): void {
-		super.dispose();
-	}
 
 	private _setLayout(): void {
 		const options = this._context.configuration.options;
diff --git a/src/vs/editor/browser/viewParts/margin/margin.ts b/src/vs/editor/browser/viewParts/margin/margin.ts
index cd4660c834d..2edbe484f70 100644
--- a/src/vs/editor/browser/viewParts/margin/margin.ts
+++ b/src/vs/editor/browser/viewParts/margin/margin.ts
@@ -50,9 +50,6 @@ export class Margin extends ViewPart {
 		this._domNode.appendChild(this._glyphMarginBackgroundDomNode);
 	}
 
-	public override dispose(): void {
-		super.dispose();
-	}
 
 	public getDomNode(): FastDomNode<HTMLElement> {
 		return this._domNode;
diff --git a/src/vs/editor/browser/viewParts/rulers/rulers.ts b/src/vs/editor/browser/viewParts/rulers/rulers.ts
index ec1a5042e91..cb67b702704 100644
--- a/src/vs/editor/browser/viewParts/rulers/rulers.ts
+++ b/src/vs/editor/browser/viewParts/rulers/rulers.ts
@@ -34,9 +34,6 @@ export class Rulers extends ViewPart {
 		this._typicalHalfwidthCharacterWidth = options.get(EditorOption.fontInfo).typicalHalfwidthCharacterWidth;
 	}
 
-	public override dispose(): void {
-		super.dispose();
-	}
 
 	// --- begin event handlers
 
diff --git a/src/vs/editor/browser/viewParts/scrollDecoration/scrollDecoration.ts b/src/vs/editor/browser/viewParts/scrollDecoration/scrollDecoration.ts
index dc5dc300709..a703acd26c2 100644
--- a/src/vs/editor/browser/viewParts/scrollDecoration/scrollDecoration.ts
+++ b/src/vs/editor/browser/viewParts/scrollDecoration/scrollDecoration.ts
@@ -35,9 +35,6 @@ export class ScrollDecorationViewPart extends ViewPart {
 		this._domNode.setAttribute('aria-hidden', 'true');
 	}
 
-	public override dispose(): void {
-		super.dispose();
-	}
 
 	private _updateShouldShow(): boolean {
 		const newShouldShow = (this._useShadows && this._scrollTop > 0);
diff --git a/src/vs/editor/common/viewLayout/viewLayout.ts b/src/vs/editor/common/viewLayout/viewLayout.ts
index 202187a4aad..e64482e192c 100644
--- a/src/vs/editor/common/viewLayout/viewLayout.ts
+++ b/src/vs/editor/common/viewLayout/viewLayout.ts
@@ -191,9 +191,6 @@ export class ViewLayout extends Disposable implements IViewLayout {
 		this._updateHeight();
 	}
 
-	public override dispose(): void {
-		super.dispose();
-	}
 
 	public getScrollable(): Scrollable {
 		return this._scrollable.getScrollable();
diff --git a/src/vs/editor/standalone/browser/standaloneCodeEditor.ts b/src/vs/editor/standalone/browser/standaloneCodeEditor.ts
index b55bf1c0038..db742fc9ba8 100644
--- a/src/vs/editor/standalone/browser/standaloneCodeEditor.ts
+++ b/src/vs/editor/standalone/browser/standaloneCodeEditor.ts
@@ -474,9 +474,6 @@ export class StandaloneEditor extends StandaloneCodeEditor implements IStandalon
 		}
 	}
 
-	public override dispose(): void {
-		super.dispose();
-	}
 
 	public override updateOptions(newOptions: Readonly<IEditorOptions & IGlobalEditorOptions>): void {
 		updateConfigurationService(this._configurationService, newOptions, false);
@@ -544,9 +541,6 @@ export class StandaloneDiffEditor2 extends DiffEditorWidget implements IStandalo
 		this._register(themeDomRegistration);
 	}
 
-	public override dispose(): void {
-		super.dispose();
-	}
 
 	public override updateOptions(newOptions: Readonly<IDiffEditorOptions & IGlobalEditorOptions>): void {
 		updateConfigurationService(this._configurationService, newOptions, true);
diff --git a/src/vs/platform/actionWidget/browser/actionList.ts b/src/vs/platform/actionWidget/browser/actionList.ts
index 05aae838ca0..337851c0526 100644
--- a/src/vs/platform/actionWidget/browser/actionList.ts
+++ b/src/vs/platform/actionWidget/browser/actionList.ts
@@ -1505,8 +1505,13 @@ export class ActionListWidget<T> extends Disposable {
 			}
 		} else if (element && element.hover?.content && typeof e.index === 'number') {
 			// Show hover for disabled items that have hover content (with delay)
-			this._hideSubmenu();
-			this._scheduleSubmenuShow(element, e.index);
+			if (this._currentSubmenuElement === element) {
+				this._cancelSubmenuHide();
+				this._cancelSubmenuShow();
+			} else {
+				this._hideSubmenu();
+				this._scheduleSubmenuShow(element, e.index);
+			}
 		}
 	}
 
diff --git a/src/vs/platform/actionWidget/browser/actionWidget.css b/src/vs/platform/actionWidget/browser/actionWidget.css
index ccf83901b21..357a57f67bb 100644
--- a/src/vs/platform/actionWidget/browser/actionWidget.css
+++ b/src/vs/platform/actionWidget/browser/actionWidget.css
@@ -357,6 +357,15 @@
 	word-wrap: break-word;
 }
 
+.action-list-submenu-hover-header a {
+	color: var(--vscode-textLink-foreground);
+}
+
+.action-list-submenu-hover-header a:hover,
+.action-list-submenu-hover-header a:active {
+	color: var(--vscode-textLink-activeForeground);
+}
+
 .action-list-submenu-hover-header.has-submenu {
 	border-bottom: 1px solid var(--vscode-menu-separatorBackground, var(--vscode-editorWidget-border));
 }
diff --git a/src/vs/platform/actionWidget/browser/actionWidgetDropdown.ts b/src/vs/platform/actionWidget/browser/actionWidgetDropdown.ts
index 82e6ff581ba..87fd04735db 100644
--- a/src/vs/platform/actionWidget/browser/actionWidgetDropdown.ts
+++ b/src/vs/platform/actionWidget/browser/actionWidgetDropdown.ts
@@ -3,16 +3,17 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import { IActionWidgetService } from './actionWidget.js';
-import { IAction } from '../../../base/common/actions.js';
-import { BaseDropdown, IActionProvider, IBaseDropdownOptions } from '../../../base/browser/ui/dropdown/dropdown.js';
-import { ActionListItemKind, IActionListDelegate, IActionListItem, IActionListItemHover, IActionListOptions } from './actionList.js';
-import { ThemeIcon } from '../../../base/common/themables.js';
-import { Codicon } from '../../../base/common/codicons.js';
 import { getActiveElement, isHTMLElement } from '../../../base/browser/dom.js';
-import { IKeybindingService } from '../../keybinding/common/keybinding.js';
+import { BaseDropdown, IActionProvider, IBaseDropdownOptions } from '../../../base/browser/ui/dropdown/dropdown.js';
 import { IListAccessibilityProvider } from '../../../base/browser/ui/list/listWidget.js';
+import { IAction } from '../../../base/common/actions.js';
+import { Codicon } from '../../../base/common/codicons.js';
+import { ResolvedKeybinding } from '../../../base/common/keybindings.js';
+import { ThemeIcon } from '../../../base/common/themables.js';
+import { IKeybindingService } from '../../keybinding/common/keybinding.js';
 import { ITelemetryService } from '../../telemetry/common/telemetry.js';
+import { ActionListItemKind, IActionListDelegate, IActionListItem, IActionListItemHover, IActionListOptions } from './actionList.js';
+import { IActionWidgetService } from './actionWidget.js';
 
 export interface IActionWidgetDropdownAction extends IAction {
 	category?: { label: string; order: number; showHeader?: boolean };
@@ -26,6 +27,13 @@ export interface IActionWidgetDropdownAction extends IAction {
 	 * Optional toolbar actions shown when the item is focused or hovered.
 	 */
 	toolbarActions?: IAction[];
+	/**
+	 * Optional keybinding to display next to the action. When provided, this overrides the
+	 * keybinding that would otherwise be looked up via {@link IKeybindingService.lookupKeybinding}.
+	 * Useful when the active keybinding depends on a scoped context (e.g. focus state) that the
+	 * dropdown cannot evaluate at display time.
+	 */
+	keybinding?: ResolvedKeybinding;
 }
 
 // TODO @lramos15 - Should we just make IActionProvider templated?
@@ -139,7 +147,7 @@ export class ActionWidgetDropdown extends BaseDropdown {
 					hideIcon: false,
 					label: action.label,
 					keybinding: this._options.showItemKeybindings ?
-						this.keybindingService.lookupKeybinding(action.id) :
+						(action.keybinding ?? this.keybindingService.lookupKeybinding(action.id)) :
 						undefined,
 				});
 			}
diff --git a/src/vs/platform/actions/common/actions.ts b/src/vs/platform/actions/common/actions.ts
index 910c40db359..f4ac668759d 100644
--- a/src/vs/platform/actions/common/actions.ts
+++ b/src/vs/platform/actions/common/actions.ts
@@ -88,6 +88,7 @@ export class MenuId {
 	static readonly EditorContextPeek = new MenuId('EditorContextPeek');
 	static readonly EditorContextShare = new MenuId('EditorContextShare');
 	static readonly EditorTitle = new MenuId('EditorTitle');
+	static readonly EditorTitleLayout = new MenuId('EditorTitleLayout');
 	static readonly ModalEditorTitle = new MenuId('ModalEditorTitle');
 	static readonly ModalEditorEditorTitle = new MenuId('ModalEditorEditorTitle');
 	static readonly CompactWindowEditorTitle = new MenuId('CompactWindowEditorTitle');
diff --git a/src/vs/platform/agentHost/browser/remoteAgentHostProtocolClient.ts b/src/vs/platform/agentHost/browser/remoteAgentHostProtocolClient.ts
index 601c78308de..c83ff0399df 100644
--- a/src/vs/platform/agentHost/browser/remoteAgentHostProtocolClient.ts
+++ b/src/vs/platform/agentHost/browser/remoteAgentHostProtocolClient.ts
@@ -180,7 +180,10 @@ export class RemoteAgentHostProtocolClient extends Disposable implements IAgentC
 	 * Create a new session on the remote agent host.
 	 */
 	async createSession(config?: IAgentCreateSessionConfig): Promise<URI> {
-		const provider = config?.provider ?? 'copilot';
+		const provider = config?.provider;
+		if (!provider) {
+			throw new Error('Cannot create remote agent host session without a provider.');
+		}
 		const session = AgentSession.uri(provider, generateUuid());
 		await this._sendRequest('createSession', {
 			session: session.toString(),
@@ -188,6 +191,7 @@ export class RemoteAgentHostProtocolClient extends Disposable implements IAgentC
 			model: config?.model,
 			workingDirectory: config?.workingDirectory ? fromAgentHostUri(config.workingDirectory).toString() : undefined,
 			config: config?.config,
+			activeClient: config?.activeClient,
 		});
 		return session;
 	}
diff --git a/src/vs/platform/agentHost/browser/webSocketClientTransport.ts b/src/vs/platform/agentHost/browser/webSocketClientTransport.ts
index 457ef7ad2c5..556e6bd342c 100644
--- a/src/vs/platform/agentHost/browser/webSocketClientTransport.ts
+++ b/src/vs/platform/agentHost/browser/webSocketClientTransport.ts
@@ -11,6 +11,7 @@ import { Disposable } from '../../../base/common/lifecycle.js';
 import { connectionTokenQueryName } from '../../../base/common/network.js';
 import type { IAhpServerNotification, IJsonRpcResponse, IProtocolMessage } from '../common/state/sessionProtocol.js';
 import type { IClientTransport } from '../common/state/sessionTransport.js';
+import { MALFORMED_FRAMES_FORCE_CLOSE_THRESHOLD, MALFORMED_FRAMES_LOG_CAP } from '../common/transportConstants.js';
 
 // ---- Client transport -------------------------------------------------------
 
@@ -31,6 +32,7 @@ export class WebSocketClientTransport extends Disposable implements IClientTrans
 	readonly onOpen = this._onOpen.event;
 
 	private _ws: WebSocket | undefined;
+	private _malformedFrames = 0;
 
 	get isOpen(): boolean {
 		return this._ws?.readyState === WebSocket.OPEN;
@@ -94,13 +96,45 @@ export class WebSocketClientTransport extends Disposable implements IClientTrans
 
 			// Wire up long-lived listeners after connection
 			ws.addEventListener('message', (event: MessageEvent) => {
-				try {
-					const text = typeof event.data === 'string' ? event.data : '';
-					const message = JSON.parse(text) as IProtocolMessage;
-					this._onMessage.fire(message);
-				} catch {
-					// Malformed message - drop.
+				if (typeof event.data !== 'string') {
+					this._malformedFrames++;
+					if (this._malformedFrames <= MALFORMED_FRAMES_LOG_CAP) {
+						const dataType = event.data instanceof ArrayBuffer ? 'ArrayBuffer' : event.data instanceof Blob ? 'Blob' : typeof event.data;
+						const byteLen = event.data instanceof ArrayBuffer ? event.data.byteLength : event.data instanceof Blob ? event.data.size : 0;
+						console.warn(
+							`[WebSocketClientTransport] Non-string frame #${this._malformedFrames} (type=${dataType}, bytes=${byteLen})`
+						);
+					}
+					if (this._malformedFrames > MALFORMED_FRAMES_FORCE_CLOSE_THRESHOLD) {
+						console.warn(
+							`[WebSocketClientTransport] Malformed frame threshold exceeded; forcing close of ${this._address}.`
+						);
+						this._ws?.close(4002, 'malformed-frames');
+					}
+					return;
 				}
+				const text = event.data;
+				let message: IProtocolMessage;
+				try {
+					message = JSON.parse(text) as IProtocolMessage;
+				} catch (err) {
+					this._malformedFrames++;
+					if (this._malformedFrames <= MALFORMED_FRAMES_LOG_CAP) {
+						const preview = text.length > 80 ? text.slice(0, 80) + '…' : text;
+						console.warn(
+							`[WebSocketClientTransport] Malformed frame #${this._malformedFrames} (len=${text.length}): ${preview}`,
+							err instanceof Error ? err.message : String(err)
+						);
+					}
+					if (this._malformedFrames > MALFORMED_FRAMES_FORCE_CLOSE_THRESHOLD) {
+						console.warn(
+							`[WebSocketClientTransport] Malformed frame threshold exceeded; forcing close of ${this._address}.`
+						);
+						this._ws?.close(4002, 'malformed-frames');
+					}
+					return;
+				}
+				this._onMessage.fire(message);
 			});
 
 			ws.addEventListener('close', () => {
diff --git a/src/vs/platform/agentHost/common/agentService.ts b/src/vs/platform/agentHost/common/agentService.ts
index 2b6f2c7a9b3..60414285514 100644
--- a/src/vs/platform/agentHost/common/agentService.ts
+++ b/src/vs/platform/agentHost/common/agentService.ts
@@ -12,7 +12,7 @@ import { createDecorator } from '../../instantiation/common/instantiation.js';
 import type { ISyncedCustomization } from './agentPluginManager.js';
 import type { IAgentSubscription } from './state/agentSubscription.js';
 import type { ICreateTerminalParams, IResolveSessionConfigResult, ISessionConfigCompletionsResult } from './state/protocol/commands.js';
-import { IProtectedResourceMetadata, type IConfigSchema, type IFileEdit, type IModelSelection, type IToolDefinition } from './state/protocol/state.js';
+import { IProtectedResourceMetadata, type IConfigSchema, type IFileEdit, type IModelSelection, type ISessionActiveClient, type IToolDefinition } from './state/protocol/state.js';
 import type { IActionEnvelope, INotification, ISessionAction, ITerminalAction } from './state/sessionActions.js';
 import type { IResourceCopyParams, IResourceCopyResult, IResourceDeleteParams, IResourceDeleteResult, IResourceListResult, IResourceMoveParams, IResourceMoveResult, IResourceReadResult, IResourceWriteParams, IResourceWriteResult, IStateSnapshot } from './state/sessionProtocol.js';
 import { AttachmentType, ComponentToState, SessionInputResponseKind, SessionStatus, StateComponents, type ICustomizationRef, type IPendingMessage, type IRootState, type ISessionInputAnswer, type ISessionInputRequest, type IToolCallResult, type IToolResultContent, type PolicyState, type StringOrMarkdown } from './state/sessionState.js';
@@ -125,6 +125,14 @@ export interface IAgentCreateSessionConfig {
 	readonly session?: URI;
 	readonly workingDirectory?: URI;
 	readonly config?: Record<string, string>;
+	/**
+	 * Eagerly claim the active client role for the new session. When provided,
+	 * the server initializes the session with this client as the active
+	 * client, equivalent to dispatching a `session/activeClientChanged`
+	 * action immediately after creation. The `clientId` MUST match the
+	 * connection's own `clientId`.
+	 */
+	readonly activeClient?: ISessionActiveClient;
 	/** Fork from an existing session at a specific turn. */
 	readonly fork?: {
 		readonly session: URI;
@@ -233,6 +241,18 @@ export interface IAgentToolStartEvent extends IAgentProgressEventBase {
 	readonly language?: string;
 	/** Serialized JSON of the tool arguments, if available. */
 	readonly toolArguments?: string;
+	/**
+	 * For `toolKind === 'subagent'`, the internal name of the agent being
+	 * spawned (e.g. 'explore'). Adapters are responsible for extracting this
+	 * from their SDK-specific tool argument shape.
+	 */
+	readonly subagentAgentName?: string;
+	/**
+	 * For `toolKind === 'subagent'`, a human-readable description of the
+	 * subagent's task. Adapters are responsible for extracting this from
+	 * their SDK-specific tool argument shape.
+	 */
+	readonly subagentDescription?: string;
 	readonly mcpServerName?: string;
 	readonly mcpToolName?: string;
 	readonly parentToolCallId?: string;
diff --git a/src/vs/platform/agentHost/common/remoteAgentHostService.ts b/src/vs/platform/agentHost/common/remoteAgentHostService.ts
index 5214fe52cf6..73cf6beb37c 100644
--- a/src/vs/platform/agentHost/common/remoteAgentHostService.ts
+++ b/src/vs/platform/agentHost/common/remoteAgentHostService.ts
@@ -22,6 +22,12 @@ export const RemoteAgentHostsSettingId = 'chat.remoteAgentHosts';
 /** Configuration key to enable remote agent host connections. */
 export const RemoteAgentHostsEnabledSettingId = 'chat.remoteAgentHostsEnabled';
 
+/**
+ * Configuration key that controls whether online dev tunnels and
+ * configured SSH remote agent hosts are auto-connected at startup.
+ */
+export const RemoteAgentHostAutoConnectSettingId = 'chat.remoteAgentHostsAutoConnect';
+
 export const enum RemoteAgentHostEntryType {
 	WebSocket = 'websocket',
 	SSH = 'ssh',
diff --git a/src/vs/platform/agentHost/common/sessionDataService.ts b/src/vs/platform/agentHost/common/sessionDataService.ts
index e398c8a13ee..d78d718861b 100644
--- a/src/vs/platform/agentHost/common/sessionDataService.ts
+++ b/src/vs/platform/agentHost/common/sessionDataService.ts
@@ -173,6 +173,19 @@ export interface ISessionDatabase extends IDisposable {
 	 */
 	remapTurnIds(mapping: ReadonlyMap<string, string>): Promise<void>;
 
+	/**
+	 * Creates a safe, consistent copy of the database at the given path
+	 * using SQLite's `VACUUM INTO` command.
+	 */
+	vacuumInto(targetPath: string): Promise<void>;
+
+	/**
+	 * Resolves once all in-flight write operations on this database have
+	 * settled. Used by graceful shutdown to flush fire-and-forget writes
+	 * before the process exits.
+	 */
+	whenIdle(): Promise<void>;
+
 	/**
 	 * Close the database connection. After calling this method, the object is
 	 * considered disposed and all other methods will reject with an error.
@@ -235,4 +248,12 @@ export interface ISessionDataService {
 	 * Called at startup; safe to call multiple times.
 	 */
 	cleanupOrphanedData(knownSessionIds: Set<string>): Promise<void>;
+
+	/**
+	 * Resolves once all in-flight write operations across every currently
+	 * open per-session database have settled. Intended for graceful
+	 * shutdown — fire-and-forget writes (e.g. metadata persistence) would
+	 * otherwise be lost when the process exits.
+	 */
+	whenIdle(): Promise<void>;
 }
diff --git a/src/vs/platform/agentHost/common/state/protocol/.ahp-version b/src/vs/platform/agentHost/common/state/protocol/.ahp-version
index 79967dc6f68..f9c684bfe33 100644
--- a/src/vs/platform/agentHost/common/state/protocol/.ahp-version
+++ b/src/vs/platform/agentHost/common/state/protocol/.ahp-version
@@ -1 +1 @@
-ab467b2
+0947b17
diff --git a/src/vs/platform/agentHost/common/state/protocol/commands.ts b/src/vs/platform/agentHost/common/state/protocol/commands.ts
index f868bd271ae..a68103156dd 100644
--- a/src/vs/platform/agentHost/common/state/protocol/commands.ts
+++ b/src/vs/platform/agentHost/common/state/protocol/commands.ts
@@ -6,7 +6,7 @@
 // allow-any-unicode-comment-file
 // DO NOT EDIT -- auto-generated by scripts/sync-agent-host-protocol.ts
 
-import type { URI, ISnapshot, ISessionConfigSchema, ISessionSummary, IModelSelection, ITurn, ITerminalClaim } from './state.js';
+import type { URI, ISnapshot, ISessionConfigSchema, ISessionSummary, IModelSelection, ITurn, ITerminalClaim, ISessionActiveClient } from './state.js';
 import type { IActionEnvelope, IStateAction } from './actions.js';
 
 export type { IConfigPropertySchema, IConfigSchema, ISessionConfigPropertySchema, ISessionConfigSchema } from './state.js';
@@ -198,6 +198,15 @@ export interface ICreateSessionParams {
 	 * Keys and values correspond to the schema returned by the server.
 	 */
 	config?: Record<string, string>;
+	/**
+	 * Eagerly claim the active client role for the new session.
+	 *
+	 * When provided, the server initializes the session with this client as the
+	 * active client, equivalent to dispatching a `session/activeClientChanged`
+	 * action immediately after creation. The `clientId` MUST match the
+	 * `clientId` the creating client supplied in `initialize`.
+	 */
+	activeClient?: ISessionActiveClient;
 }
 
 // ─── disposeSession ──────────────────────────────────────────────────────────
diff --git a/src/vs/platform/agentHost/common/transportConstants.ts b/src/vs/platform/agentHost/common/transportConstants.ts
new file mode 100644
index 00000000000..1da5a8c7bfa
--- /dev/null
+++ b/src/vs/platform/agentHost/common/transportConstants.ts
@@ -0,0 +1,22 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+/**
+ * Shared constants for agent-host protocol transports. Kept in a common
+ * module so browser, electron-browser, and sessions-layer transports all
+ * apply the same malformed-frame policy without duplicating values.
+ */
+
+/**
+ * Force-close the transport once more than this many malformed inbound
+ * frames have been observed. A handful of bad frames can be tolerated
+ * (e.g. a proxy momentarily corrupts a message), but a sustained stream
+ * almost always indicates a protocol mismatch or a broken relay, and is
+ * best surfaced as a hard disconnect so the reconnect loop can take over.
+ */
+export const MALFORMED_FRAMES_FORCE_CLOSE_THRESHOLD = 10;
+
+/** Cap warn-level logs per connection for malformed frames to avoid spam. */
+export const MALFORMED_FRAMES_LOG_CAP = 5;
diff --git a/src/vs/platform/agentHost/electron-browser/tunnelRelayTransport.ts b/src/vs/platform/agentHost/electron-browser/tunnelRelayTransport.ts
index 6a6341b72ee..bc9b5948a04 100644
--- a/src/vs/platform/agentHost/electron-browser/tunnelRelayTransport.ts
+++ b/src/vs/platform/agentHost/electron-browser/tunnelRelayTransport.ts
@@ -8,6 +8,7 @@ import { Disposable } from '../../../base/common/lifecycle.js';
 import type { IAhpServerNotification, IJsonRpcResponse, IProtocolMessage } from '../common/state/sessionProtocol.js';
 import type { IProtocolTransport } from '../common/state/sessionTransport.js';
 import type { ITunnelAgentHostMainService, ITunnelRelayMessage } from '../common/tunnelAgentHost.js';
+import { MALFORMED_FRAMES_FORCE_CLOSE_THRESHOLD, MALFORMED_FRAMES_LOG_CAP } from '../common/transportConstants.js';
 
 /**
  * A protocol transport that relays messages through the shared process
@@ -24,6 +25,8 @@ export class TunnelRelayTransport extends Disposable implements IProtocolTranspo
 	private readonly _onClose = this._register(new Emitter<void>());
 	readonly onClose = this._onClose.event;
 
+	private _malformedFrames = 0;
+
 	constructor(
 		private readonly _connectionId: string,
 		private readonly _tunnelService: ITunnelAgentHostMainService,
@@ -32,14 +35,28 @@ export class TunnelRelayTransport extends Disposable implements IProtocolTranspo
 
 		// Listen for relay messages from the shared process
 		this._register(this._tunnelService.onDidRelayMessage((msg: ITunnelRelayMessage) => {
-			if (msg.connectionId === this._connectionId) {
-				try {
-					const parsed = JSON.parse(msg.data) as IProtocolMessage;
-					this._onMessage.fire(parsed);
-				} catch {
-					// Malformed message — drop
-				}
+			if (msg.connectionId !== this._connectionId) {
+				return;
 			}
+			let parsed: IProtocolMessage;
+			try {
+				parsed = JSON.parse(msg.data) as IProtocolMessage;
+			} catch (err) {
+				this._malformedFrames++;
+				if (this._malformedFrames <= MALFORMED_FRAMES_LOG_CAP) {
+					const preview = msg.data.length > 80 ? msg.data.slice(0, 80) + '…' : msg.data;
+					console.warn(
+						`[TunnelRelayTransport] Malformed frame #${this._malformedFrames} (len=${msg.data.length}): ${preview}`,
+						err instanceof Error ? err.message : String(err)
+					);
+				}
+				if (this._malformedFrames > MALFORMED_FRAMES_FORCE_CLOSE_THRESHOLD) {
+					console.warn('[TunnelRelayTransport] Malformed frame threshold exceeded; closing relay.');
+					this._tunnelService.disconnect(this._connectionId).catch(() => { /* best effort */ });
+				}
+				return;
+			}
+			this._onMessage.fire(parsed);
 		}));
 
 		// Listen for relay close
diff --git a/src/vs/platform/agentHost/node/agentEventMapper.ts b/src/vs/platform/agentHost/node/agentEventMapper.ts
index e662c38c8e3..402457ddd22 100644
--- a/src/vs/platform/agentHost/node/agentEventMapper.ts
+++ b/src/vs/platform/agentHost/node/agentEventMapper.ts
@@ -96,18 +96,14 @@ export class AgentEventMapper {
 				const e = event as IAgentToolStartEvent;
 				const meta: Record<string, unknown> = { toolKind: e.toolKind, language: e.language };
 
-				// For subagent tools, extract agent metadata from tool arguments
-				// so the renderer can display the name/description immediately.
-				if (e.toolKind === 'subagent' && e.toolArguments) {
-					try {
-						const args = JSON.parse(e.toolArguments) as Record<string, unknown>;
-						if (typeof args.description === 'string') {
-							meta.subagentDescription = args.description;
-						}
-						if (typeof args.agentName === 'string') {
-							meta.subagentAgentName = args.agentName;
-						}
-					} catch { /* ignore parse errors */ }
+				// Subagent metadata is normalized by the per-SDK adapter (e.g.
+				// the Copilot adapter maps `agent_type` → `subagentAgentName`),
+				// so the generic mapper just forwards it as-is.
+				if (e.subagentDescription) {
+					meta.subagentDescription = e.subagentDescription;
+				}
+				if (e.subagentAgentName) {
+					meta.subagentAgentName = e.subagentAgentName;
 				}
 
 				const startAction: IToolCallStartAction = {
diff --git a/src/vs/platform/agentHost/node/agentHostServerMain.ts b/src/vs/platform/agentHost/node/agentHostServerMain.ts
index 7f611200723..9b09da0f7ea 100644
--- a/src/vs/platform/agentHost/node/agentHostServerMain.ts
+++ b/src/vs/platform/agentHost/node/agentHostServerMain.ts
@@ -16,6 +16,7 @@ globalThis._VSCODE_FILE_ROOT = fileURLToPath(new URL('../../../..', import.meta.
 import * as fs from 'fs';
 import * as os from 'os';
 import { DisposableStore } from '../../../base/common/lifecycle.js';
+import { raceTimeout } from '../../../base/common/async.js';
 import { URI } from '../../../base/common/uri.js';
 import { generateUuid } from '../../../base/common/uuid.js';
 import { localize } from '../../../nls.js';
@@ -253,12 +254,31 @@ async function main(): Promise<void> {
 
 	// Keep alive until stdin closes or signal
 	process.stdin.resume();
-	process.stdin.on('end', shutdown);
-	process.on('SIGTERM', shutdown);
-	process.on('SIGINT', shutdown);
+	process.stdin.on('end', () => { void shutdown(); });
+	process.on('SIGTERM', () => { void shutdown(); });
+	process.on('SIGINT', () => { void shutdown(); });
 
-	function shutdown(): void {
+	let shuttingDown = false;
+	async function shutdown(): Promise<void> {
+		if (shuttingDown) {
+			return;
+		}
+		shuttingDown = true;
 		logService.info('[AgentHostServer] Shutting down...');
+		// Close the WebSocket server first so no further actions can be
+		// dispatched while we wait for in-flight writes to flush — otherwise
+		// a late-arriving action could keep queuing DB writes and either
+		// undermine the flush or push us past the timeout.
+		wsServer.dispose();
+		// Wait for in-flight persistence writes to flush to the per-session
+		// SQLite databases. Without this, a SIGTERM arriving while a
+		// `setMetadata` write (configValues, customTitle, isRead, isDone,
+		// diffs) is in flight can drop the latest value — see the
+		// "Session Config persistence across restarts" integration test.
+		// Capped so a stuck write cannot hang shutdown indefinitely.
+		await raceTimeout(sessionDataService.whenIdle(), 3000, () => {
+			logService.warn('[AgentHostServer] Timed out waiting for session database writes to flush; exiting anyway.');
+		});
 		disposables.dispose();
 		loggerService?.dispose();
 		process.exit(0);
diff --git a/src/vs/platform/agentHost/node/agentHostTerminalManager.ts b/src/vs/platform/agentHost/node/agentHostTerminalManager.ts
index 3193302c672..f0a77734e40 100644
--- a/src/vs/platform/agentHost/node/agentHostTerminalManager.ts
+++ b/src/vs/platform/agentHost/node/agentHostTerminalManager.ts
@@ -38,7 +38,7 @@ export interface ICommandFinishedEvent {
  */
 export interface IAgentHostTerminalManager {
 	readonly _serviceBrand: undefined;
-	createTerminal(params: ICreateTerminalParams, options?: { shell?: string; preventShellHistory?: boolean }): Promise<void>;
+	createTerminal(params: ICreateTerminalParams, options?: { shell?: string; preventShellHistory?: boolean; nonInteractive?: boolean }): Promise<void>;
 	writeInput(uri: string, data: string): void;
 	onData(uri: string, cb: (data: string) => void): IDisposable;
 	onExit(uri: string, cb: (exitCode: number) => void): IDisposable;
@@ -172,7 +172,7 @@ export class AgentHostTerminalManager extends Disposable implements IAgentHostTe
 	 * Create a new terminal backed by node-pty.
 	 * Spawns the user's default shell.
 	 */
-	async createTerminal(params: ICreateTerminalParams, options?: { shell?: string; preventShellHistory?: boolean }): Promise<void> {
+	async createTerminal(params: ICreateTerminalParams, options?: { shell?: string; preventShellHistory?: boolean; nonInteractive?: boolean }): Promise<void> {
 		const uri = params.terminal;
 		if (this._terminals.has(uri)) {
 			throw new Error(`Terminal already exists: ${uri}`);
@@ -199,6 +199,18 @@ export class AgentHostTerminalManager extends Disposable implements IAgentHostTe
 			// prevents agent-executed commands from polluting the user's shell history.
 			env['VSCODE_PREVENT_SHELL_HISTORY'] = '1';
 		}
+		if (options?.nonInteractive) {
+			// Suppress paging and interactive prompts so that tool-spawned
+			// terminals produce clean, machine-friendly output. An empty
+			// string disables paging in git, less, and most CLI tools and
+			// is safe on all platforms (unlike 'cat' which isn't on Windows PATH).
+			env['LC_ALL'] = 'C.UTF-8';
+			env['PAGER'] = '';
+			env['GIT_PAGER'] = '';
+			env['GH_PAGER'] = '';
+			env['GIT_TERMINAL_PROMPT'] = '0';
+			env['DEBIAN_FRONTEND'] = 'noninteractive';
+		}
 		let shellArgs: string[] = [];
 
 		const injection = await getShellIntegrationInjection(
diff --git a/src/vs/platform/agentHost/node/agentService.ts b/src/vs/platform/agentHost/node/agentService.ts
index b4803f635ce..8e65b14a0c7 100644
--- a/src/vs/platform/agentHost/node/agentService.ts
+++ b/src/vs/platform/agentHost/node/agentService.ts
@@ -30,22 +30,19 @@ import { AgentHostStateManager } from './agentHostStateManager.js';
  * on the provider identifier in the session configuration.
  */
 /**
- * Extracts subagent metadata from a tool start event's arguments,
- * matching the event mapper's extraction for the eager toolKind path.
+ * Extracts subagent metadata from a tool start event. Adapters are
+ * responsible for normalizing their SDK-specific argument shape into the
+ * generic `subagentAgentName` / `subagentDescription` fields on the event
+ * itself, so this just forwards them.
  */
 function extractSubagentMeta(start: IAgentToolStartEvent | undefined): { subagentDescription?: string; subagentAgentName?: string } {
-	if (!start?.toolKind || start.toolKind !== 'subagent' || !start.toolArguments) {
-		return {};
-	}
-	try {
-		const args = JSON.parse(start.toolArguments) as Record<string, unknown>;
-		return {
-			subagentDescription: typeof args.description === 'string' && args.description.length > 0 ? args.description : undefined,
-			subagentAgentName: typeof args.agentName === 'string' && args.agentName.length > 0 ? args.agentName : undefined,
-		};
-	} catch {
+	if (!start) {
 		return {};
 	}
+	return {
+		subagentDescription: start.subagentDescription,
+		subagentAgentName: start.subagentAgentName,
+	};
 }
 
 export class AgentService extends Disposable implements IAgentService {
@@ -266,6 +263,7 @@ export class AgentService extends Disposable implements IAgentService {
 			const state = this._stateManager.createSession(summary);
 			state.config = sessionConfig;
 			state.turns = sourceTurns;
+			state.activeClient = config.activeClient;
 		} else {
 			// Create empty state for new sessions
 			const summary: ISessionSummary = {
@@ -281,6 +279,7 @@ export class AgentService extends Disposable implements IAgentService {
 			};
 			const state = this._stateManager.createSession(summary);
 			state.config = sessionConfig;
+			state.activeClient = config?.activeClient;
 		}
 		// Persist initial config values so a subsequent `restoreSession` can
 		// re-hydrate them. We persist the full resolved values (not just the
diff --git a/src/vs/platform/agentHost/node/agentSideEffects.ts b/src/vs/platform/agentHost/node/agentSideEffects.ts
index 421eeec3191..82c574413c1 100644
--- a/src/vs/platform/agentHost/node/agentSideEffects.ts
+++ b/src/vs/platform/agentHost/node/agentSideEffects.ts
@@ -27,6 +27,7 @@ import {
 	ToolResultContentType,
 	buildSubagentSessionUri,
 	getToolFileEdits,
+	parseSubagentSessionUri,
 	type ISessionCustomization,
 	type ISessionState,
 	type IToolResultContent,
@@ -50,6 +51,13 @@ export interface IAgentSideEffectsOptions {
 	readonly sessionDataService: ISessionDataService;
 }
 
+/** A progress event that was deferred because its subagent session does not exist yet. */
+interface IPendingSubagentEvent {
+	readonly event: IAgentProgressEvent;
+	readonly agent: IAgent;
+	readonly agentMapper: AgentEventMapper;
+}
+
 /**
  * Shared implementation of agent side-effect handling.
  *
@@ -83,6 +91,19 @@ export class AgentSideEffects extends Disposable {
 	 */
 	private readonly _subagentSessions = new Map<string, ProtocolURI>();
 
+	/**
+	 * Buffers progress events whose `parentToolCallId` references a subagent
+	 * whose `subagent_started` event has not yet been processed. The SDK is
+	 * not strict about ordering: an inner `tool_start` can arrive before the
+	 * `subagent_started` that creates the child session. Without buffering,
+	 * those events would be dispatched against the parent session and the
+	 * UI would render the inner tool calls flat at the top level rather than
+	 * grouping them under the subagent. Drained by `_handleSubagentStarted`.
+	 *
+	 * Key: `${parentSession}:${parentToolCallId}`.
+	 */
+	private readonly _pendingSubagentEvents = new Map<string, IPendingSubagentEvent[]>();
+
 	constructor(
 		private readonly _stateManager: AgentHostStateManager,
 		private readonly _options: IAgentSideEffectsOptions,
@@ -176,10 +197,19 @@ export class AgentSideEffects extends Disposable {
 		sessionKey: ProtocolURI,
 		agent: IAgent,
 	): boolean {
+		// Subagent sessions don't carry their own config or workingDirectory —
+		// inherit from the parent session so auto-approval rules apply
+		// uniformly to tool calls inside subagents.
+		const sessionState = this._stateManager.getSessionState(sessionKey);
+		const parentInfo = parseSubagentSessionUri(sessionKey);
+		const parentState = parentInfo ? this._stateManager.getSessionState(parentInfo.parentSession) : undefined;
+		const autoApproveLevel = sessionState?.config?.values?.autoApprove
+			?? parentState?.config?.values?.autoApprove;
+		const workDir = sessionState?.summary.workingDirectory
+			?? parentState?.summary.workingDirectory;
+
 		// Session-level auto-approve: when the user has set "Bypass Approvals"
 		// or "Autopilot", auto-approve all tool calls unconditionally.
-		const sessionState = this._stateManager.getSessionState(sessionKey);
-		const autoApproveLevel = sessionState?.config?.values?.autoApprove;
 		if (autoApproveLevel === 'autoApprove' || autoApproveLevel === 'autopilot') {
 			this._logService.trace(`[AgentSideEffects] Auto-approving tool call (session autoApprove=${autoApproveLevel})`);
 			this._toolCallAgents.delete(`${sessionKey}:${e.toolCallId}`);
@@ -189,7 +219,6 @@ export class AgentSideEffects extends Disposable {
 
 		// Read auto-approval: approve reads inside the session's working directory.
 		if (e.permissionKind === 'read' && e.permissionPath) {
-			const workDir = sessionState?.summary.workingDirectory;
 			const workingDirectory = workDir ? URI.parse(workDir) : undefined;
 			if (workingDirectory && extUriBiasedIgnorePathCase.isEqualOrParent(normalizePath(URI.file(e.permissionPath)), workingDirectory)) {
 				this._logService.trace(`[AgentSideEffects] Auto-approving read of ${e.permissionPath}`);
@@ -203,7 +232,6 @@ export class AgentSideEffects extends Disposable {
 		// Write auto-approval: only within the session's working directory,
 		// then apply the default glob patterns for protected files.
 		if (e.permissionKind === 'write' && e.permissionPath) {
-			const workDir = sessionState?.summary.workingDirectory;
 			const workingDirectory = workDir ? URI.parse(workDir) : undefined;
 			if (workingDirectory && extUriBiasedIgnorePathCase.isEqualOrParent(normalizePath(URI.file(e.permissionPath)), workingDirectory)) {
 				if (this._shouldAutoApproveEdit(e.permissionPath)) {
@@ -252,118 +280,169 @@ export class AgentSideEffects extends Disposable {
 		}
 		const agentMapper = mapper;
 		disposables.add(agent.onDidSessionProgress(e => {
-			// Track tool calls so handleAction can route confirmations
-			if (e.type === 'tool_start') {
-				this._toolCallAgents.set(`${e.session.toString()}:${e.toolCallId}`, agent.id);
-			}
+			this._handleAgentProgress(agent, agentMapper, e);
+		}));
+		return disposables;
+	}
 
-			const sessionKey = e.session.toString();
+	/**
+	 * Routes a single progress event from `agent` to the correct session.
+	 *
+	 * Events with a `parentToolCallId` are routed to the matching subagent
+	 * session. If the subagent session does not exist yet (the SDK can emit
+	 * an inner `tool_start` before its `subagent_started`), the event is
+	 * buffered in `_pendingSubagentEvents` and replayed once the
+	 * `subagent_started` arrives.
+	 */
+	private _handleAgentProgress(agent: IAgent, agentMapper: AgentEventMapper, e: IAgentProgressEvent): void {
+		const sessionKey = e.session.toString();
 
-			// Handle subagent_started: create the subagent session
-			if (e.type === 'subagent_started') {
-				this._handleSubagentStarted(sessionKey, e.toolCallId, e.agentName, e.agentDisplayName, e.agentDescription);
-				return;
-			}
+		// Track tool calls so handleAction can route confirmations. Defer
+		// registration for inner subagent tool calls (those carrying a
+		// `parentToolCallId`) until we know which subagent session they
+		// belong to — otherwise we'd register them under the parent
+		// session key and a later `tool_ready` (which lacks
+		// `parentToolCallId`) could be routed against the wrong session.
+		if (e.type === 'tool_start' && !this._getParentToolCallId(e)) {
+			this._toolCallAgents.set(`${sessionKey}:${e.toolCallId}`, agent.id);
+		}
 
-			// Route events with parentToolCallId to the subagent session
-			const parentToolCallId = this._getParentToolCallId(e);
-			if (parentToolCallId) {
-				const subagentKey = `${sessionKey}:${parentToolCallId}`;
-				const subagentSession = this._subagentSessions.get(subagentKey);
-				if (subagentSession) {
-					// Track tool calls in subagent context for confirmation routing
-					if (e.type === 'tool_start') {
-						this._toolCallAgents.set(`${subagentSession}:${e.toolCallId}`, agent.id);
-					}
-					const subTurnId = this._stateManager.getActiveTurnId(subagentSession);
-					if (subTurnId) {
-						if (e.type === 'tool_ready') {
-							if (this._tryAutoApproveToolReady(e, subagentSession, agent)) {
-								return;
-							}
-						}
-						this._dispatchProgressActions(agentMapper, e, subagentSession, subTurnId);
-					}
-					return;
+		// Handle subagent_started: create the subagent session, then drain
+		// any inner events that arrived before us.
+		if (e.type === 'subagent_started') {
+			this._handleSubagentStarted(sessionKey, e.toolCallId, e.agentName, e.agentDisplayName, e.agentDescription);
+			this._drainPendingSubagentEvents(sessionKey, e.toolCallId);
+			return;
+		}
+
+		// Route events with parentToolCallId to the subagent session.
+		const parentToolCallId = this._getParentToolCallId(e);
+		if (parentToolCallId) {
+			const subagentKey = `${sessionKey}:${parentToolCallId}`;
+			const subagentSession = this._subagentSessions.get(subagentKey);
+			if (subagentSession) {
+				// Track tool calls in subagent context for confirmation routing
+				if (e.type === 'tool_start') {
+					this._toolCallAgents.set(`${subagentSession}:${e.toolCallId}`, agent.id);
 				}
-			}
-
-			// Route tool_ready events for tools inside subagent sessions
-			// (tool_ready lacks parentToolCallId, but the tool was previously
-			// registered under its subagent session key in _toolCallAgents)
-			if (e.type === 'tool_ready') {
-				const subagentSession = this._findSubagentSessionForToolCall(sessionKey, e.toolCallId);
-				if (subagentSession) {
-					const subTurnId = this._stateManager.getActiveTurnId(subagentSession);
-					if (subTurnId) {
+				const subTurnId = this._stateManager.getActiveTurnId(subagentSession);
+				if (subTurnId) {
+					if (e.type === 'tool_ready') {
 						if (this._tryAutoApproveToolReady(e, subagentSession, agent)) {
 							return;
 						}
-						this._dispatchProgressActions(agentMapper, e, subagentSession, subTurnId);
 					}
+					this._dispatchProgressActions(agentMapper, e, subagentSession, subTurnId);
+				}
+				return;
+			}
+
+			// Subagent session does not exist yet — buffer the event so we
+			// can replay it after `subagent_started` arrives. Without this,
+			// inner tool calls would leak into the parent session and the
+			// UI would render them flat at the top level.
+			this._logService.trace(`[AgentSideEffects] Buffering ${e.type} for pending subagent ${subagentKey}`);
+			let buffer = this._pendingSubagentEvents.get(subagentKey);
+			if (!buffer) {
+				buffer = [];
+				this._pendingSubagentEvents.set(subagentKey, buffer);
+			}
+			buffer.push({ event: e, agent, agentMapper });
+			return;
+		}
+
+		// Route tool_ready events for tools inside subagent sessions
+		// (tool_ready lacks parentToolCallId, but the tool was previously
+		// registered under its subagent session key in _toolCallAgents)
+		if (e.type === 'tool_ready') {
+			const subagentSession = this._findSubagentSessionForToolCall(sessionKey, e.toolCallId);
+			if (subagentSession) {
+				const subTurnId = this._stateManager.getActiveTurnId(subagentSession);
+				if (subTurnId) {
+					if (this._tryAutoApproveToolReady(e, subagentSession, agent)) {
+						return;
+					}
+					this._dispatchProgressActions(agentMapper, e, subagentSession, subTurnId);
+				}
+				return;
+			}
+		}
+
+		const turnId = this._stateManager.getActiveTurnId(sessionKey);
+		if (turnId) {
+			// Auto-approve tool_ready events synchronously before dispatching.
+			// Tree-sitter is pre-warmed via initialize(), so this is fully sync.
+			if (e.type === 'tool_ready') {
+				if (this._tryAutoApproveToolReady(e, sessionKey, agent)) {
 					return;
 				}
 			}
 
-			const turnId = this._stateManager.getActiveTurnId(sessionKey);
-			if (turnId) {
-				// Auto-approve tool_ready events synchronously before dispatching.
-				// Tree-sitter is pre-warmed via initialize(), so this is fully sync.
-				if (e.type === 'tool_ready') {
-					if (this._tryAutoApproveToolReady(e, sessionKey, agent)) {
-						return;
-					}
-				}
-
-				// When a parent tool call has an associated subagent session,
-				// preserve the subagent content metadata in the completion
-				// result. The SDK's tool_complete provides its own content
-				// which would overwrite the IToolResultSubagentContent that
-				// was set via SessionToolCallContentChanged while running.
-				if (e.type === 'tool_complete') {
-					const subagentKey = `${sessionKey}:${e.toolCallId}`;
-					const subagentUri = this._subagentSessions.get(subagentKey);
-					if (subagentUri) {
-						const parentState = this._stateManager.getSessionState(sessionKey);
-						const runningContent = this._getRunningToolCallContent(parentState, turnId, e.toolCallId);
-						const subagentEntry = runningContent.find(c => hasKey(c, { type: true }) && c.type === ToolResultContentType.Subagent);
-						if (subagentEntry) {
-							const mergedContent = [...(e.result.content ?? []), subagentEntry];
-							e = { ...e, result: { ...e.result, content: mergedContent } };
-						}
-					}
-				}
-
-				this._dispatchProgressActions(agentMapper, e, sessionKey, turnId);
-
-				// When a parent tool call completes, complete any associated subagent session
-				if (e.type === 'tool_complete') {
-					this.completeSubagentSession(sessionKey, e.toolCallId);
-					if (getToolFileEdits((e as IAgentToolCompleteEvent).result).length > 0) {
-						this._scheduleDebouncedDiffComputation(sessionKey, turnId);
+			// When a parent tool call has an associated subagent session,
+			// preserve the subagent content metadata in the completion
+			// result. The SDK's tool_complete provides its own content
+			// which would overwrite the IToolResultSubagentContent that
+			// was set via SessionToolCallContentChanged while running.
+			if (e.type === 'tool_complete') {
+				const subagentKey = `${sessionKey}:${e.toolCallId}`;
+				const subagentUri = this._subagentSessions.get(subagentKey);
+				if (subagentUri) {
+					const parentState = this._stateManager.getSessionState(sessionKey);
+					const runningContent = this._getRunningToolCallContent(parentState, turnId, e.toolCallId);
+					const subagentEntry = runningContent.find(c => hasKey(c, { type: true }) && c.type === ToolResultContentType.Subagent);
+					if (subagentEntry) {
+						const mergedContent = [...(e.result.content ?? []), subagentEntry];
+						e = { ...e, result: { ...e.result, content: mergedContent } };
 					}
 				}
 			}
 
-			// After a turn completes (idle event), flush any pending debounced
-			// diff computation and compute final diffs immediately.
-			if (e.type === 'idle') {
-				this._cancelDebouncedDiffComputation(sessionKey);
-				this._computeSessionDiffs(sessionKey, turnId);
-				this._tryConsumeNextQueuedMessage(sessionKey);
-			}
+			this._dispatchProgressActions(agentMapper, e, sessionKey, turnId);
 
-			// Steering message was consumed by the agent — remove from protocol state
-			if (e.type === 'steering_consumed') {
-				this._stateManager.dispatchServerAction({
-					type: ActionType.SessionPendingMessageRemoved,
-					session: sessionKey,
-					kind: PendingMessageKind.Steering,
-					id: e.id,
-				});
+			// When a parent tool call completes, complete any associated subagent session
+			if (e.type === 'tool_complete') {
+				this.completeSubagentSession(sessionKey, e.toolCallId);
+				if (getToolFileEdits((e as IAgentToolCompleteEvent).result).length > 0) {
+					this._scheduleDebouncedDiffComputation(sessionKey, turnId);
+				}
 			}
-		}));
-		return disposables;
+		}
+
+		// After a turn completes (idle event), flush any pending debounced
+		// diff computation and compute final diffs immediately.
+		if (e.type === 'idle') {
+			this._cancelDebouncedDiffComputation(sessionKey);
+			this._computeSessionDiffs(sessionKey, turnId);
+			this._tryConsumeNextQueuedMessage(sessionKey);
+		}
+
+		// Steering message was consumed by the agent — remove from protocol state
+		if (e.type === 'steering_consumed') {
+			this._stateManager.dispatchServerAction({
+				type: ActionType.SessionPendingMessageRemoved,
+				session: sessionKey,
+				kind: PendingMessageKind.Steering,
+				id: e.id,
+			});
+		}
+	}
+
+	/**
+	 * Replays any progress events that were buffered while waiting for
+	 * `subagent_started` to create the subagent session. Called immediately
+	 * after `_handleSubagentStarted`.
+	 */
+	private _drainPendingSubagentEvents(parentSession: ProtocolURI, parentToolCallId: string): void {
+		const subagentKey = `${parentSession}:${parentToolCallId}`;
+		const buffer = this._pendingSubagentEvents.get(subagentKey);
+		if (!buffer) {
+			return;
+		}
+		this._pendingSubagentEvents.delete(subagentKey);
+		this._logService.trace(`[AgentSideEffects] Draining ${buffer.length} buffered event(s) for subagent ${subagentKey}`);
+		for (const { event, agent, agentMapper } of buffer) {
+			this._handleAgentProgress(agent, agentMapper, event);
+		}
 	}
 
 	// ---- Subagent session management ----------------------------------------
@@ -478,6 +557,12 @@ export class AgentSideEffects extends Disposable {
 				this._subagentSessions.delete(key);
 			}
 		}
+		// Drop any buffered events targeted at subagents that never started.
+		for (const key of [...this._pendingSubagentEvents.keys()]) {
+			if (key.startsWith(`${parentSession}:`)) {
+				this._pendingSubagentEvents.delete(key);
+			}
+		}
 	}
 
 	/**
@@ -486,6 +571,13 @@ export class AgentSideEffects extends Disposable {
 	 */
 	completeSubagentSession(parentSession: ProtocolURI, toolCallId: string): void {
 		const key = `${parentSession}:${toolCallId}`;
+
+		// Drop any events that were buffered waiting for a `subagent_started`
+		// that never arrived (e.g. the parent tool failed before the subagent
+		// was created). Without this, the buffer entry would leak until the
+		// parent session is disposed.
+		this._pendingSubagentEvents.delete(key);
+
 		const subagentUri = this._subagentSessions.get(key);
 		if (!subagentUri) {
 			return;
@@ -524,6 +616,13 @@ export class AgentSideEffects extends Disposable {
 		for (const uri of this._stateManager.getSessionUrisWithPrefix(prefix)) {
 			this._stateManager.removeSession(uri);
 		}
+
+		// Drop any buffered events targeted at subagents that never started.
+		for (const key of [...this._pendingSubagentEvents.keys()]) {
+			if (key.startsWith(`${parentSession}:`)) {
+				this._pendingSubagentEvents.delete(key);
+			}
+		}
 	}
 
 	/**
diff --git a/src/vs/platform/agentHost/node/copilot/copilotAgent.ts b/src/vs/platform/agentHost/node/copilot/copilotAgent.ts
index 05de458b78d..bde08bb9ade 100644
--- a/src/vs/platform/agentHost/node/copilot/copilotAgent.ts
+++ b/src/vs/platform/agentHost/node/copilot/copilotAgent.ts
@@ -8,6 +8,7 @@ import { rgPath } from '@vscode/ripgrep';
 import * as fs from 'fs/promises';
 import { Limiter, SequencerByKey } from '../../../../base/common/async.js';
 import { Emitter } from '../../../../base/common/event.js';
+import { appendEscapedMarkdownInlineCode } from '../../../../base/common/htmlContent.js';
 import { Disposable, DisposableMap } from '../../../../base/common/lifecycle.js';
 import { ResourceMap } from '../../../../base/common/map.js';
 import { FileAccess } from '../../../../base/common/network.js';
@@ -22,7 +23,7 @@ import { IFileService } from '../../../files/common/files.js';
 import { IInstantiationService } from '../../../instantiation/common/instantiation.js';
 import { ILogService } from '../../../log/common/log.js';
 import { IAgentPluginManager, ISyncedCustomization } from '../../common/agentPluginManager.js';
-import { AgentHostSessionConfigBranchNameHintKey, AgentSession, IAgent, IAgentAttachment, IAgentCreateSessionConfig, IAgentCreateSessionResult, IAgentDescriptor, IAgentMessageEvent, IAgentModelInfo, IAgentProgressEvent, IAgentResolveSessionConfigParams, IAgentSessionConfigCompletionsParams, IAgentSessionMetadata, IAgentSessionProjectInfo, IAgentSubagentStartedEvent, IAgentToolCompleteEvent, IAgentToolStartEvent } from '../../common/agentService.js';
+import { AgentHostSessionConfigBranchNameHintKey, AgentSession, IAgent, IAgentAttachment, IAgentCreateSessionConfig, IAgentCreateSessionResult, IAgentDescriptor, IAgentDeltaEvent, IAgentMessageEvent, IAgentModelInfo, IAgentProgressEvent, IAgentResolveSessionConfigParams, IAgentSessionConfigCompletionsParams, IAgentSessionMetadata, IAgentSessionProjectInfo, IAgentSubagentStartedEvent, IAgentToolCompleteEvent, IAgentToolStartEvent } from '../../common/agentService.js';
 import { ISessionDataService, SESSION_DB_FILENAME } from '../../common/sessionDataService.js';
 import type { IResolveSessionConfigResult, ISessionConfigCompletionsResult } from '../../common/state/protocol/commands.js';
 import { IProtectedResourceMetadata, type IConfigSchema, type IModelSelection, type IToolDefinition } from '../../common/state/protocol/state.js';
@@ -81,11 +82,54 @@ export function getCopilotWorktreeBranchName(sessionId: string, branchNameHint:
 	return `agents/${branchNameHint ? `${branchNameHint}-${sessionId.substring(0, 8)}` : sessionId}`;
 }
 
+/**
+ * Builds the localized "Created isolated worktree for branch X" markdown
+ * shown at the top of the first response in worktree-isolated sessions.
+ * The branch name is wrapped as inline code so the localized template
+ * doesn't have to embed markdown punctuation. The trailing blank line
+ * keeps the announcement visually separated when it gets merged into the
+ * same markdown part as the model's reply.
+ */
+function buildWorktreeAnnouncementText(branchName: string): string {
+	return localize(
+		'copilotAgent.worktreeCreated',
+		"Created isolated worktree for branch {0}",
+		appendEscapedMarkdownInlineCode(branchName)
+	) + '\n\n';
+}
+
+type AgentMessageOrEvent = IAgentMessageEvent | IAgentToolStartEvent | IAgentToolCompleteEvent | IAgentSubagentStartedEvent;
+
+/**
+ * Returns a copy of `messages` where `announcement` has been prepended to
+ * the first top-level assistant message's content. Subagent inner messages
+ * (those with a `parentToolCallId`) are skipped so the announcement lands
+ * on the parent turn. If no assistant message exists yet, returns the
+ * messages unchanged — the live announcement path is responsible for the
+ * very first turn before any reply has been recorded.
+ */
+function prependAnnouncementToFirstAssistantMessage(
+	messages: readonly AgentMessageOrEvent[],
+	announcement: string,
+): readonly AgentMessageOrEvent[] {
+	const firstAssistantIdx = messages.findIndex(m => m.type === 'message' && m.role === 'assistant' && !m.parentToolCallId);
+	if (firstAssistantIdx === -1) {
+		return messages;
+	}
+	const target = messages[firstAssistantIdx] as IAgentMessageEvent;
+	const updated: IAgentMessageEvent = { ...target, content: announcement + target.content };
+	return [
+		...messages.slice(0, firstAssistantIdx),
+		updated,
+		...messages.slice(firstAssistantIdx + 1),
+	];
+}
+
 /**
  * Agent provider backed by the Copilot SDK {@link CopilotClient}.
  */
 export class CopilotAgent extends Disposable implements IAgent {
-	readonly id = 'copilot' as const;
+	readonly id = 'copilotcli' as const;
 	private static readonly _BRANCH_COMPLETION_LIMIT = 25;
 
 	private readonly _onDidSessionProgress = this._register(new Emitter<IAgentProgressEvent>());
@@ -98,6 +142,16 @@ export class CopilotAgent extends Disposable implements IAgent {
 	private _githubToken: string | undefined;
 	private readonly _sessions = this._register(new DisposableMap<string, CopilotAgentSession>());
 	private readonly _createdWorktrees = new Map<string, ICreatedWorktree>();
+	/**
+	 * Per-session announcement (markdown string) that should be emitted as
+	 * a synthetic streaming `delta` event the first time {@link sendMessage}
+	 * is called for the session. Currently used to surface the "Created
+	 * isolated worktree for branch X" message live during the first turn.
+	 * The same announcement is also injected on restore via
+	 * {@link getSessionMessages} by prepending to the first assistant
+	 * message's content so it stays visible after the session is reopened.
+	 */
+	private readonly _pendingFirstTurnAnnouncements = new Map<string, string>();
 	private readonly _sessionSequencer = new SequencerByKey<string>();
 	private _shutdownPromise: Promise<void> | undefined;
 	private readonly _plugins: PluginController;
@@ -124,7 +178,7 @@ export class CopilotAgent extends Disposable implements IAgent {
 
 	getDescriptor(): IAgentDescriptor {
 		return {
-			provider: 'copilot',
+			provider: 'copilotcli',
 			displayName: 'Copilot CLI',
 			description: 'Copilot SDK agent running in a dedicated process',
 		};
@@ -330,10 +384,6 @@ export class CopilotAgent extends Disposable implements IAgent {
 
 	async listSessions(): Promise<IAgentSessionMetadata[]> {
 		this._logService.info('[Copilot] Listing sessions...');
-		if (!this._githubToken) {
-			this._logService.trace('[Copilot] No auth token; returning no sessions');
-			return [];
-		}
 		const client = await this._ensureClient();
 		const sessions = await client.listSessions();
 		const projectLimiter = new Limiter<IAgentSessionProjectInfo | undefined>(4);
@@ -368,10 +418,6 @@ export class CopilotAgent extends Disposable implements IAgent {
 
 	private async _listModels(): Promise<IAgentModelInfo[]> {
 		this._logService.info('[Copilot] Listing models...');
-		if (!this._githubToken) {
-			this._logService.trace('[Copilot] No auth token; returning no models');
-			return [];
-		}
 		const client = await this._ensureClient();
 		const models = await client.listModels();
 		const result = models.map(m => ({
@@ -418,15 +464,21 @@ export class CopilotAgent extends Disposable implements IAgent {
 				});
 				const newSessionId = forkResult.sessionId;
 
-				// Copy the source session's database file so the forked session
-				// inherits turn event IDs and file-edit snapshots.
-				const sourceDbDir = this._sessionDataService.getSessionDataDir(config.fork!.session);
+				// Copy the source session's database using VACUUM INTO so the
+				// forked session inherits turn event IDs and file-edit snapshots.
+				// VACUUM INTO is safe even while the source DB is open.
 				const targetDbDir = this._sessionDataService.getSessionDataDirById(newSessionId);
-				const sourceDbPath = URI.joinPath(sourceDbDir, SESSION_DB_FILENAME);
 				const targetDbPath = URI.joinPath(targetDbDir, SESSION_DB_FILENAME);
 				try {
-					await fs.mkdir(targetDbDir.fsPath, { recursive: true });
-					await fs.copyFile(sourceDbPath.fsPath, targetDbPath.fsPath);
+					const sourceDbRef = await this._sessionDataService.tryOpenDatabase(config.fork!.session);
+					if (sourceDbRef) {
+						try {
+							await fs.mkdir(targetDbDir.fsPath, { recursive: true });
+							await sourceDbRef.object.vacuumInto(targetDbPath.fsPath);
+						} finally {
+							sourceDbRef.dispose();
+						}
+					}
 				} catch (err) {
 					this._logService.warn(`[Copilot] Failed to copy session database for fork: ${err instanceof Error ? err.message : String(err)}`);
 				}
@@ -449,6 +501,15 @@ export class CopilotAgent extends Disposable implements IAgent {
 
 		const sessionId = config?.session ? AgentSession.id(config.session) : generateUuid();
 		const sessionUri = AgentSession.uri(this.id, sessionId);
+		let seededActiveClient = false;
+		if (config?.activeClient) {
+			const ac = this._getOrCreateActiveClient(sessionUri);
+			seededActiveClient = true;
+			ac.updateTools(config.activeClient.clientId, config.activeClient.tools);
+			if (config.activeClient.customizations !== undefined) {
+				await this._plugins.sync(config.activeClient.clientId, config.activeClient.customizations);
+			}
+		}
 		const activeClient = this._activeClients.get(sessionUri);
 		const snapshot = activeClient ? await activeClient.snapshot() : undefined;
 		const workingDirectory = await this._resolveSessionWorkingDirectory(config, sessionId);
@@ -472,6 +533,9 @@ export class CopilotAgent extends Disposable implements IAgent {
 			agentSession = this._createAgentSession(factory, sessionId, shellManager, snapshot);
 			await agentSession.initializeSession();
 		} catch (error) {
+			if (seededActiveClient) {
+				this._activeClients.delete(sessionUri);
+			}
 			await this._removeCreatedWorktree(sessionId);
 			throw error;
 		}
@@ -597,6 +661,21 @@ export class CopilotAgent extends Disposable implements IAgent {
 			}
 
 			entry ??= await this._resumeSession(sessionId);
+
+			// Emit any pending first-turn announcements (e.g. worktree
+			// created) as a synthetic streaming delta before delegating to
+			// the SDK. The mapper treats it like any other assistant text —
+			// the SDK's subsequent deltas append to the same markdown part.
+			// The active turn has already been started by the state manager
+			// at this point, so the event mapper can attach the delta to it.
+			const pending = this._pendingFirstTurnAnnouncements.get(sessionId);
+			if (pending) {
+				this._pendingFirstTurnAnnouncements.delete(sessionId);
+				const messageId = `copilot-announcement-${generateUuid()}`;
+				const event: IAgentDeltaEvent = { type: 'delta', session, messageId, content: pending };
+				this._onDidSessionProgress.fire(event);
+			}
+
 			await entry.send(prompt, attachments, turnId);
 		});
 	}
@@ -628,7 +707,22 @@ export class CopilotAgent extends Disposable implements IAgent {
 		if (!entry) {
 			return [];
 		}
-		return entry.getMessages();
+		const rawMessages = await entry.getMessages();
+
+		// If a worktree was created for this session at create-time, prepend
+		// the announcement to the first assistant message's content so it
+		// appears at the top of the first response when the session is
+		// reopened. The live path (sendMessage) handles the very first turn
+		// when the session is fresh; this path takes over on subsequent
+		// loads, where _pendingFirstTurnAnnouncements is empty.
+		const branchName = await this._readWorktreeBranchMetadata(session).catch(err => {
+			this._logService.warn(`[Copilot:${sessionId}] Failed to read worktree branch metadata`, err);
+			return undefined;
+		});
+		if (!branchName) {
+			return rawMessages;
+		}
+		return [...prependAnnouncementToFirstAssistantMessage(rawMessages, buildWorktreeAnnouncementText(branchName))];
 	}
 
 	async disposeSession(session: URI): Promise<void> {
@@ -797,7 +891,7 @@ export class CopilotAgent extends Disposable implements IAgent {
 		};
 	}
 
-	private async _resumeSession(sessionId: string): Promise<CopilotAgentSession> {
+	protected async _resumeSession(sessionId: string): Promise<CopilotAgentSession> {
 		this._logService.info(`[Copilot:${sessionId}] Session not in memory, resuming...`);
 		const client = await this._ensureClient();
 
@@ -867,7 +961,7 @@ export class CopilotAgent extends Disposable implements IAgent {
 		return this._gitService.getBranches(workingDirectory, { query, limit: CopilotAgent._BRANCH_COMPLETION_LIMIT });
 	}
 
-	private async _resolveSessionWorkingDirectory(config: IAgentCreateSessionConfig | undefined, sessionId: string): Promise<URI | undefined> {
+	protected async _resolveSessionWorkingDirectory(config: IAgentCreateSessionConfig | undefined, sessionId: string): Promise<URI | undefined> {
 		if (config?.config?.isolation !== 'worktree' || !config.workingDirectory || typeof config.config.branch !== 'string') {
 			return config?.workingDirectory;
 		}
@@ -884,6 +978,15 @@ export class CopilotAgent extends Disposable implements IAgent {
 		await fs.mkdir(worktreesRoot.fsPath, { recursive: true });
 		await this._gitService.addWorktree(repositoryRoot, worktree, branchName, config.config.branch);
 		this._createdWorktrees.set(sessionId, { repositoryRoot, worktree });
+		// Queue the worktree announcement so the first turn (live) and any
+		// subsequent restore (history) both surface the message in the chat.
+		this._pendingFirstTurnAnnouncements.set(sessionId, buildWorktreeAnnouncementText(branchName));
+		const sessionUri = AgentSession.uri(this.id, sessionId);
+		try {
+			await this._writeWorktreeBranchMetadata(sessionUri, branchName);
+		} catch (error) {
+			this._logService.warn(`[Copilot:${sessionId}] Failed to persist worktree branch metadata: ${error instanceof Error ? error.message : String(error)}`);
+		}
 		return worktree;
 	}
 
@@ -908,6 +1011,29 @@ export class CopilotAgent extends Disposable implements IAgent {
 	private static readonly _META_PROJECT_RESOLVED = 'copilot.project.resolved';
 	private static readonly _META_PROJECT_URI = 'copilot.project.uri';
 	private static readonly _META_PROJECT_DISPLAY_NAME = 'copilot.project.displayName';
+	private static readonly _META_WORKTREE_BRANCH = 'copilot.worktree.branchName';
+
+	private async _writeWorktreeBranchMetadata(session: URI, branchName: string): Promise<void> {
+		const dbRef = this._sessionDataService.openDatabase(session);
+		try {
+			await dbRef.object.setMetadata(CopilotAgent._META_WORKTREE_BRANCH, branchName);
+		} finally {
+			dbRef.dispose();
+		}
+	}
+
+	private async _readWorktreeBranchMetadata(session: URI): Promise<string | undefined> {
+		const ref = await this._sessionDataService.tryOpenDatabase(session);
+		if (!ref) {
+			return undefined;
+		}
+		try {
+			const value = await ref.object.getMetadata(CopilotAgent._META_WORKTREE_BRANCH);
+			return value ?? undefined;
+		} finally {
+			ref.dispose();
+		}
+	}
 
 	private async _storeSessionMetadata(session: URI, model: IModelSelection | undefined, workingDirectory: URI | undefined, project: IAgentSessionProjectInfo | undefined, projectResolved = project !== undefined): Promise<void> {
 		const dbRef = this._sessionDataService.openDatabase(session);
diff --git a/src/vs/platform/agentHost/node/copilot/copilotAgentSession.ts b/src/vs/platform/agentHost/node/copilot/copilotAgentSession.ts
index c6f30997b1e..3c96497d191 100644
--- a/src/vs/platform/agentHost/node/copilot/copilotAgentSession.ts
+++ b/src/vs/platform/agentHost/node/copilot/copilotAgentSession.ts
@@ -23,7 +23,7 @@ import type { IFileEdit, IToolDefinition } from '../../common/state/protocol/sta
 import { SessionInputAnswerState, SessionInputAnswerValueKind, SessionInputQuestionKind, SessionInputResponseKind, ToolResultContentType, type IPendingMessage, type ISessionInputAnswer, type ISessionInputRequest, type IToolCallResult, type IToolResultContent } from '../../common/state/sessionState.js';
 import { CopilotSessionWrapper } from './copilotSessionWrapper.js';
 import type { ShellManager } from './copilotShellTools.js';
-import { getEditFilePath, getInvocationMessage, getPastTenseMessage, getPermissionDisplay, getShellLanguage, getToolDisplayName, getToolInputString, getToolKind, isEditTool, isHiddenTool, isShellTool, tryStringify, type ITypedPermissionRequest } from './copilotToolDisplay.js';
+import { getEditFilePath, getInvocationMessage, getPastTenseMessage, getPermissionDisplay, getShellLanguage, getSubagentMetadata, getToolDisplayName, getToolInputString, getToolKind, isEditTool, isHiddenTool, isShellTool, tryStringify, type ITypedPermissionRequest } from './copilotToolDisplay.js';
 import { FileEditTracker } from './fileEditTracker.js';
 import { mapSessionEvents } from './mapSessionEvents.js';
 import { buildPendingEditContentUri } from './pendingEditContentStore.js';
@@ -699,6 +699,7 @@ export class CopilotAgentSession extends Disposable {
 			const displayName = getToolDisplayName(e.data.toolName);
 			this._activeToolCalls.set(e.data.toolCallId, { toolName: e.data.toolName, displayName, parameters, content: [] });
 			const toolKind = getToolKind(e.data.toolName);
+			const subagentMeta = toolKind === 'subagent' ? getSubagentMetadata(parameters) : undefined;
 
 			this._onDidSessionProgress.fire({
 				session,
@@ -711,6 +712,8 @@ export class CopilotAgentSession extends Disposable {
 				toolKind,
 				language: toolKind === 'terminal' ? getShellLanguage(e.data.toolName) : undefined,
 				toolArguments: toolArgs,
+				subagentAgentName: subagentMeta?.agentName,
+				subagentDescription: subagentMeta?.description,
 				mcpServerName: e.data.mcpServerName,
 				mcpToolName: e.data.mcpToolName,
 				parentToolCallId: e.data.parentToolCallId,
diff --git a/src/vs/platform/agentHost/node/copilot/copilotShellTools.ts b/src/vs/platform/agentHost/node/copilot/copilotShellTools.ts
index c944e862b44..9282fbd2ef5 100644
--- a/src/vs/platform/agentHost/node/copilot/copilotShellTools.ts
+++ b/src/vs/platform/agentHost/node/copilot/copilotShellTools.ts
@@ -109,7 +109,7 @@ export class ShellManager {
 			claim,
 			name: shellDisplayName,
 			cwd: cwd ?? this._workingDirectory?.fsPath,
-		}, { shell: getShellExecutable(shellType), preventShellHistory: true });
+		}, { shell: getShellExecutable(shellType), preventShellHistory: true, nonInteractive: true });
 
 		const shell: IManagedShell = { id, terminalUri, shellType };
 		this._shells.set(id, shell);
diff --git a/src/vs/platform/agentHost/node/copilot/copilotToolDisplay.ts b/src/vs/platform/agentHost/node/copilot/copilotToolDisplay.ts
index 962fe74b617..ef91cbe02bf 100644
--- a/src/vs/platform/agentHost/node/copilot/copilotToolDisplay.ts
+++ b/src/vs/platform/agentHost/node/copilot/copilotToolDisplay.ts
@@ -356,6 +356,28 @@ export function getToolKind(toolName: string): 'terminal' | 'subagent' | undefin
 	return undefined;
 }
 
+/**
+ * Extracts subagent metadata (agent name, description) from the parsed
+ * arguments of a Copilot SDK subagent tool call. The Copilot `task` tool
+ * uses `agent_type` (snake_case), which this normalizes into the generic
+ * `subagentAgentName` / `subagentDescription` shape used by the rest of the
+ * agent host code.
+ *
+ * Only call this for tools where {@link getToolKind} returned `'subagent'`.
+ */
+export function getSubagentMetadata(parameters: Record<string, unknown> | undefined): { agentName?: string; description?: string } {
+	if (!parameters) {
+		return {};
+	}
+	const agentName = typeof parameters.agent_type === 'string' && parameters.agent_type.length > 0
+		? parameters.agent_type
+		: undefined;
+	const description = typeof parameters.description === 'string' && parameters.description.length > 0
+		? parameters.description
+		: undefined;
+	return { agentName, description };
+}
+
 /**
  * Returns the shell language identifier for syntax highlighting.
  * Used when creating terminal tool-specific data for the renderer.
diff --git a/src/vs/platform/agentHost/node/copilot/mapSessionEvents.ts b/src/vs/platform/agentHost/node/copilot/mapSessionEvents.ts
index 903158d853c..bb8dc599b2e 100644
--- a/src/vs/platform/agentHost/node/copilot/mapSessionEvents.ts
+++ b/src/vs/platform/agentHost/node/copilot/mapSessionEvents.ts
@@ -7,7 +7,7 @@ import { URI } from '../../../../base/common/uri.js';
 import { IAgentMessageEvent, IAgentSubagentStartedEvent, IAgentToolCompleteEvent, IAgentToolStartEvent } from '../../common/agentService.js';
 import { IFileEditRecord, ISessionDatabase } from '../../common/sessionDataService.js';
 import { ToolResultContentType, type IToolResultContent } from '../../common/state/sessionState.js';
-import { getInvocationMessage, getPastTenseMessage, getShellLanguage, getToolDisplayName, getToolInputString, getToolKind, isEditTool, isHiddenTool } from './copilotToolDisplay.js';
+import { getInvocationMessage, getPastTenseMessage, getShellLanguage, getSubagentMetadata, getToolDisplayName, getToolInputString, getToolKind, isEditTool, isHiddenTool } from './copilotToolDisplay.js';
 import { buildSessionDbUri } from './fileEditTracker.js';
 
 function tryStringify(value: unknown): string | undefined {
@@ -163,6 +163,7 @@ export async function mapSessionEvents(
 			const displayName = getToolDisplayName(d.toolName);
 			const toolKind = getToolKind(d.toolName);
 			const toolArgs = d.arguments !== undefined ? tryStringify(d.arguments) : undefined;
+			const subagentMeta = toolKind === 'subagent' ? getSubagentMetadata(info?.parameters) : undefined;
 			result.push({
 				session,
 				type: 'tool_start',
@@ -174,6 +175,8 @@ export async function mapSessionEvents(
 				toolKind,
 				language: toolKind === 'terminal' ? getShellLanguage(d.toolName) : undefined,
 				toolArguments: toolArgs,
+				subagentAgentName: subagentMeta?.agentName,
+				subagentDescription: subagentMeta?.description,
 				mcpServerName: d.mcpServerName,
 				mcpToolName: d.mcpToolName,
 				parentToolCallId: d.parentToolCallId,
diff --git a/src/vs/platform/agentHost/node/protocolServerHandler.ts b/src/vs/platform/agentHost/node/protocolServerHandler.ts
index 6bc28f66b6b..182198d3ab1 100644
--- a/src/vs/platform/agentHost/node/protocolServerHandler.ts
+++ b/src/vs/platform/agentHost/node/protocolServerHandler.ts
@@ -23,6 +23,7 @@ import {
 	isJsonRpcNotification,
 	isJsonRpcRequest,
 	JSON_RPC_INTERNAL_ERROR,
+	JsonRpcErrorCodes,
 	ProtocolError,
 	type IAhpServerNotification,
 	type IInitializeParams,
@@ -349,6 +350,11 @@ export class ProtocolServerHandler extends Disposable {
 				}
 				fork = { session: URI.parse(params.fork.session), turnIndex, turnId: params.fork.turnId };
 			}
+			// If the client eagerly claimed the active client role, validate
+			// the clientId matches the connection before forwarding.
+			if (params.activeClient && params.activeClient.clientId !== _client.clientId) {
+				throw new ProtocolError(JsonRpcErrorCodes.InvalidParams, `createSession.activeClient.clientId must match the connection's clientId`);
+			}
 			try {
 				createdSession = await this._agentService.createSession({
 					provider: params.provider,
@@ -357,6 +363,7 @@ export class ProtocolServerHandler extends Disposable {
 					session: URI.parse(params.session),
 					fork,
 					config: params.config,
+					activeClient: params.activeClient,
 				});
 			} catch (err) {
 				if (err instanceof ProtocolError) {
@@ -379,19 +386,25 @@ export class ProtocolServerHandler extends Disposable {
 		},
 		listSessions: async () => {
 			const sessions = await this._agentService.listSessions();
-			const items = sessions.map(s => ({
-				resource: s.session.toString(),
-				provider: AgentSession.provider(s.session) ?? 'copilot',
-				title: s.summary ?? 'Session',
-				status: s.status ?? SessionStatus.Idle,
-				createdAt: s.startTime,
-				modifiedAt: s.modifiedTime,
-				...(s.project ? { project: { uri: s.project.uri.toString(), displayName: s.project.displayName } } : {}),
-				model: s.model,
-				workingDirectory: s.workingDirectory?.toString(),
-				isRead: s.isRead,
-				isDone: s.isDone,
-			}));
+			const items = sessions.map(s => {
+				const provider = AgentSession.provider(s.session);
+				if (!provider) {
+					throw new Error(`Agent session URI has no provider scheme: ${s.session.toString()}`);
+				}
+				return {
+					resource: s.session.toString(),
+					provider,
+					title: s.summary ?? 'Session',
+					status: s.status ?? SessionStatus.Idle,
+					createdAt: s.startTime,
+					modifiedAt: s.modifiedTime,
+					...(s.project ? { project: { uri: s.project.uri.toString(), displayName: s.project.displayName } } : {}),
+					model: s.model,
+					workingDirectory: s.workingDirectory?.toString(),
+					isRead: s.isRead,
+					isDone: s.isDone,
+				};
+			});
 			return { items };
 		},
 		resolveSessionConfig: async (_client, params) => {
diff --git a/src/vs/platform/agentHost/node/sessionDataService.ts b/src/vs/platform/agentHost/node/sessionDataService.ts
index 0fa6c86a5ca..96c17fc745d 100644
--- a/src/vs/platform/agentHost/node/sessionDataService.ts
+++ b/src/vs/platform/agentHost/node/sessionDataService.ts
@@ -12,6 +12,14 @@ import { ISessionDatabase, ISessionDataService, SESSION_DB_FILENAME } from '../c
 import { SessionDatabase } from './sessionDatabase.js';
 
 class SessionDatabaseCollection extends ReferenceCollection<ISessionDatabase> {
+
+	/**
+	 * The set of currently-open databases. Mirrors what's held by the
+	 * underlying ref-counted map, but exposed so {@link SessionDataService.whenIdle}
+	 * can iterate without reaching into private state.
+	 */
+	readonly liveDatabases = new Set<ISessionDatabase>();
+
 	constructor(
 		private readonly _getDbPath: (key: string) => string,
 		private readonly _logService: ILogService,
@@ -22,10 +30,13 @@ class SessionDatabaseCollection extends ReferenceCollection<ISessionDatabase> {
 	protected createReferencedObject(key: string): ISessionDatabase {
 		const dbPath = this._getDbPath(key);
 		this._logService.trace(`[SessionDataService] Opening database: ${dbPath}`);
-		return new SessionDatabase(dbPath);
+		const db = new SessionDatabase(dbPath);
+		this.liveDatabases.add(db);
+		return db;
 	}
 
 	protected destroyReferencedObject(_key: string, object: ISessionDatabase): void {
+		this.liveDatabases.delete(object);
 		object.dispose();
 	}
 }
@@ -124,4 +135,22 @@ export class SessionDataService implements ISessionDataService {
 			this._logService.warn('[SessionDataService] Failed to run orphan cleanup', err);
 		}
 	}
+
+	async whenIdle(): Promise<void> {
+		// Each `SessionDatabase.whenIdle()` already loops internally until
+		// that DB is quiescent, so the outer loop only needs to handle the
+		// case where a new DB was opened (and writes queued against it)
+		// while we were awaiting an earlier pass.
+		while (true) {
+			const dbs = [...this._databases.liveDatabases];
+			if (dbs.length === 0) {
+				return;
+			}
+			await Promise.all(dbs.map(db => db.whenIdle()));
+			const newOnes = [...this._databases.liveDatabases].filter(db => !dbs.includes(db));
+			if (newOnes.length === 0) {
+				return;
+			}
+		}
+	}
 }
diff --git a/src/vs/platform/agentHost/node/sessionDatabase.ts b/src/vs/platform/agentHost/node/sessionDatabase.ts
index b1618942fc4..5c80593ddc8 100644
--- a/src/vs/platform/agentHost/node/sessionDatabase.ts
+++ b/src/vs/platform/agentHost/node/sessionDatabase.ts
@@ -195,6 +195,17 @@ export class SessionDatabase implements ISessionDatabase {
 	protected _closed: Promise<void> | true | undefined;
 	private readonly _fileEditSequencer = new SequencerByKey<string>();
 
+	/**
+	 * In-flight write operations. Tracked so {@link whenIdle} can await them
+	 * before the process exits — without this, a `SIGTERM` arriving between
+	 * a fire-and-forget mutating call (e.g. `setMetadata`) being invoked and
+	 * its underlying SQLite query completing would silently drop the write.
+	 * Every public mutating method routes its returned promise through
+	 * {@link _track}; reads (`getMetadata`, `getFileEdits`, ...) skip
+	 * tracking since shutdown does not need to wait for them.
+	 */
+	private readonly _pendingWrites = new Set<Promise<unknown>>();
+
 	constructor(
 		private readonly _path: string,
 		private readonly _migrations: readonly ISessionDatabaseMigration[] = sessionDatabaseMigrations,
@@ -251,23 +262,29 @@ export class SessionDatabase implements ISessionDatabase {
 
 	// ---- Turns ----------------------------------------------------------
 
-	async createTurn(turnId: string): Promise<void> {
-		const db = await this._ensureDb();
-		await dbRun(db, 'INSERT OR IGNORE INTO turns (id) VALUES (?)', [turnId]);
+	createTurn(turnId: string): Promise<void> {
+		return this._track(async () => {
+			const db = await this._ensureDb();
+			await dbRun(db, 'INSERT OR IGNORE INTO turns (id) VALUES (?)', [turnId]);
+		});
 	}
 
-	async deleteTurn(turnId: string): Promise<void> {
-		const db = await this._ensureDb();
-		await dbRun(db, 'DELETE FROM turns WHERE id = ?', [turnId]);
+	deleteTurn(turnId: string): Promise<void> {
+		return this._track(async () => {
+			const db = await this._ensureDb();
+			await dbRun(db, 'DELETE FROM turns WHERE id = ?', [turnId]);
+		});
 	}
 
-	async setTurnEventId(turnId: string, eventId: string): Promise<void> {
-		const db = await this._ensureDb();
-		await dbRun(db, 'INSERT OR IGNORE INTO turns (id) VALUES (?)', [turnId]);
-		// Only set the event ID if not already set — steering messages
-		// trigger additional user.message events within the same turn,
-		// and we must preserve the first (boundary) event ID.
-		await dbRun(db, 'UPDATE turns SET event_id = ? WHERE id = ? AND event_id IS NULL', [eventId, turnId]);
+	setTurnEventId(turnId: string, eventId: string): Promise<void> {
+		return this._track(async () => {
+			const db = await this._ensureDb();
+			await dbRun(db, 'INSERT OR IGNORE INTO turns (id) VALUES (?)', [turnId]);
+			// Only set the event ID if not already set — steering messages
+			// trigger additional user.message events within the same turn,
+			// and we must preserve the first (boundary) event ID.
+			await dbRun(db, 'UPDATE turns SET event_id = ? WHERE id = ? AND event_id IS NULL', [eventId, turnId]);
+		});
 	}
 
 	async getTurnEventId(turnId: string): Promise<string | undefined> {
@@ -292,36 +309,42 @@ export class SessionDatabase implements ISessionDatabase {
 		return row?.event_id as string | undefined ?? undefined;
 	}
 
-	async truncateFromTurn(turnId: string): Promise<void> {
-		const db = await this._ensureDb();
-		// Delete the target turn and all turns inserted after it (by rowid order).
-		// File edits cascade-delete via the foreign key constraint.
-		await dbRun(db,
-			`DELETE FROM turns WHERE rowid >= (SELECT rowid FROM turns WHERE id = ?)`,
-			[turnId],
-		);
+	truncateFromTurn(turnId: string): Promise<void> {
+		return this._track(async () => {
+			const db = await this._ensureDb();
+			// Delete the target turn and all turns inserted after it (by rowid order).
+			// File edits cascade-delete via the foreign key constraint.
+			await dbRun(db,
+				`DELETE FROM turns WHERE rowid >= (SELECT rowid FROM turns WHERE id = ?)`,
+				[turnId],
+			);
+		});
 	}
 
-	async deleteTurnsAfter(turnId: string): Promise<void> {
-		const db = await this._ensureDb();
-		// Delete all turns inserted after the given turn (by rowid order),
-		// keeping the given turn itself.
-		// File edits cascade-delete via the foreign key constraint.
-		await dbRun(db,
-			`DELETE FROM turns WHERE rowid > (SELECT rowid FROM turns WHERE id = ?)`,
-			[turnId],
-		);
+	deleteTurnsAfter(turnId: string): Promise<void> {
+		return this._track(async () => {
+			const db = await this._ensureDb();
+			// Delete all turns inserted after the given turn (by rowid order),
+			// keeping the given turn itself.
+			// File edits cascade-delete via the foreign key constraint.
+			await dbRun(db,
+				`DELETE FROM turns WHERE rowid > (SELECT rowid FROM turns WHERE id = ?)`,
+				[turnId],
+			);
+		});
 	}
 
-	async deleteAllTurns(): Promise<void> {
-		const db = await this._ensureDb();
-		await dbExec(db, 'DELETE FROM turns');
+	deleteAllTurns(): Promise<void> {
+		return this._track(async () => {
+			const db = await this._ensureDb();
+			await dbExec(db, 'DELETE FROM turns');
+		});
 	}
 
 	// ---- File edits -----------------------------------------------------
 
-	async storeFileEdit(edit: IFileEditRecord & IFileEditContent): Promise<void> {
-		return this._fileEditSequencer.queue(edit.filePath, async () => {
+	storeFileEdit(edit: IFileEditRecord & IFileEditContent): Promise<void> {
+		return this._track(() => this._fileEditSequencer.queue(edit.filePath, async () => {
 			const db = await this._ensureDb();
 			// Ensure the turn exists — lazily insert since the turn record
 			// may not have been created by an explicit createTurn() call.
@@ -343,7 +366,7 @@ export class SessionDatabase implements ISessionDatabase {
 					edit.removedLines ?? null,
 				],
 			);
-		});
+		}));
 	}
 
 	async getFileEdits(toolCallIds: string[]): Promise<IFileEditRecord[]> {
@@ -459,42 +482,79 @@ export class SessionDatabase implements ISessionDatabase {
 		return result;
 	}
 
-	async setMetadata(key: string, value: string): Promise<void> {
-		const db = await this._ensureDb();
-		await dbRun(db, 'INSERT OR REPLACE INTO session_metadata (key, value) VALUES (?, ?)', [key, value]);
+	setMetadata(key: string, value: string): Promise<void> {
+		return this._track(async () => {
+			const db = await this._ensureDb();
+			await dbRun(db, 'INSERT OR REPLACE INTO session_metadata (key, value) VALUES (?, ?)', [key, value]);
+		});
 	}
 
-	async remapTurnIds(mapping: ReadonlyMap<string, string>): Promise<void> {
-		const db = await this._ensureDb();
-		// Defer FK checks to commit time so we can update turns.id and
-		// file_edits.turn_id in any order without mid-statement violations.
-		// This pragma auto-resets after the transaction ends.
-		await dbExec(db, 'PRAGMA defer_foreign_keys = ON');
-		await dbExec(db, 'BEGIN TRANSACTION');
-		try {
-			// Delete turns not present in the mapping (e.g. turns beyond
-			// the fork point). File edits cascade-delete via FK.
-			const oldIds = [...mapping.keys()];
-			if (oldIds.length > 0) {
-				const placeholders = oldIds.map(() => '?').join(',');
-				await dbRun(db,
-					`DELETE FROM turns WHERE id NOT IN (${placeholders})`,
-					oldIds,
-				);
-			}
+	remapTurnIds(mapping: ReadonlyMap<string, string>): Promise<void> {
+		return this._track(async () => {
+			const db = await this._ensureDb();
+			// Defer FK checks to commit time so we can update turns.id and
+			// file_edits.turn_id in any order without mid-statement violations.
+			// This pragma auto-resets after the transaction ends.
+			await dbExec(db, 'PRAGMA defer_foreign_keys = ON');
+			await dbExec(db, 'BEGIN TRANSACTION');
+			try {
+				// Delete turns not present in the mapping (e.g. turns beyond
+				// the fork point). File edits cascade-delete via FK.
+				const oldIds = [...mapping.keys()];
+				if (oldIds.length > 0) {
+					const placeholders = oldIds.map(() => '?').join(',');
+					await dbRun(db,
+						`DELETE FROM turns WHERE id NOT IN (${placeholders})`,
+						oldIds,
+					);
+				}
 
-			// Remap the remaining turn IDs to their new values
-			for (const [oldId, newId] of mapping) {
-				await dbRun(db, 'UPDATE turns SET id = ? WHERE id = ?', [newId, oldId]);
-				await dbRun(db, 'UPDATE file_edits SET turn_id = ? WHERE turn_id = ?', [newId, oldId]);
+				// Remap the remaining turn IDs to their new values
+				for (const [oldId, newId] of mapping) {
+					await dbRun(db, 'UPDATE turns SET id = ? WHERE id = ?', [newId, oldId]);
+					await dbRun(db, 'UPDATE file_edits SET turn_id = ? WHERE turn_id = ?', [newId, oldId]);
+				}
+				await dbExec(db, 'COMMIT');
+			} catch (err) {
+				await dbExec(db, 'ROLLBACK');
+				throw err;
 			}
-			await dbExec(db, 'COMMIT');
-		} catch (err) {
-			await dbExec(db, 'ROLLBACK');
-			throw err;
+		});
+	}
+
+	/**
+	 * Resolves once all currently in-flight write operations have settled.
+	 * Used by graceful shutdown to flush pending fire-and-forget writes
+	 * before the process exits. Should be called from a path where no
+	 * further writes are expected; loops until idle to also drain any
+	 * writes that get queued while we're awaiting.
+	 */
+	async whenIdle(): Promise<void> {
+		while (this._pendingWrites.size > 0) {
+			await Promise.allSettled([...this._pendingWrites]);
 		}
 	}
 
+	async vacuumInto(targetPath: string) {
+		const db = await this._ensureDb();
+		await dbRun(db, 'VACUUM INTO ?', [targetPath]);
+	}
+
+	/**
+	 * Wrap a mutating operation's promise so {@link whenIdle} can await it.
+	 * Invoke at the **outermost** layer of every public mutating method so
+	 * that any internal awaits (notably `_ensureDb()`) are covered too —
+	 * tracking only the leaf `dbRun`/`dbExec` would miss the window
+	 * between the method being called and the query actually being queued.
+	 */
+	private _track<T>(fn: () => Promise<T>): Promise<T> {
+		const p = fn();
+		this._pendingWrites.add(p);
+		const untrack = () => { this._pendingWrites.delete(p); };
+		p.then(untrack, untrack);
+		return p;
+	}
+
 	async close() {
 		await (this._closed ??= this._dbPromise?.then(db => db.close()).catch(() => { }) || true);
 	}
diff --git a/src/vs/platform/agentHost/test/common/sessionTestHelpers.ts b/src/vs/platform/agentHost/test/common/sessionTestHelpers.ts
index 7b9089a7fa0..467b5427c76 100644
--- a/src/vs/platform/agentHost/test/common/sessionTestHelpers.ts
+++ b/src/vs/platform/agentHost/test/common/sessionTestHelpers.ts
@@ -72,6 +72,8 @@ export class TestSessionDatabase implements ISessionDatabase {
 
 	async close(): Promise<void> { }
 
+	async vacuumInto(_targetPath: string): Promise<void> { }
+
 	dispose(): void { }
 
 	async setTurnEventId(_turnId: string, _eventId: string): Promise<void> { }
@@ -90,6 +92,8 @@ export class TestSessionDatabase implements ISessionDatabase {
 
 	async remapTurnIds(_mapping: ReadonlyMap<string, string>): Promise<void> { }
 
+	async whenIdle(): Promise<void> { }
+
 	private _toEditRecords(edits: (IFileEditRecord & IFileEditContent)[]): IFileEditRecord[] {
 		return edits.map(({ beforeContent: _, afterContent: _2, ...metadata }) => metadata);
 	}
@@ -130,6 +134,7 @@ export function createSessionDataService(database: ISessionDatabase = new TestSe
 		tryOpenDatabase: async () => createReference(database),
 		deleteSessionData: async () => { },
 		cleanupOrphanedData: async () => { },
+		whenIdle: async () => { },
 	};
 }
 
@@ -142,6 +147,7 @@ export function createNullSessionDataService(): ISessionDataService {
 		tryOpenDatabase: async () => undefined,
 		deleteSessionData: async () => { },
 		cleanupOrphanedData: async () => { },
+		whenIdle: async () => { },
 	};
 }
 
diff --git a/src/vs/platform/agentHost/test/node/agentEventMapper.test.ts b/src/vs/platform/agentHost/test/node/agentEventMapper.test.ts
index df39d40fd68..2e8055a13a2 100644
--- a/src/vs/platform/agentHost/test/node/agentEventMapper.test.ts
+++ b/src/vs/platform/agentHost/test/node/agentEventMapper.test.ts
@@ -400,7 +400,10 @@ suite('AgentEventMapper', () => {
 		assert.strictEqual(readyAction.confirmed, undefined);
 	});
 
-	test('tool_start with subagent toolKind extracts agent metadata from toolArguments', () => {
+	test('tool_start with subagent metadata forwards it as `_meta`', () => {
+		// Per-SDK adapters (e.g. the Copilot adapter) extract subagent
+		// metadata from their tool argument shape and set it on the event.
+		// The generic mapper just forwards the fields into `_meta`.
 		const event: IAgentToolStartEvent = {
 			session,
 			type: 'tool_start',
@@ -409,7 +412,8 @@ suite('AgentEventMapper', () => {
 			displayName: 'Task',
 			invocationMessage: 'Delegating...',
 			toolKind: 'subagent',
-			toolArguments: JSON.stringify({ description: 'Review the code', agentName: 'code-reviewer' }),
+			subagentDescription: 'Review the code',
+			subagentAgentName: 'code-reviewer',
 		};
 
 		const actions = mapToArray(mapper.mapProgressEventToActions(event, session.toString(), turnId));
diff --git a/src/vs/platform/agentHost/test/node/agentService.test.ts b/src/vs/platform/agentHost/test/node/agentService.test.ts
index e738cea8fb7..6d4c6d43689 100644
--- a/src/vs/platform/agentHost/test/node/agentService.test.ts
+++ b/src/vs/platform/agentHost/test/node/agentService.test.ts
@@ -19,7 +19,7 @@ import { AgentSession } from '../../common/agentService.js';
 import { ISessionDatabase, ISessionDataService } from '../../common/sessionDataService.js';
 import { SessionDatabase } from '../../node/sessionDatabase.js';
 import { ActionType, IActionEnvelope } from '../../common/state/sessionActions.js';
-import { ResponsePartKind, SessionLifecycle, ToolCallConfirmationReason, ToolCallStatus, ToolResultContentType, TurnState, buildSubagentSessionUri, type IMarkdownResponsePart, type IToolCallCompletedState, type IToolCallResponsePart } from '../../common/state/sessionState.js';
+import { ISessionActiveClient, ResponsePartKind, SessionLifecycle, ToolCallConfirmationReason, ToolCallStatus, ToolResultContentType, TurnState, buildSubagentSessionUri, type IMarkdownResponsePart, type IToolCallCompletedState, type IToolCallResponsePart } from '../../common/state/sessionState.js';
 import { IProductService } from '../../../product/common/productService.js';
 import { AgentService } from '../../node/agentService.js';
 import { MockAgent } from './mockAgent.js';
@@ -65,6 +65,7 @@ suite('AgentService (node dispatcher)', () => {
 			tryOpenDatabase: async () => undefined,
 			deleteSessionData: async () => { },
 			cleanupOrphanedData: async () => { },
+			whenIdle: async () => { },
 		};
 		fileService = disposables.add(new FileService(new NullLogService()));
 		disposables.add(fileService.registerProvider(Schemas.inMemory, disposables.add(new InMemoryFileSystemProvider())));
@@ -195,6 +196,7 @@ suite('AgentService (node dispatcher)', () => {
 				}),
 				deleteSessionData: async () => { },
 				cleanupOrphanedData: async () => { },
+				whenIdle: async () => { },
 			};
 
 			// Create a mock that returns a session with that ID
@@ -248,6 +250,36 @@ suite('AgentService (node dispatcher)', () => {
 
 			assert.deepStrictEqual(service.stateManager.getSessionState(session.toString())?.config?.values, config);
 		});
+
+		test('seeds activeClient into the initial session state when provided', async () => {
+			service.registerProvider(copilotAgent);
+
+			const envelopes: IActionEnvelope[] = [];
+			disposables.add(service.onDidAction(env => envelopes.push(env)));
+
+			const activeClient: ISessionActiveClient = {
+				clientId: 'client-eager',
+				tools: [{ name: 't1', description: 'd', inputSchema: { type: 'object' } }],
+				customizations: [{ uri: 'file:///plugin-a', displayName: 'A' }],
+			};
+			const session = await service.createSession({ provider: 'copilot', activeClient });
+
+			assert.deepStrictEqual({
+				activeClient: service.stateManager.getSessionState(session.toString())?.activeClient,
+				dispatchedActiveClientChanged: envelopes.some(e => e.action.type === ActionType.SessionActiveClientChanged),
+			}, {
+				activeClient,
+				dispatchedActiveClientChanged: false,
+			});
+		});
+
+		test('omits activeClient from the initial session state when not provided', async () => {
+			service.registerProvider(copilotAgent);
+
+			const session = await service.createSession({ provider: 'copilot' });
+
+			assert.strictEqual(service.stateManager.getSessionState(session.toString())?.activeClient, undefined);
+		});
 	});
 
 	// ---- authenticate ---------------------------------------------------
@@ -381,7 +413,7 @@ suite('AgentService (node dispatcher)', () => {
 			copilotAgent.sessionMessages = [
 				{ type: 'message', session, role: 'user', messageId: 'msg-1', content: 'Review this code', toolRequests: [] },
 				{ type: 'message', session, role: 'assistant', messageId: 'msg-2', content: '', toolRequests: [{ toolCallId: 'tc-sub', name: 'task' }] },
-				{ type: 'tool_start', session, toolCallId: 'tc-sub', toolName: 'task', displayName: 'Task', invocationMessage: 'Delegating...', toolKind: 'subagent' as const, toolArguments: JSON.stringify({ description: 'Find related files', agentName: 'explore' }) },
+				{ type: 'tool_start', session, toolCallId: 'tc-sub', toolName: 'task', displayName: 'Task', invocationMessage: 'Delegating...', toolKind: 'subagent' as const, subagentDescription: 'Find related files', subagentAgentName: 'explore' },
 				{ type: 'subagent_started', session, toolCallId: 'tc-sub', agentName: 'explore', agentDisplayName: 'Explore', agentDescription: 'Explores the codebase' },
 				// Inner tool calls from the subagent (have parentToolCallId)
 				{ type: 'tool_start', session, toolCallId: 'tc-inner-1', toolName: 'bash', displayName: 'Bash', invocationMessage: 'Running ls...', parentToolCallId: 'tc-sub' },
diff --git a/src/vs/platform/agentHost/test/node/agentSideEffects.test.ts b/src/vs/platform/agentHost/test/node/agentSideEffects.test.ts
index 844033e1cde..524909a4891 100644
--- a/src/vs/platform/agentHost/test/node/agentSideEffects.test.ts
+++ b/src/vs/platform/agentHost/test/node/agentSideEffects.test.ts
@@ -18,7 +18,7 @@ import { NullLogService } from '../../../log/common/log.js';
 import { AgentSession, IAgent } from '../../common/agentService.js';
 import { ISessionDataService } from '../../common/sessionDataService.js';
 import { ActionType, IActionEnvelope, ISessionAction } from '../../common/state/sessionActions.js';
-import { PendingMessageKind, ResponsePartKind, SessionStatus, ToolCallStatus, ToolResultContentType } from '../../common/state/sessionState.js';
+import { buildSubagentSessionUri, PendingMessageKind, ResponsePartKind, SessionStatus, ToolCallStatus, ToolResultContentType } from '../../common/state/sessionState.js';
 import { IProductService } from '../../../product/common/productService.js';
 import { AgentService } from '../../node/agentService.js';
 import { AgentSideEffects } from '../../node/agentSideEffects.js';
@@ -1370,6 +1370,51 @@ suite('AgentSideEffects', () => {
 			assert.strictEqual(parentInnerTool, undefined, 'inner tool call should NOT be in parent session');
 		});
 
+		test('completeSubagentSession clears pending buffered events when subagent never started', () => {
+			// Regression: if the parent tool completes (or fails) before any
+			// `subagent_started` arrives, buffered inner events would
+			// otherwise leak in `_pendingSubagentEvents` until session
+			// disposal. After completion, a late `subagent_started` for the
+			// same toolCallId must not replay stale events.
+			setupSession();
+			startTurn('turn-1');
+			disposables.add(sideEffects.registerProgressListener(agent));
+
+			agent.fireProgress({ session: sessionUri, type: 'tool_start', toolCallId: 'tc-1', toolName: 'runSubagent', displayName: 'Run Subagent', invocationMessage: 'Delegating...' });
+
+			// Inner event arrives but `subagent_started` never does.
+			agent.fireProgress({
+				session: sessionUri,
+				type: 'tool_start',
+				toolCallId: 'inner-1',
+				toolName: 'read',
+				displayName: 'Read',
+				invocationMessage: 'Reading...',
+				parentToolCallId: 'tc-1',
+			});
+
+			// Parent tool completes (e.g. it errored before delegating).
+			agent.fireProgress({
+				session: sessionUri,
+				type: 'tool_complete',
+				toolCallId: 'tc-1',
+				result: { success: false, pastTenseMessage: 'Failed' },
+			});
+
+			// Now a late `subagent_started` for the same toolCallId arrives.
+			// This is unusual but possible after a reconnect/replay. The
+			// drain must NOT replay the (cleared) buffered inner tool call.
+			agent.fireProgress({ session: sessionUri, type: 'subagent_started', toolCallId: 'tc-1', agentName: 'helper', agentDisplayName: 'Helper', agentDescription: 'Helps' });
+
+			const subagentUri = `${sessionUri.toString()}/subagent/tc-1`;
+			const subState = stateManager.getSessionState(subagentUri);
+			assert.ok(subState, 'subagent session should still be created');
+			const innerTool = subState!.activeTurn?.responseParts.find(
+				rp => rp.kind === ResponsePartKind.ToolCall && rp.toolCall.toolCallId === 'inner-1'
+			);
+			assert.strictEqual(innerTool, undefined, 'stale buffered inner tool call must not be replayed');
+		});
+
 		test('completeSubagentSession completes the subagent turn when parent tool completes', () => {
 			setupSession();
 			startTurn('turn-1');
@@ -1493,5 +1538,138 @@ suite('AgentSideEffects', () => {
 			const textEntry = content.find(c => hasKey(c, { type: true }) && c.type === ToolResultContentType.Text);
 			assert.ok(textEntry, 'Completed tool should also have the SDK result content');
 		});
+
+		test('inner tool_start arriving BEFORE subagent_started routes to subagent (not parent)', () => {
+			// Reproduces the regression where inner subagent tool calls show up
+			// flat at the top level of the parent session because the SDK can
+			// emit `tool_start` (with parentToolCallId) before `subagent_started`.
+			setupSession();
+			startTurn('turn-1');
+			disposables.add(sideEffects.registerProgressListener(agent));
+
+			// 1. Parent tool starts (the `task` invocation).
+			agent.fireProgress({ session: sessionUri, type: 'tool_start', toolCallId: 'tc-parent', toolName: 'task', displayName: 'Task', invocationMessage: 'Delegating...' });
+
+			// 2. Inner tool fires BEFORE subagent_started (race condition).
+			agent.fireProgress({
+				session: sessionUri,
+				type: 'tool_start',
+				toolCallId: 'inner-tc-1',
+				toolName: 'readFile',
+				displayName: 'Read File',
+				invocationMessage: 'Reading file...',
+				parentToolCallId: 'tc-parent',
+			});
+
+			// 3. subagent_started arrives later.
+			agent.fireProgress({ session: sessionUri, type: 'subagent_started', toolCallId: 'tc-parent', agentName: 'helper', agentDisplayName: 'Helper', agentDescription: 'Helps' });
+
+			const subagentUri = buildSubagentSessionUri(sessionUri.toString(), 'tc-parent');
+			const subState = stateManager.getSessionState(subagentUri);
+			assert.ok(subState?.activeTurn, 'subagent session should exist');
+
+			const innerTool = subState!.activeTurn!.responseParts.find(
+				rp => rp.kind === ResponsePartKind.ToolCall && rp.toolCall.toolCallId === 'inner-tc-1'
+			);
+			assert.ok(innerTool, 'inner tool fired before subagent_started should still end up in the subagent session');
+
+			// Parent must NOT have the inner tool.
+			const parentState = stateManager.getSessionState(sessionUri.toString());
+			const parentInnerTool = parentState!.activeTurn!.responseParts.find(
+				rp => rp.kind === ResponsePartKind.ToolCall && rp.toolCall.toolCallId === 'inner-tc-1'
+			);
+			assert.strictEqual(parentInnerTool, undefined, 'inner tool must not leak into parent session');
+		});
+
+		test('reads inside parent working directory are auto-approved for tools in subagent sessions', () => {
+			// Subagent sessions don't carry their own workingDirectory or
+			// autoApprove config. Without inheritance from the parent, every
+			// tool call inside a subagent (even a read in the workspace) would
+			// surface a confirmation dialog.
+			setupSession(URI.file('/workspace').toString());
+			startTurn('turn-1');
+			disposables.add(sideEffects.registerProgressListener(agent));
+
+			// Parent task tool spawns a subagent.
+			agent.fireProgress({ session: sessionUri, type: 'tool_start', toolCallId: 'tc-parent', toolName: 'task', displayName: 'Task', invocationMessage: 'Delegating...' });
+			agent.fireProgress({ session: sessionUri, type: 'subagent_started', toolCallId: 'tc-parent', agentName: 'helper', agentDisplayName: 'Helper', agentDescription: 'Helps' });
+
+			// Inner tool inside the subagent requests permission to read a file
+			// inside the parent workspace.
+			agent.fireProgress({
+				session: sessionUri,
+				type: 'tool_start',
+				toolCallId: 'inner-read-1',
+				toolName: 'read',
+				displayName: 'Read',
+				invocationMessage: 'Read file',
+				parentToolCallId: 'tc-parent',
+			});
+			agent.fireProgress({
+				session: sessionUri,
+				type: 'tool_ready',
+				toolCallId: 'inner-read-1',
+				invocationMessage: 'Read src/app.ts',
+				permissionKind: 'read',
+				permissionPath: '/workspace/src/app.ts',
+			});
+
+			assert.deepStrictEqual(agent.respondToPermissionCalls, [
+				{ requestId: 'inner-read-1', approved: true },
+			]);
+		});
+
+		test('session-level autoApprove on the parent is inherited by tools in subagent sessions', () => {
+			setupSession(URI.file('/workspace').toString());
+			startTurn('turn-1');
+			disposables.add(sideEffects.registerProgressListener(agent));
+
+			// Set the parent session to "Bypass Approvals" via session config.
+			const parentState = stateManager.getSessionState(sessionUri.toString());
+			if (parentState) {
+				parentState.config = {
+					schema: {
+						type: 'object',
+						properties: {
+							autoApprove: {
+								type: 'string',
+								title: 'Approvals',
+								enum: ['default', 'autoApprove', 'autopilot'],
+								default: 'default',
+								sessionMutable: true,
+							},
+						},
+					},
+					values: { autoApprove: 'autoApprove' },
+				};
+			}
+
+			agent.fireProgress({ session: sessionUri, type: 'tool_start', toolCallId: 'tc-parent', toolName: 'task', displayName: 'Task', invocationMessage: 'Delegating...' });
+			agent.fireProgress({ session: sessionUri, type: 'subagent_started', toolCallId: 'tc-parent', agentName: 'helper', agentDisplayName: 'Helper', agentDescription: 'Helps' });
+
+			// Inner write outside the workspace would normally NOT auto-approve,
+			// but session-level autoApprove on the parent must apply.
+			agent.fireProgress({
+				session: sessionUri,
+				type: 'tool_start',
+				toolCallId: 'inner-write-1',
+				toolName: 'write',
+				displayName: 'Write',
+				invocationMessage: 'Write file',
+				parentToolCallId: 'tc-parent',
+			});
+			agent.fireProgress({
+				session: sessionUri,
+				type: 'tool_ready',
+				toolCallId: 'inner-write-1',
+				invocationMessage: 'Write /tmp/foo',
+				permissionKind: 'write',
+				permissionPath: '/tmp/foo',
+			});
+
+			assert.deepStrictEqual(agent.respondToPermissionCalls, [
+				{ requestId: 'inner-write-1', approved: true },
+			]);
+		});
 	});
 });
diff --git a/src/vs/platform/agentHost/test/node/copilotAgent.test.ts b/src/vs/platform/agentHost/test/node/copilotAgent.test.ts
index 24e35d74a78..72578eed5d7 100644
--- a/src/vs/platform/agentHost/test/node/copilotAgent.test.ts
+++ b/src/vs/platform/agentHost/test/node/copilotAgent.test.ts
@@ -5,6 +5,8 @@
 
 import type { CopilotSession, SessionEventPayload, SessionEventType, TypedSessionEventHandler } from '@github/copilot-sdk';
 import assert from 'assert';
+import * as fs from 'fs/promises';
+import * as os from 'os';
 import { Disposable, type DisposableStore, type IDisposable, type IReference } from '../../../../base/common/lifecycle.js';
 import { URI } from '../../../../base/common/uri.js';
 import { ensureNoDisposablesAreLeakedInTestSuite } from '../../../../base/test/common/utils.js';
@@ -16,7 +18,7 @@ import { InstantiationService } from '../../../instantiation/common/instantiatio
 import { ServiceCollection } from '../../../instantiation/common/serviceCollection.js';
 import { ILogService, NullLogService } from '../../../log/common/log.js';
 import { IAgentPluginManager, ISyncedCustomization } from '../../common/agentPluginManager.js';
-import { AgentSession, type IAgentSessionMetadata } from '../../common/agentService.js';
+import { AgentSession, type IAgentDeltaEvent, type IAgentMessageEvent, type IAgentProgressEvent, type IAgentSessionMetadata, type IAgentToolStartEvent } from '../../common/agentService.js';
 import { ISessionDataService } from '../../common/sessionDataService.js';
 import { AHP_AUTH_REQUIRED, ProtocolError } from '../../common/state/sessionProtocol.js';
 import { ISessionCustomization, ICustomizationRef } from '../../common/state/sessionState.js';
@@ -40,13 +42,18 @@ class TestAgentPluginManager implements IAgentPluginManager {
 class TestAgentHostGitService implements IAgentHostGitService {
 	declare readonly _serviceBrand: undefined;
 
+	repositoryRoot: URI | undefined = undefined;
+	addedWorktrees: { repositoryRoot: URI; worktree: URI; branchName: string; startPoint: string }[] = [];
+
 	async isInsideWorkTree(): Promise<boolean> { return false; }
 	async getCurrentBranch(): Promise<string | undefined> { return undefined; }
 	async getDefaultBranch(): Promise<string | undefined> { return undefined; }
 	async getBranches(): Promise<string[]> { return []; }
-	async getRepositoryRoot(): Promise<URI | undefined> { return undefined; }
+	async getRepositoryRoot(): Promise<URI | undefined> { return this.repositoryRoot; }
 	async getWorktreeRoots(): Promise<URI[]> { return []; }
-	async addWorktree(): Promise<void> { }
+	async addWorktree(repositoryRoot: URI, worktree: URI, branchName: string, startPoint: string): Promise<void> {
+		this.addedWorktrees.push({ repositoryRoot, worktree, branchName, startPoint });
+	}
 	async removeWorktree(): Promise<void> { }
 }
 
@@ -96,6 +103,7 @@ class TestSessionDataService extends Disposable implements ISessionDataService {
 
 	deleteSessionData(): Promise<void> { return Promise.resolve(); }
 	cleanupOrphanedData(): Promise<void> { return Promise.resolve(); }
+	whenIdle(): Promise<void> { return Promise.resolve(); }
 }
 
 class TestCopilotClient implements ICopilotClient {
@@ -114,6 +122,12 @@ class TestCopilotClient implements ICopilotClient {
 	resumeSession: ICopilotClient['resumeSession'] = async () => { throw new Error('not implemented'); };
 }
 
+interface IFakeAgentSession {
+	send: (prompt: string, attachments?: unknown, turnId?: string) => Promise<void>;
+	getMessages: () => Promise<readonly (IAgentMessageEvent | IAgentToolStartEvent)[]>;
+	dispose: () => void;
+}
+
 class MockCopilotSession {
 	readonly sessionId = 'test-session-1';
 
@@ -129,6 +143,9 @@ class MockCopilotSession {
 }
 
 class TestableCopilotAgent extends CopilotAgent {
+	private readonly _fakeSessions = new Map<string, IFakeAgentSession>();
+	readonly resumeCalls: string[] = [];
+
 	constructor(
 		private readonly _copilotClient: ICopilotClient,
 		@ILogService logService: ILogService,
@@ -144,17 +161,43 @@ class TestableCopilotAgent extends CopilotAgent {
 	protected override _createCopilotClient(): ICopilotClient {
 		return this._copilotClient;
 	}
+
+	registerFakeSession(sessionId: string, fake: IFakeAgentSession): void {
+		this._fakeSessions.set(sessionId, fake);
+	}
+
+	protected override async _resumeSession(sessionId: string): Promise<CopilotAgentSession> {
+		this.resumeCalls.push(sessionId);
+		const fake = this._fakeSessions.get(sessionId);
+		if (!fake) {
+			throw new Error(`No fake session registered for '${sessionId}'`);
+		}
+		// `_sessions` is a DisposableMap, so it will dispose() the entry on
+		// teardown. The fields below are the only ones touched by sendMessage
+		// and getSessionMessages in the code under test.
+		const stub = {
+			send: fake.send,
+			getMessages: fake.getMessages,
+			appliedSnapshot: undefined,
+			dispose: fake.dispose,
+		} as unknown as CopilotAgentSession;
+		return stub;
+	}
+
+	resolveWorktreeForTest(config: Parameters<CopilotAgent['createSession']>[0], sessionId: string): Promise<URI | undefined> {
+		return this._resolveSessionWorkingDirectory(config, sessionId);
+	}
 }
 
-function createTestAgentContext(disposables: Pick<DisposableStore, 'add'>, options?: { sessionDataService?: ISessionDataService; copilotClient?: ICopilotClient; environmentServiceRegistration?: 'native' | 'none' }): { agent: CopilotAgent; instantiationService: IInstantiationService } {
+function createTestAgentContext(disposables: Pick<DisposableStore, 'add'>, options?: { sessionDataService?: ISessionDataService; copilotClient?: ICopilotClient; gitService?: TestAgentHostGitService; environmentServiceRegistration?: 'native' | 'none'; pluginManager?: IAgentPluginManager }): { agent: CopilotAgent; instantiationService: IInstantiationService } {
 	const services = new ServiceCollection();
 	const logService = new NullLogService();
 	const fileService = disposables.add(new FileService(logService));
 	services.set(ILogService, logService);
 	services.set(IFileService, fileService);
 	services.set(ISessionDataService, options?.sessionDataService ?? createNullSessionDataService());
-	services.set(IAgentPluginManager, new TestAgentPluginManager());
-	services.set(IAgentHostGitService, new TestAgentHostGitService());
+	services.set(IAgentPluginManager, options?.pluginManager ?? new TestAgentPluginManager());
+	services.set(IAgentHostGitService, options?.gitService ?? new TestAgentHostGitService());
 	services.set(IAgentHostTerminalManager, new TestAgentHostTerminalManager());
 	if (options?.environmentServiceRegistration !== 'none') {
 		const environmentService = {
@@ -171,12 +214,12 @@ function createTestAgentContext(disposables: Pick<DisposableStore, 'add'>, optio
 	return { agent, instantiationService };
 }
 
-function createTestAgent(disposables: Pick<DisposableStore, 'add'>, options?: { sessionDataService?: ISessionDataService; copilotClient?: ICopilotClient; environmentServiceRegistration?: 'native' | 'none' }): CopilotAgent {
+function createTestAgent(disposables: Pick<DisposableStore, 'add'>, options?: { sessionDataService?: ISessionDataService; copilotClient?: ICopilotClient; gitService?: TestAgentHostGitService; environmentServiceRegistration?: 'native' | 'none'; pluginManager?: IAgentPluginManager }): CopilotAgent {
 	return createTestAgentContext(disposables, options).agent;
 }
 
 function createAgentSessionThroughAgent(agent: CopilotAgent, instantiationService: IInstantiationService): CopilotAgentSession {
-	const sessionUri = AgentSession.uri('copilot', 'test-session-1');
+	const sessionUri = AgentSession.uri('copilotcli', 'test-session-1');
 	const shellManager = instantiationService.createInstance(ShellManager, sessionUri, undefined);
 	const wrapperFactory: SessionWrapperFactory = async () => new CopilotSessionWrapper(new MockCopilotSession() as unknown as CopilotSession);
 	return (agent as unknown as {
@@ -237,11 +280,14 @@ suite('CopilotAgent', () => {
 		assert.strictEqual(getCopilotWorktreeBranchName('12345678-aaaa-bbbb-cccc-123456789abc', 'a'.repeat(48)).length, 'agents/'.length + 48 + '-12345678'.length);
 	});
 
-	test('returns empty models and sessions before authentication', async () => {
+	test('returns empty models and throws AuthRequired for sessions before authentication', async () => {
 		const agent = createTestAgent(disposables);
 		try {
 			assert.deepStrictEqual(agent.models.get(), []);
-			assert.deepStrictEqual(await agent.listSessions(), []);
+			await assert.rejects(
+				() => agent.listSessions(),
+				(error: Error) => error instanceof ProtocolError && error.code === AHP_AUTH_REQUIRED,
+			);
 		} finally {
 			await disposeAgent(agent);
 		}
@@ -290,7 +336,7 @@ suite('CopilotAgent', () => {
 
 	test('listSessions only returns sessions with a database', async () => {
 		const sessionDataService = disposables.add(new TestSessionDataService());
-		const ownedSession = AgentSession.uri('copilot', 'owned');
+		const ownedSession = AgentSession.uri('copilotcli', 'owned');
 		const ownedDb = sessionDataService.openDatabase(ownedSession);
 		ownedDb.dispose();
 
@@ -307,7 +353,7 @@ suite('CopilotAgent', () => {
 
 	test('listSessions reads stored metadata from sessions with a database', async () => {
 		const sessionDataService = disposables.add(new TestSessionDataService());
-		const legacySession = AgentSession.uri('copilot', 'legacy');
+		const legacySession = AgentSession.uri('copilotcli', 'legacy');
 		const legacyDb = sessionDataService.openDatabase(legacySession);
 		await legacyDb.object.setMetadata('copilot.workingDirectory', URI.file('/workspace').toString());
 		legacyDb.dispose();
@@ -340,4 +386,215 @@ suite('CopilotAgent', () => {
 			await disposeAgent(agent);
 		}
 	});
+
+	suite('createSession activeClient eager-claim', () => {
+
+		class SpyingPluginManager extends TestAgentPluginManager {
+			public readonly calls: { clientId: string; customizations: ICustomizationRef[] }[] = [];
+
+			override async syncCustomizations(clientId: string, customizations: ICustomizationRef[], _progress?: (status: ISessionCustomization[]) => void): Promise<ISyncedCustomization[]> {
+				this.calls.push({ clientId, customizations: [...customizations] });
+				return [];
+			}
+		}
+
+		test('createSession seeds activeClient tools and syncs customizations', async () => {
+			const sessionDataService = disposables.add(new TestSessionDataService());
+			const client = new TestCopilotClient([]);
+			const pluginManager = new SpyingPluginManager();
+			// Fail fast inside the SDK factory so we don't need to wire up a
+			// real raw session. The seeding of activeClient and the plugin
+			// sync both happen before `client.createSession` is invoked.
+			client.createSession = async () => { throw new Error('sentinel'); };
+
+			const agent = createTestAgent(disposables, { sessionDataService, copilotClient: client, pluginManager });
+			try {
+				await agent.authenticate('https://api.github.com', 'token');
+
+				const customizations: ICustomizationRef[] = [{ uri: 'file:///plugin-a', displayName: 'Plugin A' }];
+				await assert.rejects(
+					agent.createSession({
+						session: AgentSession.uri('copilotcli', 'test-session'),
+						workingDirectory: URI.file('/workspace'),
+						activeClient: {
+							clientId: 'client-1',
+							tools: [{ name: 't1', description: 'd', inputSchema: { type: 'object' } }],
+							customizations,
+						},
+					}),
+					(err: Error) => /sentinel/.test(err.message),
+				);
+
+				assert.deepStrictEqual(pluginManager.calls, [{ clientId: 'client-1', customizations }]);
+			} finally {
+				await disposeAgent(agent);
+			}
+		});
+
+		test('createSession without activeClient does not sync customizations', async () => {
+			const sessionDataService = disposables.add(new TestSessionDataService());
+			const client = new TestCopilotClient([]);
+			const pluginManager = new SpyingPluginManager();
+			client.createSession = async () => { throw new Error('sentinel'); };
+
+			const agent = createTestAgent(disposables, { sessionDataService, copilotClient: client, pluginManager });
+			try {
+				await agent.authenticate('https://api.github.com', 'token');
+
+				await assert.rejects(
+					agent.createSession({
+						session: AgentSession.uri('copilotcli', 'test-session-2'),
+						workingDirectory: URI.file('/workspace'),
+					}),
+					(err: Error) => /sentinel/.test(err.message),
+				);
+
+				assert.deepStrictEqual(pluginManager.calls, []);
+			} finally {
+				await disposeAgent(agent);
+			}
+		});
+	});
+
+	suite('worktree announcement', () => {
+		// Drives a real session through worktree creation (calling the
+		// agent's _resolveSessionWorkingDirectory via a test seam so we don't
+		// need a full Copilot SDK), then exercises both the live path
+		// (sendMessage emits a synthetic delta) and the restore path
+		// (getSessionMessages prepends to the first assistant message). A
+		// stubbed CopilotAgentSession is injected via overriding _resumeSession
+		// because the real one requires a full SDK CopilotSession with ~30
+		// event subscriptions.
+
+		let tmpDir: string;
+
+		setup(async () => {
+			tmpDir = await fs.mkdtemp(`${os.tmpdir()}/copilot-agent-worktree-test-`);
+		});
+
+		teardown(async () => {
+			await fs.rm(tmpDir, { recursive: true, force: true });
+		});
+
+		test('emits announcement live as a delta on first sendMessage and persists it for restore via getSessionMessages', async () => {
+			const sessionId = 'wt-session';
+			const session = AgentSession.uri('copilotcli', sessionId);
+			const repositoryRoot = URI.joinPath(URI.file(tmpDir), 'repo');
+			await fs.mkdir(repositoryRoot.fsPath, { recursive: true });
+
+			const gitService = new TestAgentHostGitService();
+			gitService.repositoryRoot = repositoryRoot;
+
+			const sessionDataService = disposables.add(new TestSessionDataService());
+			const agent = createTestAgent(disposables, {
+				sessionDataService,
+				copilotClient: new TestCopilotClient([]),
+				gitService,
+			}) as TestableCopilotAgent;
+
+			const fakeMessages: (IAgentMessageEvent | IAgentToolStartEvent)[] = [
+				{ session, type: 'message', role: 'user', messageId: 'u1', content: 'hi' },
+				{ session, type: 'message', role: 'assistant', messageId: 'a1', content: 'hello back' },
+			];
+			let sendCalls = 0;
+			agent.registerFakeSession(sessionId, {
+				send: async () => { sendCalls++; },
+				getMessages: async () => fakeMessages,
+				dispose: () => { },
+			});
+
+			try {
+				await agent.authenticate('https://api.github.com', 'token');
+
+				// 1. Drive worktree resolution: this is what createSession does
+				//    before constructing the SDK session. Verifies that the
+				//    real production code path persists branch metadata and
+				//    queues the live announcement.
+				const branchHint = 'add-feature';
+				const expectedBranchName = getCopilotWorktreeBranchName(sessionId, branchHint);
+				const workingDir = await agent.resolveWorktreeForTest({
+					workingDirectory: repositoryRoot,
+					config: { isolation: 'worktree', branch: 'main', branchNameHint: branchHint },
+				}, sessionId);
+				assert.ok(workingDir, 'resolveWorktreeForTest must return a worktree URI');
+				assert.deepStrictEqual(gitService.addedWorktrees.length, 1, 'addWorktree must be called once');
+				assert.strictEqual(gitService.addedWorktrees[0].branchName, expectedBranchName);
+
+				// 2. Live path: sendMessage must fire a synthetic delta event
+				//    carrying the announcement text before delegating to the SDK.
+				const events: IAgentProgressEvent[] = [];
+				disposables.add(agent.onDidSessionProgress(e => events.push(e)));
+
+				await agent.sendMessage(session, 'hello');
+				assert.strictEqual(sendCalls, 1, 'underlying SDK send must still be called');
+
+				const deltas = events.filter((e): e is IAgentDeltaEvent => e.type === 'delta');
+				assert.strictEqual(deltas.length, 1, 'exactly one delta should be emitted for the worktree announcement');
+				const announcement = deltas[0];
+				assert.ok(announcement.content.includes(expectedBranchName), `announcement should contain branch name '${expectedBranchName}', got '${announcement.content}'`);
+				assert.ok(announcement.messageId.startsWith('copilot-announcement-'), `announcement messageId should be synthetic, got '${announcement.messageId}'`);
+
+				// 3. Live path is one-shot: a second sendMessage must not re-emit.
+				events.length = 0;
+				await agent.sendMessage(session, 'follow-up');
+				assert.strictEqual(events.filter(e => e.type === 'delta').length, 0, 'announcement must not be re-emitted on subsequent sends');
+
+				// 4. Restore path: getSessionMessages must prepend the
+				//    announcement to the first assistant message's content,
+				//    using the persisted branch metadata.
+				const restored = await agent.getSessionMessages(session);
+				const assistant = restored.find((m): m is IAgentMessageEvent => m.type === 'message' && m.role === 'assistant');
+				assert.ok(assistant, 'restored messages should include the assistant reply');
+				assert.ok(assistant.content.includes(expectedBranchName), `restored assistant content should include the branch name, got '${assistant.content}'`);
+				assert.ok(assistant.content.endsWith('hello back'), `restored assistant content should still end with the original reply, got '${assistant.content}'`);
+			} finally {
+				await disposeAgent(agent);
+			}
+		});
+
+		test('does not announce or persist branch metadata when isolation is not worktree', async () => {
+			const sessionId = 'no-wt-session';
+			const session = AgentSession.uri('copilotcli', sessionId);
+			const repositoryRoot = URI.joinPath(URI.file(tmpDir), 'repo');
+			await fs.mkdir(repositoryRoot.fsPath, { recursive: true });
+
+			const gitService = new TestAgentHostGitService();
+			gitService.repositoryRoot = repositoryRoot;
+
+			const sessionDataService = disposables.add(new TestSessionDataService());
+			const agent = createTestAgent(disposables, {
+				sessionDataService,
+				copilotClient: new TestCopilotClient([]),
+				gitService,
+			}) as TestableCopilotAgent;
+
+			const fakeMessages: IAgentMessageEvent[] = [
+				{ session, type: 'message', role: 'user', messageId: 'u1', content: 'hi' },
+				{ session, type: 'message', role: 'assistant', messageId: 'a1', content: 'untouched reply' },
+			];
+			agent.registerFakeSession(sessionId, {
+				send: async () => { },
+				getMessages: async () => fakeMessages,
+				dispose: () => { },
+			});
+
+			try {
+				await agent.authenticate('https://api.github.com', 'token');
+
+				await agent.resolveWorktreeForTest({ workingDirectory: repositoryRoot }, sessionId);
+				assert.deepStrictEqual(gitService.addedWorktrees, [], 'addWorktree must not be called without worktree isolation');
+
+				const events: IAgentProgressEvent[] = [];
+				disposables.add(agent.onDidSessionProgress(e => events.push(e)));
+				await agent.sendMessage(session, 'hello');
+				assert.deepStrictEqual(events.filter(e => e.type === 'delta'), [], 'no announcement should be emitted live');
+
+				const restored = await agent.getSessionMessages(session);
+				const assistant = restored.find((m): m is IAgentMessageEvent => m.type === 'message' && m.role === 'assistant');
+				assert.strictEqual(assistant?.content, 'untouched reply', 'restored assistant content must not be modified');
+			} finally {
+				await disposeAgent(agent);
+			}
+		});
+	});
 });
diff --git a/src/vs/platform/agentHost/test/node/copilotShellTools.test.ts b/src/vs/platform/agentHost/test/node/copilotShellTools.test.ts
index 59386ce3b3f..ef56bf3e74f 100644
--- a/src/vs/platform/agentHost/test/node/copilotShellTools.test.ts
+++ b/src/vs/platform/agentHost/test/node/copilotShellTools.test.ts
@@ -19,9 +19,9 @@ import { ShellManager, prefixForHistorySuppression } from '../../node/copilot/co
 class TestAgentHostTerminalManager implements IAgentHostTerminalManager {
 	declare readonly _serviceBrand: undefined;
 
-	readonly created: { params: ICreateTerminalParams; options?: { shell?: string; preventShellHistory?: boolean } }[] = [];
+	readonly created: { params: ICreateTerminalParams; options?: { shell?: string; preventShellHistory?: boolean; nonInteractive?: boolean } }[] = [];
 
-	async createTerminal(params: ICreateTerminalParams, options?: { shell?: string; preventShellHistory?: boolean }): Promise<void> {
+	async createTerminal(params: ICreateTerminalParams, options?: { shell?: string; preventShellHistory?: boolean; nonInteractive?: boolean }): Promise<void> {
 		this.created.push({ params, options });
 	}
 	writeInput(): void { }
@@ -66,7 +66,7 @@ suite('CopilotShellTools', () => {
 		]);
 	});
 
-	test('opts every managed shell into shell-history suppression', async () => {
+	test('opts every managed shell into shell-history suppression and non-interactive mode', async () => {
 		const terminalManager = new TestAgentHostTerminalManager();
 		const services = new ServiceCollection();
 		services.set(ILogService, new NullLogService());
@@ -79,6 +79,7 @@ suite('CopilotShellTools', () => {
 
 		assert.strictEqual(terminalManager.created.length, 1);
 		assert.strictEqual(terminalManager.created[0].options?.preventShellHistory, true);
+		assert.strictEqual(terminalManager.created[0].options?.nonInteractive, true);
 	});
 
 	test('prefixForHistorySuppression prepends a space for POSIX shells, no-op for PowerShell', () => {
diff --git a/src/vs/platform/agentHost/test/node/mockAgent.ts b/src/vs/platform/agentHost/test/node/mockAgent.ts
index c9a29587623..09bb5905612 100644
--- a/src/vs/platform/agentHost/test/node/mockAgent.ts
+++ b/src/vs/platform/agentHost/test/node/mockAgent.ts
@@ -515,6 +515,59 @@ export class ScriptedMockAgent implements IAgent {
 				break;
 			}
 
+			case 'subagent': {
+				// Spawns a subagent: parent `task` tool starts (emits start +
+				// auto-ready as a pair), then `subagent_started` creates the
+				// child session, then an inner tool runs in the child session
+				// (routed via `parentToolCallId`).
+				this._fireSequence(session, [
+					{
+						type: 'tool_start',
+						session,
+						toolCallId: 'tc-task-1',
+						toolName: 'task',
+						displayName: 'Task',
+						invocationMessage: 'Spawning subagent',
+						toolKind: 'subagent',
+						subagentAgentName: 'explore',
+						subagentDescription: 'Explore',
+					},
+					{
+						type: 'subagent_started',
+						session,
+						toolCallId: 'tc-task-1',
+						agentName: 'explore',
+						agentDisplayName: 'Explore',
+						agentDescription: 'Exploration helper',
+					},
+					{
+						type: 'tool_start',
+						session,
+						toolCallId: 'tc-inner-1',
+						toolName: 'echo_tool',
+						displayName: 'Echo Tool',
+						invocationMessage: 'Inner tool running...',
+						parentToolCallId: 'tc-task-1',
+					},
+					{
+						type: 'tool_complete',
+						session,
+						toolCallId: 'tc-inner-1',
+						parentToolCallId: 'tc-task-1',
+						result: { pastTenseMessage: 'Ran inner tool', content: [{ type: ToolResultContentType.Text, text: 'inner-ok' }], success: true },
+					},
+					{
+						type: 'tool_complete',
+						session,
+						toolCallId: 'tc-task-1',
+						result: { pastTenseMessage: 'Subagent done', content: [{ type: ToolResultContentType.Text, text: 'task-ok' }], success: true },
+					},
+					{ type: 'delta', session, messageId: 'msg-sa', content: 'Subagent finished.' },
+					{ type: 'idle', session },
+				]);
+				break;
+			}
+
 			default:
 				this._fireSequence(session, [
 					{ type: 'delta', session, messageId: 'msg-1', content: 'Unknown prompt: ' + prompt },
diff --git a/src/vs/platform/agentHost/test/node/protocol/sessionConfig.integrationTest.ts b/src/vs/platform/agentHost/test/node/protocol/sessionConfig.integrationTest.ts
index 5025cccfd3b..66fc211103f 100644
--- a/src/vs/platform/agentHost/test/node/protocol/sessionConfig.integrationTest.ts
+++ b/src/vs/platform/agentHost/test/node/protocol/sessionConfig.integrationTest.ts
@@ -6,7 +6,6 @@
 import assert from 'assert';
 import { mkdtempSync, rmSync } from 'fs';
 import { tmpdir } from 'os';
-import { timeout } from '../../../../../base/common/async.js';
 import { URI } from '../../../../../base/common/uri.js';
 import type { IResolveSessionConfigResult, ISessionConfigCompletionsResult, ISubscribeResult } from '../../../common/state/protocol/commands.js';
 import { ActionType, type ISessionAddedNotification } from '../../../common/state/sessionActions.js';
@@ -202,13 +201,15 @@ suite('Protocol WebSocket - Session Config persistence across restarts', functio
 			const configChanged = await client1.waitForNotification(n => isActionNotification(n, ActionType.SessionConfigChanged));
 			assert.strictEqual(getActionEnvelope(configChanged).action.type, ActionType.SessionConfigChanged);
 
-			// `_persistConfigValues` is fire-and-forget; give the SQLite write
-			// a moment to flush before tearing down the server.
-			await timeout(500);
-
 			client1.close();
 		} finally {
-			server1.process.kill();
+			// Trigger graceful shutdown by closing stdin rather than sending
+			// SIGTERM — on Windows, `child.kill()` (SIGTERM) unconditionally
+			// terminates the process without invoking the shutdown handler,
+			// so in-flight `setMetadata` writes never reach SQLite. Closing
+			// stdin fires `process.stdin.on('end', shutdown)` in the server
+			// on every platform.
+			server1.process.stdin!.end();
 			await new Promise<void>(resolve => server1.process.once('exit', () => resolve()));
 		}
 
@@ -239,7 +240,7 @@ suite('Protocol WebSocket - Session Config persistence across restarts', functio
 
 			client2.close();
 		} finally {
-			server2.process.kill();
+			server2.process.stdin!.end();
 			await new Promise<void>(resolve => server2.process.once('exit', () => resolve()));
 		}
 	});
diff --git a/src/vs/platform/agentHost/test/node/protocol/toolApprovalRealSdk.integrationTest.ts b/src/vs/platform/agentHost/test/node/protocol/toolApprovalRealSdk.integrationTest.ts
index bc37aa6ce6f..09b88790312 100644
--- a/src/vs/platform/agentHost/test/node/protocol/toolApprovalRealSdk.integrationTest.ts
+++ b/src/vs/platform/agentHost/test/node/protocol/toolApprovalRealSdk.integrationTest.ts
@@ -23,13 +23,14 @@
 
 import assert from 'assert';
 import { execSync } from 'child_process';
-import { mkdtempSync, rmSync } from 'fs';
+import { mkdtempSync, rmSync, writeFileSync } from 'fs';
 import { tmpdir } from 'os';
 import { removeAnsiEscapeCodes } from '../../../../../base/common/strings.js';
 import { URI } from '../../../../../base/common/uri.js';
+import type { ISessionToolCallStartAction } from '../../../common/state/protocol/actions.js';
 import { ISubscribeResult } from '../../../common/state/protocol/commands.js';
 import { PROTOCOL_VERSION } from '../../../common/state/sessionCapabilities.js';
-import { ResponsePartKind, SessionInputAnswerState, SessionInputAnswerValueKind, SessionInputQuestionKind, SessionInputResponseKind, ToolResultContentType, type ISessionInputAnswer, type ISessionInputRequest, type ISessionState, type ITerminalState, type IToolResultContent } from '../../../common/state/sessionState.js';
+import { ResponsePartKind, SessionInputAnswerState, SessionInputAnswerValueKind, SessionInputQuestionKind, SessionInputResponseKind, ToolResultContentType, isSubagentSession, type ISessionInputAnswer, type ISessionInputRequest, type ISessionState, type ITerminalState, type IToolResultContent, type IToolResultSubagentContent } from '../../../common/state/sessionState.js';
 import type { ISessionAddedNotification, ISessionInputRequestedAction, ISessionResponsePartAction, ISessionToolCallReadyAction } from '../../../common/state/sessionActions.js';
 import type { INotificationBroadcastParams } from '../../../common/state/sessionProtocol.js';
 import {
@@ -603,4 +604,111 @@ function terminalText(state: ITerminalState): string {
 		const terminalState = terminalSnapshot.snapshot.state as ITerminalState;
 		assert.ok(terminalText(terminalState).includes(resolvedWorkingDirectoryPath), `pwd output should include the resolved worktree path ${resolvedWorkingDirectoryPath}`);
 	});
+
+	// ---- Subagent tool call grouping ----------------------------------------
+
+	test('subagent tool calls are routed to the subagent session, not flat in the parent', async function () {
+		this.timeout(180_000);
+
+		// Set up a small fixture directory so the subagent has something to view.
+		const tempDir = mkdtempSync(`${tmpdir()}/ahp-subagent-test-`);
+		tempDirs.push(tempDir);
+		writeFileSync(`${tempDir}/file-a.txt`, 'alpha');
+		writeFileSync(`${tempDir}/file-b.txt`, 'beta');
+
+		const sessionUri = await createRealSession(client, 'real-sdk-subagent', createdSessions, URI.file(tempDir).toString());
+
+		// Auto-approve every tool that needs confirmation while the turn runs.
+		// Multiple inner tool calls may need approval; doing this in a background
+		// loop keeps the turn unblocked.
+		let approvalsActive = true;
+		let approvalSeq = 1000;
+		const approvalLoop = (async () => {
+			while (approvalsActive) {
+				try {
+					const ready = await client.waitForNotification(n => isActionNotification(n, 'session/toolCallReady'), 2_000);
+					const action = getActionEnvelope(ready).action as { session: string; turnId: string; toolCallId: string; confirmed?: string };
+					if (!action.confirmed) {
+						client.notify('dispatchAction', {
+							clientSeq: ++approvalSeq,
+							action: {
+								type: 'session/toolCallConfirmed',
+								session: action.session,
+								turnId: action.turnId,
+								toolCallId: action.toolCallId,
+								approved: true,
+							},
+						});
+					}
+				} catch {
+					// Timeout — re-poll. Loop exits when approvalsActive flips.
+				}
+			}
+		})();
+
+		// Encourage the model to delegate via the `task` subagent tool. The exact
+		// behaviour is non-deterministic — if the model declines we fail the test
+		// with a clear message rather than silently passing.
+		dispatchTurn(client, sessionUri, 'turn-sa',
+			'Use the `task` tool to spawn a subagent to list the files in the current working directory. ' +
+			'The subagent should call a single read-only tool (e.g. `view` or `bash` with `ls`) to enumerate the directory. ' +
+			'Do not enumerate the directory yourself — delegate to the subagent.',
+			1);
+
+		// Wait for the parent's `task` tool call to expose a Subagent content
+		// block carrying the subagent session URI.
+		const subagentContentNotif = await client.waitForNotification(n => {
+			if (!isActionNotification(n, 'session/toolCallContentChanged')) {
+				return false;
+			}
+			const action = getActionEnvelope(n).action as { session: string; content: readonly IToolResultContent[] };
+			return action.session === sessionUri && action.content.some(c => c.type === ToolResultContentType.Subagent);
+		}, 120_000);
+
+		const parentContent = (getActionEnvelope(subagentContentNotif).action as { content: readonly IToolResultContent[] }).content;
+		const subagentRef = parentContent.find((c): c is IToolResultSubagentContent => c.type === ToolResultContentType.Subagent)!;
+		const subagentSessionUri = subagentRef.resource as unknown as string;
+		assert.ok(typeof subagentSessionUri === 'string' && isSubagentSession(subagentSessionUri),
+			`subagent session URI should be subagent-shaped, got: ${JSON.stringify(subagentSessionUri)}`);
+
+		// Subscribe so we receive the subagent session's own action broadcasts.
+		await client.call<ISubscribeResult>('subscribe', { resource: subagentSessionUri });
+
+		// Wait for the parent turn to complete (with a generous timeout — the
+		// subagent's turn must finish first).
+		await client.waitForNotification(n => {
+			if (!isActionNotification(n, 'session/turnComplete')) {
+				return false;
+			}
+			return (getActionEnvelope(n).action as { session: string }).session === sessionUri;
+		}, 150_000);
+
+		approvalsActive = false;
+		await approvalLoop;
+
+		// Group all received toolCallStart actions by the session they target.
+		// This is the bug's signature: when inner tool_start arrives before
+		// subagent_started, the inner tool calls leak into the parent session.
+		const toolStarts = client.receivedNotifications(n => isActionNotification(n, 'session/toolCallStart'))
+			.map(n => getActionEnvelope(n).action as ISessionToolCallStartAction);
+
+		const parentStarts = toolStarts.filter(a => (a.session as unknown as string) === sessionUri);
+		const subagentStarts = toolStarts.filter(a => (a.session as unknown as string) === subagentSessionUri);
+
+		// Parent should only carry the outer `task` tool call. Any other
+		// tool call on the parent indicates the inner-tool routing bug.
+		const parentNonTaskStarts = parentStarts.filter(a => a.toolName !== 'task');
+		assert.deepStrictEqual(
+			parentNonTaskStarts.map(a => a.toolName),
+			[],
+			`parent session should not contain inner tool calls; found: ${JSON.stringify(parentNonTaskStarts.map(a => a.toolName))}`,
+		);
+
+		// Subagent session must have at least one inner tool call. If this
+		// fails, the subagent never actually executed any work — likely the
+		// model didn't delegate as instructed.
+		assert.ok(subagentStarts.length >= 1,
+			`subagent session should contain at least one inner tool call, got ${subagentStarts.length}. ` +
+			`Parent tool calls: ${JSON.stringify(parentStarts.map(a => a.toolName))}`);
+	});
 });
diff --git a/src/vs/platform/agentHost/test/node/protocol/turnExecution.integrationTest.ts b/src/vs/platform/agentHost/test/node/protocol/turnExecution.integrationTest.ts
index ce67a79907a..36100c223ef 100644
--- a/src/vs/platform/agentHost/test/node/protocol/turnExecution.integrationTest.ts
+++ b/src/vs/platform/agentHost/test/node/protocol/turnExecution.integrationTest.ts
@@ -7,7 +7,7 @@ import assert from 'assert';
 import { ISubscribeResult } from '../../../common/state/protocol/commands.js';
 import type { IResponsePartAction } from '../../../common/state/sessionActions.js';
 import type { IFetchTurnsResult } from '../../../common/state/sessionProtocol.js';
-import { ResponsePartKind, type IMarkdownResponsePart, type ISessionState } from '../../../common/state/sessionState.js';
+import { ResponsePartKind, buildSubagentSessionUri, type IMarkdownResponsePart, type ISessionState } from '../../../common/state/sessionState.js';
 import {
 	createAndSubscribeSession,
 	dispatchTurnStarted,
@@ -180,4 +180,36 @@ suite('Protocol WebSocket — Turn Execution', function () {
 		const updatedModifiedAt = (updatedSnapshot.snapshot.state as ISessionState).summary.modifiedAt;
 		assert.ok(updatedModifiedAt >= initialModifiedAt);
 	});
+
+	test('subagent: inner tool calls land in child session, not parent', async function () {
+		this.timeout(15_000);
+
+		const sessionUri = await createAndSubscribeSession(client, 'test-subagent');
+		dispatchTurnStarted(client, sessionUri, 'turn-sa', 'subagent', 1);
+
+		// Wait for the parent turn to complete.
+		await client.waitForNotification(n => isActionNotification(n, 'session/turnComplete'));
+
+		// Subscribe to the child subagent session — its URI is derived from
+		// the parent session URI + parent toolCallId.
+		const childUri = buildSubagentSessionUri(sessionUri, 'tc-task-1');
+
+		const parentSnapshot = await client.call<ISubscribeResult>('subscribe', { resource: sessionUri });
+		const parentState = parentSnapshot.snapshot.state as ISessionState;
+		const childSnapshot = await client.call<ISubscribeResult>('subscribe', { resource: childUri });
+		const childState = childSnapshot.snapshot.state as ISessionState;
+
+		// Parent turn should contain the `task` tool call but NOT the inner one.
+		const parentTurn = parentState.turns[parentState.turns.length - 1];
+		const parentToolCalls = parentTurn.responseParts.filter(p => p.kind === ResponsePartKind.ToolCall);
+		const parentToolNames = parentToolCalls.map(p => p.toolCall.toolName);
+		assert.deepStrictEqual(parentToolNames, ['task'], 'parent turn should only contain the `task` tool call (inner tool must route to subagent)');
+
+		// Child session should have one turn with the inner `echo_tool` call.
+		assert.ok(childState.turns.length >= 1, 'child subagent session should have at least one turn');
+		const childTurn = childState.turns[childState.turns.length - 1];
+		const childToolCalls = childTurn.responseParts.filter(p => p.kind === ResponsePartKind.ToolCall);
+		const childToolNames = childToolCalls.map(p => p.toolCall.toolName);
+		assert.deepStrictEqual(childToolNames, ['echo_tool'], 'child subagent session should contain the inner `echo_tool` call');
+	});
 });
diff --git a/src/vs/platform/agentHost/test/node/protocolServerHandler.test.ts b/src/vs/platform/agentHost/test/node/protocolServerHandler.test.ts
index 0ceb1291a25..29e1162661e 100644
--- a/src/vs/platform/agentHost/test/node/protocolServerHandler.test.ts
+++ b/src/vs/platform/agentHost/test/node/protocolServerHandler.test.ts
@@ -72,6 +72,7 @@ class MockAgentService implements IAgentService {
 	readonly browsedUris: URI[] = [];
 	readonly browseErrors = new Map<string, Error>();
 	readonly listedSessions: IAgentSessionMetadata[] = [];
+	readonly createSessionConfigs: (IAgentCreateSessionConfig | undefined)[] = [];
 
 	private readonly _onDidAction = new Emitter<import('../../common/state/sessionActions.js').IActionEnvelope>();
 	readonly onDidAction = this._onDidAction.event;
@@ -91,6 +92,7 @@ class MockAgentService implements IAgentService {
 		this._stateManager.dispatchClientAction(action, origin);
 	}
 	async createSession(config?: IAgentCreateSessionConfig): Promise<URI> {
+		this.createSessionConfigs.push(config);
 		const session = config?.session ?? URI.parse('copilot:///new-session');
 		this._stateManager.createSession({
 			resource: session.toString(),
@@ -577,4 +579,62 @@ suite('ProtocolServerHandler', () => {
 		transport2.simulateClose();
 		assert.deepStrictEqual(counts, [1, 1, 0]);
 	});
+
+	// ---- createSession activeClient -------------------------------------
+
+	suite('createSession activeClient', () => {
+
+		test('forwards activeClient to the agent service', async () => {
+			const newSession = URI.parse('copilot:///eager-session').toString();
+
+			const transport = connectClient('client-1');
+			transport.sent.length = 0;
+
+			const responsePromise = waitForResponse(transport, 2);
+			transport.simulateMessage(request(2, 'createSession', {
+				session: newSession,
+				provider: 'copilot',
+				activeClient: {
+					clientId: 'client-1',
+					tools: [{ name: 't1', description: 'd', inputSchema: { type: 'object' } }],
+					customizations: [{ uri: 'file:///plugin-a', displayName: 'A' }],
+				},
+			}));
+			const resp = await responsePromise as { result?: unknown; error?: unknown };
+
+			assert.strictEqual(resp.error, undefined, 'createSession should succeed');
+			const config = agentService.createSessionConfigs.at(-1);
+			assert.deepStrictEqual({
+				clientId: config?.activeClient?.clientId,
+				toolName: config?.activeClient?.tools[0]?.name,
+				customizationUri: config?.activeClient?.customizations?.[0].uri,
+			}, {
+				clientId: 'client-1',
+				toolName: 't1',
+				customizationUri: 'file:///plugin-a',
+			});
+		});
+
+		test('rejects createSession when activeClient.clientId mismatches', async () => {
+			const newSession = URI.parse('copilot:///mismatch-session').toString();
+
+			const transport = connectClient('client-1');
+			transport.sent.length = 0;
+
+			const responsePromise = waitForResponse(transport, 2);
+			transport.simulateMessage(request(2, 'createSession', {
+				session: newSession,
+				provider: 'copilot',
+				activeClient: {
+					clientId: 'other-client',
+					tools: [],
+				},
+			}));
+			const resp = await responsePromise as { result?: unknown; error?: { code: number; message: string } };
+
+			assert.ok(resp.error, 'response should be an error');
+			assert.strictEqual(resp.result, undefined);
+			assert.strictEqual(agentService.createSessionConfigs.length, 0, 'agent service should not have been called');
+		});
+	});
 });
diff --git a/src/vs/platform/agentHost/test/node/sessionDatabase.test.ts b/src/vs/platform/agentHost/test/node/sessionDatabase.test.ts
index 23d26104eb7..9253836f420 100644
--- a/src/vs/platform/agentHost/test/node/sessionDatabase.test.ts
+++ b/src/vs/platform/agentHost/test/node/sessionDatabase.test.ts
@@ -4,11 +4,15 @@
  *--------------------------------------------------------------------------------------------*/
 
 import assert from 'assert';
+import { tmpdir } from 'os';
+import * as fs from 'fs/promises';
 import { ensureNoDisposablesAreLeakedInTestSuite } from '../../../../base/test/common/utils.js';
 import { DisposableStore } from '../../../../base/common/lifecycle.js';
 import { SessionDatabase, runMigrations, sessionDatabaseMigrations, type ISessionDatabaseMigration } from '../../node/sessionDatabase.js';
 import { FileEditKind } from '../../common/state/sessionState.js';
 import type { Database } from '@vscode/sqlite3';
+import { generateUuid } from '../../../../base/common/uuid.js';
+import { join } from '../../../../base/common/path.js';
 
 suite('SessionDatabase', () => {
 
@@ -489,4 +493,35 @@ suite('SessionDatabase', () => {
 			assert.ok(tables.includes('session_metadata'));
 		});
 	});
+
+	// ---- vacuumInto -----------------------------------------------------
+
+	suite('vacuumInto', () => {
+
+		let tmpDir: string;
+
+		setup(async () => {
+			tmpDir = await fs.mkdtemp(join(tmpdir(), 'session-db-test-' + generateUuid()));
+		});
+
+		teardown(async () => {
+			await Promise.all([db?.close(), db2?.close()]);
+			db = db2 = undefined;
+			await fs.rm(tmpDir, { recursive: true, force: true });
+		});
+
+		test('produces a copy with the same data', async () => {
+			db = disposables.add(await SessionDatabase.open(':memory:'));
+			await db.createTurn('turn-1');
+			await db.setTurnEventId('turn-1', 'evt-1');
+			await db.setMetadata('key', 'value');
+
+			const targetPath = join(tmpDir, 'copy.db');
+			await db.vacuumInto(targetPath);
+
+			db2 = disposables.add(await SessionDatabase.open(targetPath));
+			assert.strictEqual(await db2.getTurnEventId('turn-1'), 'evt-1');
+			assert.strictEqual(await db2.getMetadata('key'), 'value');
+		});
+	});
 });
diff --git a/src/vs/platform/encryption/electron-main/encryptionMainService.ts b/src/vs/platform/encryption/electron-main/encryptionMainService.ts
index 1b4b1e05f28..93987884ac9 100644
--- a/src/vs/platform/encryption/electron-main/encryptionMainService.ts
+++ b/src/vs/platform/encryption/electron-main/encryptionMainService.ts
@@ -4,15 +4,19 @@
  *--------------------------------------------------------------------------------------------*/
 
 import { safeStorage as safeStorageElectron, app } from 'electron';
-import { isMacintosh, isWindows } from '../../../base/common/platform.js';
+import { join } from '../../../base/common/path.js';
+import { INodeProcess, isMacintosh, isWindows } from '../../../base/common/platform.js';
 import { KnownStorageProvider, IEncryptionMainService, PasswordStoreCLIOption } from '../common/encryptionService.js';
+import { getDefaultUserDataPath } from '../../environment/node/userDataPath.js';
 import { ILogService } from '../../log/common/log.js';
+import { IProductService } from '../../product/common/productService.js';
 
 // These APIs are currently only supported in our custom build of electron so
 // we need to guard against them not being available.
 interface ISafeStorageAdditionalAPIs {
 	setUsePlainTextEncryption(usePlainText: boolean): void;
 	getSelectedStorageBackend(): string;
+	initWithExistingKey(localStatePath: string): boolean;
 }
 
 const safeStorage: typeof import('electron').safeStorage & Partial<ISafeStorageAdditionalAPIs> = safeStorageElectron;
@@ -21,7 +25,8 @@ export class EncryptionMainService implements IEncryptionMainService {
 	_serviceBrand: undefined;
 
 	constructor(
-		@ILogService private readonly logService: ILogService
+		@ILogService private readonly logService: ILogService,
+		@IProductService private readonly productService: IProductService
 	) {
 		// if this commandLine switch is set, the user has opted in to using basic text encryption
 		if (app.commandLine.getSwitchValue('password-store') === PasswordStoreCLIOption.basic) {
@@ -29,6 +34,40 @@ export class EncryptionMainService implements IEncryptionMainService {
 			safeStorage.setUsePlainTextEncryption?.(true);
 			this.logService.trace('[EncryptionMainService] set usePlainTextEncryption to true');
 		}
+
+		if (isWindows && (process as INodeProcess).isEmbeddedApp) {
+			this.initializeWithHostEncryptionKey();
+		}
+	}
+
+	private initializeWithHostEncryptionKey(): void {
+		if (!safeStorage.initWithExistingKey) {
+			this.logService.trace('[EncryptionMainService] initWithExistingKey API is not available');
+			return;
+		}
+
+		// embedded.win32SiblingExeBasename is derived from the host app's product.nameShort
+		// at build time, which is also the folder name used for the host's user data path.
+		const hostProductName = this.productService.embedded?.win32SiblingExeBasename;
+		if (!hostProductName) {
+			this.logService.warn('[EncryptionMainService] Host product name not available in embedded product config');
+			return;
+		}
+
+		const hostUserDataPath = getDefaultUserDataPath(hostProductName);
+		const localStatePath = join(hostUserDataPath, 'Local State');
+
+		this.logService.info(`[EncryptionMainService] Initializing encryption with host app key from: ${localStatePath}`);
+		try {
+			const result = safeStorage.initWithExistingKey(localStatePath);
+			if (result) {
+				this.logService.info('[EncryptionMainService] Successfully initialized encryption with host app key');
+			} else {
+				this.logService.error('[EncryptionMainService] Failed to initialize encryption with host app key');
+			}
+		} catch (e) {
+			this.logService.error('[EncryptionMainService] Error initializing encryption with host app key:', e);
+		}
 	}
 
 	async encrypt(value: string): Promise<string> {
diff --git a/src/vs/platform/environment/node/userDataPath.ts b/src/vs/platform/environment/node/userDataPath.ts
index 3082ef58ad0..be9d71b601b 100644
--- a/src/vs/platform/environment/node/userDataPath.ts
+++ b/src/vs/platform/environment/node/userDataPath.ts
@@ -60,7 +60,7 @@ function doGetUserDataPath(cliArgs: NativeParsedArgs, productName: string): stri
 	}
 
 	// 2. Support global VSCODE_APPDATA environment variable
-	let appDataPath = process.env['VSCODE_APPDATA'];
+	const appDataPath = process.env['VSCODE_APPDATA'];
 	if (appDataPath) {
 		return join(appDataPath, productName);
 	}
@@ -74,6 +74,16 @@ function doGetUserDataPath(cliArgs: NativeParsedArgs, productName: string): stri
 		return cliPath;
 	}
 
+	return getDefaultUserDataPath(productName);
+}
+
+/**
+ * Returns the default user data path for a given product name using
+ * the platform-specific application data directory.
+ */
+export function getDefaultUserDataPath(productName: string): string {
+	let appDataPath: string | undefined;
+
 	// 4. Otherwise check per platform
 	switch (process.platform) {
 		case 'win32':
diff --git a/src/vs/platform/keybinding/common/abstractKeybindingService.ts b/src/vs/platform/keybinding/common/abstractKeybindingService.ts
index 787e20858a2..19ec19eaf50 100644
--- a/src/vs/platform/keybinding/common/abstractKeybindingService.ts
+++ b/src/vs/platform/keybinding/common/abstractKeybindingService.ts
@@ -80,9 +80,6 @@ export abstract class AbstractKeybindingService extends Disposable implements IK
 		this._logging = false;
 	}
 
-	public override dispose(): void {
-		super.dispose();
-	}
 
 	protected abstract _getResolver(): KeybindingResolver;
 	protected abstract _documentHasFocus(): boolean;
diff --git a/src/vs/sessions/SESSIONS_PROVIDER.md b/src/vs/sessions/SESSIONS_PROVIDER.md
index dcc1f640213..1063819e6c0 100644
--- a/src/vs/sessions/SESSIONS_PROVIDER.md
+++ b/src/vs/sessions/SESSIONS_PROVIDER.md
@@ -79,6 +79,8 @@ The common session interface exposed by all providers. It is a self-contained fa
 - `repositories: ISessionRepository[]` — One or more repositories
 - `requiresWorkspaceTrust: boolean` — Whether workspace trust is required to operate
 
+**Workspace label and session grouping:** The sessions list groups sessions by `workspace.label`. Sessions whose workspace is `undefined` or whose label is empty appear under "Unknown". For the `CopilotChatSessionsProvider`, the workspace label is derived from session metadata via `getRepositoryName()` (in `agentSessionsViewer.ts`), which checks these metadata keys in priority order: `remoteAgentHost`, `owner`+`name`, `repositoryNwo`, `repository`, `repositoryUrl`, `repositoryPath`, `worktreePath`, `workingDirectoryPath`, then `badge`. Extension-side `ChatSessionContentProvider` implementations must set `item.metadata` with at least `workingDirectoryPath` (for local sessions) so that sessions are grouped correctly.
+
 **`ISessionRepository`** — A repository within a workspace:
 - `uri: URI` — Source repository URI (`file://` or `github-remote-file://`)
 - `workingDirectory: URI | undefined` — Worktree or checkout path
diff --git a/src/vs/sessions/browser/media/style.css b/src/vs/sessions/browser/media/style.css
index b2b18772bd6..60f72545d8e 100644
--- a/src/vs/sessions/browser/media/style.css
+++ b/src/vs/sessions/browser/media/style.css
@@ -130,7 +130,7 @@
 }
 
 .agent-sessions-workbench .part.editor .multiDiffEntry {
-	padding: 0 8px;
+	padding: 6px 8px 0;
 	box-sizing: border-box;
 }
 
@@ -393,6 +393,13 @@
 	border-color: var(--vscode-agentsChatInput-focusBorder, var(--vscode-focusBorder)) !important;
 }
 
+/* While the developer-joy animated border is active, suppress the static
+	border so it doesn't visually conflict with the spinning gradient ring. */
+.agent-sessions-workbench .interactive-session .chat-input-container.working,
+.agent-sessions-workbench .interactive-session .chat-input-container.working.focused {
+	border-color: transparent !important;
+}
+
 /* Make the Monaco editor inside the chat input transparent so it inherits the chatInput.background */
 .agent-sessions-workbench .interactive-session .interactive-input-part .chat-editor-container .interactive-input-editor .monaco-editor,
 .agent-sessions-workbench .interactive-session .interactive-input-part .chat-editor-container .interactive-input-editor .monaco-editor .monaco-editor-background {
diff --git a/src/vs/sessions/browser/parts/media/editorPart.css b/src/vs/sessions/browser/parts/media/editorPart.css
index b75b69460c9..feb1ff1b7cf 100644
--- a/src/vs/sessions/browser/parts/media/editorPart.css
+++ b/src/vs/sessions/browser/parts/media/editorPart.css
@@ -19,3 +19,53 @@
 .agent-sessions-workbench.nosidebar.nochatbar .part.editor:not(.modal-editor-part) {
 	margin-left: 10px;
 }
+
+/* Editor Layout Actions Toolbar */
+
+.agent-sessions-workbench .part.editor > .content .editor-group-container > .title .editor-actions {
+	padding-right: 0;
+}
+
+.agent-sessions-workbench .part.editor > .content .editor-group-container > .title .editor-actions-separator {
+	display: block;
+	align-self: center;
+	width: 1px;
+	height: 16px;
+	margin: 0 4px;
+	background-color: var(--vscode-titleBar-activeForeground);
+	opacity: 0.3;
+}
+
+.agent-sessions-workbench .part.editor > .content .editor-group-container > .title .editor-layout-actions {
+	display: block;
+	cursor: default;
+	flex: initial;
+	padding: 0 8px 0 4px;
+	height: var(--editor-group-tab-height);
+}
+
+.agent-sessions-workbench .part.editor > .content .editor-group-container > .title .editor-layout-actions.hidden {
+	display: none;
+}
+
+.agent-sessions-workbench .part.editor > .content .editor-group-container > .title .editor-layout-actions .action-item {
+	margin-right: 4px;
+}
+
+.agent-sessions-workbench .part.editor > .content .editor-group-container > .title > .tabs-and-actions-container.wrapping .editor-layout-actions {
+	/* When tabs are wrapped, position the trailing editor actions at the end of the very last row */
+	position: absolute;
+	bottom: 0;
+	right: 0;
+}
+
+.agent-sessions-workbench .part.editor > .content .editor-group-container > .title.two-tab-bars > .tabs-and-actions-container:first-child .editor-layout-actions {
+	/* When multiple tab bars are visible, only show editor actions for the last tab bar */
+	display: none;
+}
+
+/* Modal Editor Part */
+
+.agent-sessions-workbench .part.editor.modal-editor-part .modal-editor-action-container .action-label.codicon.codicon-open-in-window {
+	transform: rotate(180deg);
+}
diff --git a/src/vs/sessions/browser/workbench.ts b/src/vs/sessions/browser/workbench.ts
index 437671338da..6306bae337b 100644
--- a/src/vs/sessions/browser/workbench.ts
+++ b/src/vs/sessions/browser/workbench.ts
@@ -61,7 +61,7 @@ import { IMarkdownRendererService } from '../../platform/markdown/browser/markdo
 import { EditorMarkdownCodeBlockRenderer } from '../../editor/browser/widget/markdownRenderer/browser/editorMarkdownCodeBlockRenderer.js';
 import { SyncDescriptor } from '../../platform/instantiation/common/descriptors.js';
 import { TitleService } from './parts/titlebarPart.js';
-import { SessionsExperimentalShellGradientBackgroundSettingId } from '../common/configuration.js';
+import { SessionsExperimentalSendButtonGradientSettingId, SessionsExperimentalShellGradientBackgroundSettingId } from '../common/configuration.js';
 import { IContextKeyService } from '../../platform/contextkey/common/contextkey.js';
 import { EditorMaximizedContext } from '../common/contextkeys.js';
 
@@ -86,6 +86,7 @@ enum LayoutClasses {
 	CHATBAR_HIDDEN = 'nochatbar',
 	STATUSBAR_HIDDEN = 'nostatusbar',
 	EXPERIMENTAL_SHELL_GRADIENT_BACKGROUND = 'experimental-shell-gradient-background',
+	EXPERIMENTAL_SEND_BUTTON_GRADIENT = 'sessions-experimental-send-button-gradient',
 	FULLSCREEN = 'fullscreen',
 	MAXIMIZED = 'maximized'
 }
@@ -441,6 +442,7 @@ export class Workbench extends Disposable implements IAgentWorkbenchLayoutServic
 		// Configuration changes
 		this._register(configurationService.onDidChangeConfiguration(e => this.updateFontAliasing(e, configurationService)));
 		this._register(configurationService.onDidChangeConfiguration(e => this.updateShellGradientBackground(e, configurationService)));
+		this._register(configurationService.onDidChangeConfiguration(e => this.updateSendButtonGradient(e, configurationService)));
 
 		// Font Info
 		if (isNative) {
@@ -535,6 +537,17 @@ export class Workbench extends Disposable implements IAgentWorkbenchLayoutServic
 		);
 	}
 
+	private updateSendButtonGradient(e: IConfigurationChangeEvent | undefined, configurationService: IConfigurationService): void {
+		if (e && !e.affectsConfiguration(SessionsExperimentalSendButtonGradientSettingId)) {
+			return;
+		}
+
+		this.mainContainer.classList.toggle(
+			LayoutClasses.EXPERIMENTAL_SEND_BUTTON_GRADIENT,
+			configurationService.getValue<boolean>(SessionsExperimentalSendButtonGradientSettingId)
+		);
+	}
+
 	//#endregion
 
 	private renderWorkbench(instantiationService: IInstantiationService, notificationService: NotificationService, storageService: IStorageService, configurationService: IConfigurationService): void {
@@ -559,6 +572,7 @@ export class Workbench extends Disposable implements IAgentWorkbenchLayoutServic
 		// Apply font aliasing
 		this.updateFontAliasing(undefined, configurationService);
 		this.updateShellGradientBackground(undefined, configurationService);
+		this.updateSendButtonGradient(undefined, configurationService);
 
 		// Warm up font cache information before building up too many dom elements
 		this.restoreFontInfo(storageService, configurationService);
diff --git a/src/vs/sessions/common/agentHostSessionsProvider.ts b/src/vs/sessions/common/agentHostSessionsProvider.ts
index caf58ac6607..16dc8ea7c26 100644
--- a/src/vs/sessions/common/agentHostSessionsProvider.ts
+++ b/src/vs/sessions/common/agentHostSessionsProvider.ts
@@ -80,3 +80,24 @@ export function resolvedConfigsEqual(a: IResolveSessionConfigResult, b: IResolve
 	}
 	return true;
 }
+
+/** Known auto-approve config values. */
+const AUTO_APPROVE_ENUM = ['default', 'autoApprove', 'autopilot'];
+
+/**
+ * Builds a minimal session-mutable config schema from changed values.
+ * Used when a restored session receives a ConfigChanged action before
+ * the full schema has been hydrated.
+ */
+export function buildMutableConfigSchema(config: Record<string, string>): Record<string, { type: 'string'; title: string; sessionMutable: true; enum: string[] }> {
+	const properties: Record<string, { type: 'string'; title: string; sessionMutable: true; enum: string[] }> = {};
+	for (const key of Object.keys(config)) {
+		properties[key] = {
+			type: 'string',
+			title: key,
+			sessionMutable: true,
+			enum: key === 'autoApprove' ? AUTO_APPROVE_ENUM : [config[key]],
+		};
+	}
+	return properties;
+}
diff --git a/src/vs/sessions/common/configuration.ts b/src/vs/sessions/common/configuration.ts
index 16949ea8c9c..920a0f37133 100644
--- a/src/vs/sessions/common/configuration.ts
+++ b/src/vs/sessions/common/configuration.ts
@@ -4,3 +4,4 @@
  *--------------------------------------------------------------------------------------------*/
 
 export const SessionsExperimentalShellGradientBackgroundSettingId = 'sessions.experimental.shellGradientBackground';
+export const SessionsExperimentalSendButtonGradientSettingId = 'sessions.experimental.sendButtonGradient';
diff --git a/src/vs/sessions/common/sessionsTelemetry.ts b/src/vs/sessions/common/sessionsTelemetry.ts
index 75d449d5fd9..ed404d3272d 100644
--- a/src/vs/sessions/common/sessionsTelemetry.ts
+++ b/src/vs/sessions/common/sessionsTelemetry.ts
@@ -114,8 +114,18 @@ export function logChangesViewReviewCommentAdded(telemetryService: ITelemetrySer
 
 // --- Tunnel agent host connect ---
 
-export type TunnelConnectErrorCategory = 'relayConnectionFailed' | 'auth' | 'network' | 'other';
-export type TunnelConnectFailureReason = 'hostOffline' | 'maxAttemptsReached';
+export type TunnelConnectErrorCategory =
+	| 'relayConnectionFailed'
+	| 'auth'
+	| 'authExpired'
+	| 'network'
+	| 'other';
+
+export type TunnelConnectFailureReason =
+	| 'hostOffline'
+	| 'maxAttemptsReached'
+	| 'auth'
+	| 'authExpired';
 
 type TunnelConnectAttemptEvent = {
 	isReconnect: boolean;
@@ -132,7 +142,7 @@ type TunnelConnectAttemptClassification = {
 	attempt: { classification: 'SystemMetaData'; purpose: 'PerformanceAndHealth'; isMeasurement: true; comment: 'Attempt number within the current connect session (1-based).' };
 	durationMs: { classification: 'SystemMetaData'; purpose: 'PerformanceAndHealth'; isMeasurement: true; comment: 'Duration of this individual attempt in milliseconds.' };
 	success: { classification: 'SystemMetaData'; purpose: 'PerformanceAndHealth'; isMeasurement: true; comment: 'Whether this individual attempt succeeded.' };
-	errorCategory: { classification: 'SystemMetaData'; purpose: 'PerformanceAndHealth'; comment: 'Category of error when the attempt failed (relayConnectionFailed, auth, network, other); empty on success.' };
+	errorCategory: { classification: 'SystemMetaData'; purpose: 'PerformanceAndHealth'; comment: 'Category of error when the attempt failed (relayConnectionFailed, auth, authExpired, network, other); empty on success.' };
 };
 
 export function logTunnelConnectAttempt(telemetryService: ITelemetryService, data: { isReconnect: boolean; attempt: number; durationMs: number; success: boolean; errorCategory?: TunnelConnectErrorCategory }): void {
@@ -160,7 +170,7 @@ type TunnelConnectResolvedClassification = {
 	totalAttempts: { classification: 'SystemMetaData'; purpose: 'PerformanceAndHealth'; isMeasurement: true; comment: 'Total number of attempts made before resolution.' };
 	totalDurationMs: { classification: 'SystemMetaData'; purpose: 'PerformanceAndHealth'; isMeasurement: true; comment: 'Total elapsed time from session start to resolution in milliseconds.' };
 	success: { classification: 'SystemMetaData'; purpose: 'PerformanceAndHealth'; isMeasurement: true; comment: 'Whether the connect session ultimately succeeded.' };
-	failureReason: { classification: 'SystemMetaData'; purpose: 'PerformanceAndHealth'; comment: 'Reason the session terminated without connecting (hostOffline, maxAttemptsReached); empty on success.' };
+	failureReason: { classification: 'SystemMetaData'; purpose: 'PerformanceAndHealth'; comment: 'Reason the session terminated without connecting (hostOffline, maxAttemptsReached, auth, authExpired); empty on success.' };
 };
 
 export function logTunnelConnectResolved(telemetryService: ITelemetryService, data: { isReconnect: boolean; totalAttempts: number; totalDurationMs: number; success: boolean; failureReason?: TunnelConnectFailureReason }): void {
diff --git a/src/vs/sessions/contrib/agentFeedback/browser/agentFeedbackEditorActions.ts b/src/vs/sessions/contrib/agentFeedback/browser/agentFeedbackEditorActions.ts
index cf0cc288886..44845f688be 100644
--- a/src/vs/sessions/contrib/agentFeedback/browser/agentFeedbackEditorActions.ts
+++ b/src/vs/sessions/contrib/agentFeedback/browser/agentFeedbackEditorActions.ts
@@ -24,6 +24,7 @@ import { IChatEditingService } from '../../../../workbench/contrib/chat/common/e
 import { ICodeReviewService } from '../../codeReview/browser/codeReviewService.js';
 import { getSessionEditorComments } from './sessionEditorComments.js';
 import { ISessionsManagementService } from '../../../services/sessions/common/sessionsManagement.js';
+import { IConfigurationService } from '../../../../platform/configuration/common/configuration.js';
 
 export const submitFeedbackActionId = 'agentFeedbackEditor.action.submit';
 export const navigatePreviousFeedbackActionId = 'agentFeedbackEditor.action.navigatePrevious';
@@ -208,6 +209,7 @@ class SubmitActiveSessionFeedbackAction extends Action2 {
 
 	override async run(accessor: ServicesAccessor): Promise<void> {
 		const sessionManagementService = accessor.get(ISessionsManagementService);
+		const configurationService = accessor.get(IConfigurationService);
 		const agentFeedbackService = accessor.get(IAgentFeedbackService);
 		const chatWidgetService = accessor.get(IChatWidgetService);
 		const editorService = accessor.get(IEditorService);
@@ -231,18 +233,20 @@ class SubmitActiveSessionFeedbackAction extends Action2 {
 		}
 
 		// Close all editors belonging to the session resource
-		const editorsToClose: IEditorIdentifier[] = [];
-		for (const { editor, groupId } of editorService.getEditors(EditorsOrder.SEQUENTIAL)) {
-			const candidates = getActiveResourceCandidates(editor);
-			const belongsToSession = candidates.some(uri =>
-				isEqual(agentFeedbackService.getMostRecentSessionForResource(uri), sessionResource)
-			);
-			if (belongsToSession) {
-				editorsToClose.push({ editor, groupId });
+		if (configurationService.getValue('workbench.editor.useModal') === 'all') {
+			const editorsToClose: IEditorIdentifier[] = [];
+			for (const { editor, groupId } of editorService.getEditors(EditorsOrder.SEQUENTIAL)) {
+				const candidates = getActiveResourceCandidates(editor);
+				const belongsToSession = candidates.some(uri =>
+					isEqual(agentFeedbackService.getMostRecentSessionForResource(uri), sessionResource)
+				);
+				if (belongsToSession) {
+					editorsToClose.push({ editor, groupId });
+				}
+			}
+			if (editorsToClose.length) {
+				await editorService.closeEditors(editorsToClose);
 			}
-		}
-		if (editorsToClose.length) {
-			await editorService.closeEditors(editorsToClose);
 		}
 
 		await widget.acceptInput('/act-on-feedback');
diff --git a/src/vs/sessions/contrib/agentFeedback/browser/agentFeedbackEditorUtils.ts b/src/vs/sessions/contrib/agentFeedback/browser/agentFeedbackEditorUtils.ts
index c3e6cca371f..0e7034a588c 100644
--- a/src/vs/sessions/contrib/agentFeedback/browser/agentFeedbackEditorUtils.ts
+++ b/src/vs/sessions/contrib/agentFeedback/browser/agentFeedbackEditorUtils.ts
@@ -14,6 +14,7 @@ import { IChatEditingService } from '../../../../workbench/contrib/chat/common/e
 import { editingEntriesContainResource } from '../../../../workbench/contrib/chat/browser/sessionResourceMatching.js';
 import { IChatSessionFileChange, IChatSessionFileChange2, isIChatSessionFileChange2 } from '../../../../workbench/contrib/chat/common/chatSessionsService.js';
 import { ISessionsManagementService } from '../../../services/sessions/common/sessionsManagement.js';
+import { MultiDiffEditorInput } from '../../../../workbench/contrib/multiDiffEditor/browser/multiDiffEditorInput.js';
 
 /**
  * Find the session that contains the given resource by checking editing sessions,
@@ -315,6 +316,18 @@ function renderHunkGroup(
 
 export function getActiveResourceCandidates(input: Parameters<typeof EditorResourceAccessor.getOriginalUri>[0]): URI[] {
 	const result: URI[] = [];
+
+	if (input instanceof MultiDiffEditorInput) {
+		const items = input.resources.get();
+		if (items) {
+			for (const item of items) {
+				if (item.originalUri) { result.push(item.originalUri); }
+				if (item.modifiedUri) { result.push(item.modifiedUri); }
+			}
+		}
+		return result;
+	}
+
 	const resources = EditorResourceAccessor.getOriginalUri(input, { supportSideBySide: SideBySideEditor.BOTH });
 	if (!resources) {
 		return result;
diff --git a/src/vs/sessions/contrib/localAgentHost/browser/localAgentHostSessionsProvider.ts b/src/vs/sessions/contrib/agentHost/browser/baseAgentHostSessionsProvider.ts
similarity index 67%
rename from src/vs/sessions/contrib/localAgentHost/browser/localAgentHostSessionsProvider.ts
rename to src/vs/sessions/contrib/agentHost/browser/baseAgentHostSessionsProvider.ts
index bb7556841ea..cb8b0bdc4e4 100644
--- a/src/vs/sessions/contrib/localAgentHost/browser/localAgentHostSessionsProvider.ts
+++ b/src/vs/sessions/contrib/agentHost/browser/baseAgentHostSessionsProvider.ts
@@ -5,82 +5,65 @@
 
 import { raceTimeout } from '../../../../base/common/async.js';
 import { CancellationToken } from '../../../../base/common/cancellation.js';
-import { Codicon } from '../../../../base/common/codicons.js';
 import { Emitter, Event } from '../../../../base/common/event.js';
-import { IMarkdownString, MarkdownString } from '../../../../base/common/htmlContent.js';
+import { IMarkdownString } from '../../../../base/common/htmlContent.js';
 import { Disposable, DisposableMap, DisposableStore } from '../../../../base/common/lifecycle.js';
 import { constObservable, derived, IObservable, ISettableObservable, observableValue } from '../../../../base/common/observable.js';
-import { basename } from '../../../../base/common/resources.js';
 import { ThemeIcon } from '../../../../base/common/themables.js';
 import { URI } from '../../../../base/common/uri.js';
 import { generateUuid } from '../../../../base/common/uuid.js';
 import { localize } from '../../../../nls.js';
-import { AgentSession, IAgentHostService, type IAgentSessionMetadata } from '../../../../platform/agentHost/common/agentService.js';
+import { AgentSession, IAgentConnection, IAgentSessionMetadata } from '../../../../platform/agentHost/common/agentService.js';
+import { IResolveSessionConfigResult } from '../../../../platform/agentHost/common/state/protocol/commands.js';
+import { NotificationType } from '../../../../platform/agentHost/common/state/protocol/notifications.js';
 import type { IFileEdit, IModelSelection, IRootState, ISessionConfigPropertySchema, ISessionState, ISessionSummary } from '../../../../platform/agentHost/common/state/protocol/state.js';
 import { ActionType, isSessionAction } from '../../../../platform/agentHost/common/state/sessionActions.js';
-import type { IResolveSessionConfigResult, ISessionConfigValueItem } from '../../../../platform/agentHost/common/state/protocol/commands.js';
 import { StateComponents } from '../../../../platform/agentHost/common/state/sessionState.js';
-import { IFileDialogService } from '../../../../platform/dialogs/common/dialogs.js';
 import { ChatViewPaneTarget, IChatWidgetService } from '../../../../workbench/contrib/chat/browser/chat.js';
 import { IChatSendRequestOptions, IChatService } from '../../../../workbench/contrib/chat/common/chatService/chatService.js';
 import { IChatSessionFileChange, IChatSessionsService } from '../../../../workbench/contrib/chat/common/chatSessionsService.js';
 import { ChatAgentLocation, ChatModeKind } from '../../../../workbench/contrib/chat/common/constants.js';
 import { ILanguageModelsService } from '../../../../workbench/contrib/chat/common/languageModels.js';
-import { agentHostSessionWorkspaceKey, buildAgentHostSessionWorkspace } from '../../../common/agentHostSessionWorkspace.js';
+import { diffsEqual, diffsToChanges, mapProtocolStatus } from '../../../common/agentHostDiffs.js';
+import { buildMutableConfigSchema, IAgentHostSessionsProvider, resolvedConfigsEqual } from '../../../common/agentHostSessionsProvider.js';
+import { agentHostSessionWorkspaceKey } from '../../../common/agentHostSessionWorkspace.js';
 import { isSessionConfigComplete } from '../../../common/sessionConfig.js';
-import { diffsToChanges, diffsEqual, mapProtocolStatus } from '../../../common/agentHostDiffs.js';
-import { NotificationType } from '../../../../platform/agentHost/common/state/protocol/notifications.js';
+import { IChat, IGitHubInfo, ISession, ISessionType, ISessionWorkspace, ISessionWorkspaceBrowseAction, SessionStatus } from '../../../services/sessions/common/session.js';
 import { ISendRequestOptions, ISessionChangeEvent } from '../../../services/sessions/common/sessionsProvider.js';
-import { IAgentHostSessionsProvider, resolvedConfigsEqual } from '../../../common/agentHostSessionsProvider.js';
-import { IChat, ISession, ISessionWorkspace, ISessionWorkspaceBrowseAction, SessionStatus, type IGitHubInfo, ISessionType } from '../../../services/sessions/common/session.js';
 
-const LOCAL_PROVIDER_ID = 'local-agent-host';
-
-/** Default provider when session metadata does not carry one. */
-const DEFAULT_AGENT_PROVIDER = 'copilot';
-
-/** Known auto-approve config values. */
-const AUTO_APPROVE_ENUM = ['default', 'autoApprove', 'autopilot'];
+// ============================================================================
+// AgentHostSessionAdapter — shared adapter for local and remote sessions
+// ============================================================================
 
 /**
- * Builds a minimal session-mutable config schema from changed values.
- * Used when a restored session receives a ConfigChanged action before
- * the full schema has been hydrated.
+ * Variation points the host provider supplies when building an adapter.
+ * Differences between local and remote sessions (icon, description text,
+ * workspace builder, optional URI mapping) flow through this options bag so
+ * the adapter itself stays a single concrete class.
  */
-function buildMutableConfigSchema(config: Record<string, string>): Record<string, { type: 'string'; title: string; sessionMutable: true; enum: string[] }> {
-	const properties: Record<string, { type: 'string'; title: string; sessionMutable: true; enum: string[] }> = {};
-	for (const key of Object.keys(config)) {
-		properties[key] = {
-			type: 'string',
-			title: key,
-			sessionMutable: true,
-			enum: key === 'autoApprove' ? AUTO_APPROVE_ENUM : [config[key]],
-		};
-	}
-	return properties;
+export interface IAgentHostAdapterOptions {
+	readonly icon: ThemeIcon;
+	readonly description: IMarkdownString;
+	/** Loading observable wired to the provider's authentication-pending state. */
+	readonly loading: IObservable<boolean>;
+	/** Builds the session workspace from session metadata; provider-specific (icon, providerLabel, requiresWorkspaceTrust). */
+	readonly buildWorkspace: (project: IAgentSessionMetadata['project'], workingDirectory: URI | undefined) => ISessionWorkspace | undefined;
+	/** Optional URI mapping for diff entries (remote uses `toAgentHostUri`; local uses identity). */
+	readonly mapDiffUri?: (uri: URI) => URI;
 }
 
 /**
- * Derives the session type / URI scheme from an agent provider name.
- * Must match the type string registered by AgentHostContribution
- * (`agent-host-${agent.provider}`).
+ * Adapts an {@link IAgentSessionMetadata} into an {@link ISession} for the
+ * sessions UI. A single concrete class for both local and remote agent
+ * hosts — variation flows through {@link IAgentHostAdapterOptions}.
  */
-function sessionTypeForProvider(provider: string): string {
-	return `agent-host-${provider}`;
-}
-
-/**
- * Adapts agent host session metadata into an {@link ISession} for the
- * local agent host. Also exposes settable observables so the cache
- * layer can push live updates.
- */
-class LocalSessionAdapter implements ISession {
+export class AgentHostSessionAdapter implements ISession {
 
 	readonly sessionId: string;
 	readonly resource: URI;
 	readonly providerId: string;
 	readonly sessionType: string;
-	readonly icon = Codicon.vm;
+	readonly icon: ThemeIcon;
 	readonly createdAt: Date;
 	readonly workspace: ISettableObservable<ISessionWorkspace | undefined>;
 	readonly title: ISettableObservable<string>;
@@ -108,26 +91,29 @@ class LocalSessionAdapter implements ISession {
 		providerId: string,
 		resourceScheme: string,
 		logicalSessionType: string,
-		authenticationPending: IObservable<boolean>,
+		private readonly _options: IAgentHostAdapterOptions,
 	) {
 		const rawId = AgentSession.id(metadata.session);
-		this.agentProvider = AgentSession.provider(metadata.session) ?? DEFAULT_AGENT_PROVIDER;
+		const agentProvider = AgentSession.provider(metadata.session);
+		if (!agentProvider) {
+			throw new Error(`Agent session URI has no provider scheme: ${metadata.session.toString()}`);
+		}
+		this.agentProvider = agentProvider;
 		this.resource = URI.from({ scheme: resourceScheme, path: `/${rawId}` });
 		this.sessionId = `${providerId}:${this.resource.toString()}`;
 		this.providerId = providerId;
 		this.sessionType = logicalSessionType;
+		this.icon = _options.icon;
 		this.createdAt = new Date(metadata.startTime);
 		this.title = observableValue('title', metadata.summary || `Session ${rawId.substring(0, 8)}`);
 		this.updatedAt = observableValue('updatedAt', new Date(metadata.modifiedTime));
 		this.modelSelection = metadata.model;
 		this.status = observableValue<SessionStatus>('status', metadata.status !== undefined ? mapProtocolStatus(metadata.status) : SessionStatus.Completed);
-		this.modelId = observableValue<string | undefined>('modelId', metadata.model ? `${logicalSessionType}:${metadata.model.id}` : undefined);
+		this.modelId = observableValue<string | undefined>('modelId', metadata.model ? `${resourceScheme}:${metadata.model.id}` : undefined);
 		this.lastTurnEnd = observableValue('lastTurnEnd', metadata.modifiedTime ? new Date(metadata.modifiedTime) : undefined);
-		this.description = observableValue('description', new MarkdownString().appendText(localize('localAgentHostDescription', "Local")));
-		this.workspace = observableValue('workspace', LocalAgentHostSessionsProvider.buildWorkspace(metadata.project, metadata.workingDirectory));
-		// Cached sessions surface as loading while the local agent host is still
-		// authenticating. They have no per-session loading state of their own.
-		this.loading = authenticationPending;
+		this.description = observableValue('description', _options.description);
+		this.workspace = observableValue('workspace', _options.buildWorkspace(metadata.project, metadata.workingDirectory));
+		this.loading = _options.loading;
 
 		if (metadata.isRead === false) {
 			this.isRead.set(false, undefined);
@@ -136,7 +122,7 @@ class LocalSessionAdapter implements ISession {
 			this.isArchived.set(true, undefined);
 		}
 		if (metadata.diffs && metadata.diffs.length > 0) {
-			this.changes.set(diffsToChanges(metadata.diffs), undefined);
+			this.changes.set(diffsToChanges(metadata.diffs, _options.mapDiffUri), undefined);
 		}
 
 		this.mainChat = {
@@ -156,6 +142,10 @@ class LocalSessionAdapter implements ISession {
 		this.chats = constObservable([this.mainChat]);
 	}
 
+	/**
+	 * Update fields from a refreshed metadata snapshot. Returns `true` iff
+	 * any user-visible field changed.
+	 */
 	update(metadata: IAgentSessionMetadata): boolean {
 		let didChange = false;
 
@@ -186,7 +176,7 @@ class LocalSessionAdapter implements ISession {
 			didChange = true;
 		}
 
-		const workspace = LocalAgentHostSessionsProvider.buildWorkspace(metadata.project, metadata.workingDirectory);
+		const workspace = this._options.buildWorkspace(metadata.project, metadata.workingDirectory);
 		if (agentHostSessionWorkspaceKey(workspace) !== agentHostSessionWorkspaceKey(this.workspace.get())) {
 			this.workspace.set(workspace, undefined);
 			didChange = true;
@@ -203,14 +193,14 @@ class LocalSessionAdapter implements ISession {
 		}
 
 		this.modelSelection = metadata.model;
-		const modelId = metadata.model ? `${this.sessionType}:${metadata.model.id}` : undefined;
+		const modelId = metadata.model ? `${this.resource.scheme}:${metadata.model.id}` : undefined;
 		if (modelId !== this.modelId.get()) {
 			this.modelId.set(modelId, undefined);
 			didChange = true;
 		}
 
-		if (metadata.diffs && !diffsEqual(this.changes.get(), metadata.diffs)) {
-			this.changes.set(diffsToChanges(metadata.diffs), undefined);
+		if (metadata.diffs && !diffsEqual(this.changes.get(), metadata.diffs, this._options.mapDiffUri)) {
+			this.changes.set(diffsToChanges(metadata.diffs, this._options.mapDiffUri), undefined);
 			didChange = true;
 		}
 
@@ -218,66 +208,70 @@ class LocalSessionAdapter implements ISession {
 	}
 }
 
+// ============================================================================
+// BaseAgentHostSessionsProvider — shared base for local and remote providers
+// ============================================================================
+
 /**
- * Sessions provider for the local agent host.
+ * Shared base class for the local and remote agent host sessions providers.
  *
- * Implements {@link ISessionsProvider} to surface local agent host sessions
- * in the Sessions app's session list, workspace picker, and session management UI.
+ * Owns the structures and flows that are identical between the two:
+ * the session cache, the new-session/running-session config picker state,
+ * the lazy session-state subscriptions, the AHP notification/action
+ * handlers, and every connection-routed method (set/get/archive/delete/
+ * rename/setModel/sendAndCreateChat).
  *
- * The heavy lifting (agent discovery, session handlers, language model providers,
- * customization harness) is handled by the existing {@link AgentHostContribution}
- * which is already active in the Sessions app. This provider only bridges the
- * session listing and lifecycle to the {@link ISessionsProvidersService} layer.
- *
- * **URI/ID scheme:**
- * - **rawId** - unique session identifier (e.g. `abc123`), used as the cache key.
- * - **resource** - `agent-host-{provider}:///{rawId}` (e.g. `agent-host-copilot:///abc123`).
- *   The scheme routes the chat service to the correct {@link AgentHostSessionHandler}.
- * - **sessionId** - `local-agent-host:agent-host-{provider}:///{rawId}` — the
- *   provider-scoped ID used by {@link ISessionsProvider}.
+ * Subclasses supply the genuine variation points: the connection
+ * accessor, the authentication-pending observable, an adapter factory,
+ * URI-scheme mapping for session metadata, the agent-provider lookup, and
+ * the browse UI.
  */
-export class LocalAgentHostSessionsProvider extends Disposable implements IAgentHostSessionsProvider {
+export abstract class BaseAgentHostSessionsProvider extends Disposable implements IAgentHostSessionsProvider {
 
-	readonly id = LOCAL_PROVIDER_ID;
-	readonly label: string;
-	readonly icon: ThemeIcon = Codicon.vm;
-	private readonly _localLabel = localize('localAgentHostSessionTypeLocation', "Local");
-	private _hasRootStateSnapshot = false;
-	private _sessionTypes: ISessionType[] = [];
-	get sessionTypes(): readonly ISessionType[] {
-		const rootStateValue = this._agentHostService.rootState.value;
-		return this._hasRootStateSnapshot || rootStateValue !== undefined ? this._sessionTypes : this._getSessionTypesFromContributions();
-	}
+	abstract readonly id: string;
+	abstract readonly label: string;
+	abstract readonly icon: ThemeIcon;
+	abstract readonly browseActions: readonly ISessionWorkspaceBrowseAction[];
 
-	private readonly _onDidChangeSessionTypes = this._register(new Emitter<void>());
+	get sessionTypes(): readonly ISessionType[] { return this._sessionTypes; }
+	protected _sessionTypes: ISessionType[] = [];
+
+	protected readonly _onDidChangeSessionTypes = this._register(new Emitter<void>());
 	readonly onDidChangeSessionTypes: Event<void> = this._onDidChangeSessionTypes.event;
 
-	readonly browseActions: readonly ISessionWorkspaceBrowseAction[];
-
-	private readonly _onDidChangeSessions = this._register(new Emitter<ISessionChangeEvent>());
+	protected readonly _onDidChangeSessions = this._register(new Emitter<ISessionChangeEvent>());
 	readonly onDidChangeSessions: Event<ISessionChangeEvent> = this._onDidChangeSessions.event;
 
-	private readonly _onDidReplaceSession = this._register(new Emitter<{ readonly from: ISession; readonly to: ISession }>());
+	protected readonly _onDidReplaceSession = this._register(new Emitter<{ readonly from: ISession; readonly to: ISession }>());
 	readonly onDidReplaceSession: Event<{ readonly from: ISession; readonly to: ISession }> = this._onDidReplaceSession.event;
-	private readonly _onDidChangeSessionConfig = this._register(new Emitter<string>());
+
+	protected readonly _onDidChangeSessionConfig = this._register(new Emitter<string>());
 	readonly onDidChangeSessionConfig = this._onDidChangeSessionConfig.event;
 
 	/** Cache of adapted sessions, keyed by raw session ID. */
-	private readonly _sessionCache = new Map<string, LocalSessionAdapter>();
+	protected readonly _sessionCache = new Map<string, AgentHostSessionAdapter>();
 
-	private _pendingSession: ISession | undefined;
-	private _selectedModelId: string | undefined;
-	private _currentNewSession: ISession | undefined;
-	private _currentNewSessionStatus: ISettableObservable<SessionStatus> | undefined;
-	private _currentNewSessionModelId: ISettableObservable<string | undefined> | undefined;
-	private _currentNewSessionLoading: ISettableObservable<boolean> | undefined;
-	private readonly _newSessionWorkspaces = new Map<string, URI>();
-	private readonly _newSessionConfigs = new Map<string, IResolveSessionConfigResult>();
-	private readonly _newSessionAgentProviders = new Map<string, string>();
-	private readonly _newSessionConfigRequests = new Map<string, number>();
+	/**
+	 * Temporary session that has been sent (first turn dispatched) but not yet
+	 * committed to a real backend session. Shown in the session list until the
+	 * server creates the backend session, at which point it is replaced via
+	 * {@link _onDidReplaceSession}.
+	 */
+	protected _pendingSession: ISession | undefined;
+
+	protected _currentNewSession: ISession | undefined;
+	protected _currentNewSessionStatus: ISettableObservable<SessionStatus> | undefined;
+	protected _currentNewSessionModelId: ISettableObservable<string | undefined> | undefined;
+	protected _currentNewSessionLoading: ISettableObservable<boolean> | undefined;
+	protected _selectedModelId: string | undefined;
+
+	protected readonly _newSessionWorkspaces = new Map<string, URI>();
+	protected readonly _newSessionConfigs = new Map<string, IResolveSessionConfigResult>();
+	protected readonly _newSessionAgentProviders = new Map<string, string>();
+	protected readonly _newSessionConfigRequests = new Map<string, number>();
 
 	/** Config for running sessions (session-mutable properties only), keyed by session ID. */
-	private readonly _runningSessionConfigs = new Map<string, IResolveSessionConfigResult>();
+	protected readonly _runningSessionConfigs = new Map<string, IResolveSessionConfigResult>();
 
 	/**
 	 * Lazy session-state subscriptions used to seed {@link _runningSessionConfigs}
@@ -285,123 +279,99 @@ export class LocalAgentHostSessionsProvider extends Disposable implements IAgent
 	 * window). The underlying wire subscription is reference-counted by
 	 * {@link IAgentConnection.getSubscription}, so when the session handler is
 	 * also subscribed (i.e. chat content is loaded) no extra wire subscribe is
-	 * issued. Keyed by session ID. Each entry owns the subscription `IReference`
-	 * plus the `onDidChange` listener.
+	 * issued. Keyed by session ID.
 	 */
-	private readonly _sessionStateSubscriptions = this._register(new DisposableMap<string, DisposableStore>());
+	protected readonly _sessionStateSubscriptions = this._register(new DisposableMap<string, DisposableStore>());
 
-	private _cacheInitialized = false;
+	protected _cacheInitialized = false;
 
 	constructor(
-		@IAgentHostService private readonly _agentHostService: IAgentHostService,
-		@IFileDialogService private readonly _fileDialogService: IFileDialogService,
-		@IChatSessionsService private readonly _chatSessionsService: IChatSessionsService,
-		@IChatService private readonly _chatService: IChatService,
-		@IChatWidgetService private readonly _chatWidgetService: IChatWidgetService,
-		@ILanguageModelsService private readonly _languageModelsService: ILanguageModelsService,
+		@IChatSessionsService protected readonly _chatSessionsService: IChatSessionsService,
+		@IChatService protected readonly _chatService: IChatService,
+		@IChatWidgetService protected readonly _chatWidgetService: IChatWidgetService,
+		@ILanguageModelsService protected readonly _languageModelsService: ILanguageModelsService,
 	) {
 		super();
-
-		this.label = localize('localAgentHostLabel', "Local Agent Host");
-
-		this.browseActions = [{
-			label: localize('folders', "Folders"),
-			icon: Codicon.folderOpened,
-			providerId: this.id,
-			run: () => this._browseForFolder(),
-		}];
-
-		// Listen for notifications from the agent host to update the session list
-		this._register(this._agentHostService.onDidNotification(n => {
-			if (n.type === NotificationType.SessionAdded) {
-				this._handleSessionAdded(n.summary);
-			} else if (n.type === NotificationType.SessionRemoved) {
-				this._handleSessionRemoved(n.session);
-			} else if (n.type === NotificationType.SessionSummaryChanged) {
-				this._handleSessionSummaryChanged(n.session, n.changes);
-			}
-		}));
-
-		this._register(this._agentHostService.onDidAction(e => {
-			if (e.action.type === ActionType.SessionTurnComplete && isSessionAction(e.action)) {
-				this._refreshSessions();
-			} else if (e.action.type === ActionType.SessionTitleChanged && isSessionAction(e.action)) {
-				this._handleTitleChanged(e.action.session, e.action.title);
-			} else if (e.action.type === ActionType.SessionModelChanged && isSessionAction(e.action)) {
-				this._handleModelChanged(e.action.session, e.action.model);
-			} else if (e.action.type === ActionType.SessionIsReadChanged && isSessionAction(e.action)) {
-				this._handleIsReadChanged(e.action.session, e.action.isRead);
-			} else if (e.action.type === ActionType.SessionIsDoneChanged && isSessionAction(e.action)) {
-				this._handleIsDoneChanged(e.action.session, e.action.isDone);
-			} else if (e.action.type === ActionType.SessionConfigChanged && isSessionAction(e.action)) {
-				this._handleConfigChanged(e.action.session, e.action.config);
-			} else if (e.action.type === ActionType.SessionDiffsChanged && isSessionAction(e.action)) {
-				this._handleDiffsChanged(e.action.session, e.action.diffs);
-			}
-		}));
-
-		const rootStateValue = this._agentHostService.rootState.value;
-		if (rootStateValue !== undefined) {
-			this._hasRootStateSnapshot = true;
-		}
-		if (rootStateValue && !(rootStateValue instanceof Error)) {
-			this._syncSessionTypesFromRootState(rootStateValue);
-		}
-		this._register(this._agentHostService.rootState.onDidChange(rootState => {
-			const didHydrate = !this._hasRootStateSnapshot;
-			this._hasRootStateSnapshot = true;
-			this._syncSessionTypesFromRootState(rootState, didHydrate);
-		}));
 	}
 
-	private _syncSessionTypesFromRootState(rootState: IRootState, forceFire = false): void {
+	// -- Subclass hooks -------------------------------------------------------
+
+	/** Current connection (always present for local; may be undefined while disconnected for remote). */
+	protected abstract get connection(): IAgentConnection | undefined;
+
+	/** Provider-level authentication-pending observable used to derive `loading` for sessions. */
+	protected abstract get authenticationPending(): IObservable<boolean>;
+
+	/**
+	 * Subclass-specific portion of the adapter options. Base fills in
+	 * the bits that are uniform across hosts (`icon`, `loading`,
+	 * `mapDiffUri`) from the corresponding hooks.
+	 */
+	protected abstract _adapterOptions(): Pick<IAgentHostAdapterOptions, 'description' | 'buildWorkspace'>;
+
+	/** Build an adapter for the given metadata. */
+	protected createAdapter(meta: IAgentSessionMetadata): AgentHostSessionAdapter {
+		const provider = AgentSession.provider(meta.session);
+		if (!provider) {
+			throw new Error(`Agent session URI has no provider scheme: ${meta.session.toString()}`);
+		}
+		return new AgentHostSessionAdapter(meta, this.id, this.resourceSchemeForProvider(provider), provider, {
+			icon: this.icon,
+			loading: this.authenticationPending,
+			mapDiffUri: this._diffUriMapper(),
+			...this._adapterOptions(),
+		});
+	}
+
+	/**
+	 * Computes the URI resource scheme used to route session URIs to this
+	 * provider's content provider for a given agent provider name. Local
+	 * uses `agent-host-${provider}`; remote uses a per-connection scheme.
+	 *
+	 * The resource scheme is host-specific and exists purely for content
+	 * provider routing. The logical {@link ISession.sessionType} is the
+	 * agent provider name itself, so the same agent (e.g. `copilotcli`)
+	 * appears under one shared session type across hosts.
+	 */
+	protected abstract resourceSchemeForProvider(provider: string): string;
+
+	/** Format the human-readable label for a session type entry (e.g. `Copilot [Local]`). */
+	protected abstract _formatSessionTypeLabel(agentLabel: string): string;
+
+	/**
+	 * Reconcile {@link _sessionTypes} against the agents advertised by the
+	 * host's root state, firing {@link onDidChangeSessionTypes} only if the
+	 * id/label set actually changed.
+	 */
+	protected _syncSessionTypesFromRootState(rootState: IRootState): void {
 		const next = rootState.agents.map((agent): ISessionType => ({
-			id: sessionTypeForProvider(agent.provider),
-			label: this._formatSessionTypeLabel(agent.displayName || agent.provider),
-			icon: Codicon.vm,
+			id: agent.provider,
+			label: this._formatSessionTypeLabel(agent.displayName?.trim() || agent.provider),
+			icon: this.icon,
 		}));
 
 		const prev = this._sessionTypes;
-		if (!forceFire && prev.length === next.length && prev.every((t, i) => t.id === next[i].id && t.label === next[i].label)) {
+		if (prev.length === next.length && prev.every((t, i) => t.id === next[i].id && t.label === next[i].label)) {
 			return;
 		}
 		this._sessionTypes = next;
 		this._onDidChangeSessionTypes.fire();
 	}
 
-	private _formatSessionTypeLabel(agentLabel: string): string {
-		return localize('localAgentHostSessionType', "{0} [{1}]", agentLabel, this._localLabel);
-	}
+	abstract resolveWorkspace(repositoryUri: URI): ISessionWorkspace;
 
-	private _getSessionTypesFromContributions(): ISessionType[] {
-		return this._chatSessionsService.getAllChatSessionContributions()
-			.filter(contribution => contribution.type.startsWith('agent-host-'))
-			.map((contribution): ISessionType => ({
-				id: contribution.type,
-				label: this._formatSessionTypeLabel(contribution.displayName),
-				icon: Codicon.vm,
-			}));
-	}
+	/** Optional event fired when the underlying connection is lost; used to short-circuit `_waitForNewSession`. */
+	protected get onConnectionLost(): Event<void> { return Event.None; }
 
-	// -- Workspaces --
+	/** Maps a working-directory URI from the session summary to a local URI. Default identity; remote overrides to `toAgentHostUri`. */
+	protected mapWorkingDirectoryUri(uri: URI): URI { return uri; }
 
-	static buildWorkspace(project: IAgentSessionMetadata['project'], workingDirectory: URI | undefined): ISessionWorkspace | undefined {
-		return buildAgentHostSessionWorkspace(project, workingDirectory, { fallbackIcon: Codicon.folder, requiresWorkspaceTrust: true });
-	}
+	/** Maps a project URI from the session summary to a local URI. Default identity; remote overrides for `file:` paths. */
+	protected mapProjectUri(uri: URI): URI { return uri; }
 
-	resolveWorkspace(repositoryUri: URI): ISessionWorkspace {
-		const folderName = basename(repositoryUri) || repositoryUri.path;
-		return {
-			label: folderName,
-			icon: Codicon.folder,
-			repositories: [{ uri: repositoryUri, workingDirectory: undefined, detail: undefined, baseBranchName: undefined, baseBranchProtected: undefined }],
-			requiresWorkspaceTrust: true,
-		};
-	}
+	// -- Session listing ------------------------------------------------------
 
-	// -- Sessions --
-
-	getSessionTypes(repositoryUri: URI): ISessionType[] {
+	getSessionTypes(_repositoryUri: URI): ISessionType[] {
 		return [...this.sessionTypes];
 	}
 
@@ -433,7 +403,7 @@ export class LocalAgentHostSessionsProvider extends Disposable implements IAgent
 		return undefined;
 	}
 
-	// -- Session Lifecycle --
+	// -- Session lifecycle ----------------------------------------------------
 
 	createNewSession(workspaceUri: URI, sessionTypeId: string): ISession {
 		if (!workspaceUri) {
@@ -447,23 +417,35 @@ export class LocalAgentHostSessionsProvider extends Disposable implements IAgent
 		this._selectedModelId = undefined;
 		this._currentNewSessionModelId = undefined;
 		this._currentNewSessionLoading = undefined;
+		this._currentNewSessionStatus = undefined;
 
 		const sessionType = this.sessionTypes.find(t => t.id === sessionTypeId);
 		if (!sessionType) {
-			throw new Error(localize('noAgents', "Local agent host has not advertised any agents yet."));
+			throw new Error(this._noAgentsErrorMessage());
 		}
 
+		this._validateBeforeCreate(sessionType);
+
 		const workspace = this.resolveWorkspace(workspaceUri);
 		return this._createNewSessionForType(workspace, sessionType);
 	}
 
+	/** Subclass hook for additional pre-create checks (e.g. remote requires connection). */
+	protected _validateBeforeCreate(_sessionType: ISessionType): void { /* default: no-op */ }
+
+	/** Localized "no agents" error message. Subclasses can override. */
+	protected _noAgentsErrorMessage(): string {
+		return localize('noAgents', "Agent host has not advertised any agents yet.");
+	}
+
 	private _createNewSessionForType(workspace: ISessionWorkspace, sessionType: ISessionType): ISession {
 		const workspaceUri = workspace.repositories[0]?.uri;
 		if (!workspaceUri) {
 			throw new Error('Workspace has no repository URI');
 		}
 
-		const resource = URI.from({ scheme: sessionType.id, path: `/untitled-${generateUuid()}` });
+		const resourceScheme = this.resourceSchemeForProvider(sessionType.id);
+		const resource = URI.from({ scheme: resourceScheme, path: `/untitled-${generateUuid()}` });
 		const status = observableValue<SessionStatus>(this, SessionStatus.Untitled);
 		const title = observableValue(this, '');
 		const updatedAt = observableValue(this, new Date());
@@ -482,12 +464,13 @@ export class LocalAgentHostSessionsProvider extends Disposable implements IAgent
 			changes, modelId, mode, isArchived, isRead, description, lastTurnEnd,
 		};
 
+		const authPending = this.authenticationPending;
 		const session: ISession = {
 			sessionId: `${this.id}:${resource.toString()}`,
 			resource,
 			providerId: this.id,
 			sessionType: sessionType.id,
-			icon: Codicon.vm,
+			icon: this.icon,
 			createdAt,
 			workspace: observableValue(this, workspace),
 			title,
@@ -496,7 +479,7 @@ export class LocalAgentHostSessionsProvider extends Disposable implements IAgent
 			changes,
 			modelId,
 			mode,
-			loading: derived(reader => loading.read(reader) || this._agentHostService.authenticationPending.read(reader)),
+			loading: derived(reader => loading.read(reader) || authPending.read(reader)),
 			isArchived,
 			isRead,
 			description,
@@ -510,7 +493,7 @@ export class LocalAgentHostSessionsProvider extends Disposable implements IAgent
 		this._currentNewSessionStatus = status;
 		this._currentNewSessionModelId = modelId;
 		this._currentNewSessionLoading = loading;
-		const agentProvider = this._agentProviderFromSessionType(sessionType.id);
+		const agentProvider = sessionType.id;
 		this._newSessionWorkspaces.set(session.sessionId, workspaceUri);
 		this._newSessionAgentProviders.set(session.sessionId, agentProvider);
 		this._newSessionConfigs.set(session.sessionId, { schema: { type: 'object', properties: {} }, values: {} });
@@ -519,6 +502,8 @@ export class LocalAgentHostSessionsProvider extends Disposable implements IAgent
 		return session;
 	}
 
+	// -- Dynamic session config ----------------------------------------------
+
 	getSessionConfig(sessionId: string): IResolveSessionConfigResult | undefined {
 		// New-session config wins (during pre-creation flow). Otherwise lazily
 		// subscribe to the session's state so the running picker can seed its
@@ -546,7 +531,8 @@ export class LocalAgentHostSessionsProvider extends Disposable implements IAgent
 
 		// Running session: dispatch SessionConfigChanged for sessionMutable properties
 		const runningConfig = this._runningSessionConfigs.get(sessionId);
-		if (!runningConfig) {
+		const connection = this.connection;
+		if (!runningConfig || !connection) {
 			return;
 		}
 		const schema = runningConfig.schema.properties[property];
@@ -566,16 +552,17 @@ export class LocalAgentHostSessionsProvider extends Disposable implements IAgent
 		const cached = rawId ? this._sessionCache.get(rawId) : undefined;
 		if (cached && rawId) {
 			const action = { type: ActionType.SessionConfigChanged as const, session: AgentSession.uri(cached.agentProvider, rawId).toString(), config: { [property]: value } };
-			this._agentHostService.dispatch(action);
+			connection.dispatch(action);
 		}
 	}
 
-	async getSessionConfigCompletions(sessionId: string, property: string, query?: string): Promise<readonly ISessionConfigValueItem[]> {
+	async getSessionConfigCompletions(sessionId: string, property: string, query?: string) {
 		const workingDirectory = this._newSessionWorkspaces.get(sessionId);
-		if (!workingDirectory) {
+		const connection = this.connection;
+		if (!workingDirectory || !connection) {
 			return [];
 		}
-		const result = await this._agentHostService.sessionConfigCompletions({
+		const result = await connection.sessionConfigCompletions({
 			provider: this._getAgentProviderForSession(sessionId),
 			workingDirectory,
 			config: this._newSessionConfigs.get(sessionId)?.values,
@@ -593,6 +580,8 @@ export class LocalAgentHostSessionsProvider extends Disposable implements IAgent
 		this._clearNewSessionConfig(sessionId);
 	}
 
+	// -- Model selection ------------------------------------------------------
+
 	setModel(sessionId: string, modelId: string): void {
 		if (this._currentNewSession?.sessionId === sessionId) {
 			this._selectedModelId = modelId;
@@ -602,17 +591,19 @@ export class LocalAgentHostSessionsProvider extends Disposable implements IAgent
 
 		const rawId = this._rawIdFromChatId(sessionId);
 		const cached = rawId ? this._sessionCache.get(rawId) : undefined;
-		if (cached && rawId) {
+		const connection = this.connection;
+		if (cached && rawId && connection) {
 			cached.modelId.set(modelId, undefined);
 			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [cached] });
-			const rawModelId = modelId.startsWith(`${cached.sessionType}:`) ? modelId.substring(cached.sessionType.length + 1) : modelId;
+			const resourceScheme = cached.resource.scheme;
+			const rawModelId = modelId.startsWith(`${resourceScheme}:`) ? modelId.substring(resourceScheme.length + 1) : modelId;
 			const model = cached.modelSelection?.id === rawModelId ? cached.modelSelection : { id: rawModelId };
 			const action = { type: ActionType.SessionModelChanged as const, session: AgentSession.uri(cached.agentProvider, rawId).toString(), model };
-			this._agentHostService.dispatch(action);
+			connection.dispatch(action);
 		}
 	}
 
-	// -- Session Actions --
+	// -- Session actions ------------------------------------------------------
 
 	async archiveSession(sessionId: string): Promise<void> {
 		const rawId = this._rawIdFromChatId(sessionId);
@@ -620,8 +611,11 @@ export class LocalAgentHostSessionsProvider extends Disposable implements IAgent
 		if (cached && rawId) {
 			cached.isArchived.set(true, undefined);
 			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [cached] });
-			const action = { type: ActionType.SessionIsDoneChanged as const, session: AgentSession.uri(cached.agentProvider, rawId).toString(), isDone: true };
-			this._agentHostService.dispatch(action);
+			const connection = this.connection;
+			if (connection) {
+				const action = { type: ActionType.SessionIsDoneChanged as const, session: AgentSession.uri(cached.agentProvider, rawId).toString(), isDone: true };
+				connection.dispatch(action);
+			}
 		}
 	}
 
@@ -631,16 +625,20 @@ export class LocalAgentHostSessionsProvider extends Disposable implements IAgent
 		if (cached && rawId) {
 			cached.isArchived.set(false, undefined);
 			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [cached] });
-			const action = { type: ActionType.SessionIsDoneChanged as const, session: AgentSession.uri(cached.agentProvider, rawId).toString(), isDone: false };
-			this._agentHostService.dispatch(action);
+			const connection = this.connection;
+			if (connection) {
+				const action = { type: ActionType.SessionIsDoneChanged as const, session: AgentSession.uri(cached.agentProvider, rawId).toString(), isDone: false };
+				connection.dispatch(action);
+			}
 		}
 	}
 
 	async deleteSession(sessionId: string): Promise<void> {
 		const rawId = this._rawIdFromChatId(sessionId);
 		const cached = rawId ? this._sessionCache.get(rawId) : undefined;
-		if (cached && rawId) {
-			await this._agentHostService.disposeSession(AgentSession.uri(cached.agentProvider, rawId));
+		const connection = this.connection;
+		if (cached && rawId && connection) {
+			await connection.disposeSession(AgentSession.uri(cached.agentProvider, rawId));
 			this._sessionCache.delete(rawId);
 			this._runningSessionConfigs.delete(sessionId);
 			this._onDidChangeSessions.fire({ added: [], removed: [cached], changed: [] });
@@ -650,11 +648,12 @@ export class LocalAgentHostSessionsProvider extends Disposable implements IAgent
 	async renameChat(sessionId: string, _chatUri: URI, title: string): Promise<void> {
 		const rawId = this._rawIdFromChatId(sessionId);
 		const cached = rawId ? this._sessionCache.get(rawId) : undefined;
-		if (cached && rawId) {
+		const connection = this.connection;
+		if (cached && rawId && connection) {
 			cached.title.set(title, undefined);
 			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [cached] });
 			const action = { type: ActionType.SessionTitleChanged as const, session: AgentSession.uri(cached.agentProvider, rawId).toString(), title };
-			this._agentHostService.dispatch(action);
+			connection.dispatch(action);
 		}
 	}
 
@@ -662,7 +661,20 @@ export class LocalAgentHostSessionsProvider extends Disposable implements IAgent
 		// Agent host sessions don't support deleting individual chats
 	}
 
+	addChat(_sessionId: string): IChat {
+		throw new Error('Multiple chats per session is not supported for agent host sessions');
+	}
+
+	async sendRequest(_sessionId: string, _chatResource: URI, _options: ISendRequestOptions): Promise<ISession> {
+		throw new Error('Multiple chats per session is not supported for agent host sessions');
+	}
+
 	async sendAndCreateChat(chatId: string, options: ISendRequestOptions): Promise<ISession> {
+		const connection = this.connection;
+		if (!connection) {
+			throw new Error(this._notConnectedSendErrorMessage());
+		}
+
 		const session = this._currentNewSession;
 		if (!session || session.sessionId !== chatId) {
 			throw new Error(`Session '${chatId}' not found or not a new session`);
@@ -694,7 +706,7 @@ export class LocalAgentHostSessionsProvider extends Disposable implements IAgent
 		await this._chatSessionsService.getOrCreateChatSession(session.resource, CancellationToken.None);
 		const chatWidget = await this._chatWidgetService.openSession(session.resource, ChatViewPaneTarget);
 		if (!chatWidget) {
-			throw new Error('[LocalAgentHost] Failed to open chat widget');
+			throw new Error(`[${this.id}] Failed to open chat widget`);
 		}
 
 		// Load session model and apply selected model
@@ -709,12 +721,16 @@ export class LocalAgentHostSessionsProvider extends Disposable implements IAgent
 			modelRef.dispose();
 		}
 
+		// Capture existing session keys before sending so we can detect the new
+		// backend session. Must be captured before sendRequest because the
+		// backend session may be created during the send and arrive via
+		// notification before sendRequest resolves.
 		this._ensureSessionCache();
 		const existingKeys = new Set(this._sessionCache.keys());
 
 		const result = await this._chatService.sendRequest(session.resource, query, sendOptions);
 		if (result.kind === 'rejected') {
-			throw new Error(`[LocalAgentHost] sendRequest rejected: ${result.reason}`);
+			throw new Error(`[${this.id}] sendRequest rejected: ${result.reason}`);
 		}
 
 		this._currentNewSessionStatus?.set(SessionStatus.InProgress, undefined);
@@ -739,7 +755,7 @@ export class LocalAgentHostSessionsProvider extends Disposable implements IAgent
 				return committedSession;
 			}
 		} catch {
-			// Timeout — clean up
+			// Connection lost or timeout — clean up
 		} finally {
 			this._pendingSession = undefined;
 		}
@@ -751,21 +767,25 @@ export class LocalAgentHostSessionsProvider extends Disposable implements IAgent
 		return newSession;
 	}
 
-	addChat(_sessionId: string): IChat {
-		throw new Error('Multiple chats per session is not supported for agent host sessions');
+	/** Localized error message when sendAndCreateChat is invoked without a connection. Subclasses can override. */
+	protected _notConnectedSendErrorMessage(): string {
+		return localize('notConnectedSend', "Cannot send request: not connected to agent host.");
 	}
 
-	async sendRequest(_sessionId: string, _chatResource: URI, _options: ISendRequestOptions): Promise<ISession> {
-		throw new Error('Multiple chats per session is not supported for agent host sessions');
-	}
+	// -- Session config plumbing ---------------------------------------------
 
-	private async _resolveSessionConfig(sessionId: string, agentProvider: string, workspaceUri: URI, config: Record<string, string> | undefined): Promise<void> {
+	private async _resolveSessionConfig(sessionId: string, agentProvider: string, workingDirectory: URI, config: Record<string, string> | undefined): Promise<void> {
+		const connection = this.connection;
+		if (!connection) {
+			this._setNewSessionLoading(sessionId, false);
+			return;
+		}
 		const request = (this._newSessionConfigRequests.get(sessionId) ?? 0) + 1;
 		this._newSessionConfigRequests.set(sessionId, request);
 		try {
-			const result = await this._agentHostService.resolveSessionConfig({
+			const result = await connection.resolveSessionConfig({
 				provider: agentProvider,
-				workingDirectory: workspaceUri,
+				workingDirectory,
 				config,
 			});
 			if (this._newSessionConfigRequests.get(sessionId) !== request) {
@@ -783,7 +803,7 @@ export class LocalAgentHostSessionsProvider extends Disposable implements IAgent
 		this._onDidChangeSessionConfig.fire(sessionId);
 	}
 
-	private _clearNewSessionConfig(sessionId: string): void {
+	protected _clearNewSessionConfig(sessionId: string): void {
 		this._newSessionWorkspaces.delete(sessionId);
 		this._newSessionConfigs.delete(sessionId);
 		this._newSessionAgentProviders.delete(sessionId);
@@ -800,7 +820,6 @@ export class LocalAgentHostSessionsProvider extends Disposable implements IAgent
 		if (!config) {
 			return;
 		}
-		// Filter schema to only include session-mutable properties
 		const mutableProperties: IResolveSessionConfigResult['schema']['properties'] = {};
 		const mutableValues: Record<string, string> = {};
 		for (const [key, propSchema] of Object.entries(config.schema.properties)) {
@@ -819,241 +838,31 @@ export class LocalAgentHostSessionsProvider extends Disposable implements IAgent
 		}
 	}
 
-	private _agentProviderFromSessionType(sessionType: string): string {
-		return sessionType.startsWith('agent-host-') ? sessionType.substring('agent-host-'.length) : DEFAULT_AGENT_PROVIDER;
+	private _setNewSessionLoading(sessionId: string, loading: boolean): void {
+		if (this._currentNewSession?.sessionId === sessionId) {
+			this._currentNewSessionLoading?.set(loading, undefined);
+		}
+	}
+
+	protected _rawIdFromChatId(chatId: string): string | undefined {
+		const prefix = `${this.id}:`;
+		const resourceStr = chatId.startsWith(prefix) ? chatId.substring(prefix.length) : chatId;
+		try {
+			return URI.parse(resourceStr).path.substring(1) || undefined;
+		} catch {
+			return undefined;
+		}
 	}
 
 	private _getAgentProviderForSession(sessionId: string): string {
-		return this._newSessionAgentProviders.get(sessionId) ?? DEFAULT_AGENT_PROVIDER;
+		const provider = this._newSessionAgentProviders.get(sessionId);
+		if (!provider) {
+			throw new Error(`No agent provider tracked for new session: ${sessionId}`);
+		}
+		return provider;
 	}
 
-	// -- Private: Session Cache --
-
-	private _ensureSessionCache(): void {
-		if (this._cacheInitialized) {
-			return;
-		}
-		this._cacheInitialized = true;
-		this._refreshSessions();
-	}
-
-	private async _refreshSessions(): Promise<void> {
-		try {
-			const sessions = await this._agentHostService.listSessions();
-			const currentKeys = new Set<string>();
-			const added: ISession[] = [];
-			const changed: ISession[] = [];
-
-			for (const meta of sessions) {
-				const rawId = AgentSession.id(meta.session);
-				currentKeys.add(rawId);
-
-				const existing = this._sessionCache.get(rawId);
-				if (existing) {
-					if (existing.update(meta)) {
-						changed.push(existing);
-					}
-				} else {
-					const sessionType = this._sessionTypeForMetadata(meta);
-					const cached = new LocalSessionAdapter(meta, this.id, sessionType, sessionType, this._agentHostService.authenticationPending);
-					this._sessionCache.set(rawId, cached);
-					added.push(cached);
-				}
-			}
-
-			const removed: ISession[] = [];
-			for (const [key, cached] of this._sessionCache) {
-				if (!currentKeys.has(key)) {
-					this._sessionCache.delete(key);
-					this._runningSessionConfigs.delete(cached.sessionId);
-					removed.push(cached);
-				}
-			}
-
-			if (added.length > 0 || removed.length > 0 || changed.length > 0) {
-				this._onDidChangeSessions.fire({ added, removed, changed });
-			}
-		} catch {
-			// Agent host may not be ready yet
-		}
-	}
-
-	private async _waitForNewSession(existingKeys: Set<string>): Promise<ISession | undefined> {
-		await this._refreshSessions();
-		for (const [key, cached] of this._sessionCache) {
-			if (!existingKeys.has(key)) {
-				return cached;
-			}
-		}
-
-		const waitDisposables = new DisposableStore();
-		try {
-			const sessionPromise = new Promise<ISession | undefined>((resolve) => {
-				waitDisposables.add(this._onDidChangeSessions.event(e => {
-					const newSession = e.added.find(s => {
-						const rawId = s.resource.path.substring(1);
-						return !existingKeys.has(rawId);
-					});
-					if (newSession) {
-						resolve(newSession);
-					}
-				}));
-			});
-			return await raceTimeout(sessionPromise, 30_000);
-		} finally {
-			waitDisposables.dispose();
-		}
-	}
-
-	private _handleSessionAdded(summary: ISessionSummary): void {
-		const sessionUri = URI.parse(summary.resource);
-		const rawId = AgentSession.id(sessionUri);
-		if (this._sessionCache.has(rawId)) {
-			return;
-		}
-
-		const workingDir = typeof summary.workingDirectory === 'string'
-			? URI.parse(summary.workingDirectory)
-			: undefined;
-		const meta: IAgentSessionMetadata = {
-			session: sessionUri,
-			startTime: summary.createdAt,
-			modifiedTime: summary.modifiedAt,
-			summary: summary.title,
-			...(summary.project ? { project: { uri: URI.parse(summary.project.uri), displayName: summary.project.displayName } } : {}),
-			model: summary.model,
-			workingDirectory: workingDir,
-			isRead: summary.isRead,
-			isDone: summary.isDone,
-		};
-		const sessionType = this._sessionTypeForMetadata(meta);
-		const cached = new LocalSessionAdapter(meta, this.id, sessionType, sessionType, this._agentHostService.authenticationPending);
-		this._sessionCache.set(rawId, cached);
-		this._onDidChangeSessions.fire({ added: [cached], removed: [], changed: [] });
-	}
-
-	private _sessionTypeForMetadata(meta: IAgentSessionMetadata): string {
-		const provider = AgentSession.provider(meta.session) ?? DEFAULT_AGENT_PROVIDER;
-		return sessionTypeForProvider(provider);
-	}
-
-	private _handleSessionRemoved(session: URI | string): void {
-		const rawId = AgentSession.id(session);
-		const cached = this._sessionCache.get(rawId);
-		if (cached) {
-			this._sessionCache.delete(rawId);
-			this._runningSessionConfigs.delete(cached.sessionId);
-			this._sessionStateSubscriptions.deleteAndDispose(cached.sessionId);
-			this._onDidChangeSessions.fire({ added: [], removed: [cached], changed: [] });
-		}
-	}
-
-	private _handleTitleChanged(session: string, title: string): void {
-		const rawId = AgentSession.id(session);
-		const cached = this._sessionCache.get(rawId);
-		if (cached) {
-			cached.title.set(title, undefined);
-			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [cached] });
-		}
-	}
-
-	private _handleModelChanged(session: string, model: IModelSelection): void {
-		const rawId = AgentSession.id(session);
-		const cached = this._sessionCache.get(rawId);
-		if (cached) {
-			cached.modelSelection = model;
-		}
-		const modelId = cached ? `${cached.sessionType}:${model.id}` : undefined;
-		if (cached && cached.modelId.get() !== modelId) {
-			cached.modelId.set(modelId, undefined);
-			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [cached] });
-		}
-	}
-
-	private _handleIsReadChanged(session: string, isRead: boolean): void {
-		const rawId = AgentSession.id(session);
-		const cached = this._sessionCache.get(rawId);
-		if (cached) {
-			cached.isRead.set(isRead, undefined);
-			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [cached] });
-		}
-	}
-
-	private _handleIsDoneChanged(session: string, isDone: boolean): void {
-		const rawId = AgentSession.id(session);
-		const cached = this._sessionCache.get(rawId);
-		if (cached) {
-			cached.isArchived.set(isDone, undefined);
-			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [cached] });
-		}
-	}
-
-	private _handleDiffsChanged(session: string, diffs: IFileEdit[]): void {
-		const rawId = AgentSession.id(session);
-		const cached = this._sessionCache.get(rawId);
-		if (cached) {
-			cached.changes.set(diffsToChanges(diffs), undefined);
-			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [cached] });
-		}
-	}
-
-	private _handleSessionSummaryChanged(session: string, changes: Partial<ISessionSummary>): void {
-		const rawId = AgentSession.id(session);
-		const cached = this._sessionCache.get(rawId);
-		if (!cached) {
-			return;
-		}
-
-		let didChange = false;
-
-		if (changes.status !== undefined) {
-			const uiStatus = mapProtocolStatus(changes.status);
-			if (uiStatus !== cached.status.get()) {
-				cached.status.set(uiStatus, undefined);
-				didChange = true;
-			}
-		}
-
-		if (changes.title !== undefined && changes.title !== cached.title.get()) {
-			cached.title.set(changes.title, undefined);
-			didChange = true;
-		}
-
-		if (changes.diffs !== undefined) {
-			if (!diffsEqual(cached.changes.get(), changes.diffs)) {
-				cached.changes.set(diffsToChanges(changes.diffs), undefined);
-				didChange = true;
-			}
-		}
-
-		if (didChange) {
-			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [cached] });
-		}
-	}
-
-	private _handleConfigChanged(session: string, config: Record<string, string>): void {
-		const rawId = AgentSession.id(session);
-		const cached = this._sessionCache.get(rawId);
-		if (!cached) {
-			return;
-		}
-		const sessionId = cached.sessionId;
-		const existing = this._runningSessionConfigs.get(sessionId);
-		if (existing) {
-			this._runningSessionConfigs.set(sessionId, {
-				...existing,
-				values: { ...existing.values, ...config },
-			});
-		} else {
-			// Session was restored (e.g. after reload) — create a minimal
-			// config entry from the changed values so the picker can render.
-			this._runningSessionConfigs.set(sessionId, {
-				schema: { type: 'object', properties: buildMutableConfigSchema(config) },
-				values: config,
-			});
-		}
-		this._onDidChangeSessionConfig.fire(sessionId);
-	}
+	// -- Lazy session-state subscription seeding -----------------------------
 
 	/**
 	 * Lazily acquire a session-state subscription for `sessionId` so that
@@ -1068,6 +877,10 @@ export class LocalAgentHostSessionsProvider extends Disposable implements IAgent
 		if (this._sessionStateSubscriptions.has(sessionId)) {
 			return;
 		}
+		const connection = this.connection;
+		if (!connection) {
+			return;
+		}
 		const rawId = this._rawIdFromChatId(sessionId);
 		if (!rawId) {
 			return;
@@ -1077,13 +890,12 @@ export class LocalAgentHostSessionsProvider extends Disposable implements IAgent
 			return;
 		}
 		const sessionUri = AgentSession.uri(cached.agentProvider, rawId);
-		const ref = this._agentHostService.getSubscription(StateComponents.Session, sessionUri);
+		const ref = connection.getSubscription(StateComponents.Session, sessionUri);
 		const store = new DisposableStore();
 		store.add(ref);
 		store.add(ref.object.onDidChange(state => this._seedRunningConfigFromState(sessionId, state)));
 		this._sessionStateSubscriptions.set(sessionId, store);
 
-		// Seed from the current snapshot if it has already arrived.
 		const value = ref.object.value;
 		if (value && !(value instanceof Error)) {
 			this._seedRunningConfigFromState(sessionId, value);
@@ -1127,38 +939,273 @@ export class LocalAgentHostSessionsProvider extends Disposable implements IAgent
 		this._onDidChangeSessionConfig.fire(sessionId);
 	}
 
-	private _setNewSessionLoading(sessionId: string, loading: boolean): void {
-		if (this._currentNewSession?.sessionId === sessionId) {
-			this._currentNewSessionLoading?.set(loading, undefined);
+	// -- Session cache management --------------------------------------------
+
+	protected _ensureSessionCache(): void {
+		if (this._cacheInitialized) {
+			return;
 		}
+		this._cacheInitialized = true;
+		this._refreshSessions();
 	}
 
-	private _rawIdFromChatId(chatId: string): string | undefined {
-		const prefix = `${this.id}:`;
-		const resourceStr = chatId.startsWith(prefix) ? chatId.substring(prefix.length) : chatId;
-		try {
-			return URI.parse(resourceStr).path.substring(1) || undefined;
-		} catch {
-			return undefined;
+	protected async _refreshSessions(): Promise<void> {
+		const connection = this.connection;
+		if (!connection) {
+			return;
 		}
-	}
-
-	// -- Private: Browse --
-
-	private async _browseForFolder(): Promise<ISessionWorkspace | undefined> {
 		try {
-			const selected = await this._fileDialogService.showOpenDialog({
-				canSelectFiles: false,
-				canSelectFolders: true,
-				canSelectMany: false,
-				title: localize('selectLocalFolder', "Select Folder"),
-			});
-			if (selected?.[0]) {
-				return this.resolveWorkspace(selected[0]);
+			const sessions = await connection.listSessions();
+			const currentKeys = new Set<string>();
+			const added: ISession[] = [];
+			const changed: ISession[] = [];
+
+			for (const meta of sessions) {
+				const rawId = AgentSession.id(meta.session);
+				currentKeys.add(rawId);
+
+				const existing = this._sessionCache.get(rawId);
+				if (existing) {
+					if (existing.update(meta)) {
+						changed.push(existing);
+					}
+				} else {
+					const cached = this.createAdapter(meta);
+					this._sessionCache.set(rawId, cached);
+					added.push(cached);
+				}
+			}
+
+			const removed: ISession[] = [];
+			for (const [key, cached] of this._sessionCache) {
+				if (!currentKeys.has(key)) {
+					this._sessionCache.delete(key);
+					this._runningSessionConfigs.delete(cached.sessionId);
+					removed.push(cached);
+				}
+			}
+
+			if (added.length > 0 || removed.length > 0 || changed.length > 0) {
+				this._onDidChangeSessions.fire({ added, removed, changed });
 			}
 		} catch {
-			// dialog was cancelled or failed
+			// Connection may not be ready yet
 		}
-		return undefined;
 	}
+
+	private async _waitForNewSession(existingKeys: Set<string>): Promise<ISession | undefined> {
+		await this._refreshSessions();
+		for (const [key, cached] of this._sessionCache) {
+			if (!existingKeys.has(key)) {
+				return cached;
+			}
+		}
+
+		const waitDisposables = new DisposableStore();
+		try {
+			const sessionPromise = new Promise<ISession | undefined>((resolve) => {
+				waitDisposables.add(this._onDidChangeSessions.event(e => {
+					const newSession = e.added.find(s => {
+						const rawId = s.resource.path.substring(1);
+						return !existingKeys.has(rawId);
+					});
+					if (newSession) {
+						resolve(newSession);
+					}
+				}));
+				waitDisposables.add(this.onConnectionLost(() => resolve(undefined)));
+			});
+			return await raceTimeout(sessionPromise, 30_000);
+		} finally {
+			waitDisposables.dispose();
+		}
+	}
+
+	// -- AHP notification / action handlers ----------------------------------
+
+	/**
+	 * Wire AHP notification and action listeners on the given connection.
+	 * Subclasses call this from their constructor (local) or `setConnection`
+	 * (remote), passing a store that bounds the listeners' lifetime.
+	 */
+	protected _attachConnectionListeners(connection: IAgentConnection, store: DisposableStore): void {
+		store.add(connection.onDidNotification(n => {
+			if (n.type === NotificationType.SessionAdded) {
+				this._handleSessionAdded(n.summary);
+			} else if (n.type === NotificationType.SessionRemoved) {
+				this._handleSessionRemoved(n.session);
+			} else if (n.type === NotificationType.SessionSummaryChanged) {
+				this._handleSessionSummaryChanged(n.session, n.changes);
+			}
+		}));
+
+		store.add(connection.onDidAction(e => {
+			if (e.action.type === ActionType.SessionTurnComplete && isSessionAction(e.action)) {
+				this._refreshSessions();
+			} else if (e.action.type === ActionType.SessionTitleChanged && isSessionAction(e.action)) {
+				this._handleTitleChanged(e.action.session, e.action.title);
+			} else if (e.action.type === ActionType.SessionModelChanged && isSessionAction(e.action)) {
+				this._handleModelChanged(e.action.session, e.action.model);
+			} else if (e.action.type === ActionType.SessionIsReadChanged && isSessionAction(e.action)) {
+				this._handleIsReadChanged(e.action.session, e.action.isRead);
+			} else if (e.action.type === ActionType.SessionIsDoneChanged && isSessionAction(e.action)) {
+				this._handleIsDoneChanged(e.action.session, e.action.isDone);
+			} else if (e.action.type === ActionType.SessionConfigChanged && isSessionAction(e.action)) {
+				this._handleConfigChanged(e.action.session, e.action.config);
+			} else if (e.action.type === ActionType.SessionDiffsChanged && isSessionAction(e.action)) {
+				this._handleDiffsChanged(e.action.session, e.action.diffs);
+			}
+		}));
+	}
+
+	private _handleSessionAdded(summary: ISessionSummary): void {
+		const sessionUri = URI.parse(summary.resource);
+		const rawId = AgentSession.id(sessionUri);
+		if (this._sessionCache.has(rawId)) {
+			return;
+		}
+
+		const workingDir = typeof summary.workingDirectory === 'string'
+			? this.mapWorkingDirectoryUri(URI.parse(summary.workingDirectory))
+			: undefined;
+		const meta: IAgentSessionMetadata = {
+			session: sessionUri,
+			startTime: summary.createdAt,
+			modifiedTime: summary.modifiedAt,
+			summary: summary.title,
+			...(summary.project ? { project: { uri: this.mapProjectUri(URI.parse(summary.project.uri)), displayName: summary.project.displayName } } : {}),
+			model: summary.model,
+			workingDirectory: workingDir,
+			isRead: summary.isRead,
+			isDone: summary.isDone,
+		};
+		const cached = this.createAdapter(meta);
+		this._sessionCache.set(rawId, cached);
+		this._onDidChangeSessions.fire({ added: [cached], removed: [], changed: [] });
+	}
+
+	private _handleSessionRemoved(session: URI | string): void {
+		const rawId = AgentSession.id(session);
+		const cached = this._sessionCache.get(rawId);
+		if (cached) {
+			this._sessionCache.delete(rawId);
+			this._runningSessionConfigs.delete(cached.sessionId);
+			this._sessionStateSubscriptions.deleteAndDispose(cached.sessionId);
+			this._onDidChangeSessions.fire({ added: [], removed: [cached], changed: [] });
+		}
+	}
+
+	private _handleTitleChanged(session: string, title: string): void {
+		const rawId = AgentSession.id(session);
+		const cached = this._sessionCache.get(rawId);
+		if (cached) {
+			cached.title.set(title, undefined);
+			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [cached] });
+		}
+	}
+
+	private _handleModelChanged(session: string, model: IModelSelection): void {
+		const rawId = AgentSession.id(session);
+		const cached = this._sessionCache.get(rawId);
+		if (cached) {
+			cached.modelSelection = model;
+		}
+		const modelId = cached ? `${cached.resource.scheme}:${model.id}` : undefined;
+		if (cached && cached.modelId.get() !== modelId) {
+			cached.modelId.set(modelId, undefined);
+			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [cached] });
+		}
+	}
+
+	private _handleIsReadChanged(session: string, isRead: boolean): void {
+		const rawId = AgentSession.id(session);
+		const cached = this._sessionCache.get(rawId);
+		if (cached) {
+			cached.isRead.set(isRead, undefined);
+			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [cached] });
+		}
+	}
+
+	private _handleIsDoneChanged(session: string, isDone: boolean): void {
+		const rawId = AgentSession.id(session);
+		const cached = this._sessionCache.get(rawId);
+		if (cached) {
+			cached.isArchived.set(isDone, undefined);
+			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [cached] });
+		}
+	}
+
+	private _handleDiffsChanged(session: string, diffs: IFileEdit[]): void {
+		const rawId = AgentSession.id(session);
+		const cached = this._sessionCache.get(rawId);
+		if (cached) {
+			cached.changes.set(diffsToChanges(diffs, this._diffUriMapper()), undefined);
+			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [cached] });
+		}
+	}
+
+	private _handleSessionSummaryChanged(session: string, changes: Partial<ISessionSummary>): void {
+		const rawId = AgentSession.id(session);
+		const cached = this._sessionCache.get(rawId);
+		if (!cached) {
+			return;
+		}
+
+		let didChange = false;
+
+		if (changes.status !== undefined) {
+			const uiStatus = mapProtocolStatus(changes.status);
+			if (uiStatus !== cached.status.get()) {
+				cached.status.set(uiStatus, undefined);
+				didChange = true;
+			}
+		}
+
+		if (changes.title !== undefined && changes.title !== cached.title.get()) {
+			cached.title.set(changes.title, undefined);
+			didChange = true;
+		}
+
+		if (changes.diffs !== undefined) {
+			const mapUri = this._diffUriMapper();
+			if (!diffsEqual(cached.changes.get(), changes.diffs, mapUri)) {
+				cached.changes.set(diffsToChanges(changes.diffs, mapUri), undefined);
+				didChange = true;
+			}
+		}
+
+		if (didChange) {
+			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [cached] });
+		}
+	}
+
+	private _handleConfigChanged(session: string, config: Record<string, string>): void {
+		const rawId = AgentSession.id(session);
+		const cached = this._sessionCache.get(rawId);
+		if (!cached) {
+			return;
+		}
+		const sessionId = cached.sessionId;
+		const existing = this._runningSessionConfigs.get(sessionId);
+		if (existing) {
+			this._runningSessionConfigs.set(sessionId, {
+				...existing,
+				values: { ...existing.values, ...config },
+			});
+		} else {
+			// Session was restored (e.g. after reload) — create a minimal
+			// config entry from the changed values so the picker can render.
+			this._runningSessionConfigs.set(sessionId, {
+				schema: { type: 'object', properties: buildMutableConfigSchema(config) },
+				values: config,
+			});
+		}
+		this._onDidChangeSessionConfig.fire(sessionId);
+	}
+
+	/**
+	 * Optional URI mapper used when applying diff changes. Subclasses
+	 * override to translate remote diff URIs into agent-host URIs.
+	 */
+	protected _diffUriMapper(): ((uri: URI) => URI) | undefined { return undefined; }
 }
diff --git a/src/vs/sessions/contrib/localAgentHost/browser/localAgentHost.contribution.ts b/src/vs/sessions/contrib/agentHost/browser/localAgentHost.contribution.ts
similarity index 100%
rename from src/vs/sessions/contrib/localAgentHost/browser/localAgentHost.contribution.ts
rename to src/vs/sessions/contrib/agentHost/browser/localAgentHost.contribution.ts
diff --git a/src/vs/sessions/contrib/agentHost/browser/localAgentHostSessionsProvider.ts b/src/vs/sessions/contrib/agentHost/browser/localAgentHostSessionsProvider.ts
new file mode 100644
index 00000000000..b1bbd469e9f
--- /dev/null
+++ b/src/vs/sessions/contrib/agentHost/browser/localAgentHostSessionsProvider.ts
@@ -0,0 +1,154 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import { Codicon } from '../../../../base/common/codicons.js';
+import { MarkdownString } from '../../../../base/common/htmlContent.js';
+import { autorun, IObservable } from '../../../../base/common/observable.js';
+import { basename } from '../../../../base/common/resources.js';
+import { ThemeIcon } from '../../../../base/common/themables.js';
+import { URI } from '../../../../base/common/uri.js';
+import { localize } from '../../../../nls.js';
+import { IAgentConnection, IAgentHostService, type IAgentSessionMetadata } from '../../../../platform/agentHost/common/agentService.js';
+import { IFileDialogService } from '../../../../platform/dialogs/common/dialogs.js';
+import { IChatWidgetService } from '../../../../workbench/contrib/chat/browser/chat.js';
+import { IChatService } from '../../../../workbench/contrib/chat/common/chatService/chatService.js';
+import { IChatSessionsService } from '../../../../workbench/contrib/chat/common/chatSessionsService.js';
+import { ILanguageModelsService } from '../../../../workbench/contrib/chat/common/languageModels.js';
+import { BaseAgentHostSessionsProvider } from './baseAgentHostSessionsProvider.js';
+import { buildAgentHostSessionWorkspace } from '../../../common/agentHostSessionWorkspace.js';
+import { ISessionWorkspace, ISessionWorkspaceBrowseAction } from '../../../services/sessions/common/session.js';
+
+const LOCAL_PROVIDER_ID = 'local-agent-host';
+const LOCAL_RESOURCE_SCHEME_PREFIX = 'agent-host-';
+
+/**
+ * Local-window sessions provider backed by the in-process
+ * {@link IAgentHostService}. A thin subclass of
+ * {@link BaseAgentHostSessionsProvider} that supplies the local-only
+ * variation: a built-in connection that is always present, session-type
+ * synchronization from the local agent host's `rootState`, and a local
+ * file-picker browse action.
+ */
+export class LocalAgentHostSessionsProvider extends BaseAgentHostSessionsProvider {
+
+	readonly id = LOCAL_PROVIDER_ID;
+	readonly label: string;
+	readonly icon: ThemeIcon = Codicon.vm;
+	readonly browseActions: readonly ISessionWorkspaceBrowseAction[];
+
+	private readonly _localLabel = localize('localAgentHostSessionTypeLocation', "Local");
+	private readonly _localDescription = new MarkdownString(this._localLabel);
+
+	constructor(
+		@IAgentHostService private readonly _agentHostService: IAgentHostService,
+		@IFileDialogService private readonly _fileDialogService: IFileDialogService,
+		@IChatSessionsService chatSessionsService: IChatSessionsService,
+		@IChatService chatService: IChatService,
+		@IChatWidgetService chatWidgetService: IChatWidgetService,
+		@ILanguageModelsService languageModelsService: ILanguageModelsService,
+	) {
+		super(chatSessionsService, chatService, chatWidgetService, languageModelsService);
+
+		this.label = localize('localAgentHostLabel', "Local Agent Host");
+
+		this.browseActions = [{
+			label: localize('folders', "Folders"),
+			icon: Codicon.folderOpened,
+			providerId: this.id,
+			run: () => this._browseForFolder(),
+		}];
+
+		this._attachConnectionListeners(this._agentHostService, this._store);
+
+		const rootStateValue = this._agentHostService.rootState.value;
+		if (rootStateValue && !(rootStateValue instanceof Error)) {
+			this._syncSessionTypesFromRootState(rootStateValue);
+		}
+		this._register(this._agentHostService.rootState.onDidChange(rootState => {
+			this._syncSessionTypesFromRootState(rootState);
+		}));
+
+		// Eagerly populate the session cache once authentication has settled.
+		// Without this, the sidebar would only call `getSessions()` after some
+		// other event (e.g. a `notify/sessionAdded` after the user sends a
+		// message) forced a refresh. We wait for `authenticationPending` to
+		// settle because the underlying agent (e.g. CopilotAgent) throws
+		// `AHP_AUTH_REQUIRED` from `listSessions()` until its auth token is
+		// resolved. The `authenticationPending` observable is sticky (once
+		// it goes false it stays false), so this autorun fires
+		// `_refreshSessions()` at most once for the eager-load case.
+		this._register(autorun(reader => {
+			if (this._agentHostService.authenticationPending.read(reader)) {
+				return;
+			}
+			this._cacheInitialized = true;
+			this._refreshSessions();
+		}));
+	}
+
+	// -- BaseAgentHostSessionsProvider hooks ---------------------------------
+
+	protected get connection(): IAgentConnection { return this._agentHostService; }
+
+	protected get authenticationPending(): IObservable<boolean> { return this._agentHostService.authenticationPending; }
+
+	/**
+	 * Local resource scheme: `agent-host-${provider}`. Must match the type
+	 * string registered by AgentHostContribution. Distinct from the logical
+	 * {@link ISession.sessionType}, which is the agent provider name itself
+	 * (e.g. `copilotcli`) so the same agent shares one session type across
+	 * local and remote hosts.
+	 */
+	protected resourceSchemeForProvider(provider: string): string {
+		return `${LOCAL_RESOURCE_SCHEME_PREFIX}${provider}`;
+	}
+
+	protected _adapterOptions() {
+		return {
+			description: this._localDescription,
+			buildWorkspace: (project: IAgentSessionMetadata['project'], workingDirectory: URI | undefined) =>
+				LocalAgentHostSessionsProvider.buildWorkspace(project, workingDirectory),
+		};
+	}
+
+	protected _formatSessionTypeLabel(agentLabel: string): string {
+		return localize('localAgentHostSessionType', "{0} [{1}]", agentLabel, this._localLabel);
+	}
+
+	// -- Workspaces ----------------------------------------------------------
+
+	static buildWorkspace(project: IAgentSessionMetadata['project'], workingDirectory: URI | undefined): ISessionWorkspace | undefined {
+		return buildAgentHostSessionWorkspace(project, workingDirectory, { fallbackIcon: Codicon.folder, requiresWorkspaceTrust: true });
+	}
+
+	resolveWorkspace(repositoryUri: URI): ISessionWorkspace {
+		const folderName = basename(repositoryUri) || repositoryUri.path;
+		return {
+			label: folderName,
+			icon: Codicon.folder,
+			repositories: [{ uri: repositoryUri, workingDirectory: undefined, detail: undefined, baseBranchName: undefined, baseBranchProtected: undefined }],
+			requiresWorkspaceTrust: true,
+		};
+	}
+
+	// -- Browse --------------------------------------------------------------
+
+	private async _browseForFolder(): Promise<ISessionWorkspace | undefined> {
+		try {
+			const selected = await this._fileDialogService.showOpenDialog({
+				canSelectFiles: false,
+				canSelectFolders: true,
+				canSelectMany: false,
+				title: localize('selectLocalFolder', "Select Folder"),
+			});
+			if (selected?.[0]) {
+				return this.resolveWorkspace(selected[0]);
+			}
+		} catch {
+			// dialog was cancelled or failed
+		}
+		return undefined;
+	}
+}
diff --git a/src/vs/sessions/contrib/localAgentHost/test/browser/localAgentHostSessionsProvider.test.ts b/src/vs/sessions/contrib/agentHost/test/browser/localAgentHostSessionsProvider.test.ts
similarity index 87%
rename from src/vs/sessions/contrib/localAgentHost/test/browser/localAgentHostSessionsProvider.test.ts
rename to src/vs/sessions/contrib/agentHost/test/browser/localAgentHostSessionsProvider.test.ts
index 731a2a32e10..0aac0143df7 100644
--- a/src/vs/sessions/contrib/localAgentHost/test/browser/localAgentHostSessionsProvider.test.ts
+++ b/src/vs/sessions/contrib/agentHost/test/browser/localAgentHostSessionsProvider.test.ts
@@ -40,7 +40,7 @@ class MockAgentHostService extends mock<IAgentHostService>() {
 	private readonly _onDidNotification = new Emitter<INotification>();
 	override readonly onDidNotification = this._onDidNotification.event;
 	private readonly _onDidRootStateChange = new Emitter<IRootState>();
-	private _rootStateValue: IRootState | Error | undefined = { agents: [{ provider: 'copilot', displayName: 'Copilot', description: '', models: [] } as IAgentInfo] };
+	private _rootStateValue: IRootState | Error | undefined = { agents: [{ provider: 'copilotcli', displayName: 'Copilot', description: '', models: [] } as IAgentInfo] };
 	override readonly rootState: IAgentSubscription<IRootState>;
 
 	override readonly clientId = 'test-local-client';
@@ -178,7 +178,7 @@ class MockAgentHostService extends mock<IAgentHostService>() {
 
 function createSession(id: string, opts?: { provider?: string; summary?: string; model?: string; project?: { uri: URI; displayName: string }; workingDirectory?: URI; startTime?: number; modifiedTime?: number }): IAgentSessionMetadata {
 	return {
-		session: AgentSession.uri(opts?.provider ?? 'copilot', id),
+		session: AgentSession.uri(opts?.provider ?? 'copilotcli', id),
 		startTime: opts?.startTime ?? 1000,
 		modifiedTime: opts?.modifiedTime ?? 2000,
 		summary: opts?.summary,
@@ -189,7 +189,7 @@ function createSession(id: string, opts?: { provider?: string; summary?: string;
 }
 
 function createProvider(disposables: DisposableStore, agentHostService: MockAgentHostService, contributions = [
-	{ type: 'agent-host-copilot', name: 'copilot', displayName: 'Copilot', description: 'test', icon: undefined },
+	{ type: 'agent-host-copilotcli', name: 'copilot', displayName: 'Copilot', description: 'test', icon: undefined },
 ], options?: { sendRequest?: (resource: URI, message: string, options?: IChatSendRequestOptions) => Promise<ChatSendResult>; openSession?: boolean }): LocalAgentHostSessionsProvider {
 	const instantiationService = disposables.add(new TestInstantiationService());
 
@@ -230,7 +230,7 @@ async function waitForSessionConfig(provider: LocalAgentHostSessionsProvider, se
 }
 
 function fireSessionAdded(agentHost: MockAgentHostService, rawId: string, opts?: { provider?: string; title?: string; model?: string; modelConfig?: Record<string, string>; project?: { uri: string; displayName: string }; workingDirectory?: string }): void {
-	const provider = opts?.provider ?? 'copilot';
+	const provider = opts?.provider ?? 'copilotcli';
 	const sessionUri = AgentSession.uri(provider, rawId);
 	agentHost.fireNotification({
 		type: NotificationType.SessionAdded,
@@ -248,7 +248,7 @@ function fireSessionAdded(agentHost: MockAgentHostService, rawId: string, opts?:
 	});
 }
 
-function fireSessionRemoved(agentHost: MockAgentHostService, rawId: string, provider = 'copilot'): void {
+function fireSessionRemoved(agentHost: MockAgentHostService, rawId: string, provider = 'copilotcli'): void {
 	const sessionUri = AgentSession.uri(provider, rawId);
 	agentHost.fireNotification({
 		type: NotificationType.SessionRemoved,
@@ -279,72 +279,53 @@ suite('LocalAgentHostSessionsProvider', () => {
 		assert.strictEqual(provider.id, 'local-agent-host');
 		assert.ok(provider.label.length > 0);
 		assert.strictEqual(provider.sessionTypes.length, 1);
-		assert.strictEqual(provider.sessionTypes[0].id, 'agent-host-copilot');
+		// The logical sessionType id is the agent provider name itself, so
+		// the same agent (e.g. `copilotcli`) shares one session type across
+		// local and remote hosts and the standalone Copilot CLI provider.
+		assert.strictEqual(provider.sessionTypes[0].id, 'copilotcli');
 		assert.strictEqual(provider.sessionTypes[0].label, 'Copilot [Local]');
 	});
 
 	test('session types update when the local host advertises additional agents', () => {
 		const provider = createProvider(disposables, agentHost);
 		assert.deepStrictEqual(provider.sessionTypes.map(t => ({ id: t.id, label: t.label })), [
-			{ id: 'agent-host-copilot', label: 'Copilot [Local]' },
+			{ id: 'copilotcli', label: 'Copilot [Local]' },
 		]);
 
 		let changes = 0;
 		disposables.add(provider.onDidChangeSessionTypes!(() => changes++));
 
 		agentHost.setAgents([
-			{ provider: 'copilot', displayName: 'Copilot', description: '', models: [] } as IAgentInfo,
+			{ provider: 'copilotcli', displayName: 'Copilot', description: '', models: [] } as IAgentInfo,
 			{ provider: 'openai', displayName: 'OpenAI', description: '', models: [] } as IAgentInfo,
 		]);
 
 		assert.strictEqual(changes, 1);
+		// The logical sessionType id is the agent provider name itself.
 		assert.deepStrictEqual(provider.sessionTypes.map(t => ({ id: t.id, label: t.label })), [
-			{ id: 'agent-host-copilot', label: 'Copilot [Local]' },
-			{ id: 'agent-host-openai', label: 'OpenAI [Local]' },
+			{ id: 'copilotcli', label: 'Copilot [Local]' },
+			{ id: 'openai', label: 'OpenAI [Local]' },
 		]);
 	});
 
-	test('falls back to registered agent-host contributions before rootState is hydrated', () => {
+	test('reports no session types before rootState hydrates', () => {
 		agentHost.clearRootState();
-		const provider = createProvider(disposables, agentHost, [
-			{ type: 'agent-host-openai', name: 'openai', displayName: 'OpenAI', description: 'test', icon: undefined },
-		]);
-
-		assert.deepStrictEqual(provider.sessionTypes.map(t => ({ id: t.id, label: t.label })), [
-			{ id: 'agent-host-openai', label: 'OpenAI [Local]' },
-		]);
-	});
-
-	test('does not use contribution fallback when rootState advertises no agents', () => {
-		agentHost.setAgents([]);
-		const provider = createProvider(disposables, agentHost, [
-			{ type: 'agent-host-openai', name: 'openai', displayName: 'OpenAI', description: 'test', icon: undefined },
-		]);
+		const provider = createProvider(disposables, agentHost);
 
 		assert.deepStrictEqual(provider.sessionTypes, []);
 	});
 
-	test('fires session type change when rootState hydrates from fallback to no agents', () => {
-		agentHost.clearRootState();
-		const provider = createProvider(disposables, agentHost, [
-			{ type: 'agent-host-openai', name: 'openai', displayName: 'OpenAI', description: 'test', icon: undefined },
-		]);
-		assert.strictEqual(provider.sessionTypes.length, 1);
-
-		let changes = 0;
-		disposables.add(provider.onDidChangeSessionTypes!(() => changes++));
+	test('reports no session types when rootState advertises no agents', () => {
 		agentHost.setAgents([]);
+		const provider = createProvider(disposables, agentHost);
 
-		assert.strictEqual(changes, 1);
 		assert.deepStrictEqual(provider.sessionTypes, []);
 	});
 
-	test('does not use contribution fallback after rootState resolves to an error', () => {
+	test('reports no session types after rootState resolves to an error', () => {
 		agentHost.clearRootState();
-		const provider = createProvider(disposables, agentHost, [
-			{ type: 'agent-host-openai', name: 'openai', displayName: 'OpenAI', description: 'test', icon: undefined },
-		]);
-		assert.strictEqual(provider.sessionTypes.length, 1);
+		const provider = createProvider(disposables, agentHost);
+		assert.deepStrictEqual(provider.sessionTypes, []);
 
 		agentHost.setRootStateError();
 
@@ -439,6 +420,65 @@ suite('LocalAgentHostSessionsProvider', () => {
 		assert.strictEqual(sessions.length, 2);
 	}));
 
+	test('eagerly populates and fires onDidChangeSessions after construction without a getSessions() call', () => runWithFakedTimers<void>({ useFakeTimers: true }, async () => {
+		agentHost.addSession(createSession('eager-1', { summary: 'First' }));
+		agentHost.addSession(createSession('eager-2', { summary: 'Second' }));
+
+		const provider = createProvider(disposables, agentHost);
+		const changes: ISessionChangeEvent[] = [];
+		disposables.add(provider.onDidChangeSessions(e => changes.push(e)));
+
+		// Wait for the eager listSessions() triggered by the constructor.
+		await timeout(0);
+
+		assert.deepStrictEqual({
+			eventCount: changes.length,
+			added: changes[0]?.added.map(s => s.title.get()).sort(),
+			removed: changes[0]?.removed.length,
+			changed: changes[0]?.changed.length,
+			cachedTitles: provider.getSessions().map(s => s.title.get()).sort(),
+		}, {
+			eventCount: 1,
+			added: ['First', 'Second'],
+			removed: 0,
+			changed: 0,
+			cachedTitles: ['First', 'Second'],
+		});
+	}));
+
+	test('defers eager session list fetch until authentication settles', () => runWithFakedTimers<void>({ useFakeTimers: true }, async () => {
+		// Simulate fresh launch: auth is pending and the agent host has no
+		// sessions yet (returns []), then auth completes and the real session
+		// list becomes available.
+		agentHost.setAuthenticationPending(true);
+
+		const provider = createProvider(disposables, agentHost);
+		const changes: ISessionChangeEvent[] = [];
+		disposables.add(provider.onDidChangeSessions(e => changes.push(e)));
+
+		await timeout(0);
+
+		assert.strictEqual(changes.length, 0, 'no event should fire while authentication is pending');
+		assert.strictEqual(provider.getSessions().length, 0, 'no sessions should be cached while authentication is pending');
+
+		// Auth completes; sessions become available on the agent host.
+		agentHost.addSession(createSession('after-auth-1', { summary: 'First' }));
+		agentHost.addSession(createSession('after-auth-2', { summary: 'Second' }));
+		agentHost.setAuthenticationPending(false);
+
+		await timeout(0);
+
+		assert.deepStrictEqual({
+			eventCount: changes.length,
+			added: changes[0]?.added.map(s => s.title.get()).sort(),
+			cachedTitles: provider.getSessions().map(s => s.title.get()).sort(),
+		}, {
+			eventCount: 1,
+			added: ['First', 'Second'],
+			cachedTitles: ['First', 'Second'],
+		});
+	}));
+
 	test('uses project metadata as workspace group source', () => runWithFakedTimers<void>({ useFakeTimers: true }, async () => {
 		const projectUri = URI.file('/home/user/vscode');
 		const workingDirectory = URI.file('/tmp/copilot-worktrees/vscode-feature');
@@ -472,7 +512,7 @@ suite('LocalAgentHostSessionsProvider', () => {
 		await timeout(0);
 
 		const session = provider.getSessions().find(s => s.title.get() === 'Model Session');
-		assert.strictEqual(session?.modelId.get(), 'agent-host-copilot:claude-sonnet-4.5');
+		assert.strictEqual(session?.modelId.get(), 'agent-host-copilotcli:claude-sonnet-4.5');
 	}));
 
 	test('uses model metadata from session added notification', () => {
@@ -480,7 +520,7 @@ suite('LocalAgentHostSessionsProvider', () => {
 		fireSessionAdded(agentHost, 'notif-model', { title: 'Notif Model Session', model: 'gpt-5' });
 
 		const session = provider.getSessions().find(s => s.title.get() === 'Notif Model Session');
-		assert.strictEqual(session?.modelId.get(), 'agent-host-copilot:gpt-5');
+		assert.strictEqual(session?.modelId.get(), 'agent-host-copilotcli:gpt-5');
 	});
 
 	test('setModel updates existing session model and dispatches raw model', () => {
@@ -490,12 +530,12 @@ suite('LocalAgentHostSessionsProvider', () => {
 		const session = provider.getSessions().find(s => s.title.get() === 'Set Model Session');
 		assert.ok(session);
 
-		provider.setModel(session!.sessionId, 'agent-host-copilot:new-model');
+		provider.setModel(session!.sessionId, 'agent-host-copilotcli:new-model');
 
-		assert.strictEqual(session!.modelId.get(), 'agent-host-copilot:new-model');
+		assert.strictEqual(session!.modelId.get(), 'agent-host-copilotcli:new-model');
 		assert.deepStrictEqual(agentHost.dispatchedActions.at(-1)?.action, {
 			type: ActionType.SessionModelChanged,
-			session: AgentSession.uri('copilot', 'set-model').toString(),
+			session: AgentSession.uri('copilotcli', 'set-model').toString(),
 			model: { id: 'new-model' },
 		});
 	});
@@ -507,11 +547,11 @@ suite('LocalAgentHostSessionsProvider', () => {
 		const session = provider.getSessions().find(s => s.title.get() === 'Set Model Config Session');
 		assert.ok(session);
 
-		provider.setModel(session!.sessionId, 'agent-host-copilot:configured-model');
+		provider.setModel(session!.sessionId, 'agent-host-copilotcli:configured-model');
 
 		assert.deepStrictEqual(agentHost.dispatchedActions.at(-1)?.action, {
 			type: ActionType.SessionModelChanged,
-			session: AgentSession.uri('copilot', 'set-model-config').toString(),
+			session: AgentSession.uri('copilotcli', 'set-model-config').toString(),
 			model: { id: 'configured-model', config: { thinkingLevel: 'high' } },
 		});
 	});
@@ -571,7 +611,7 @@ suite('LocalAgentHostSessionsProvider', () => {
 
 		assert.strictEqual(agentHost.disposedSessions.length, 1);
 		const disposedUri = agentHost.disposedSessions[0];
-		assert.strictEqual(AgentSession.provider(disposedUri), 'copilot');
+		assert.strictEqual(AgentSession.provider(disposedUri), 'copilotcli');
 		assert.strictEqual(AgentSession.id(disposedUri), 'del-sess');
 		assert.strictEqual(provider.getSessions().find(s => s.title.get() === 'To Delete'), undefined);
 	});
@@ -593,7 +633,7 @@ suite('LocalAgentHostSessionsProvider', () => {
 		assert.strictEqual(dispatched.action.type, ActionType.SessionTitleChanged);
 		assert.strictEqual((dispatched.action as { title: string }).title, 'New Title');
 		const actionSession = (dispatched.action as { session: string }).session;
-		assert.strictEqual(AgentSession.provider(actionSession), 'copilot');
+		assert.strictEqual(AgentSession.provider(actionSession), 'copilotcli');
 		assert.strictEqual(AgentSession.id(actionSession), 'rename-sess');
 		assert.strictEqual(dispatched.clientId, 'test-local-client');
 	});
@@ -633,7 +673,7 @@ suite('LocalAgentHostSessionsProvider', () => {
 		agentHost.fireAction({
 			action: {
 				type: ActionType.SessionTitleChanged,
-				session: AgentSession.uri('copilot', 'echo-sess').toString(),
+				session: AgentSession.uri('copilotcli', 'echo-sess').toString(),
 				title: 'Server Title',
 			},
 			serverSeq: 1,
@@ -658,14 +698,14 @@ suite('LocalAgentHostSessionsProvider', () => {
 		agentHost.fireAction({
 			action: {
 				type: ActionType.SessionModelChanged,
-				session: AgentSession.uri('copilot', 'model-change').toString(),
+				session: AgentSession.uri('copilotcli', 'model-change').toString(),
 				model: { id: 'new-model' } satisfies IModelSelection,
 			},
 			serverSeq: 1,
 			origin: undefined,
 		} as IActionEnvelope);
 
-		assert.strictEqual(target!.modelId.get(), 'agent-host-copilot:new-model');
+		assert.strictEqual(target!.modelId.get(), 'agent-host-copilotcli:new-model');
 		assert.strictEqual(changes.length, 1);
 		assert.strictEqual(changes[0].changed.length, 1);
 	});
@@ -688,7 +728,7 @@ suite('LocalAgentHostSessionsProvider', () => {
 		agentHost.fireAction({
 			action: {
 				type: 'session/turnComplete',
-				session: AgentSession.uri('copilot', 'turn-sess').toString(),
+				session: AgentSession.uri('copilotcli', 'turn-sess').toString(),
 			},
 			serverSeq: 1,
 			origin: undefined,
@@ -846,12 +886,12 @@ suite('LocalAgentHostSessionsProvider', () => {
 			values: { autoApprove: 'default', isolation: 'worktree' },
 		};
 		const fakeState: ISessionState = {
-			summary: { resource: AgentSession.uri('copilot', 'seed-1').toString(), provider: 'copilot', title: 'Seeded Session', status: ProtocolSessionStatus.Idle, createdAt: 0, modifiedAt: 0 },
+			summary: { resource: AgentSession.uri('copilotcli', 'seed-1').toString(), provider: 'copilotcli', title: 'Seeded Session', status: ProtocolSessionStatus.Idle, createdAt: 0, modifiedAt: 0 },
 			lifecycle: SessionLifecycle.Ready,
 			turns: [],
 			config,
 		};
-		agentHost.setSessionState('seed-1', 'copilot', fakeState);
+		agentHost.setSessionState('seed-1', 'copilotcli', fakeState);
 
 		await waitForSessionConfig(provider, session!.sessionId, c => c?.values.autoApprove === 'default');
 
@@ -875,7 +915,7 @@ suite('LocalAgentHostSessionsProvider', () => {
 
 		// Trigger lazy subscription
 		provider.getSessionConfig(session!.sessionId);
-		const sessionUriStr = AgentSession.uri('copilot', 'seed-2').toString();
+		const sessionUriStr = AgentSession.uri('copilotcli', 'seed-2').toString();
 		assert.strictEqual(agentHost.sessionSubscribeCounts.get(sessionUriStr), 1);
 		assert.strictEqual(agentHost.sessionUnsubscribeCounts.get(sessionUriStr) ?? 0, 0);
 
diff --git a/src/vs/sessions/contrib/changes/browser/changesView.ts b/src/vs/sessions/contrib/changes/browser/changesView.ts
index d22d3baf5a8..03c4757eefb 100644
--- a/src/vs/sessions/contrib/changes/browser/changesView.ts
+++ b/src/vs/sessions/contrib/changes/browser/changesView.ts
@@ -74,6 +74,7 @@ import { ResourceTree } from '../../../../base/common/resourceTree.js';
 import { structuralEquals } from '../../../../base/common/equals.js';
 import { compareFileNames, comparePaths } from '../../../../base/common/comparers.js';
 import { ICommandService } from '../../../../platform/commands/common/commands.js';
+import { IChatSessionFileChange, IChatSessionFileChange2, isIChatSessionFileChange2 } from '../../../../workbench/contrib/chat/common/chatSessionsService.js';
 
 const $ = dom.$;
 
@@ -942,7 +943,7 @@ export class ChangesViewPane extends ViewPane {
 		));
 	}
 
-	async openChanges(): Promise<void> {
+	async openChanges(resource?: URI): Promise<void> {
 		const items = this.viewModel.activeSessionChangesObs.get();
 		if (items.length === 0) {
 			return;
@@ -951,12 +952,13 @@ export class ChangesViewPane extends ViewPane {
 		const modalEditorMode = this.configurationService.getValue<string>('workbench.editor.useModal');
 		if (modalEditorMode === 'all') {
 			const changes = toIChangesFileItem(items);
-			await this._openFileItem(changes[0], changes, false, false, false, changes.length > 1);
+			const changeToOpen = resource ? changes.find(c => isEqual(c.uri, resource)) : undefined;
+			await this._openFileItem(changeToOpen ?? changes[0], changes, false, false, false, changes.length > 1);
 			return;
 		}
 
 		// Open multi-file diff editor
-		await this._openMultiFileDiffEditor();
+		await this._openMultiFileDiffEditor(resource);
 	}
 
 	private async _openFileItem(item: IChangesFileItem, items: IChangesFileItem[], sideBySide: boolean, preserveFocus: boolean, pinned: boolean, includeSidebar: boolean): Promise<void> {
@@ -1013,14 +1015,30 @@ export class ChangesViewPane extends ViewPane {
 			return;
 		}
 
+		const compare = (aChange: IChatSessionFileChange | IChatSessionFileChange2, bChange: IChatSessionFileChange | IChatSessionFileChange2): number => {
+			const aPath = isIChatSessionFileChange2(aChange) ? aChange.uri.fsPath : aChange.modifiedUri.fsPath;
+			const bPath = isIChatSessionFileChange2(bChange) ? bChange.uri.fsPath : bChange.modifiedUri.fsPath;
+			return comparePaths(aPath, bPath);
+		};
+
+		// Sort the changes
+		const resources = changes.toSorted(compare).map(d => ({
+			originalUri: d.originalUri,
+			modifiedUri: d.modifiedUri
+		}));
+
+		// Ensure the reveal resource is part of the changes
+		reveal = reveal
+			? resources.some(r => isEqual(r.modifiedUri, reveal))
+				? reveal
+				: undefined
+			: undefined;
+
 		// Open multi-file diff editor
 		await this.commandService.executeCommand('_workbench.openMultiDiffEditor', {
 			multiDiffSourceUri: sessionResource.with({ scheme: sessionResource.scheme + '-session-changes' }),
 			title: localize('sessions.changes.title', 'Session Changes'),
-			resources: changes.map(d => ({
-				originalUri: d.originalUri,
-				modifiedUri: d.modifiedUri
-			})),
+			resources,
 			reveal: reveal
 				? { modifiedUri: reveal }
 				: undefined
diff --git a/src/vs/sessions/contrib/changes/browser/changesViewActions.ts b/src/vs/sessions/contrib/changes/browser/changesViewActions.ts
index b185328525a..d802caaabd1 100644
--- a/src/vs/sessions/contrib/changes/browser/changesViewActions.ts
+++ b/src/vs/sessions/contrib/changes/browser/changesViewActions.ts
@@ -26,8 +26,9 @@ import { ViewContainerLocation } from '../../../../workbench/common/views.js';
 import { ChangesViewPane } from './changesView.js';
 import { SESSIONS_FILES_CONTAINER_ID } from '../../files/browser/files.contribution.js';
 import { SESSIONS_FILES_VIEW_ID } from '../../files/browser/filesView.js';
-import { IAgentWorkbenchLayoutService } from '../../../browser/workbench.js';
-import { EditorMaximizedContext } from '../../../common/contextkeys.js';
+import { URI } from '../../../../base/common/uri.js';
+import { isEqual } from '../../../../base/common/resources.js';
+import { IEditorService } from '../../../../workbench/services/editor/common/editorService.js';
 
 const openChangesViewActionOptions: IAction2Options = {
 	id: 'workbench.action.agentSessions.openChangesView',
@@ -200,58 +201,65 @@ class OpenPullRequestAction extends Action2 {
 
 registerAction2(OpenPullRequestAction);
 
-class MaximizeMainEditorPartAction extends Action2 {
-	static readonly ID = 'workbench.action.agentSessions.maximizeMainEditorPart';
+class OpenFileAction extends Action2 {
+	static readonly ID = 'workbench.action.agentSessions.openFile';
 
 	constructor() {
 		super({
-			id: MaximizeMainEditorPartAction.ID,
-			title: localize2('maximizeMainEditorPart', "Maximize Editor"),
-			icon: Codicon.screenFull,
+			id: OpenFileAction.ID,
+			title: localize2('openFile', "Open File"),
+			icon: Codicon.goToFile,
 			f1: false,
 			menu: {
-				id: MenuId.EditorTitle,
+				id: MenuId.ChatEditingSessionChangeToolbar,
 				group: 'navigation',
-				order: 100001,
-				when: ContextKeyExpr.and(
-					IsSessionsWindowContext,
-					EditorMaximizedContext.negate())
+				order: 1,
+				when: IsSessionsWindowContext,
+				alt: {
+					id: 'workbench.action.agentSessions.openChanges',
+					title: localize2('openChanges', "Open Changes"),
+					icon: Codicon.gitCompare,
+				}
 			}
 		});
 	}
 
-	async run(accessor: ServicesAccessor): Promise<void> {
-		const layoutService = accessor.get(IAgentWorkbenchLayoutService);
-		layoutService.setEditorMaximized(true);
+	async run(accessor: ServicesAccessor, _sessionResource: URI, _ref: string, ...resources: URI[]): Promise<void> {
+		const editorService = accessor.get(IEditorService);
+		await Promise.all(resources.map(resource => editorService.openEditor({ resource })));
 	}
 }
 
-registerAction2(MaximizeMainEditorPartAction);
+registerAction2(OpenFileAction);
 
-class RestoreMainEditorPartAction extends Action2 {
-	static readonly ID = 'workbench.action.agentSessions.restoreMainEditorPart';
+class OpenChangesAction extends Action2 {
+	static readonly ID = 'workbench.action.agentSessions.openChanges';
 
 	constructor() {
 		super({
-			id: RestoreMainEditorPartAction.ID,
-			title: localize2('restoreMainEditorPart', "Restore Editor"),
-			icon: Codicon.screenNormal,
-			f1: false,
-			menu: {
-				id: MenuId.EditorTitle,
-				group: 'navigation',
-				order: 100001,
-				when: ContextKeyExpr.and(
-					IsSessionsWindowContext,
-					EditorMaximizedContext)
-			}
+			id: OpenChangesAction.ID,
+			title: localize2('openChanges', "Open Changes"),
+			icon: Codicon.gitCompare,
+			f1: false
 		});
 	}
 
-	async run(accessor: ServicesAccessor): Promise<void> {
-		const layoutService = accessor.get(IAgentWorkbenchLayoutService);
-		layoutService.setEditorMaximized(false);
+	async run(accessor: ServicesAccessor, _sessionResource: URI, _ref: string, ...resources: URI[]): Promise<void> {
+		const viewsService = accessor.get(IViewsService);
+		const editorService = accessor.get(IEditorService);
+
+		const view = viewsService.getViewWithId<ChangesViewPane>(CHANGES_VIEW_ID);
+		const sessionChanges = view?.viewModel.activeSessionChangesObs.get();
+
+		const changes = sessionChanges?.filter(change =>
+			resources.some(resource => isEqual(change.modifiedUri ?? change.originalUri, resource))
+		) ?? [];
+
+		await Promise.all(changes.map(change => editorService.openEditor({
+			original: { resource: change.originalUri },
+			modified: { resource: change.modifiedUri }
+		})));
 	}
 }
 
-registerAction2(RestoreMainEditorPartAction);
+registerAction2(OpenChangesAction);
diff --git a/src/vs/sessions/contrib/chat/browser/agentHostModelPicker.ts b/src/vs/sessions/contrib/chat/browser/agentHost/agentHostModelPicker.ts
similarity index 81%
rename from src/vs/sessions/contrib/chat/browser/agentHostModelPicker.ts
rename to src/vs/sessions/contrib/chat/browser/agentHost/agentHostModelPicker.ts
index 57785b2cb9c..38c6a51d478 100644
--- a/src/vs/sessions/contrib/chat/browser/agentHostModelPicker.ts
+++ b/src/vs/sessions/contrib/chat/browser/agentHost/agentHostModelPicker.ts
@@ -3,24 +3,24 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import { BaseActionViewItem } from '../../../../base/browser/ui/actionbar/actionViewItems.js';
-import { Disposable, DisposableStore } from '../../../../base/common/lifecycle.js';
-import { autorun, observableValue } from '../../../../base/common/observable.js';
-import * as nls from '../../../../nls.js';
-import { IActionViewItemService } from '../../../../platform/actions/browser/actionViewItemService.js';
-import { Action2, registerAction2 } from '../../../../platform/actions/common/actions.js';
-import { ContextKeyExpr } from '../../../../platform/contextkey/common/contextkey.js';
-import { IInstantiationService } from '../../../../platform/instantiation/common/instantiation.js';
-import { IStorageService, StorageScope, StorageTarget } from '../../../../platform/storage/common/storage.js';
-import { IWorkbenchContribution, registerWorkbenchContribution2, WorkbenchPhase } from '../../../../workbench/common/contributions.js';
-import { type ILanguageModelChatMetadataAndIdentifier, ILanguageModelsService } from '../../../../workbench/contrib/chat/common/languageModels.js';
-import { type IChatInputPickerOptions } from '../../../../workbench/contrib/chat/browser/widget/input/chatInputPickerActionItem.js';
-import { ModelPickerActionItem, type IModelPickerDelegate } from '../../../../workbench/contrib/chat/browser/widget/input/modelPickerActionItem.js';
-import { ActiveSessionProviderIdContext } from '../../../common/contextkeys.js';
-import { type ISession } from '../../../services/sessions/common/session.js';
-import { ISessionsManagementService } from '../../../services/sessions/common/sessionsManagement.js';
-import { ISessionsProvidersService } from '../../../services/sessions/browser/sessionsProvidersService.js';
-import { Menus } from '../../../browser/menus.js';
+import { BaseActionViewItem } from '../../../../../base/browser/ui/actionbar/actionViewItems.js';
+import { Disposable, DisposableStore } from '../../../../../base/common/lifecycle.js';
+import { autorun, observableValue } from '../../../../../base/common/observable.js';
+import * as nls from '../../../../../nls.js';
+import { IActionViewItemService } from '../../../../../platform/actions/browser/actionViewItemService.js';
+import { Action2, registerAction2 } from '../../../../../platform/actions/common/actions.js';
+import { ContextKeyExpr } from '../../../../../platform/contextkey/common/contextkey.js';
+import { IInstantiationService } from '../../../../../platform/instantiation/common/instantiation.js';
+import { IStorageService, StorageScope, StorageTarget } from '../../../../../platform/storage/common/storage.js';
+import { IWorkbenchContribution, registerWorkbenchContribution2, WorkbenchPhase } from '../../../../../workbench/common/contributions.js';
+import { type ILanguageModelChatMetadataAndIdentifier, ILanguageModelsService } from '../../../../../workbench/contrib/chat/common/languageModels.js';
+import { type IChatInputPickerOptions } from '../../../../../workbench/contrib/chat/browser/widget/input/chatInputPickerActionItem.js';
+import { ModelPickerActionItem, type IModelPickerDelegate } from '../../../../../workbench/contrib/chat/browser/widget/input/modelPickerActionItem.js';
+import { ActiveSessionProviderIdContext } from '../../../../common/contextkeys.js';
+import { type ISession } from '../../../../services/sessions/common/session.js';
+import { ISessionsManagementService } from '../../../../services/sessions/common/sessionsManagement.js';
+import { ISessionsProvidersService } from '../../../../services/sessions/browser/sessionsProvidersService.js';
+import { Menus } from '../../../../browser/menus.js';
 
 const IsActiveSessionAgentHost = ContextKeyExpr.or(
 	ContextKeyExpr.equals(ActiveSessionProviderIdContext.key, 'local-agent-host'),
diff --git a/src/vs/sessions/contrib/chat/browser/agentHost/agentHostPermissionPickerActionItem.ts b/src/vs/sessions/contrib/chat/browser/agentHost/agentHostPermissionPickerActionItem.ts
new file mode 100644
index 00000000000..930693cd99d
--- /dev/null
+++ b/src/vs/sessions/contrib/chat/browser/agentHost/agentHostPermissionPickerActionItem.ts
@@ -0,0 +1,82 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import { autorun } from '../../../../../base/common/observable.js';
+import { MenuItemAction } from '../../../../../platform/actions/common/actions.js';
+import { IActionWidgetService } from '../../../../../platform/actionWidget/browser/actionWidget.js';
+import { IConfigurationService } from '../../../../../platform/configuration/common/configuration.js';
+import { IContextKeyService } from '../../../../../platform/contextkey/common/contextkey.js';
+import { IDialogService } from '../../../../../platform/dialogs/common/dialogs.js';
+import { IInstantiationService } from '../../../../../platform/instantiation/common/instantiation.js';
+import { IKeybindingService } from '../../../../../platform/keybinding/common/keybinding.js';
+import { IOpenerService } from '../../../../../platform/opener/common/opener.js';
+import { IStorageService } from '../../../../../platform/storage/common/storage.js';
+import { ITelemetryService } from '../../../../../platform/telemetry/common/telemetry.js';
+import { IChatInputPickerOptions } from '../../../../../workbench/contrib/chat/browser/widget/input/chatInputPickerActionItem.js';
+import { PermissionPickerActionItem } from '../../../../../workbench/contrib/chat/browser/widget/input/permissionPickerActionItem.js';
+import { AgentHostPermissionPickerDelegate } from './agentHostPermissionPickerDelegate.js';
+
+/**
+ * Agent host wrapper around the workbench {@link PermissionPickerActionItem}
+ * for use in the running chat widget's secondary toolbar
+ * (`MenuId.ChatInputSecondary`). Owns its
+ * {@link AgentHostPermissionPickerDelegate} and reactively hides itself when
+ * the active session's `autoApprove` schema doesn't match the well-known
+ * shape.
+ */
+export class AgentHostPermissionPickerActionItem extends PermissionPickerActionItem {
+
+	private readonly _delegate: AgentHostPermissionPickerDelegate;
+
+	constructor(
+		action: MenuItemAction,
+		pickerOptions: IChatInputPickerOptions,
+		@IInstantiationService instantiationService: IInstantiationService,
+		@IActionWidgetService actionWidgetService: IActionWidgetService,
+		@IKeybindingService keybindingService: IKeybindingService,
+		@IContextKeyService contextKeyService: IContextKeyService,
+		@ITelemetryService telemetryService: ITelemetryService,
+		@IConfigurationService configurationService: IConfigurationService,
+		@IDialogService dialogService: IDialogService,
+		@IOpenerService openerService: IOpenerService,
+		@IStorageService storageService: IStorageService,
+	) {
+		const delegate = instantiationService.createInstance(AgentHostPermissionPickerDelegate);
+		super(
+			action,
+			delegate,
+			pickerOptions,
+			actionWidgetService,
+			keybindingService,
+			contextKeyService,
+			telemetryService,
+			configurationService,
+			dialogService,
+			openerService,
+			storageService,
+		);
+		this._delegate = this._register(delegate);
+
+		// The base widget's label is rendered on demand via `refresh()`. Keep it
+		// in sync with the delegate's level observable.
+		this._register(autorun(reader => {
+			delegate.currentPermissionLevel.read(reader);
+			this.refresh();
+		}));
+	}
+
+	override render(container: HTMLElement): void {
+		super.render(container);
+		// The active session can change while this view item is alive (the
+		// `IActionViewItemService` factory only runs once per render), so gate
+		// visibility reactively rather than at construction time.
+		this._register(autorun(reader => {
+			const visible = this._delegate.isApplicable.read(reader);
+			if (this.element) {
+				this.element.style.display = visible ? '' : 'none';
+			}
+		}));
+	}
+}
diff --git a/src/vs/sessions/contrib/chat/browser/agentHost/agentHostPermissionPickerDelegate.ts b/src/vs/sessions/contrib/chat/browser/agentHost/agentHostPermissionPickerDelegate.ts
new file mode 100644
index 00000000000..75d660a448e
--- /dev/null
+++ b/src/vs/sessions/contrib/chat/browser/agentHost/agentHostPermissionPickerDelegate.ts
@@ -0,0 +1,157 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import { Disposable, DisposableMap } from '../../../../../base/common/lifecycle.js';
+import { derived, IObservable, IReader, observableSignal } from '../../../../../base/common/observable.js';
+import { ISessionConfigPropertySchema } from '../../../../../platform/agentHost/common/state/protocol/commands.js';
+import { ChatPermissionLevel, isChatPermissionLevel } from '../../../../../workbench/contrib/chat/common/constants.js';
+import { IPermissionPickerDelegate } from '../../../../contrib/copilotChatSessions/browser/permissionPicker.js';
+import { IAgentHostSessionsProvider, isAgentHostProvider } from '../../../../common/agentHostSessionsProvider.js';
+import { ISessionsProvider } from '../../../../services/sessions/common/sessionsProvider.js';
+import { ISessionsProvidersService } from '../../../../services/sessions/browser/sessionsProvidersService.js';
+import { ISessionsManagementService } from '../../../../services/sessions/common/sessionsManagement.js';
+
+/**
+ * The well-known session-config property name for tool auto-approval. The
+ * Agent Host Protocol's session-config schema is intentionally generic — only
+ * this property *name* (and the enum values below) is a convention shared
+ * across implementations that want to opt into VS Code's unified
+ * permission-picker UI. Agents that don't advertise this exact shape fall
+ * back to the generic per-property picker.
+ */
+export const AUTO_APPROVE_PROPERTY = 'autoApprove';
+
+/**
+ * The set of enum values the unified permission picker understands for the
+ * `autoApprove` property. Mirrors `ChatPermissionLevel` in
+ * `vs/workbench/contrib/chat/common/constants.ts`.
+ *
+ * `autopilot` is optional (an agent may choose not to advertise it).
+ * `default` is required as the baseline level.
+ */
+const KNOWN_AUTO_APPROVE_VALUES: ReadonlySet<string> = new Set(['default', 'autoApprove', 'autopilot']);
+const REQUIRED_AUTO_APPROVE_VALUE = 'default';
+
+/**
+ * Returns `true` when an `autoApprove` session-config property uses the
+ * shape the unified permission picker expects: a string enum that is a
+ * subset of `default | autoApprove | autopilot` and contains at least
+ * `default`.
+ *
+ * Callers use this to decide whether to render the unified
+ * {@link PermissionPicker} (with its built-in warning dialogs, autopilot
+ * gating, and policy enforcement) or fall back to the generic per-property
+ * picker.
+ */
+export function isWellKnownAutoApproveSchema(schema: ISessionConfigPropertySchema): boolean {
+	if (schema.type !== 'string' || !Array.isArray(schema.enum) || schema.enum.length === 0) {
+		return false;
+	}
+	if (!schema.enum.includes(REQUIRED_AUTO_APPROVE_VALUE)) {
+		return false;
+	}
+	return schema.enum.every(value => KNOWN_AUTO_APPROVE_VALUES.has(value));
+}
+
+/**
+ * {@link IPermissionPickerDelegate} backed by the active session's AHP
+ * `autoApprove` config property.
+ *
+ * - `currentPermissionLevel` derives from the active session's
+ *   `provider.getSessionConfig(...).values.autoApprove`, recomputed when the
+ *   active session changes or when any agent-host provider fires
+ *   `onDidChangeSessionConfig`.
+ * - `setPermissionLevel(level)` calls `provider.setSessionConfigValue(sessionId,
+ *   'autoApprove', level)` for the active session's provider.
+ * - `isApplicable` is `true` only when the active session's `autoApprove`
+ *   schema matches the well-known shape, so the picker hides itself for
+ *   non-conforming agents (which fall back to the generic per-property
+ *   picker) and when no agent-host session is active.
+ */
+export class AgentHostPermissionPickerDelegate extends Disposable implements IPermissionPickerDelegate {
+
+	/** Fires every time any agent-host provider's session config changes. */
+	private readonly _configChangedSignal = observableSignal('agentHostPermissionPicker.configChanged');
+	private readonly _providerSubscriptions = this._register(new DisposableMap<string>());
+
+	readonly currentPermissionLevel: IObservable<ChatPermissionLevel>;
+	readonly isApplicable: IObservable<boolean>;
+
+	constructor(
+		@ISessionsManagementService private readonly _sessionsManagementService: ISessionsManagementService,
+		@ISessionsProvidersService private readonly _sessionsProvidersService: ISessionsProvidersService,
+	) {
+		super();
+
+		this._watchProviders(this._sessionsProvidersService.getProviders());
+		this._register(this._sessionsProvidersService.onDidChangeProviders(e => {
+			for (const provider of e.removed) {
+				this._providerSubscriptions.deleteAndDispose(provider.id);
+			}
+			this._watchProviders(e.added);
+			this._configChangedSignal.trigger(undefined);
+		}));
+
+		this.currentPermissionLevel = derived(this, reader => this._readLevel(reader));
+		this.isApplicable = derived(this, reader => this._readIsWellKnown(reader));
+	}
+
+	setPermissionLevel(level: ChatPermissionLevel): void {
+		const session = this._sessionsManagementService.activeSession.get();
+		if (!session) {
+			return;
+		}
+		const provider = this._getProvider(session.providerId);
+		if (!provider) {
+			return;
+		}
+		provider.setSessionConfigValue(session.sessionId, AUTO_APPROVE_PROPERTY, level)
+			.catch(() => { /* best-effort */ });
+	}
+
+	private _readLevel(reader: IReader): ChatPermissionLevel {
+		this._configChangedSignal.read(reader);
+		const session = this._sessionsManagementService.activeSession.read(reader);
+		if (!session) {
+			return ChatPermissionLevel.Default;
+		}
+		const provider = this._getProvider(session.providerId);
+		if (!provider) {
+			return ChatPermissionLevel.Default;
+		}
+		const value = provider.getSessionConfig(session.sessionId)?.values[AUTO_APPROVE_PROPERTY];
+		return isChatPermissionLevel(value) ? value : ChatPermissionLevel.Default;
+	}
+
+	private _readIsWellKnown(reader: IReader): boolean {
+		this._configChangedSignal.read(reader);
+		const session = this._sessionsManagementService.activeSession.read(reader);
+		if (!session) {
+			return false;
+		}
+		const provider = this._getProvider(session.providerId);
+		if (!provider) {
+			return false;
+		}
+		const schema = provider.getSessionConfig(session.sessionId)?.schema.properties[AUTO_APPROVE_PROPERTY];
+		return !!schema && isWellKnownAutoApproveSchema(schema);
+	}
+
+	private _getProvider(providerId: string): IAgentHostSessionsProvider | undefined {
+		const provider = this._sessionsProvidersService.getProvider(providerId);
+		return provider && isAgentHostProvider(provider) ? provider : undefined;
+	}
+
+	private _watchProviders(providers: readonly ISessionsProvider[]): void {
+		for (const provider of providers) {
+			if (!isAgentHostProvider(provider) || this._providerSubscriptions.has(provider.id)) {
+				continue;
+			}
+			this._providerSubscriptions.set(provider.id, provider.onDidChangeSessionConfig(() => {
+				this._configChangedSignal.trigger(undefined);
+			}));
+		}
+	}
+}
diff --git a/src/vs/sessions/contrib/chat/browser/agentHostSessionConfigPicker.ts b/src/vs/sessions/contrib/chat/browser/agentHost/agentHostSessionConfigPicker.ts
similarity index 50%
rename from src/vs/sessions/contrib/chat/browser/agentHostSessionConfigPicker.ts
rename to src/vs/sessions/contrib/chat/browser/agentHost/agentHostSessionConfigPicker.ts
index 1c57397e18a..d1de554901d 100644
--- a/src/vs/sessions/contrib/chat/browser/agentHostSessionConfigPicker.ts
+++ b/src/vs/sessions/contrib/chat/browser/agentHost/agentHostSessionConfigPicker.ts
@@ -3,37 +3,41 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import './media/agentHostSessionConfigPicker.css';
-import * as dom from '../../../../base/browser/dom.js';
-import { renderIcon } from '../../../../base/browser/ui/iconLabel/iconLabels.js';
-import { ActionListItemKind, IActionListDelegate, IActionListItem } from '../../../../platform/actionWidget/browser/actionList.js';
-import { IActionWidgetService } from '../../../../platform/actionWidget/browser/actionWidget.js';
-import { BaseActionViewItem } from '../../../../base/browser/ui/actionbar/actionViewItems.js';
-import { Delayer } from '../../../../base/common/async.js';
-import { Codicon } from '../../../../base/common/codicons.js';
-import { MarkdownString } from '../../../../base/common/htmlContent.js';
-import { Disposable, DisposableMap, DisposableStore, IDisposable } from '../../../../base/common/lifecycle.js';
-import { autorun } from '../../../../base/common/observable.js';
-import Severity from '../../../../base/common/severity.js';
-import { ThemeIcon } from '../../../../base/common/themables.js';
-import { localize, localize2 } from '../../../../nls.js';
-import { IActionViewItemService } from '../../../../platform/actions/browser/actionViewItemService.js';
-import { Action2, MenuId, registerAction2 } from '../../../../platform/actions/common/actions.js';
-import { IConfigurationService } from '../../../../platform/configuration/common/configuration.js';
-import { ContextKeyExpr } from '../../../../platform/contextkey/common/contextkey.js';
-import { IDialogService } from '../../../../platform/dialogs/common/dialogs.js';
-import { IInstantiationService } from '../../../../platform/instantiation/common/instantiation.js';
-import { AgentHostSessionConfigBranchNameHintKey } from '../../../../platform/agentHost/common/agentService.js';
-import type { ISessionConfigPropertySchema, ISessionConfigValueItem } from '../../../../platform/agentHost/common/state/protocol/commands.js';
-import { ChatConfiguration } from '../../../../workbench/contrib/chat/common/constants.js';
-import { ChatContextKeyExprs } from '../../../../workbench/contrib/chat/common/actions/chatContextKeys.js';
-import { IWorkbenchContribution, registerWorkbenchContribution2, WorkbenchPhase } from '../../../../workbench/common/contributions.js';
-import { Menus } from '../../../browser/menus.js';
-import { ActiveSessionProviderIdContext } from '../../../common/contextkeys.js';
-import { ISessionsProvidersService } from '../../../services/sessions/browser/sessionsProvidersService.js';
-import { ISessionsManagementService } from '../../../services/sessions/common/sessionsManagement.js';
-import type { ISessionsProvider } from '../../../services/sessions/common/sessionsProvider.js';
-import { type IAgentHostSessionsProvider, isAgentHostProvider } from '../../../common/agentHostSessionsProvider.js';
+import '../media/agentHostSessionConfigPicker.css';
+import * as dom from '../../../../../base/browser/dom.js';
+import { renderIcon } from '../../../../../base/browser/ui/iconLabel/iconLabels.js';
+import { ActionListItemKind, IActionListDelegate, IActionListItem } from '../../../../../platform/actionWidget/browser/actionList.js';
+import { IActionWidgetService } from '../../../../../platform/actionWidget/browser/actionWidget.js';
+import { BaseActionViewItem } from '../../../../../base/browser/ui/actionbar/actionViewItems.js';
+import { Delayer } from '../../../../../base/common/async.js';
+import { Codicon } from '../../../../../base/common/codicons.js';
+import { MarkdownString } from '../../../../../base/common/htmlContent.js';
+import { Disposable, DisposableMap, DisposableStore, IDisposable } from '../../../../../base/common/lifecycle.js';
+import { autorun, observableValue } from '../../../../../base/common/observable.js';
+import Severity from '../../../../../base/common/severity.js';
+import { ThemeIcon } from '../../../../../base/common/themables.js';
+import { localize, localize2 } from '../../../../../nls.js';
+import { IActionViewItemService, type IActionViewItemFactory } from '../../../../../platform/actions/browser/actionViewItemService.js';
+import { Action2, MenuId, MenuItemAction, registerAction2 } from '../../../../../platform/actions/common/actions.js';
+import { IConfigurationService } from '../../../../../platform/configuration/common/configuration.js';
+import { ContextKeyExpr } from '../../../../../platform/contextkey/common/contextkey.js';
+import { IDialogService } from '../../../../../platform/dialogs/common/dialogs.js';
+import { IInstantiationService } from '../../../../../platform/instantiation/common/instantiation.js';
+import { AgentHostSessionConfigBranchNameHintKey } from '../../../../../platform/agentHost/common/agentService.js';
+import type { ISessionConfigPropertySchema, ISessionConfigValueItem } from '../../../../../platform/agentHost/common/state/protocol/commands.js';
+import { ChatConfiguration } from '../../../../../workbench/contrib/chat/common/constants.js';
+import { ChatContextKeyExprs } from '../../../../../workbench/contrib/chat/common/actions/chatContextKeys.js';
+import { IWorkbenchContribution, registerWorkbenchContribution2, WorkbenchPhase } from '../../../../../workbench/common/contributions.js';
+import { type IChatInputPickerOptions } from '../../../../../workbench/contrib/chat/browser/widget/input/chatInputPickerActionItem.js';
+import { Menus } from '../../../../browser/menus.js';
+import { ActiveSessionProviderIdContext } from '../../../../common/contextkeys.js';
+import { ISessionsProvidersService } from '../../../../services/sessions/browser/sessionsProvidersService.js';
+import { ISessionsManagementService } from '../../../../services/sessions/common/sessionsManagement.js';
+import type { ISessionsProvider } from '../../../../services/sessions/common/sessionsProvider.js';
+import { type IAgentHostSessionsProvider, isAgentHostProvider } from '../../../../common/agentHostSessionsProvider.js';
+import { PermissionPicker } from '../../../copilotChatSessions/browser/permissionPicker.js';
+import { AgentHostPermissionPickerActionItem } from './agentHostPermissionPickerActionItem.js';
+import { AgentHostPermissionPickerDelegate, AUTO_APPROVE_PROPERTY, isWellKnownAutoApproveSchema } from './agentHostPermissionPickerDelegate.js';
 
 const IsActiveSessionRemoteAgentHost = ContextKeyExpr.regex(ActiveSessionProviderIdContext.key, /^agenthost-/);
 const IsActiveSessionLocalAgentHost = ContextKeyExpr.equals(ActiveSessionProviderIdContext.key, 'local-agent-host');
@@ -121,12 +125,6 @@ function renderPickerTrigger(slot: HTMLElement, disabled: boolean, disposables:
 	return trigger;
 }
 
-/**
- * Special-cased property name for auto-approve session config.
- * Used to apply confirmation dialogs and policy enforcement.
- */
-const AUTO_APPROVE_PROPERTY = 'autoApprove';
-
 // Track whether auto-approve warnings have been shown this VS Code session
 const shownAutoApproveWarnings = new Set<string /* enum value */>();
 
@@ -188,9 +186,17 @@ async function confirmAutoApproveLevel(value: string, dialogService: IDialogServ
 		custom: {
 			icon: isAutopilot ? Codicon.rocket : Codicon.warning,
 			markdownDetails: [{
-				markdown: new MarkdownString(isAutopilot
-					? localize('agentHostAutoApprove.autopilot.warning.detail', "Autopilot will auto-approve all tool calls and continue working autonomously until the task is complete. This includes terminal commands, file edits, and external tool calls. The agent will make decisions on your behalf without asking for confirmation.\n\nYou can stop the agent at any time by clicking the stop button. This applies to the current session only.")
-					: localize('agentHostAutoApprove.bypass.warning.detail', "Bypass Approvals will auto-approve all tool calls without asking for confirmation. This includes file edits, terminal commands, and external tool calls.")),
+				markdown: new MarkdownString(
+					localize(
+						'agentHostAutoApprove.warning.detailWithDefaultSetting',
+						"{0}\n\nTo make this the starting permission level for new chat sessions, change the [{1}](command:workbench.action.openSettings?%5B%22{1}%22%5D) setting.",
+						isAutopilot
+							? localize('agentHostAutoApprove.autopilot.warning.detail', "Autopilot will auto-approve all tool calls and continue working autonomously until the task is complete. This includes terminal commands, file edits, and external tool calls. The agent will make decisions on your behalf without asking for confirmation.\n\nYou can stop the agent at any time by clicking the stop button. This applies to the current session only.")
+							: localize('agentHostAutoApprove.bypass.warning.detail', "Bypass Approvals will auto-approve all tool calls without asking for confirmation. This includes file edits, terminal commands, and external tool calls."),
+						ChatConfiguration.DefaultPermissionLevel,
+					),
+					{ isTrusted: { enabledCommands: ['workbench.action.openSettings'] } },
+				),
 			}],
 		},
 	});
@@ -277,7 +283,15 @@ class AgentHostSessionConfigPicker extends Disposable {
 		}
 
 		for (const [property, schema] of Object.entries(resolvedConfig.schema.properties)) {
-			if (property === AgentHostSessionConfigBranchNameHintKey || property === AUTO_APPROVE_PROPERTY) {
+			if (property === AgentHostSessionConfigBranchNameHintKey) {
+				continue;
+			}
+			// When the autoApprove property uses the well-known schema, the
+			// workbench `PermissionPickerActionItem` (registered separately for
+			// `Menus.NewSessionControl`) handles it — skip it here to avoid
+			// double-rendering. Non-conforming schemas still fall through to
+			// the generic per-property picker below.
+			if (property === AUTO_APPROVE_PROPERTY && isWellKnownAutoApproveSchema(schema)) {
 				continue;
 			}
 			const value = resolvedConfig.values[property] ?? schema.default;
@@ -396,8 +410,11 @@ interface IConfigPickerWidget extends IDisposable {
 }
 
 class PickerActionViewItem extends BaseActionViewItem {
-	constructor(private readonly _picker: IConfigPickerWidget) {
+	constructor(private readonly _picker: IConfigPickerWidget, disposable?: IDisposable) {
 		super(undefined, { id: '', label: '', enabled: true, class: undefined, tooltip: '', run: () => { } });
+		if (disposable) {
+			this._register(disposable);
+		}
 	}
 
 	override render(container: HTMLElement): void {
@@ -415,25 +432,58 @@ class AgentHostSessionConfigPickerContribution extends Disposable implements IWo
 
 	constructor(
 		@IActionViewItemService actionViewItemService: IActionViewItemService,
-		@IInstantiationService instantiationService: IInstantiationService,
+		@IInstantiationService private readonly _instantiationService: IInstantiationService,
 	) {
 		super();
 		this._register(actionViewItemService.register(
 			Menus.NewSessionRepositoryConfig,
 			'sessions.agentHost.sessionConfigPicker',
-			() => new PickerActionViewItem(instantiationService.createInstance(AgentHostSessionConfigPicker)),
+			() => new PickerActionViewItem(this._instantiationService.createInstance(AgentHostSessionConfigPicker)),
 		));
 		this._register(actionViewItemService.register(
 			Menus.NewSessionControl,
 			NEW_SESSION_APPROVE_PICKER_ID,
-			() => new PickerActionViewItem(instantiationService.createInstance(AgentHostNewSessionApprovePicker)),
+			() => this._createNewSessionPermissionPicker(),
 		));
 		this._register(actionViewItemService.register(
 			MenuId.ChatInputSecondary,
 			RUNNING_SESSION_CONFIG_PICKER_ID,
-			() => new PickerActionViewItem(instantiationService.createInstance(AgentHostRunningSessionConfigPicker)),
+			this._createRunningSessionPermissionPickerFactory(),
 		));
 	}
+
+	/**
+	 * On the new-chat page (left of the toolbar), use the sessions
+	 * {@link PermissionPicker} so the styling matches the surrounding sessions
+	 * pickers (font size, padding, icon size).
+	 */
+	private _createNewSessionPermissionPicker(): PickerActionViewItem {
+		const delegate = this._instantiationService.createInstance(AgentHostPermissionPickerDelegate);
+		const picker = this._instantiationService.createInstance(PermissionPicker, delegate);
+		return new PickerActionViewItem(picker, delegate);
+	}
+
+	/**
+	 * Inside a running chat widget (`ChatInputSecondary`), use the workbench
+	 * {@link PermissionPickerActionItem} so it matches the rest of the
+	 * chat-input secondary toolbar (which is what the extension-host CLI
+	 * already uses).
+	 */
+	private _createRunningSessionPermissionPickerFactory(): IActionViewItemFactory {
+		return (action, _options, instantiationService) => {
+			if (!(action instanceof MenuItemAction)) {
+				return undefined;
+			}
+			const pickerOptions: IChatInputPickerOptions = {
+				hideChevrons: observableValue('hideChevrons', false),
+			};
+			return instantiationService.createInstance(
+				AgentHostPermissionPickerActionItem,
+				action,
+				pickerOptions,
+			);
+		};
+	}
 }
 
 // ---- New session auto-approve picker (left side, NewSessionControl) ----
@@ -458,160 +508,6 @@ registerAction2(class extends Action2 {
 	override async run(): Promise<void> { }
 });
 
-/**
- * Renders the auto-approve picker in the new session welcome view (left side).
- * Only renders the autoApprove property from the session config.
- */
-class AgentHostNewSessionApprovePicker extends Disposable {
-	private readonly _renderDisposables = this._register(new DisposableStore());
-	private readonly _providerListeners = this._register(new DisposableMap<string>());
-	private _container: HTMLElement | undefined;
-
-	constructor(
-		@IActionWidgetService private readonly _actionWidgetService: IActionWidgetService,
-		@IConfigurationService private readonly _configurationService: IConfigurationService,
-		@IDialogService private readonly _dialogService: IDialogService,
-		@ISessionsManagementService private readonly _sessionsManagementService: ISessionsManagementService,
-		@ISessionsProvidersService private readonly _sessionsProvidersService: ISessionsProvidersService,
-	) {
-		super();
-
-		this._register(autorun(reader => {
-			const session = this._sessionsManagementService.activeSession.read(reader);
-			if (session) {
-				session.loading.read(reader);
-			}
-			this._render();
-		}));
-
-		this._register(this._sessionsProvidersService.onDidChangeProviders(e => {
-			for (const provider of e.removed) {
-				this._providerListeners.deleteAndDispose(provider.id);
-			}
-			this._watchProviders(e.added);
-			this._render();
-		}));
-		this._watchProviders(this._sessionsProvidersService.getProviders());
-	}
-
-	private _watchProviders(providers: readonly ISessionsProvider[]): void {
-		for (const provider of providers) {
-			if (!isAgentHostProvider(provider) || this._providerListeners.has(provider.id)) {
-				continue;
-			}
-			this._providerListeners.set(provider.id, provider.onDidChangeSessionConfig(() => this._render()));
-		}
-	}
-
-	render(container: HTMLElement): void {
-		this._container = dom.append(container, dom.$('.sessions-chat-agent-host-config'));
-		this._render();
-	}
-
-	private _render(): void {
-		if (!this._container) {
-			return;
-		}
-
-		this._renderDisposables.clear();
-		dom.clearNode(this._container);
-
-		const session = this._sessionsManagementService.activeSession.get();
-		const rawProvider = session ? this._sessionsProvidersService.getProvider(session.providerId) : undefined;
-		const provider = rawProvider && isAgentHostProvider(rawProvider) ? rawProvider : undefined;
-		const config = session && provider?.getSessionConfig(session.sessionId);
-		// `getSessionConfig` may return undefined for sessions whose config
-		// hasn't been seeded yet (e.g. opened from list, no in-window create).
-		// The provider lazily acquires a session-state subscription and will fire
-		// `onDidChangeSessionConfig` once the snapshot arrives, re-rendering us.
-		if (!session || !provider || !config) {
-			return;
-		}
-
-		const schema = config.schema.properties[AUTO_APPROVE_PROPERTY];
-		if (!schema) {
-			return;
-		}
-
-		const value = config.values[AUTO_APPROVE_PROPERTY] ?? schema.default;
-		const slot = dom.append(this._container, dom.$('.sessions-chat-picker-slot'));
-		const trigger = renderPickerTrigger(slot, false, this._renderDisposables, () => this._showPicker(provider, session.sessionId, schema, trigger));
-		this._renderTrigger(trigger, schema, value);
-	}
-
-	private _renderTrigger(trigger: HTMLElement, schema: ISessionConfigPropertySchema, value: string | undefined): void {
-		dom.clearNode(trigger);
-		const icon = getConfigIcon(AUTO_APPROVE_PROPERTY, value);
-		if (icon) {
-			dom.append(trigger, renderIcon(icon));
-		}
-		const labelSpan = dom.append(trigger, dom.$('span.sessions-chat-dropdown-label'));
-		const label = this._getLabel(schema, value);
-		labelSpan.textContent = label;
-		trigger.setAttribute('aria-label', localize('agentHostNewSessionApprove.triggerAria', "{0}: {1}", schema.title, label));
-		dom.append(trigger, renderIcon(Codicon.chevronDown));
-		applyAutoApproveTriggerStyles(trigger, AUTO_APPROVE_PROPERTY, value);
-	}
-
-	private async _showPicker(provider: IAgentHostSessionsProvider, sessionId: string, schema: ISessionConfigPropertySchema, trigger: HTMLElement): Promise<void> {
-		if (this._actionWidgetService.isVisible) {
-			return;
-		}
-
-		const rawItems = (schema.enum ?? []).map((value, index) => ({
-			value,
-			label: schema.enumLabels?.[index] ?? value,
-			description: schema.enumDescriptions?.[index],
-		}));
-
-		const { items, policyRestricted } = applyAutoApproveFiltering(rawItems, AUTO_APPROVE_PROPERTY, this._configurationService);
-
-		if (items.length === 0) {
-			return;
-		}
-
-		const currentValue = provider.getSessionConfig(sessionId)?.values[AUTO_APPROVE_PROPERTY];
-		const actionItems = toActionItems(AUTO_APPROVE_PROPERTY, items, currentValue, policyRestricted);
-
-		const delegate: IActionListDelegate<IConfigPickerItem> = {
-			onSelect: async item => {
-				this._actionWidgetService.hide();
-
-				if (item.value === 'autoApprove' || item.value === 'autopilot') {
-					const confirmed = await confirmAutoApproveLevel(item.value, this._dialogService);
-					if (!confirmed) {
-						return;
-					}
-				}
-
-				provider.setSessionConfigValue(sessionId, AUTO_APPROVE_PROPERTY, item.value).catch(() => { /* best-effort */ });
-			},
-			onHide: () => trigger.focus(),
-		};
-
-		this._actionWidgetService.show<IConfigPickerItem>(
-			`agentHostNewSessionConfig.${AUTO_APPROVE_PROPERTY}`,
-			false,
-			actionItems,
-			delegate,
-			trigger,
-			undefined,
-			[],
-			{
-				getAriaLabel: item => item.label ?? '',
-				getWidgetAriaLabel: () => localize('agentHostNewSessionApprove.ariaLabel', "{0} Picker", schema.title),
-			},
-		);
-	}
-
-	private _getLabel(schema: ISessionConfigPropertySchema, value: string | undefined): string {
-		if (typeof value === 'string') {
-			const index = schema.enum?.indexOf(value) ?? -1;
-			return index >= 0 ? schema.enumLabels?.[index] ?? value : value;
-		}
-		return schema.title;
-	}
-}
 
 // ---- Running session config picker (ChatInputSecondary) ----
 
@@ -635,160 +531,5 @@ registerAction2(class extends Action2 {
 	override async run(): Promise<void> { }
 });
 
-/**
- * Renders a single picker trigger in the titlebar for the auto-approve session
- * config property during a running agent host session.
- */
-class AgentHostRunningSessionConfigPicker extends Disposable {
-	private readonly _renderDisposables = this._register(new DisposableStore());
-	private readonly _providerListeners = this._register(new DisposableMap<string>());
-	private _container: HTMLElement | undefined;
-
-	constructor(
-		@IActionWidgetService private readonly _actionWidgetService: IActionWidgetService,
-		@IConfigurationService private readonly _configurationService: IConfigurationService,
-		@IDialogService private readonly _dialogService: IDialogService,
-		@ISessionsManagementService private readonly _sessionsManagementService: ISessionsManagementService,
-		@ISessionsProvidersService private readonly _sessionsProvidersService: ISessionsProvidersService,
-	) {
-		super();
-
-		this._register(autorun(reader => {
-			const session = this._sessionsManagementService.activeSession.read(reader);
-			if (session) {
-				session.loading.read(reader);
-			}
-			this._render();
-		}));
-
-		this._register(this._sessionsProvidersService.onDidChangeProviders(e => {
-			for (const provider of e.removed) {
-				this._providerListeners.deleteAndDispose(provider.id);
-			}
-			this._watchProviders(e.added);
-			this._render();
-		}));
-		this._watchProviders(this._sessionsProvidersService.getProviders());
-	}
-
-	private _watchProviders(providers: readonly ISessionsProvider[]): void {
-		for (const provider of providers) {
-			if (!isAgentHostProvider(provider) || this._providerListeners.has(provider.id)) {
-				continue;
-			}
-			this._providerListeners.set(provider.id, provider.onDidChangeSessionConfig(() => this._render()));
-		}
-	}
-
-	render(container: HTMLElement): void {
-		this._container = dom.append(container, dom.$('.sessions-chat-agent-host-config'));
-		this._render();
-	}
-
-	private _render(): void {
-		if (!this._container) {
-			return;
-		}
-
-		this._renderDisposables.clear();
-		dom.clearNode(this._container);
-
-		const session = this._sessionsManagementService.activeSession.get();
-		const rawProvider = session ? this._sessionsProvidersService.getProvider(session.providerId) : undefined;
-		const provider = rawProvider && isAgentHostProvider(rawProvider) ? rawProvider : undefined;
-		const config = session && provider?.getSessionConfig(session.sessionId);
-		// See note in `AgentHostNewSessionApprovePicker._render`: `config` may be
-		// undefined until the lazy session-state subscription hydrates and the
-		// provider fires `onDidChangeSessionConfig`.
-		if (!session || !provider || !config) {
-			return;
-		}
-
-		// Only render session-mutable properties (i.e., autoApprove)
-		for (const [property, schema] of Object.entries(config.schema.properties)) {
-			if (!schema.sessionMutable) {
-				continue;
-			}
-			const value = config.values[property] ?? schema.default;
-			const slot = dom.append(this._container, dom.$('.sessions-chat-picker-slot'));
-			const trigger = renderPickerTrigger(slot, false, this._renderDisposables, () => this._showPicker(provider, session.sessionId, property, schema, trigger));
-			this._renderTrigger(trigger, schema, value, property);
-		}
-	}
-
-	private _renderTrigger(trigger: HTMLElement, schema: ISessionConfigPropertySchema, value: string | undefined, property: string): void {
-		dom.clearNode(trigger);
-		const icon = getConfigIcon(property, value);
-		if (icon) {
-			dom.append(trigger, renderIcon(icon));
-		}
-		const labelSpan = dom.append(trigger, dom.$('span.sessions-chat-dropdown-label'));
-		const label = this._getLabel(schema, value);
-		labelSpan.textContent = label;
-		trigger.setAttribute('aria-label', localize('agentHostRunningSessionConfig.triggerAria', "{0}: {1}", schema.title, label));
-		dom.append(trigger, renderIcon(Codicon.chevronDown));
-		applyAutoApproveTriggerStyles(trigger, property, value);
-	}
-
-	private async _showPicker(provider: IAgentHostSessionsProvider, sessionId: string, property: string, schema: ISessionConfigPropertySchema, trigger: HTMLElement): Promise<void> {
-		if (this._actionWidgetService.isVisible) {
-			return;
-		}
-
-		const rawItems = (schema.enum ?? []).map((value, index) => ({
-			value,
-			label: schema.enumLabels?.[index] ?? value,
-			description: schema.enumDescriptions?.[index],
-		}));
-
-		const { items, policyRestricted } = applyAutoApproveFiltering(rawItems, property, this._configurationService);
-		const isAutoApproveProperty = property === AUTO_APPROVE_PROPERTY;
-
-		if (items.length === 0) {
-			return;
-		}
-
-		const currentValue = provider.getSessionConfig(sessionId)?.values[property];
-		const actionItems = toActionItems(property, items, currentValue, policyRestricted);
-
-		const delegate: IActionListDelegate<IConfigPickerItem> = {
-			onSelect: async item => {
-				this._actionWidgetService.hide();
-
-				if (isAutoApproveProperty && (item.value === 'autoApprove' || item.value === 'autopilot')) {
-					const confirmed = await confirmAutoApproveLevel(item.value, this._dialogService);
-					if (!confirmed) {
-						return;
-					}
-				}
-
-				provider.setSessionConfigValue(sessionId, property, item.value).catch(() => { /* best-effort */ });
-			},
-			onHide: () => trigger.focus(),
-		};
-
-		this._actionWidgetService.show<IConfigPickerItem>(
-			`agentHostRunningSessionConfig.${property}`,
-			false,
-			actionItems,
-			delegate,
-			trigger,
-			undefined,
-			[],
-			{
-				getAriaLabel: item => item.label ?? '',
-				getWidgetAriaLabel: () => localize('agentHostRunningSessionConfig.ariaLabel', "{0} Picker", schema.title),
-			},
-		);
-	}
-
-	private _getLabel(schema: ISessionConfigPropertySchema, value: string | undefined): string {
-		if (typeof value === 'string') {
-			const index = schema.enum?.indexOf(value) ?? -1;
-			return index >= 0 ? schema.enumLabels?.[index] ?? value : value;
-		}
-		return schema.title;
-	}
-}
 
 registerWorkbenchContribution2(AgentHostSessionConfigPickerContribution.ID, AgentHostSessionConfigPickerContribution, WorkbenchPhase.AfterRestored);
diff --git a/src/vs/sessions/contrib/chat/browser/media/agentHostSessionConfigPicker.css b/src/vs/sessions/contrib/chat/browser/media/agentHostSessionConfigPicker.css
index e3a2b3b1528..359c012db4c 100644
--- a/src/vs/sessions/contrib/chat/browser/media/agentHostSessionConfigPicker.css
+++ b/src/vs/sessions/contrib/chat/browser/media/agentHostSessionConfigPicker.css
@@ -12,19 +12,3 @@
 .sessions-chat-agent-host-config:empty {
 	display: none;
 }
-
-.sessions-chat-agent-host-config .action-label.warning {
-	color: var(--vscode-problemsWarningIcon-foreground);
-}
-
-.sessions-chat-agent-host-config .action-label.warning .codicon {
-	color: var(--vscode-problemsWarningIcon-foreground) !important;
-}
-
-.sessions-chat-agent-host-config .action-label.info {
-	color: var(--vscode-problemsInfoIcon-foreground);
-}
-
-.sessions-chat-agent-host-config .action-label.info .codicon {
-	color: var(--vscode-problemsInfoIcon-foreground) !important;
-}
diff --git a/src/vs/sessions/contrib/chat/browser/media/chatInput.css b/src/vs/sessions/contrib/chat/browser/media/chatInput.css
index 02ebdad018c..8a31c06df2c 100644
--- a/src/vs/sessions/contrib/chat/browser/media/chatInput.css
+++ b/src/vs/sessions/contrib/chat/browser/media/chatInput.css
@@ -62,7 +62,7 @@
 
 /* Height constraints are driven by MIN_EDITOR_HEIGHT / MAX_EDITOR_HEIGHT in newChatViewPane.ts */
 .sessions-chat-editor {
-	padding: 0 8px 6px 10px;
+	padding: 6px 6px 0 6px;
 	flex-shrink: 1;
 }
 
@@ -77,7 +77,7 @@
 .sessions-chat-toolbar {
 	display: flex;
 	align-items: center;
-	padding: 0 6px 6px 6px;
+	padding: 4px 6px 6px 6px;
 	gap: 4px;
 	color: var(--vscode-icon-foreground);
 }
@@ -97,27 +97,42 @@
 
 .sessions-chat-config-toolbar .monaco-toolbar {
 	height: auto;
+	min-width: 0;
+	overflow: hidden;
+}
+
+.sessions-chat-config-toolbar .monaco-action-bar,
+.sessions-chat-config-toolbar .monaco-action-bar .actions-container {
+	min-width: 0;
+	overflow: hidden;
 }
 
 .sessions-chat-config-toolbar .monaco-action-bar .action-item {
 	display: flex;
 	align-items: center;
+	min-width: 30px;
+	overflow: hidden;
+}
+
+/* Prevent the mode picker from shrinking so the model picker label
+ * ellipsizes first rather than the mode picker collapsing to icon-only. */
+.sessions-chat-config-toolbar .monaco-action-bar .action-item:has(.sessions-chat-dropdown-label) {
+	flex-shrink: 0;
 }
 
 .sessions-chat-config-toolbar .action-label {
 	display: flex;
 	align-items: center;
 	height: 16px;
-	padding: 3px 3px 3px 6px;
+	padding: 3px 1px 3px 7px;
 	background-color: transparent;
 	border: none;
 	border-radius: 4px;
-	font-size: 13px;
 	cursor: pointer;
 	touch-action: manipulation;
 	color: var(--vscode-icon-foreground);
 	white-space: nowrap;
-	min-width: 0;
+	min-width: 30px;
 	overflow: hidden;
 }
 
@@ -126,20 +141,109 @@
 	color: var(--vscode-foreground);
 }
 
-.sessions-chat-config-toolbar .action-label .codicon {
-	font-size: 14px;
-	flex-shrink: 0;
+.sessions-chat-config-toolbar .action-label,
+.sessions-chat-config-toolbar .action-label .chat-input-picker-label {
+	font-size: 11px;
 }
 
-.sessions-chat-config-toolbar .action-label .codicon-chevron-down {
-	font-size: 12px;
+/* Allow long labels (e.g. the model picker name) to ellipsize when space is tight */
+.sessions-chat-config-toolbar .action-label .chat-input-picker-label {
 	margin-left: 6px;
+	overflow: hidden;
+	text-overflow: ellipsis;
+	white-space: nowrap;
+	min-width: 0;
+}
+
+/* When the picker has no leading icon (e.g. model picker), drop the icon-to-label gap. */
+.sessions-chat-config-toolbar .action-label .chat-input-picker-label:first-child {
+	margin-left: 0;
+}
+
+.sessions-chat-config-toolbar .monaco-action-bar .action-item .action-label > .codicon {
+	font-size: 12px;
+	flex-shrink: 0;
+	/* Override the base .monaco-action-bar .action-item .codicon { width:16px; height:16px }
+	 * so the leading icon sizes naturally to its font-size, matching the bottom-row pickers. */
+	width: auto;
+	height: auto;
+}
+
+.sessions-chat-config-toolbar .monaco-action-bar .action-item .action-label > .codicon-chevron-down {
+	display: inline-flex;
+	align-items: center;
+	justify-content: center;
+	font-size: 10px;
+	margin-left: 2px;
+	line-height: 1;
+	width: 12px;
+	height: 12px;
+}
+
+/* Spacing between action items inside the chat input config toolbar (mode + model picker) */
+.sessions-chat-config-toolbar .monaco-action-bar .actions-container {
+	gap: 4px;
+}
+
+/* Delightful gradient styling for the chat send (submit) button. The button
+	gets a multi-color gradient ring at rest using the same palette as the
+	working-state border, fills with a slowly cycling color on hover/focus,
+	and emits a quick colorful pulse on click. Gated behind the experimental
+	`sessions.experimental.sendButtonGradient` setting via the
+	`.sessions-experimental-send-button-gradient` class on the workbench root. */
+@property --chat-send-button-anim-angle {
+	syntax: '<angle>';
+	inherits: false;
+	initial-value: 135deg;
+}
+
+@keyframes chat-send-button-spin {
+	from {
+		--chat-send-button-anim-angle: 135deg;
+	}
+
+	to {
+		--chat-send-button-anim-angle: 495deg;
+	}
+}
+
+@keyframes chat-send-button-color-cycle {
+	0%,
+	100% {
+		background-color: color-mix(in srgb, var(--vscode-chat-inputWorkingBorderColor1) 60%, var(--vscode-input-background));
+	}
+
+	33% {
+		background-color: color-mix(in srgb, var(--vscode-chat-inputWorkingBorderColor2) 60%, var(--vscode-input-background));
+	}
+
+	66% {
+		background-color: color-mix(in srgb, var(--vscode-chat-inputWorkingBorderColor3) 60%, var(--vscode-input-background));
+	}
+}
+
+@keyframes chat-send-button-pulse {
+	0% {
+		opacity: 0.7;
+		transform: scale(1);
+	}
+
+	100% {
+		opacity: 0;
+		transform: scale(1.3);
+	}
 }
 
 /* Send button - wraps a Button widget */
 .sessions-chat-send-button {
 	display: flex;
 	align-items: center;
+	justify-content: center;
+	flex-shrink: 0;
+	position: relative;
+	width: 22px;
+	height: 22px;
+	border-radius: 4px;
 }
 
 .sessions-chat-send-button .monaco-button {
@@ -152,21 +256,227 @@
 	padding: 0;
 	border-radius: 4px;
 	color: var(--vscode-icon-foreground);
-	background: transparent !important;
-	border: none !important;
+	background: transparent;
+	border: none;
 	cursor: pointer;
+	position: relative;
+	z-index: 1;
+	transition: background-color 250ms ease, color 250ms ease;
 }
 
 .sessions-chat-send-button .monaco-button.disabled {
 	cursor: default;
 }
 
+/* Default hover feedback when the gradient experiment is off. The gradient-on
+	rules below override this with the cycling color treatment. */
 .sessions-chat-send-button .monaco-button:not(.disabled):hover {
-	background-color: var(--vscode-toolbar-hoverBackground) !important;
+	background-color: var(--vscode-toolbar-hoverBackground);
 }
 
-.sessions-chat-send-button .monaco-button .codicon {
-	font-size: 16px;
+/* Focus indicator drawn on the wrapper so it sits cleanly around the
+	22x22 button surface (the inner Button widget doesn't draw its own
+	focus border). Works in both gradient-on and gradient-off states. */
+.sessions-chat-send-button:has(.monaco-button:not(.disabled):focus-visible) {
+	outline: 1px solid var(--vscode-focusBorder);
+	outline-offset: 1px;
+}
+
+/* Suppress the inner button's default focus outline so it doesn't double up
+	with the wrapper outline above. */
+.sessions-chat-send-button .monaco-button:focus,
+.sessions-chat-send-button .monaco-button:focus-visible {
+	outline: none !important;
+	box-shadow: none !important;
+}
+
+.monaco-workbench .sessions-chat-send-button .monaco-button .codicon[class*='codicon-'] {
+	font-size: 14px;
+}
+
+/* Ensure no underline / link decoration ever shows under the codicon glyph
+	(the button is rendered as an <a> tag). */
+.monaco-workbench .sessions-chat-send-button a.monaco-button,
+.monaco-workbench .sessions-chat-send-button a.monaco-button:hover,
+.monaco-workbench .sessions-chat-send-button a.monaco-button:focus,
+.monaco-workbench .sessions-chat-send-button a.monaco-button:active,
+.monaco-workbench .sessions-chat-send-button a.monaco-button.disabled {
+	text-decoration: none !important;
+}
+
+/* Gradient ring at rest, drawn on the wrapper so the button's own
+	::before (codicon glyph) is not overridden. Gated behind the experimental
+	`sessions.experimental.sendButtonGradient` setting via the
+	`.sessions-experimental-send-button-gradient` class on the workbench root. */
+.monaco-workbench.sessions-experimental-send-button-gradient .sessions-chat-send-button::before {
+	content: '';
+	position: absolute;
+	inset: 0;
+	border-radius: 4px;
+	padding: 1px;
+	background: conic-gradient(from var(--chat-send-button-anim-angle),
+		var(--vscode-chat-inputWorkingBorderColor1),
+		var(--vscode-chat-inputWorkingBorderColor2),
+		var(--vscode-chat-inputWorkingBorderColor3),
+		var(--vscode-chat-inputWorkingBorderColor2),
+		var(--vscode-chat-inputWorkingBorderColor1));
+	-webkit-mask:
+		linear-gradient(#000 0 0) content-box,
+		linear-gradient(#000 0 0);
+	-webkit-mask-composite: xor;
+	mask:
+		linear-gradient(#000 0 0) content-box,
+		linear-gradient(#000 0 0);
+	mask-composite: exclude;
+	pointer-events: none;
+	transition: opacity 250ms ease;
+	z-index: 2;
+	/* Idle: very slowly rotate the gradient ring. */
+	animation: chat-send-button-spin 18s linear infinite;
+}
+
+.monaco-workbench.sessions-experimental-send-button-gradient .sessions-chat-send-button:has(.monaco-button.disabled)::before {
+	display: none;
+}
+
+/* Hover/focus: fill the button with a solid color that smoothly cycles through
+	the gradient palette, rather than spinning the conic gradient. Focus mirrors
+	hover so keyboard users get the same delightful treatment. */
+.monaco-workbench.sessions-experimental-send-button-gradient .sessions-chat-send-button:has(.monaco-button:not(.disabled):hover) .monaco-button,
+.monaco-workbench.sessions-experimental-send-button-gradient .sessions-chat-send-button:has(.monaco-button:not(.disabled):focus-visible) .monaco-button {
+	background-color: color-mix(in srgb, var(--vscode-chat-inputWorkingBorderColor1) 60%, var(--vscode-input-background));
+	animation: chat-send-button-color-cycle 4.5s ease-in-out infinite;
+	color: var(--vscode-button-foreground);
+}
+
+.monaco-workbench.sessions-experimental-send-button-gradient .sessions-chat-send-button:has(.monaco-button:not(.disabled):hover)::before,
+.monaco-workbench.sessions-experimental-send-button-gradient .sessions-chat-send-button:has(.monaco-button:not(.disabled):focus-visible)::before {
+	opacity: 0;
+}
+
+/* Click: outward color pulse on the wrapper. */
+.monaco-workbench.sessions-experimental-send-button-gradient .sessions-chat-send-button:has(.monaco-button:not(.disabled):active)::after {
+	content: '';
+	position: absolute;
+	inset: -2px;
+	border-radius: 6px;
+	background: conic-gradient(from 135deg,
+		var(--vscode-chat-inputWorkingBorderColor1),
+		var(--vscode-chat-inputWorkingBorderColor2),
+		var(--vscode-chat-inputWorkingBorderColor3),
+		var(--vscode-chat-inputWorkingBorderColor2),
+		var(--vscode-chat-inputWorkingBorderColor1));
+	pointer-events: none;
+	animation: chat-send-button-pulse 400ms ease-out forwards;
+	z-index: 0;
+}
+
+/* ----------------------------------------------------------------------------
+	Gradient styling for the standard chat-input send button (the one rendered
+	inside session views by the shared ChatInputPart). Mirrors the wrapper
+	rules above but targets the toolbar action-item that hosts the arrow-up
+	codicon. Gated by the same `.sessions-experimental-send-button-gradient` class on
+	the sessions workbench root so only Sessions/Agents UI is affected.
+	---------------------------------------------------------------------------- */
+.monaco-workbench.sessions-experimental-send-button-gradient .interactive-session .chat-input-toolbars > .chat-execute-toolbar .monaco-action-bar .action-item:has(> .action-label.codicon-arrow-up) {
+	position: relative;
+	border-radius: 5px;
+}
+
+.monaco-workbench.sessions-experimental-send-button-gradient .interactive-session .chat-input-toolbars > .chat-execute-toolbar .monaco-action-bar .action-item:has(> .action-label.codicon-arrow-up) > .action-label.codicon-arrow-up {
+	transition: background-color 250ms ease, color 250ms ease;
+}
+
+/* Focus indicator drawn on the action-item wrapper so it sits cleanly around
+	the button surface with a small offset, matching the new-session button. */
+.monaco-workbench.sessions-experimental-send-button-gradient .interactive-session .chat-input-toolbars > .chat-execute-toolbar .monaco-action-bar .action-item:not(.disabled):has(> .action-label.codicon-arrow-up:focus-visible) {
+	outline: 1px solid var(--vscode-focusBorder);
+	outline-offset: 1px;
+	border-radius: 5px;
+}
+
+.monaco-workbench.sessions-experimental-send-button-gradient .interactive-session .chat-input-toolbars > .chat-execute-toolbar .monaco-action-bar .action-item:has(> .action-label.codicon-arrow-up) > .action-label.codicon-arrow-up:focus,
+.monaco-workbench.sessions-experimental-send-button-gradient .interactive-session .chat-input-toolbars > .chat-execute-toolbar .monaco-action-bar .action-item:has(> .action-label.codicon-arrow-up) > .action-label.codicon-arrow-up:focus-visible {
+	outline: none;
+}
+
+/* Gradient ring at rest, drawn with the standard mask trick so only the
+	1px border area is painted (icon stays transparent over toolbar). */
+.monaco-workbench.sessions-experimental-send-button-gradient .interactive-session .chat-input-toolbars > .chat-execute-toolbar .monaco-action-bar .action-item:has(> .action-label.codicon-arrow-up)::before {
+	content: '';
+	position: absolute;
+	inset: 0;
+	border-radius: inherit;
+	padding: 1px;
+	background: conic-gradient(from var(--chat-send-button-anim-angle),
+		var(--vscode-chat-inputWorkingBorderColor1),
+		var(--vscode-chat-inputWorkingBorderColor2),
+		var(--vscode-chat-inputWorkingBorderColor3),
+		var(--vscode-chat-inputWorkingBorderColor2),
+		var(--vscode-chat-inputWorkingBorderColor1));
+	-webkit-mask:
+		linear-gradient(#000 0 0) content-box,
+		linear-gradient(#000 0 0);
+	-webkit-mask-composite: xor;
+	mask:
+		linear-gradient(#000 0 0) content-box,
+		linear-gradient(#000 0 0);
+	mask-composite: exclude;
+	pointer-events: none;
+	transition: opacity 250ms ease;
+	z-index: 1;
+	animation: chat-send-button-spin 18s linear infinite;
+}
+
+.monaco-workbench.sessions-experimental-send-button-gradient .interactive-session .chat-input-toolbars > .chat-execute-toolbar .monaco-action-bar .action-item.disabled:has(> .action-label.codicon-arrow-up)::before {
+	display: none;
+}
+
+.monaco-workbench.sessions-experimental-send-button-gradient .interactive-session .chat-input-toolbars > .chat-execute-toolbar .monaco-action-bar .action-item:not(.disabled) > .action-label.codicon-arrow-up:hover,
+.monaco-workbench.sessions-experimental-send-button-gradient .interactive-session .chat-input-toolbars > .chat-execute-toolbar .monaco-action-bar .action-item:not(.disabled) > .action-label.codicon-arrow-up:focus-visible {
+	background-color: color-mix(in srgb, var(--vscode-chat-inputWorkingBorderColor1) 60%, var(--vscode-input-background));
+	animation: chat-send-button-color-cycle 4.5s ease-in-out infinite;
+}
+
+.monaco-workbench.sessions-experimental-send-button-gradient .interactive-session .chat-input-toolbars > .chat-execute-toolbar .monaco-action-bar .action-item:not(.disabled):has(> .action-label.codicon-arrow-up:hover)::before,
+.monaco-workbench.sessions-experimental-send-button-gradient .interactive-session .chat-input-toolbars > .chat-execute-toolbar .monaco-action-bar .action-item:not(.disabled):has(> .action-label.codicon-arrow-up:focus-visible)::before {
+	opacity: 0;
+}
+
+.monaco-workbench.sessions-experimental-send-button-gradient .interactive-session .chat-input-toolbars > .chat-execute-toolbar .monaco-action-bar .action-item:not(.disabled):has(> .action-label.codicon-arrow-up:hover) .codicon-arrow-up,
+.monaco-workbench.sessions-experimental-send-button-gradient .interactive-session .chat-input-toolbars > .chat-execute-toolbar .monaco-action-bar .action-item:not(.disabled):has(> .action-label.codicon-arrow-up:focus-visible) .codicon-arrow-up {
+	color: var(--vscode-button-foreground) !important;
+}
+
+.monaco-workbench.sessions-experimental-send-button-gradient .interactive-session .chat-input-toolbars > .chat-execute-toolbar .monaco-action-bar .action-item:not(.disabled):has(> .action-label.codicon-arrow-up:active)::after {
+	content: '';
+	position: absolute;
+	inset: -2px;
+	border-radius: 7px;
+	background: conic-gradient(from 135deg,
+		var(--vscode-chat-inputWorkingBorderColor1),
+		var(--vscode-chat-inputWorkingBorderColor2),
+		var(--vscode-chat-inputWorkingBorderColor3),
+		var(--vscode-chat-inputWorkingBorderColor2),
+		var(--vscode-chat-inputWorkingBorderColor1));
+	pointer-events: none;
+	animation: chat-send-button-pulse 400ms ease-out forwards;
+	z-index: 0;
+}
+
+@media (prefers-reduced-motion: reduce) {
+	/* New-session send button */
+	.monaco-workbench.sessions-experimental-send-button-gradient .sessions-chat-send-button::before,
+	.monaco-workbench.sessions-experimental-send-button-gradient .sessions-chat-send-button:has(.monaco-button:not(.disabled):hover) .monaco-button,
+	.monaco-workbench.sessions-experimental-send-button-gradient .sessions-chat-send-button:has(.monaco-button:not(.disabled):focus-visible) .monaco-button,
+	.monaco-workbench.sessions-experimental-send-button-gradient .sessions-chat-send-button:has(.monaco-button:not(.disabled):active)::after,
+	/* Existing-chat toolbar send button */
+	.monaco-workbench.sessions-experimental-send-button-gradient .interactive-session .chat-input-toolbars > .chat-execute-toolbar .monaco-action-bar .action-item:has(> .action-label.codicon-arrow-up)::before,
+	.monaco-workbench.sessions-experimental-send-button-gradient .interactive-session .chat-input-toolbars > .chat-execute-toolbar .monaco-action-bar .action-item:not(.disabled) > .action-label.codicon-arrow-up:hover,
+	.monaco-workbench.sessions-experimental-send-button-gradient .interactive-session .chat-input-toolbars > .chat-execute-toolbar .monaco-action-bar .action-item:not(.disabled) > .action-label.codicon-arrow-up:focus-visible,
+	.monaco-workbench.sessions-experimental-send-button-gradient .interactive-session .chat-input-toolbars > .chat-execute-toolbar .monaco-action-bar .action-item:not(.disabled):has(> .action-label.codicon-arrow-up:active)::after {
+		animation: none;
+	}
 }
 
 /* Loading spinner in toolbar */
@@ -213,6 +523,7 @@
 	justify-content: center;
 	width: 22px;
 	height: 22px;
+	flex-shrink: 0;
 	border-radius: 4px;
 	cursor: pointer;
 	color: var(--vscode-icon-foreground);
@@ -230,8 +541,8 @@
 	outline-offset: -1px;
 }
 
-.sessions-chat-attach-button .codicon {
-	font-size: 16px;
+.monaco-workbench .sessions-chat-attach-button .codicon[class*='codicon-'] {
+	font-size: 14px;
 }
 
 /* Attached context container */
diff --git a/src/vs/sessions/contrib/chat/browser/media/chatWidget.css b/src/vs/sessions/contrib/chat/browser/media/chatWidget.css
index a2c0ee31efc..fd0ee642e7d 100644
--- a/src/vs/sessions/contrib/chat/browser/media/chatWidget.css
+++ b/src/vs/sessions/contrib/chat/browser/media/chatWidget.css
@@ -14,13 +14,17 @@
 .new-chat-widget-container {
 	display: flex;
 	flex-direction: column;
-	align-items: center;
+	/* Cross-axis: keep children flush left so the input's left edge — and therefore
+	 * the attach (+) button — stays anchored as the viewport narrows past max-width. */
+	align-items: flex-start;
 	justify-content: center;
 	width: 100%;
 	height: 100%;
 	box-sizing: border-box;
 	overflow: hidden;
 	padding: 16px 16px 20px 16px;
+	/* Establishes a size container so the @container (max-width: 330px) query below
+	 * can collapse picker labels to icon-only when the new-chat area is narrow. */
 	container-type: size;
 	position: relative;
 }
@@ -39,7 +43,6 @@
 	display: none;
 	width: 100%;
 	max-width: 800px;
-	margin: 0 0 8px 0;
 	padding: 0;
 	box-sizing: border-box;
 }
@@ -72,12 +75,14 @@
 	display: flex;
 	flex-direction: column;
 	align-items: stretch;
+	align-self: center;
 }
 
 .new-chat-widget-container .new-chat-bottom-container {
 	width: 100%;
 	max-width: 800px;
-	margin-top: 8px;
+	margin-top: 4px;
+	padding: 0 4px;
 	box-sizing: border-box;
 	display: none;
 	flex-direction: row;
@@ -93,6 +98,9 @@
 
 .new-chat-widget-container .new-chat-bottom-container .new-chat-controls-container {
 	display: flex;
+	gap: 4px;
+	min-width: 0;
+	overflow: hidden;
 }
 
 .new-chat-widget-container .new-chat-bottom-container .new-chat-repo-config-container {
@@ -100,6 +108,70 @@
 	align-items: center;
 	gap: 2px;
 	min-width: 0;
+	overflow: hidden;
+}
+
+/* Allow nested toolbar items to shrink so labels can ellipsize when space is tight.
+ * Mirrors the regular chat-input-toolbar pattern: each flex layer between the
+ * bounded container and the ellipsizing label gets `min-width: 0; overflow: hidden`. */
+.new-chat-widget-container .new-chat-bottom-container .new-chat-controls-container > *,
+.new-chat-widget-container .new-chat-bottom-container .new-chat-repo-config-container > *,
+.new-chat-widget-container .new-chat-bottom-container .sessions-chat-picker-slot .action-label {
+	min-width: 0;
+	overflow: hidden;
+}
+
+/* Floor each picker so the icon + chevron (+ padding) stay visible even when
+ * the label is fully ellipsized. Approx: 7px padding-left + 12px icon + 2px
+ * label margin + 16px chevron box + 1px padding-right ~= 38px. The floor must
+ * be applied to the outermost flex item (.action-item), not just the label,
+ * because the parent's `min-width: 0` would otherwise let it clip the chevron. */
+.new-chat-widget-container .new-chat-bottom-container .monaco-action-bar .action-item,
+.new-chat-widget-container .new-chat-bottom-container .sessions-chat-picker-slot .action-label,
+.new-chat-widget-container .new-chat-bottom-container .monaco-action-bar .action-item .action-label {
+	min-width: 30px;
+	overflow: hidden;
+}
+
+/* Below this width the bottom-row pickers can't fit their labels comfortably,
+ * so collapse to icon + chevron only. The .new-chat-widget-container declares
+ * `container-type: size` which makes this a size container query. */
+@container (max-width: 330px) {
+	/* Bottom-row pickers (Copilot CLI, Default Approvals, Worktree, branch): icon-only */
+	.new-chat-widget-container .new-chat-bottom-container .sessions-chat-dropdown-label {
+		display: none;
+	}
+
+	/* Chat input config toolbar: hide mode picker label (uses sessions-chat-dropdown-label),
+	 * but keep the model picker label (uses chat-input-picker-label) visible. */
+	.new-chat-widget-container .sessions-chat-config-toolbar .sessions-chat-dropdown-label {
+		display: none;
+	}
+}
+
+/* Spacing between action items inside the bottom-row toolbars (e.g. Worktree, branch) */
+.new-chat-widget-container .new-chat-bottom-container .monaco-action-bar .actions-container {
+	gap: 4px;
+}
+
+/* Match VS Code chat-secondary-toolbar sizing for action items in the bottom row
+ * (e.g. session control pickers and repo config pickers) so they align with the
+ * mode/model picker font in the input toolbar. The 1px right padding is intentional
+ * because the chevron's 16x16 codicon box supplies the visual right padding. */
+.new-chat-widget-container .new-chat-bottom-container .action-label {
+	height: 16px;
+	padding: 3px 1px 3px 7px;
+	font-size: 11px;
+	color: var(--vscode-icon-foreground);
+}
+
+.new-chat-widget-container .new-chat-bottom-container .action-label > .codicon {
+	font-size: 12px;
+}
+
+.new-chat-widget-container .new-chat-bottom-container .action-label > .codicon-chevron-down {
+	font-size: 10px;
+	margin-left: 4px;
 }
 
 .chat-controls-container .monaco-editor-background {
@@ -168,7 +240,11 @@
 }
 
 .sessions-chat-dropdown-label {
-	margin-left: 4px;
+	margin-left: 6px;
+	overflow: hidden;
+	text-overflow: ellipsis;
+	white-space: nowrap;
+	min-width: 0;
 }
 
 .sessions-chat-picker-slot {
@@ -182,11 +258,10 @@
 	display: flex;
 	align-items: center;
 	height: 16px;
-	padding: 3px 3px 3px 6px;
+	padding: 3px 1px 3px 7px;
 	background-color: transparent;
 	border: none;
 	color: var(--vscode-icon-foreground);
-	font-size: 13px;
 	cursor: pointer;
 	touch-action: manipulation;
 	white-space: nowrap;
@@ -245,18 +320,24 @@
 }
 
 .sessions-chat-picker-slot .action-label .codicon {
-	font-size: 14px;
+	font-size: 12px;
 	flex-shrink: 0;
+	/* Override the base .monaco-action-bar .action-item .codicon { width:16px; height:16px }
+	 * so codicons here size naturally to their font-size, matching pickers (like Copilot CLI)
+	 * that are rendered outside a monaco-action-bar. */
+	width: auto;
+	height: auto;
 }
 
 .sessions-chat-picker-slot .action-label .codicon-chevron-down {
 	display: inline-flex;
 	align-items: center;
 	justify-content: center;
-	font-size: 12px;
-	margin-left: 6px;
+	font-size: 10px;
+	margin-left: 2px;
 	line-height: 1;
-	transform: translateY(1px);
+	width: 12px;
+	height: 12px;
 }
 
 .sessions-chat-picker-slot .action-label .chat-session-option-label {
diff --git a/src/vs/sessions/contrib/chat/browser/media/newChatInSession.css b/src/vs/sessions/contrib/chat/browser/media/newChatInSession.css
index 4952777247b..88b335086c6 100644
--- a/src/vs/sessions/contrib/chat/browser/media/newChatInSession.css
+++ b/src/vs/sessions/contrib/chat/browser/media/newChatInSession.css
@@ -16,7 +16,10 @@
 .new-chat-in-session .new-chat-widget-content {
 	width: 100%;
 	max-width: 950px;
-	margin: 0 auto !important;
+	/* Left-align (rather than centering with `margin: 0 auto`) so the input's
+	 * left edge — and therefore the attach (+) button — stays anchored as the
+	 * viewport narrows past max-width. */
+	margin: 0 !important;
 	padding: 4px 10px !important;
 	box-sizing: border-box;
 }
@@ -95,7 +98,7 @@
 }
 
 .new-chat-in-session .sessions-chat-dropdown-label {
-	margin-left: 4px;
+	margin-left: 6px;
 }
 
 /* Disable fade-in animations — show content immediately */
diff --git a/src/vs/sessions/contrib/chat/browser/newChatInput.ts b/src/vs/sessions/contrib/chat/browser/newChatInput.ts
index c4ad8638e37..60be30e4786 100644
--- a/src/vs/sessions/contrib/chat/browser/newChatInput.ts
+++ b/src/vs/sessions/contrib/chat/browser/newChatInput.ts
@@ -59,6 +59,39 @@ interface IDraftState {
 	attachments: readonly IChatRequestVariableEntry[];
 }
 
+/**
+ * Randomized, friendly placeholders shown in the new-session chat input
+ * to add a bit of personality. One is picked per widget instance, avoiding
+ * an immediate repeat of the previous pick.
+ */
+const RANDOM_PLACEHOLDERS = [
+	localize('sessionsChatInput.placeholder.whatAreYouBuilding', "What are you building?"),
+	localize('sessionsChatInput.placeholder.whatWillYouShipToday', "What will you ship today?"),
+	localize('sessionsChatInput.placeholder.describeWhatYouWantToBuild', "Describe what you want to build"),
+	localize('sessionsChatInput.placeholder.whatsYourNextMilestone', "What's your next milestone?"),
+	localize('sessionsChatInput.placeholder.whatAreYouTryingToAchieve', "What are you trying to achieve?"),
+	localize('sessionsChatInput.placeholder.pitchYourIdea', "Pitch your idea"),
+	localize('sessionsChatInput.placeholder.whatsTheGoal', "What's the goal?"),
+	localize('sessionsChatInput.placeholder.whatWillYouCreate', "What will you create?"),
+	localize('sessionsChatInput.placeholder.whatFeatureAreYouDreamingUp', "What feature are you dreaming up?"),
+	localize('sessionsChatInput.placeholder.describeTheOutcome', "Describe the outcome you want"),
+	localize('sessionsChatInput.placeholder.whatProblemAreYouSolving', "What problem are you solving?"),
+	localize('sessionsChatInput.placeholder.whatsNextOnYourRoadmap', "What's next on your roadmap?"),
+	localize('sessionsChatInput.placeholder.whatWouldYouLikeToAutomate', "What would you like to automate?"),
+	localize('sessionsChatInput.placeholder.whatWillYouLaunch', "What will you launch?"),
+	localize('sessionsChatInput.placeholder.describeYourMission', "Describe your mission"),
+];
+
+let lastPlaceholderIndex = -1;
+function getRandomChatInputPlaceholder(): string {
+	let index = Math.floor(Math.random() * RANDOM_PLACEHOLDERS.length);
+	if (index === lastPlaceholderIndex) {
+		index = (index + 1) % RANDOM_PLACEHOLDERS.length;
+	}
+	lastPlaceholderIndex = index;
+	return RANDOM_PLACEHOLDERS[index];
+}
+
 // #region --- New Chat Widget ---
 
 export class NewChatInputWidget extends Disposable implements IHistoryNavigationWidget {
@@ -232,7 +265,7 @@ export class NewChatInputWidget extends Disposable implements IHistoryNavigation
 			...getSimpleEditorOptions(this.configurationService),
 			readOnly: false,
 			ariaLabel: this._getAriaLabel(),
-			placeholder: this.options.placeholder,
+			placeholder: this.options.placeholder ?? getRandomChatInputPlaceholder(),
 			fontFamily: 'system-ui, -apple-system, sans-serif',
 			fontSize: 13,
 			lineHeight: 20,
@@ -384,7 +417,7 @@ export class NewChatInputWidget extends Disposable implements IHistoryNavigation
 			title: localize('send', "Send"),
 			ariaLabel: localize('send', "Send"),
 		}));
-		sendButton.icon = Codicon.send;
+		sendButton.icon = Codicon.arrowUp;
 		this._register(sendButton.onDidClick(() => this._send()));
 	}
 
diff --git a/src/vs/sessions/contrib/chat/browser/sessionTypePicker.ts b/src/vs/sessions/contrib/chat/browser/sessionTypePicker.ts
index 281eaec54bc..a5b3caabcc5 100644
--- a/src/vs/sessions/contrib/chat/browser/sessionTypePicker.ts
+++ b/src/vs/sessions/contrib/chat/browser/sessionTypePicker.ts
@@ -4,6 +4,7 @@
  *--------------------------------------------------------------------------------------------*/
 
 import * as dom from '../../../../base/browser/dom.js';
+import { Gesture, EventType as TouchEventType } from '../../../../base/browser/touch.js';
 import { Codicon } from '../../../../base/common/codicons.js';
 import { Disposable, DisposableStore } from '../../../../base/common/lifecycle.js';
 import { renderIcon } from '../../../../base/browser/ui/iconLabel/iconLabels.js';
@@ -81,10 +82,13 @@ export class SessionTypePicker extends Disposable {
 		this._triggerElement = trigger;
 		this._updateTriggerLabel();
 
-		this._renderDisposables.add(dom.addDisposableListener(trigger, dom.EventType.CLICK, (e) => {
-			dom.EventHelper.stop(e, true);
-			this._showPicker();
-		}));
+		this._renderDisposables.add(Gesture.addTarget(trigger));
+		for (const eventType of [dom.EventType.CLICK, TouchEventType.Tap]) {
+			this._renderDisposables.add(dom.addDisposableListener(trigger, eventType, (e) => {
+				dom.EventHelper.stop(e, true);
+				this._showPicker();
+			}));
+		}
 
 		this._renderDisposables.add(dom.addDisposableListener(trigger, dom.EventType.KEY_DOWN, (e) => {
 			if (e.key === 'Enter' || e.key === ' ') {
diff --git a/src/vs/sessions/contrib/chat/browser/sessionWorkspacePicker.ts b/src/vs/sessions/contrib/chat/browser/sessionWorkspacePicker.ts
index 5d05396bfb1..5ff4dcc58eb 100644
--- a/src/vs/sessions/contrib/chat/browser/sessionWorkspacePicker.ts
+++ b/src/vs/sessions/contrib/chat/browser/sessionWorkspacePicker.ts
@@ -4,6 +4,7 @@
  *--------------------------------------------------------------------------------------------*/
 
 import * as dom from '../../../../base/browser/dom.js';
+import * as touch from '../../../../base/browser/touch.js';
 import { IAction, SubmenuAction, toAction } from '../../../../base/common/actions.js';
 import { Codicon } from '../../../../base/common/codicons.js';
 import { Emitter, Event } from '../../../../base/common/event.js';
@@ -160,10 +161,13 @@ export class WorkspacePicker extends Disposable {
 
 		this._updateTriggerLabel();
 
-		this._renderDisposables.add(dom.addDisposableListener(trigger, dom.EventType.CLICK, (e) => {
-			dom.EventHelper.stop(e, true);
-			this.showPicker();
-		}));
+		this._renderDisposables.add(touch.Gesture.addTarget(trigger));
+		[dom.EventType.CLICK, touch.EventType.Tap].forEach(eventType => {
+			this._renderDisposables.add(dom.addDisposableListener(trigger, eventType, (e) => {
+				dom.EventHelper.stop(e, true);
+				this.showPicker();
+			}));
+		});
 
 		this._renderDisposables.add(dom.addDisposableListener(trigger, dom.EventType.KEY_DOWN, (e) => {
 			if (e.key === 'Enter' || e.key === ' ') {
@@ -197,11 +201,10 @@ export class WorkspacePicker extends Disposable {
 					return;
 				}
 				if (item.remoteProvider && item.browseActionIndex === undefined) {
-					if (item.remoteProvider.remoteAddress?.startsWith(TUNNEL_ADDRESS_PREFIX)) {
-						// Disconnected tunnel — trigger connection flow
-						this.commandService.executeCommand('workbench.action.sessions.connectViaTunnel');
-					} else {
-						// Disconnected SSH host — show options menu after widget hides
+					if (!item.remoteProvider.remoteAddress?.startsWith(TUNNEL_ADDRESS_PREFIX)) {
+						// Disconnected SSH host — show options menu after widget hides.
+						// (Disconnected tunnels are rendered as disabled with a
+						// refresh toolbar action, so onSelect doesn't fire for them.)
 						this._showRemoteHostOptionsDelayed(item.remoteProvider);
 					}
 				} else if (item.browseActionIndex !== undefined) {
@@ -437,11 +440,27 @@ export class WorkspacePicker extends Disposable {
 			const status = provider.connectionStatus!.get();
 			const isConnected = status === RemoteAgentHostConnectionStatus.Connected;
 			const providerBrowseIndex = allBrowseActions.findIndex(a => a.providerId === provider.id);
+			const isTunnel = provider.remoteAddress?.startsWith(TUNNEL_ADDRESS_PREFIX);
 
 			const toolbarActions: IAction[] = [];
 
-			// Gear menu only for SSH hosts, not tunnel providers
-			if (!provider.remoteAddress?.startsWith(TUNNEL_ADDRESS_PREFIX)) {
+			if (isTunnel) {
+				// Offline/connecting tunnels: surface a refresh button that
+				// attempts to (re)connect in case the cached status is stale.
+				if (!isConnected && providerBrowseIndex >= 0) {
+					const browseIndex = providerBrowseIndex;
+					toolbarActions.push(toAction({
+						id: `workspacePicker.remote.refresh.${provider.id}`,
+						label: localize('workspacePicker.refreshTunnel', "Attempt to Connect"),
+						class: ThemeIcon.asClassName(Codicon.refresh),
+						run: () => {
+							this.actionWidgetService.hide();
+							this._executeBrowseAction(browseIndex);
+						},
+					}));
+				}
+			} else {
+				// Gear menu only for SSH hosts, not tunnel providers
 				toolbarActions.push(toAction({
 					id: `workspacePicker.remote.gear.${provider.id}`,
 					label: localize('workspacePicker.remoteOptions', "Options"),
@@ -453,15 +472,13 @@ export class WorkspacePicker extends Disposable {
 				}));
 			}
 
-			const isTunnel = provider.remoteAddress?.startsWith(TUNNEL_ADDRESS_PREFIX);
-
 			items.push({
 				kind: ActionListItemKind.Action,
 				label: provider.label,
 				description: this._getStatusDescription(status),
 				hover: { content: this._getStatusHover(status, provider.remoteAddress) },
 				group: { title: '', icon: isTunnel ? Codicon.cloud : Codicon.remote },
-				disabled: isTunnel ? false : !isConnected,
+				disabled: !isConnected,
 				item: {
 					browseActionIndex: isConnected && providerBrowseIndex >= 0 ? providerBrowseIndex : undefined,
 					remoteProvider: provider,
diff --git a/src/vs/sessions/contrib/chat/test/browser/agentHost/agentHostPermissionPickerDelegate.test.ts b/src/vs/sessions/contrib/chat/test/browser/agentHost/agentHostPermissionPickerDelegate.test.ts
new file mode 100644
index 00000000000..a014ef88e11
--- /dev/null
+++ b/src/vs/sessions/contrib/chat/test/browser/agentHost/agentHostPermissionPickerDelegate.test.ts
@@ -0,0 +1,212 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import assert from 'assert';
+import { Emitter, Event } from '../../../../../../base/common/event.js';
+import { DisposableStore } from '../../../../../../base/common/lifecycle.js';
+import { observableValue } from '../../../../../../base/common/observable.js';
+import { mock } from '../../../../../../base/test/common/mock.js';
+import { ensureNoDisposablesAreLeakedInTestSuite } from '../../../../../../base/test/common/utils.js';
+import { TestInstantiationService } from '../../../../../../platform/instantiation/test/common/instantiationServiceMock.js';
+import { IResolveSessionConfigResult, ISessionConfigPropertySchema } from '../../../../../../platform/agentHost/common/state/protocol/commands.js';
+import { ChatPermissionLevel } from '../../../../../../workbench/contrib/chat/common/constants.js';
+import { AgentHostPermissionPickerDelegate, isWellKnownAutoApproveSchema } from '../../../browser/agentHost/agentHostPermissionPickerDelegate.js';
+import { IAgentHostSessionsProvider } from '../../../../../common/agentHostSessionsProvider.js';
+import { ISessionsProvidersChangeEvent, ISessionsProvidersService } from '../../../../../services/sessions/browser/sessionsProvidersService.js';
+import { ISessionsProvider } from '../../../../../services/sessions/common/sessionsProvider.js';
+import { IActiveSession, ISessionsManagementService } from '../../../../../services/sessions/common/sessionsManagement.js';
+
+const PROVIDER_ID = 'local-agent-host';
+const SESSION_ID = 'local-agent-host:s1';
+
+function makeWellKnownConfig(value: string | undefined): IResolveSessionConfigResult {
+	return {
+		schema: {
+			type: 'object',
+			properties: {
+				autoApprove: {
+					title: 'Auto Approve',
+					description: '',
+					type: 'string',
+					enum: ['default', 'autoApprove', 'autopilot'],
+					sessionMutable: true,
+				},
+			},
+		},
+		values: value === undefined ? {} : { autoApprove: value },
+	} as IResolveSessionConfigResult;
+}
+
+class FakeProvider implements Pick<IAgentHostSessionsProvider, 'id' | 'onDidChangeSessionConfig' | 'getSessionConfig' | 'setSessionConfigValue'> {
+	readonly id: string = PROVIDER_ID;
+	private readonly _onDidChange = new Emitter<string>();
+	readonly onDidChangeSessionConfig: Event<string> = this._onDidChange.event;
+
+	config: IResolveSessionConfigResult | undefined;
+	readonly setCalls: Array<[string, string, string]> = [];
+
+	getSessionConfig(_sessionId: string): IResolveSessionConfigResult | undefined {
+		return this.config;
+	}
+	async setSessionConfigValue(sessionId: string, property: string, value: string): Promise<void> {
+		this.setCalls.push([sessionId, property, value]);
+	}
+	fireChange(sessionId: string = SESSION_ID): void {
+		this._onDidChange.fire(sessionId);
+	}
+	dispose(): void {
+		this._onDidChange.dispose();
+	}
+}
+
+interface ITestRig {
+	readonly delegate: AgentHostPermissionPickerDelegate;
+	readonly provider: FakeProvider;
+	readonly activeSessionObs: ReturnType<typeof observableValue<IActiveSession | undefined>>;
+}
+
+function setup(store: Pick<DisposableStore, 'add'>, activeSession: IActiveSession | undefined, configValue?: string): ITestRig {
+	const provider = new FakeProvider();
+	store.add({ dispose: () => provider.dispose() });
+	if (configValue !== undefined) {
+		provider.config = makeWellKnownConfig(configValue);
+	}
+	const onDidChangeProviders = store.add(new Emitter<ISessionsProvidersChangeEvent>());
+	const sessionsProvidersService = new (class extends mock<ISessionsProvidersService>() {
+		override readonly onDidChangeProviders = onDidChangeProviders.event;
+		override getProviders(): ISessionsProvider[] { return [provider as unknown as ISessionsProvider]; }
+		override getProvider<T extends ISessionsProvider>(id: string): T | undefined {
+			return id === provider.id ? (provider as unknown as T) : undefined;
+		}
+	})();
+	const activeSessionObs = observableValue<IActiveSession | undefined>('activeSession', activeSession);
+	const sessionsManagementService = new (class extends mock<ISessionsManagementService>() {
+		override readonly activeSession = activeSessionObs;
+	})();
+
+	const insta = store.add(new TestInstantiationService());
+	insta.set(ISessionsManagementService, sessionsManagementService);
+	insta.set(ISessionsProvidersService, sessionsProvidersService);
+
+	const delegate = store.add(insta.createInstance(AgentHostPermissionPickerDelegate));
+	return { delegate, provider, activeSessionObs };
+}
+
+function makeActiveSession(): IActiveSession {
+	return { providerId: PROVIDER_ID, sessionId: SESSION_ID } as IActiveSession;
+}
+
+suite('AgentHostPermissionPickerDelegate', () => {
+	const store = ensureNoDisposablesAreLeakedInTestSuite();
+
+	test('returns Default when there is no active session', () => {
+		const { delegate } = setup(store, undefined);
+
+		assert.strictEqual(delegate.currentPermissionLevel.get(), ChatPermissionLevel.Default);
+	});
+
+	test('returns Default when the active session has no config seeded yet', () => {
+		const { delegate } = setup(store, makeActiveSession());
+
+		assert.strictEqual(delegate.currentPermissionLevel.get(), ChatPermissionLevel.Default);
+	});
+
+	test('reflects the active session\'s autoApprove value and updates on provider change', () => {
+		const { delegate, provider } = setup(store, makeActiveSession(), 'autoApprove');
+
+		assert.strictEqual(delegate.currentPermissionLevel.get(), ChatPermissionLevel.AutoApprove);
+
+		provider.config = makeWellKnownConfig('autopilot');
+		provider.fireChange();
+		assert.strictEqual(delegate.currentPermissionLevel.get(), ChatPermissionLevel.Autopilot);
+
+		provider.config = makeWellKnownConfig('default');
+		provider.fireChange();
+		assert.strictEqual(delegate.currentPermissionLevel.get(), ChatPermissionLevel.Default);
+	});
+
+	test('falls back to Default when the stored value is unrecognized', () => {
+		const { delegate } = setup(store, makeActiveSession(), 'something-else');
+
+		assert.strictEqual(delegate.currentPermissionLevel.get(), ChatPermissionLevel.Default);
+	});
+
+	test('setPermissionLevel writes through to the active session\'s provider', () => {
+		const { delegate, provider } = setup(store, makeActiveSession(), 'default');
+
+		delegate.setPermissionLevel(ChatPermissionLevel.AutoApprove);
+		delegate.setPermissionLevel(ChatPermissionLevel.Autopilot);
+
+		assert.deepStrictEqual(provider.setCalls, [
+			[SESSION_ID, 'autoApprove', 'autoApprove'],
+			[SESSION_ID, 'autoApprove', 'autopilot'],
+		]);
+	});
+
+	test('setPermissionLevel is a no-op when there is no active session', () => {
+		const { delegate, provider } = setup(store, undefined);
+
+		delegate.setPermissionLevel(ChatPermissionLevel.AutoApprove);
+
+		assert.deepStrictEqual(provider.setCalls, []);
+	});
+
+	test('isApplicable reacts to active session and config changes', () => {
+		const { delegate, provider, activeSessionObs } = setup(store, undefined);
+
+		// No active session → false
+		assert.strictEqual(delegate.isApplicable.get(), false);
+
+		// Active session, no config seeded → false
+		activeSessionObs.set(makeActiveSession(), undefined);
+		assert.strictEqual(delegate.isApplicable.get(), false);
+
+		// Active session with well-known schema → true
+		provider.config = makeWellKnownConfig('default');
+		provider.fireChange();
+		assert.strictEqual(delegate.isApplicable.get(), true);
+
+		// Active session cleared → false (covers the 'back to new chat view' regression)
+		activeSessionObs.set(undefined, undefined);
+		assert.strictEqual(delegate.isApplicable.get(), false);
+	});
+});
+
+suite('isWellKnownAutoApproveSchema', () => {
+	ensureNoDisposablesAreLeakedInTestSuite();
+
+	function schema(overrides: Partial<ISessionConfigPropertySchema> = {}): ISessionConfigPropertySchema {
+		return {
+			title: 'Auto Approve',
+			description: 'desc',
+			type: 'string',
+			enum: ['default', 'autoApprove', 'autopilot'],
+			...overrides,
+		} as ISessionConfigPropertySchema;
+	}
+
+	test('matches the canonical three-value enum', () => {
+		assert.strictEqual(isWellKnownAutoApproveSchema(schema()), true);
+	});
+
+	test('matches a subset that still contains "default"', () => {
+		assert.strictEqual(isWellKnownAutoApproveSchema(schema({ enum: ['default', 'autoApprove'] })), true);
+		assert.strictEqual(isWellKnownAutoApproveSchema(schema({ enum: ['default'] })), true);
+	});
+
+	test('rejects schemas missing the required "default" value', () => {
+		assert.strictEqual(isWellKnownAutoApproveSchema(schema({ enum: ['autoApprove', 'autopilot'] })), false);
+	});
+
+	test('rejects schemas with unknown enum values', () => {
+		assert.strictEqual(isWellKnownAutoApproveSchema(schema({ enum: ['default', 'custom'] })), false);
+	});
+
+	test('rejects non-string types and missing/empty enums', () => {
+		assert.strictEqual(isWellKnownAutoApproveSchema(schema({ type: 'number' as 'string' })), false);
+		assert.strictEqual(isWellKnownAutoApproveSchema(schema({ enum: undefined })), false);
+		assert.strictEqual(isWellKnownAutoApproveSchema(schema({ enum: [] })), false);
+	});
+});
diff --git a/src/vs/sessions/contrib/configuration/browser/configuration.contribution.ts b/src/vs/sessions/contrib/configuration/browser/configuration.contribution.ts
index fc87e877179..a441cc2871b 100644
--- a/src/vs/sessions/contrib/configuration/browser/configuration.contribution.ts
+++ b/src/vs/sessions/contrib/configuration/browser/configuration.contribution.ts
@@ -6,7 +6,7 @@
 import { ConfigurationScope, Extensions, IConfigurationRegistry } from '../../../../platform/configuration/common/configurationRegistry.js';
 import { localize } from '../../../../nls.js';
 import { Registry } from '../../../../platform/registry/common/platform.js';
-import { SessionsExperimentalShellGradientBackgroundSettingId } from '../../../common/configuration.js';
+import { SessionsExperimentalSendButtonGradientSettingId, SessionsExperimentalShellGradientBackgroundSettingId } from '../../../common/configuration.js';
 import { ThemeSettingDefaults } from '../../../../workbench/services/themes/common/workbenchThemeService.js';
 
 Registry.as<IConfigurationRegistry>(Extensions.Configuration).registerConfiguration({
@@ -19,6 +19,13 @@ Registry.as<IConfigurationRegistry>(Extensions.Configuration).registerConfigurat
 			tags: ['experimental'],
 			description: localize('sessions.experimental.shellGradientBackground', "Whether to enable the experimental accent-tinted shell background in the Sessions window."),
 		},
+		[SessionsExperimentalSendButtonGradientSettingId]: {
+			type: 'boolean',
+			default: false,
+			scope: ConfigurationScope.APPLICATION,
+			tags: ['experimental'],
+			description: localize('sessions.experimental.sendButtonGradient', "Whether to show a colorful animated gradient on the chat send button in the Sessions window. The button shows a slowly rotating gradient ring at rest, fills with a cycling color on hover, and emits a color pulse on click."),
+		},
 	},
 });
 
@@ -41,6 +48,7 @@ Registry.as<IConfigurationRegistry>(Extensions.Configuration).registerDefaultCon
 
 		'diffEditor.hideUnchangedRegions.enabled': true,
 		'diffEditor.renderGutterMenu': false,
+		'diffEditor.renderIndicators': false,
 		'diffEditor.renderMarginRevertIcon': false,
 		'diffEditor.renderSideBySide': true,
 		'diffEditor.useInlineViewWhenSpaceIsLimited': true,
diff --git a/src/vs/sessions/contrib/copilotChatSessions/COPILOT_CHAT_SESSIONS_PROVIDER.md b/src/vs/sessions/contrib/copilotChatSessions/COPILOT_CHAT_SESSIONS_PROVIDER.md
index b94223b688f..f62bc4c2fc1 100644
--- a/src/vs/sessions/contrib/copilotChatSessions/COPILOT_CHAT_SESSIONS_PROVIDER.md
+++ b/src/vs/sessions/contrib/copilotChatSessions/COPILOT_CHAT_SESSIONS_PROVIDER.md
@@ -2,7 +2,7 @@
 
 **File:** `src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessionsProvider.ts`
 
-The default sessions provider, registered with ID `'default-copilot'`. Wraps the existing agent session infrastructure into the extensible provider model. Supports two session types: **Copilot CLI** (local) and **Copilot Cloud** (remote).
+The default sessions provider, registered with ID `'default-copilot'`. Wraps the existing agent session infrastructure into the extensible provider model. Supports three session types: **Copilot CLI** (local), **Copilot Cloud** (remote), and **Claude** (local, gated by `sessions.chatSessions.claude.enabled`).
 
 ## Registration
 
@@ -28,7 +28,7 @@ class DefaultSessionsProviderContribution extends Disposable {
 | `id` | `'default-copilot'` |
 | `label` | `'Copilot Chat'` |
 | `icon` | `Codicon.copilot` |
-| `sessionTypes` | `[CopilotCLISessionType, CopilotCloudSessionType]` |
+| `sessionTypes` | `[CopilotCLISessionType, CopilotCloudSessionType]` (+ `ClaudeCodeSessionType` when enabled) |
 
 ## Browse Actions
 
@@ -53,6 +53,12 @@ When `createNewSession(workspace)` is called, the provider creates one of two co
 - Provides `getModelOptionGroup()`, `getOtherOptionGroups()` for UI to render provider-specific pickers
 - Watches context key changes to dynamically show/hide option groups
 
+**`ClaudeCodeNewSession`** — For Claude agent sessions (local `file://` workspaces):
+- Implements `ISession` with simplified configuration (Claude manages its own worktrees and branches)
+- No-ops for `setIsolationMode()` and `setBranch()`
+- `setOption()` writes to `selectedOptions` map; options are propagated to `IChatSessionsService` during `_sendFirstChat()` via `updateSessionOptions()`
+- Gated by the `sessions.chatSessions.claude.enabled` setting (default: `false`)
+
 ## `AgentSessionAdapter` — Wrapping Existing Sessions
 
 Adapts an existing `IAgentSession` from the chat layer into the `ISession` facade:
@@ -72,7 +78,7 @@ The provider maintains a `Map<string, AgentSessionAdapter>` cache keyed by resou
 
 ## Send Flow
 
-1. Validate the session is a current new session (`CopilotCLISession` or `RemoteNewSession`)
+1. Validate the session is a current new session (`CopilotCLISession`, `RemoteNewSession`, or `ClaudeCodeNewSession`)
 2. For the first chat, call `_sendFirstChat()`:
    a. Resolve mode, permission level, and send options from session configuration
    b. Open the chat widget via `IChatWidgetService.openSession()`
@@ -84,3 +90,70 @@ The provider maintains a `Map<string, AgentSessionAdapter>` cache keyed by resou
 3. For subsequent chats (if `capabilities.supportsMultipleChats` enabled on the session), call `_sendSubsequentChat()`
 4. Wrap the new agent session as `AgentSessionAdapter` and return it
 5. Clear the current new session reference
+
+## New-Session Picker Contribution Model
+
+**File:** `src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessionsActions.ts`
+
+The welcome/new-session view (`NewChatInputWidget`) renders three toolbar menus for configuration pickers. Each picker requires a three-part registration:
+
+1. **Menu action** — `registerAction2()` with a `when` clause gating it to the correct session type
+2. **Action view item** — `actionViewItemService.register()` to provide a custom widget instead of a button
+3. **Picker widget** — A `Disposable` class with a `render(container)` method, wrapped in `PickerActionViewItem`
+
+### Toolbar Menus
+
+| Menu | Purpose | Examples |
+|------|---------|----------|
+| `Menus.NewSessionConfig` | Session configuration (mode, model) | `ModePicker`, `CloudModelPicker`, local model picker |
+| `Menus.NewSessionControl` | Session controls (permissions) | `PermissionPicker`, `ClaudePermissionModePicker` |
+| `Menus.NewSessionRepositoryConfig` | Repository configuration | `IsolationPicker`, `BranchPicker` |
+
+### Context Key Gating
+
+Each picker action uses a `when` clause to show only for the correct session type:
+
+| Expression | Matches |
+|------------|---------|
+| `IsActiveSessionCopilotChatCLI` | Copilot CLI sessions |
+| `IsActiveSessionCopilotChatCloud` | Copilot Cloud sessions |
+| `IsActiveSessionCopilotChatClaudeCode` | Claude sessions |
+
+These are composed from `ActiveSessionTypeContext` (the session type ID) and `ActiveSessionProviderIdContext` (the provider ID).
+
+### Adding a New Picker
+
+```typescript
+// 1. Register the menu action with a when clause
+registerAction2(class extends Action2 {
+    constructor() {
+        super({
+            id: 'sessions.defaultCopilot.myPicker',
+            title: localize2('myPicker', "My Picker"),
+            f1: false,
+            menu: [{
+                id: Menus.NewSessionControl, // or NewSessionConfig, NewSessionRepositoryConfig
+                group: 'navigation',
+                order: 1,
+                when: IsActiveSessionCopilotChatCLI, // gate to session type
+            }],
+        });
+    }
+    override async run(): Promise<void> { /* handled by action view item */ }
+});
+
+// 2. Register the action view item (in CopilotPickerActionViewItemContribution)
+this._register(actionViewItemService.register(
+    Menus.NewSessionControl, 'sessions.defaultCopilot.myPicker',
+    () => {
+        const picker = instantiationService.createInstance(MyPicker);
+        return new PickerActionViewItem(picker);
+    },
+));
+```
+
+### Current Limitations
+
+The picker model is currently **hardcoded per session type**. Each session type that needs pickers must register its own actions and widgets with appropriate `when` clauses. For example, the Copilot CLI permission picker (`PermissionPicker`) and the Claude permission mode picker (`ClaudePermissionModePicker`) are separate, hardcoded widgets even though they serve a similar purpose.
+
+Ideally, pickers would be **generic and contributable** — a session type would declare its option groups (as the Claude extension already does via `IChatSessionsService.setOptionGroupsForSessionType()`), and the welcome view would dynamically render pickers from those groups without needing per-type widget classes. The active-session chat widget (`chatInputPart.ts`) already has this generic infrastructure via `createChatSessionPickerWidgets()`, but the welcome view does not yet use it. Until the welcome view adopts this pattern, new session types must follow the hardcoded approach above.
diff --git a/src/vs/sessions/contrib/copilotChatSessions/browser/branchPicker.ts b/src/vs/sessions/contrib/copilotChatSessions/browser/branchPicker.ts
index 61bd15c3bf5..ef948ec88bd 100644
--- a/src/vs/sessions/contrib/copilotChatSessions/browser/branchPicker.ts
+++ b/src/vs/sessions/contrib/copilotChatSessions/browser/branchPicker.ts
@@ -4,6 +4,7 @@
  *--------------------------------------------------------------------------------------------*/
 
 import * as dom from '../../../../base/browser/dom.js';
+import { Gesture, EventType as TouchEventType } from '../../../../base/browser/touch.js';
 import { Codicon } from '../../../../base/common/codicons.js';
 import { Disposable, DisposableStore } from '../../../../base/common/lifecycle.js';
 import { autorun } from '../../../../base/common/observable.js';
@@ -75,10 +76,13 @@ export class BranchPicker extends Disposable {
 		this._triggerElement = trigger;
 		this._updateTriggerLabel();
 
-		this._renderDisposables.add(dom.addDisposableListener(trigger, dom.EventType.CLICK, (e) => {
-			dom.EventHelper.stop(e, true);
-			this.showPicker();
-		}));
+		this._renderDisposables.add(Gesture.addTarget(trigger));
+		for (const eventType of [dom.EventType.CLICK, TouchEventType.Tap]) {
+			this._renderDisposables.add(dom.addDisposableListener(trigger, eventType, (e) => {
+				dom.EventHelper.stop(e, true);
+				this.showPicker();
+			}));
+		}
 
 		this._renderDisposables.add(dom.addDisposableListener(trigger, dom.EventType.KEY_DOWN, (e) => {
 			if (e.key === 'Enter' || e.key === ' ') {
diff --git a/src/vs/sessions/contrib/copilotChatSessions/browser/claudePermissionModePicker.ts b/src/vs/sessions/contrib/copilotChatSessions/browser/claudePermissionModePicker.ts
new file mode 100644
index 00000000000..70e56549575
--- /dev/null
+++ b/src/vs/sessions/contrib/copilotChatSessions/browser/claudePermissionModePicker.ts
@@ -0,0 +1,162 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import * as dom from '../../../../base/browser/dom.js';
+import { Gesture, EventType as TouchEventType } from '../../../../base/browser/touch.js';
+import { renderIcon } from '../../../../base/browser/ui/iconLabel/iconLabels.js';
+import { Codicon } from '../../../../base/common/codicons.js';
+import { Disposable, DisposableStore } from '../../../../base/common/lifecycle.js';
+import { ThemeIcon } from '../../../../base/common/themables.js';
+import { localize } from '../../../../nls.js';
+import { IActionWidgetService } from '../../../../platform/actionWidget/browser/actionWidget.js';
+import { ActionListItemKind, IActionListDelegate, IActionListItem, IActionListOptions } from '../../../../platform/actionWidget/browser/actionList.js';
+import { ISessionsManagementService } from '../../../services/sessions/common/sessionsManagement.js';
+import { ISessionsProvidersService } from '../../../services/sessions/browser/sessionsProvidersService.js';
+import { CopilotChatSessionsProvider } from './copilotChatSessionsProvider.js';
+
+const PERMISSION_MODE_OPTION_ID = 'permissionMode';
+
+interface IClaudePermissionModeItem {
+	readonly id: string;
+	readonly label: string;
+	readonly description: string;
+	readonly icon: ThemeIcon;
+}
+
+const permissionModes: IClaudePermissionModeItem[] = [
+	{
+		id: 'default',
+		label: localize('claude.permissionMode.default', "Ask Before Edits"),
+		description: localize('claude.permissionMode.default.description', "Claude asks for approval before making changes"),
+		icon: Codicon.shield,
+	},
+	{
+		id: 'acceptEdits',
+		label: localize('claude.permissionMode.acceptEdits', "Edit Automatically"),
+		description: localize('claude.permissionMode.acceptEdits.description', "Claude edits files without asking"),
+		icon: Codicon.edit,
+	},
+	{
+		id: 'plan',
+		label: localize('claude.permissionMode.plan', "Plan Mode"),
+		description: localize('claude.permissionMode.plan.description', "Claude creates a plan before making changes"),
+		icon: Codicon.lightbulb,
+	},
+];
+
+export class ClaudePermissionModePicker extends Disposable {
+
+	private _currentModeId = 'acceptEdits';
+	private _triggerElement: HTMLElement | undefined;
+	private readonly _renderDisposables = this._register(new DisposableStore());
+
+	constructor(
+		@IActionWidgetService private readonly actionWidgetService: IActionWidgetService,
+		@ISessionsManagementService private readonly sessionsManagementService: ISessionsManagementService,
+		@ISessionsProvidersService private readonly sessionsProvidersService: ISessionsProvidersService,
+	) {
+		super();
+	}
+
+	render(container: HTMLElement): HTMLElement {
+		this._renderDisposables.clear();
+
+		const slot = dom.append(container, dom.$('.sessions-chat-picker-slot'));
+		this._renderDisposables.add({ dispose: () => slot.remove() });
+
+		const trigger = dom.append(slot, dom.$('a.action-label'));
+		trigger.tabIndex = 0;
+		trigger.role = 'button';
+		this._triggerElement = trigger;
+
+		this._updateTriggerLabel(trigger);
+
+		this._renderDisposables.add(Gesture.addTarget(trigger));
+		for (const eventType of [dom.EventType.CLICK, TouchEventType.Tap]) {
+			this._renderDisposables.add(dom.addDisposableListener(trigger, eventType, (e) => {
+				dom.EventHelper.stop(e, true);
+				this._showPicker();
+			}));
+		}
+
+		this._renderDisposables.add(dom.addDisposableListener(trigger, dom.EventType.KEY_DOWN, (e) => {
+			if (e.key === 'Enter' || e.key === ' ') {
+				dom.EventHelper.stop(e, true);
+				this._showPicker();
+			}
+		}));
+
+		return slot;
+	}
+
+	private _showPicker(): void {
+		if (!this._triggerElement || this.actionWidgetService.isVisible) {
+			return;
+		}
+
+		const items: IActionListItem<IClaudePermissionModeItem>[] = permissionModes.map(mode => ({
+			kind: ActionListItemKind.Action,
+			group: { kind: ActionListItemKind.Header, title: '', icon: mode.icon },
+			item: mode,
+			label: mode.label,
+			description: mode.description,
+			disabled: false,
+		}));
+
+		const triggerElement = this._triggerElement;
+		const delegate: IActionListDelegate<IClaudePermissionModeItem> = {
+			onSelect: (item) => {
+				this.actionWidgetService.hide();
+				this._selectMode(item);
+			},
+			onHide: () => { triggerElement.focus(); },
+		};
+
+		const listOptions: IActionListOptions = { descriptionBelow: true, minWidth: 255 };
+		this.actionWidgetService.show<IClaudePermissionModeItem>(
+			'claudePermissionModePicker',
+			false,
+			items,
+			delegate,
+			this._triggerElement,
+			undefined,
+			[],
+			{
+				getWidgetAriaLabel: () => localize('claudePermissionModePicker.ariaLabel', "Permission Mode"),
+			},
+			listOptions,
+		);
+	}
+
+	private _selectMode(mode: IClaudePermissionModeItem): void {
+		this._currentModeId = mode.id;
+		this._updateTriggerLabel(this._triggerElement);
+
+		const session = this.sessionsManagementService.activeSession.get();
+		if (!session) {
+			return;
+		}
+		const provider = this.sessionsProvidersService.getProvider(session.providerId);
+		if (provider instanceof CopilotChatSessionsProvider) {
+			provider.getSession(session.sessionId)?.setOption?.(PERMISSION_MODE_OPTION_ID, { id: mode.id, name: mode.label });
+		}
+	}
+
+	private _updateTriggerLabel(trigger: HTMLElement | undefined): void {
+		if (!trigger) {
+			return;
+		}
+
+		dom.clearNode(trigger);
+		const currentMode = permissionModes.find(m => m.id === this._currentModeId) ?? permissionModes[1];
+
+		dom.append(trigger, renderIcon(currentMode.icon));
+		const labelSpan = dom.append(trigger, dom.$('span.sessions-chat-dropdown-label'));
+		labelSpan.textContent = currentMode.label;
+		dom.append(trigger, renderIcon(Codicon.chevronDown));
+
+		trigger.ariaLabel = localize('claudePermissionModePicker.triggerAriaLabel', "Pick Permission Mode, {0}", currentMode.label);
+	}
+}
diff --git a/src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessions.contribution.ts b/src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessions.contribution.ts
index b5ce2480e97..e93478001fe 100644
--- a/src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessions.contribution.ts
+++ b/src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessions.contribution.ts
@@ -6,7 +6,7 @@
 import { IWorkbenchContribution, registerWorkbenchContribution2, WorkbenchPhase } from '../../../../workbench/common/contributions.js';
 import { IInstantiationService } from '../../../../platform/instantiation/common/instantiation.js';
 import { Disposable } from '../../../../base/common/lifecycle.js';
-import { CopilotChatSessionsProvider, COPILOT_MULTI_CHAT_SETTING } from '../../copilotChatSessions/browser/copilotChatSessionsProvider.js';
+import { CopilotChatSessionsProvider, COPILOT_MULTI_CHAT_SETTING, CLAUDE_CODE_ENABLED_SETTING } from '../../copilotChatSessions/browser/copilotChatSessionsProvider.js';
 import '../../copilotChatSessions/browser/copilotChatSessionsActions.js';
 import { ISessionsProvidersService } from '../../../services/sessions/browser/sessionsProvidersService.js';
 import { Registry } from '../../../../platform/registry/common/platform.js';
@@ -24,6 +24,12 @@ Registry.as<IConfigurationRegistry>(ConfigurationExtensions.Configuration).regis
 			tags: ['preview'],
 			description: localize('sessions.github.copilot.multiChatSessions', "Whether to enable multiple chats within a single session in the Copilot Chat sessions provider."),
 		},
+		[CLAUDE_CODE_ENABLED_SETTING]: {
+			type: 'boolean',
+			default: false,
+			tags: ['experimental', 'onExp'],
+			description: localize('sessions.chatSessions.claude.enabled', "NOTE: This is HIGHLY experimental and under active development! Whether to enable Claude agent sessions in the sessions provider."),
+		},
 	},
 });
 
diff --git a/src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessionsActions.ts b/src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessionsActions.ts
index a4e7655a33f..8f907b8c64e 100644
--- a/src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessionsActions.ts
+++ b/src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessionsActions.ts
@@ -23,7 +23,7 @@ import { Menus } from '../../../browser/menus.js';
 import { ISessionsManagementService } from '../../../services/sessions/common/sessionsManagement.js';
 import { ISessionsProvidersService } from '../../../services/sessions/browser/sessionsProvidersService.js';
 import { SessionItemContextMenuId } from '../../sessions/browser/views/sessionsList.js';
-import { COPILOT_CLI_SESSION_TYPE, COPILOT_CLOUD_SESSION_TYPE, ISession } from '../../../services/sessions/common/session.js';
+import { CLAUDE_CODE_SESSION_TYPE, COPILOT_CLI_SESSION_TYPE, COPILOT_CLOUD_SESSION_TYPE, ISession } from '../../../services/sessions/common/session.js';
 import { IAgentSessionsService } from '../../../../workbench/contrib/chat/browser/agentSessions/agentSessionsService.js';
 import { COPILOT_PROVIDER_ID, CopilotChatSessionsProvider } from './copilotChatSessionsProvider.js';
 import { ActiveSessionHasGitRepositoryContext, ActiveSessionProviderIdContext, ActiveSessionTypeContext, ChatSessionProviderIdContext, IsNewChatSessionContext } from '../../../common/contextkeys.js';
@@ -31,13 +31,16 @@ import { IsolationPicker } from './isolationPicker.js';
 import { BranchPicker } from './branchPicker.js';
 import { ModePicker } from './modePicker.js';
 import { CloudModelPicker } from './modelPicker.js';
-import { PermissionPicker } from './permissionPicker.js';
+import { CopilotPermissionPickerDelegate, PermissionPicker } from './permissionPicker.js';
+import { ClaudePermissionModePicker } from './claudePermissionModePicker.js';
 
 const IsActiveSessionCopilotCLI = ContextKeyExpr.equals(ActiveSessionTypeContext.key, COPILOT_CLI_SESSION_TYPE);
 const IsActiveSessionCopilotCloud = ContextKeyExpr.equals(ActiveSessionTypeContext.key, COPILOT_CLOUD_SESSION_TYPE);
 const IsActiveCopilotChatSessionProvider = ContextKeyExpr.equals(ActiveSessionProviderIdContext.key, COPILOT_PROVIDER_ID);
 const IsActiveSessionCopilotChatCLI = ContextKeyExpr.and(IsActiveSessionCopilotCLI, IsActiveCopilotChatSessionProvider);
 const IsActiveSessionCopilotChatCloud = ContextKeyExpr.and(IsActiveSessionCopilotCloud, IsActiveCopilotChatSessionProvider);
+const IsActiveSessionClaudeCode = ContextKeyExpr.equals(ActiveSessionTypeContext.key, CLAUDE_CODE_SESSION_TYPE);
+const IsActiveSessionCopilotChatClaudeCode = ContextKeyExpr.and(IsActiveSessionClaudeCode, IsActiveCopilotChatSessionProvider);
 
 // -- Actions --
 
@@ -148,6 +151,23 @@ registerAction2(class extends Action2 {
 	override async run(): Promise<void> { /* handled by action view item */ }
 });
 
+registerAction2(class extends Action2 {
+	constructor() {
+		super({
+			id: 'sessions.defaultCopilot.claudePermissionModePicker',
+			title: localize2('claudePermissionModePicker', "Permission Mode"),
+			f1: false,
+			menu: [{
+				id: Menus.NewSessionControl,
+				group: 'navigation',
+				order: 1,
+				when: IsActiveSessionCopilotChatClaudeCode,
+			}],
+		});
+	}
+	override async run(): Promise<void> { /* handled by action view item */ }
+});
+
 // -- Helper --
 
 /**
@@ -274,7 +294,15 @@ class CopilotPickerActionViewItemContribution extends Disposable implements IWor
 		this._register(actionViewItemService.register(
 			Menus.NewSessionControl, 'sessions.defaultCopilot.permissionPicker',
 			() => {
-				const picker = instantiationService.createInstance(PermissionPicker);
+				const delegate = instantiationService.createInstance(CopilotPermissionPickerDelegate);
+				const picker = instantiationService.createInstance(PermissionPicker, delegate);
+				return new PickerActionViewItem(picker, delegate);
+			},
+		));
+		this._register(actionViewItemService.register(
+			Menus.NewSessionControl, 'sessions.defaultCopilot.claudePermissionModePicker',
+			() => {
+				const picker = instantiationService.createInstance(ClaudePermissionModePicker);
 				return new PickerActionViewItem(picker);
 			},
 		));
diff --git a/src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessionsProvider.ts b/src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessionsProvider.ts
index 42309455361..c93edc1ff49 100644
--- a/src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessionsProvider.ts
+++ b/src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessionsProvider.ts
@@ -22,7 +22,7 @@ import { AgentSessionProviders, AgentSessionTarget } from '../../../../workbench
 import { IChatService, IChatSendRequestOptions } from '../../../../workbench/contrib/chat/common/chatService/chatService.js';
 import { IChatResponseModel } from '../../../../workbench/contrib/chat/common/model/chatModel.js';
 import { ChatSessionStatus, IChatSessionFileChange, IChatSessionsService, IChatSessionProviderOptionGroup, IChatSessionProviderOptionItem } from '../../../../workbench/contrib/chat/common/chatSessionsService.js';
-import { ISession, IChat, ISessionRepository, ISessionWorkspace, SessionStatus, GITHUB_REMOTE_FILE_SCHEME, IGitHubInfo, CopilotCLISessionType, CopilotCloudSessionType, ISessionType, ISessionWorkspaceBrowseAction } from '../../../services/sessions/common/session.js';
+import { ISession, IChat, ISessionRepository, ISessionWorkspace, SessionStatus, GITHUB_REMOTE_FILE_SCHEME, IGitHubInfo, CopilotCLISessionType, CopilotCloudSessionType, ClaudeCodeSessionType, ISessionType, ISessionWorkspaceBrowseAction } from '../../../services/sessions/common/session.js';
 import { ChatAgentLocation, ChatModeKind, ChatPermissionLevel } from '../../../../workbench/contrib/chat/common/constants.js';
 import { basename, isEqual } from '../../../../base/common/resources.js';
 import { ISendRequestOptions, ISessionChangeEvent, ISessionsProvider } from '../../../services/sessions/common/sessionsProvider.js';
@@ -99,6 +99,7 @@ export interface ICopilotChatSession {
 
 	setModelId(modelId: string): void;
 	setMode(chatMode: IChatMode | undefined): void;
+	setOption?(optionId: string, value: IChatSessionProviderOptionItem | string): void;
 
 	readonly gitRepository?: IGitRepository;
 	readonly branches: IObservable<readonly string[]>;
@@ -112,6 +113,9 @@ export const COPILOT_PROVIDER_ID = 'default-copilot';
 /** Setting key controlling whether the Copilot provider supports multiple chats per session. */
 export const COPILOT_MULTI_CHAT_SETTING = 'sessions.github.copilot.multiChatSessions';
 
+/** Setting key controlling whether Claude agent sessions are available. */
+export const CLAUDE_CODE_ENABLED_SETTING = 'sessions.chatSessions.claude.enabled';
+
 
 const REPOSITORY_OPTION_ID = 'repository';
 const PARENT_SESSION_OPTION_ID = 'parentSessionId';
@@ -119,7 +123,11 @@ const BRANCH_OPTION_ID = 'branch';
 const ISOLATION_OPTION_ID = 'isolation';
 const AGENT_OPTION_ID = 'agent';
 
-type NewSession = CopilotCLISession | RemoteNewSession;
+type NewSession = CopilotCLISession | RemoteNewSession | ClaudeCodeNewSession;
+
+function isNewSession(session: ICopilotChatSession): session is NewSession {
+	return session instanceof CopilotCLISession || session instanceof RemoteNewSession || session instanceof ClaudeCodeNewSession;
+}
 
 /**
  * Local new session for Background agent sessions.
@@ -664,6 +672,137 @@ export class RemoteNewSession extends Disposable implements ICopilotChatSession
 	update(_session: IAgentSession): void { }
 }
 
+/**
+ * New session for Claude agent sessions.
+ * Implements {@link ICopilotChatSession} (session facade) and provides
+ * pre-send configuration methods for the new-session flow.
+ * Simpler than {@link CopilotCLISession} because the Claude agent manages
+ * its own worktrees and branches at runtime.
+ */
+class ClaudeCodeNewSession extends Disposable implements ICopilotChatSession {
+
+	// -- ISessionData fields --
+
+	readonly id: string;
+	readonly providerId: string;
+	readonly sessionType: string;
+	readonly icon: ThemeIcon;
+	readonly createdAt: Date;
+
+	private readonly _title = observableValue(this, '');
+	readonly title: IObservable<string> = this._title;
+
+	private readonly _updatedAt = observableValue(this, new Date());
+	readonly updatedAt: IObservable<Date> = this._updatedAt;
+
+	private readonly _status = observableValue(this, SessionStatus.Untitled);
+	readonly status: IObservable<SessionStatus> = this._status;
+
+	private readonly _permissionLevel = observableValue(this, ChatPermissionLevel.Default);
+	readonly permissionLevel: IObservable<ChatPermissionLevel> = this._permissionLevel;
+
+	private readonly _workspaceData = observableValue<ISessionWorkspace | undefined>(this, undefined);
+	readonly workspace: IObservable<ISessionWorkspace | undefined> = this._workspaceData;
+
+	readonly changes: IObservable<readonly IChatSessionFileChange[]> = observableValue<readonly IChatSessionFileChange[]>(this, []);
+
+	private readonly _modelIdObservable = observableValue<string | undefined>(this, undefined);
+	readonly modelId: IObservable<string | undefined> = this._modelIdObservable;
+
+	private readonly _modeObservable = observableValue<{ readonly id: string; readonly kind: string } | undefined>(this, undefined);
+	readonly mode: IObservable<{ readonly id: string; readonly kind: string } | undefined> = this._modeObservable;
+
+	readonly loading: IObservable<boolean> = observableValue(this, false);
+
+	private readonly _isArchived = observableValue(this, false);
+	readonly isArchived: IObservable<boolean> = this._isArchived;
+	readonly isRead: IObservable<boolean> = observableValue(this, true);
+	readonly description: IObservable<IMarkdownString | undefined> = constObservable(undefined);
+	readonly lastTurnEnd: IObservable<Date | undefined> = constObservable(undefined);
+	readonly gitHubInfo: IObservable<IGitHubInfo | undefined> = constObservable(undefined);
+	readonly branch: IObservable<string | undefined> = constObservable(undefined);
+	readonly isolationMode: IObservable<IsolationMode | undefined> = constObservable(undefined);
+	readonly branches: IObservable<readonly string[]> = constObservable([]);
+	readonly gitRepository?: IGitRepository | undefined;
+
+	// -- New session configuration fields --
+
+	private _modelId: string | undefined;
+	private _mode: IChatMode | undefined;
+
+	readonly target = AgentSessionProviders.Claude;
+	readonly selectedOptions = new Map<string, IChatSessionProviderOptionItem>();
+
+	get selectedModelId(): string | undefined { return this._modelId; }
+	get chatMode(): IChatMode | undefined { return this._mode; }
+	get query(): string | undefined { return undefined; }
+	get attachedContext(): IChatRequestVariableEntry[] | undefined { return undefined; }
+	get disabled(): boolean { return false; }
+
+	constructor(
+		readonly resource: URI,
+		readonly sessionWorkspace: ISessionWorkspace,
+		providerId: string,
+	) {
+		super();
+		this.id = `${providerId}:${resource.toString()}`;
+		this.providerId = providerId;
+		this.sessionType = AgentSessionProviders.Claude;
+		this.icon = ClaudeCodeSessionType.icon;
+		this.createdAt = new Date();
+
+		this._workspaceData.set(sessionWorkspace, undefined);
+	}
+
+	setOption(optionId: string, value: IChatSessionProviderOptionItem | string): void {
+		if (typeof value === 'string') {
+			this.selectedOptions.set(optionId, { id: value, name: value });
+		} else {
+			this.selectedOptions.set(optionId, value);
+		}
+	}
+
+	setPermissionLevel(level: ChatPermissionLevel): void {
+		this._permissionLevel.set(level, undefined);
+	}
+
+	setIsolationMode(_mode: IsolationMode): void {
+		// No-op — Claude agent manages its own worktrees
+	}
+
+	setBranch(_branch: string | undefined): void {
+		// No-op — Claude agent manages branches at runtime
+	}
+
+	setModelId(modelId: string | undefined): void {
+		this._modelId = modelId;
+		this._modelIdObservable.set(modelId, undefined);
+	}
+
+	setTitle(title: string): void {
+		this._title.set(title, undefined);
+	}
+
+	setStatus(status: SessionStatus): void {
+		this._status.set(status, undefined);
+	}
+
+	setArchived(archived: boolean): void {
+		this._isArchived.set(archived, undefined);
+	}
+
+	setMode(mode: IChatMode | undefined): void {
+		this._mode = mode;
+		if (mode) {
+			this._modeObservable.set({ id: mode.id, kind: mode.kind }, undefined);
+		} else {
+			this._modeObservable.set(undefined, undefined);
+		}
+	}
+
+	update(_session: IAgentSession): void { }
+}
+
 /**
  * Maps the existing {@link ChatSessionStatus} to the new {@link SessionStatus}.
  */
@@ -828,6 +967,8 @@ class AgentSessionAdapter implements ICopilotChatSession {
 				return CopilotCLISessionType.icon;
 			case AgentSessionProviders.Cloud:
 				return CopilotCloudSessionType.icon;
+			case AgentSessionProviders.Claude:
+				return ClaudeCodeSessionType.icon;
 			default:
 				return session.icon;
 		}
@@ -975,7 +1116,7 @@ class AgentSessionAdapter implements ICopilotChatSession {
 		const [repoUri, worktreeUri, branchName, baseBranchName, baseBranchProtected] = this._extractRepositoryFromMetadata(session);
 
 		const repository: ISessionRepository = {
-			uri: repoUri ?? URI.parse('unknown:'),
+			uri: repoUri ?? URI.parse('unknown:///'),
 			workingDirectory: worktreeUri,
 			detail: branchName,
 			baseBranchName,
@@ -1046,8 +1187,16 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 	readonly id = COPILOT_PROVIDER_ID;
 	readonly label = localize('copilotChatSessionsProvider', "Copilot Chat");
 	readonly icon = Codicon.copilot;
-	readonly sessionTypes: readonly ISessionType[] = [CopilotCLISessionType, CopilotCloudSessionType];
-	readonly onDidChangeSessionTypes = Event.None;
+	get sessionTypes(): readonly ISessionType[] {
+		const types: ISessionType[] = [CopilotCLISessionType, CopilotCloudSessionType];
+		if (this._claudeEnabled) {
+			types.push(ClaudeCodeSessionType);
+		}
+		return types;
+	}
+
+	private readonly _onDidChangeSessionTypes = this._register(new Emitter<void>());
+	readonly onDidChangeSessionTypes: Event<void> = this._onDidChangeSessionTypes.event;
 
 	private readonly _onDidChangeSessions = this._register(new Emitter<ISessionChangeEvent>());
 	readonly onDidChangeSessions: Event<ISessionChangeEvent> = this._onDidChangeSessions.event;
@@ -1056,7 +1205,7 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 	readonly onDidReplaceSession: Event<{ readonly from: ISession; readonly to: ISession }> = this._onDidReplaceSession.event;
 
 	/** Cache of adapted sessions, keyed by resource URI string. */
-	private readonly _sessionCache = new Map<string, AgentSessionAdapter | CopilotCLISession | RemoteNewSession>();
+	private readonly _sessionCache = new Map<string, AgentSessionAdapter | CopilotCLISession | RemoteNewSession | ClaudeCodeNewSession>();
 
 	/** Cache of ISession wrappers, keyed by session group ID. */
 	private readonly _sessionGroupCache = new Map<string, ISession>();
@@ -1065,6 +1214,7 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 	private readonly _groupModel: SessionsGroupModel;
 
 	private readonly _multiChatEnabled: boolean;
+	private _claudeEnabled: boolean;
 
 	readonly browseActions: readonly ISessionWorkspaceBrowseAction[];
 
@@ -1080,14 +1230,26 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 		@ILanguageModelsService private readonly languageModelsService: ILanguageModelsService,
 		@ILanguageModelToolsService private readonly toolsService: ILanguageModelToolsService,
 		@IStorageService storageService: IStorageService,
-		@IConfigurationService configurationService: IConfigurationService,
+		@IConfigurationService private readonly configurationService: IConfigurationService,
 		@ILogService private readonly logService: ILogService,
 		@IGitHubService private readonly gitHubService: IGitHubService,
 	) {
 		super();
 
 		this._groupModel = this._register(new SessionsGroupModel(storageService));
-		this._multiChatEnabled = configurationService.getValue<boolean>(COPILOT_MULTI_CHAT_SETTING) ?? true;
+		this._multiChatEnabled = this.configurationService.getValue<boolean>(COPILOT_MULTI_CHAT_SETTING) ?? true;
+		this._claudeEnabled = this.configurationService.getValue<boolean>(CLAUDE_CODE_ENABLED_SETTING) ?? false;
+
+		this._register(this.configurationService.onDidChangeConfiguration(e => {
+			if (e.affectsConfiguration(CLAUDE_CODE_ENABLED_SETTING)) {
+				const claudeEnabled = this.configurationService.getValue<boolean>(CLAUDE_CODE_ENABLED_SETTING) ?? false;
+				if (this._claudeEnabled !== claudeEnabled) {
+					this._claudeEnabled = claudeEnabled;
+					this._onDidChangeSessionTypes.fire();
+					this._refreshSessionCache();
+				}
+			}
+		}));
 
 		this.browseActions = [
 			{
@@ -1116,7 +1278,11 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 		if (workspaceUri.scheme === GITHUB_REMOTE_FILE_SCHEME) {
 			return [CopilotCloudSessionType];
 		}
-		return [CopilotCLISessionType];
+		const types: ISessionType[] = [CopilotCLISessionType];
+		if (this._claudeEnabled) {
+			types.push(ClaudeCodeSessionType);
+		}
+		return types;
 	}
 
 	getSessions(): ISession[] {
@@ -1171,8 +1337,15 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 			return this._chatToSession(session);
 		}
 
+		if (sessionTypeId === ClaudeCodeSessionType.id) {
+			const resource = URI.from({ scheme: AgentSessionProviders.Claude, path: `/untitled-${generateUuid()}` });
+			const session = this.instantiationService.createInstance(ClaudeCodeNewSession, resource, workspace, this.id);
+			this._currentNewSession = session;
+			return this._chatToSession(session);
+		}
+
 		if (sessionTypeId !== CopilotCLISessionType.id) {
-			throw new Error('Only Copilot CLI sessions can be created for non-GitHub repositories');
+			throw new Error(`Unsupported session type '${sessionTypeId}' for local workspaces`);
 		}
 		const resource = URI.from({ scheme: AgentSessionProviders.Background, path: `/untitled-${generateUuid()}` });
 		const session = this.instantiationService.createInstance(CopilotCLISession, resource, workspace, this.id);
@@ -1198,7 +1371,7 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 		// Temp session that hasn't been committed — archive it in-place
 		// so the user can still review whatever content was produced.
 		const chatSession = this._findChatSession(sessionId);
-		if (chatSession && (chatSession instanceof CopilotCLISession || chatSession instanceof RemoteNewSession)) {
+		if (chatSession && isNewSession(chatSession)) {
 			chatSession.setArchived(true);
 			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [this._chatToSession(chatSession)] });
 			return;
@@ -1214,7 +1387,7 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 
 		// Temp session that hasn't been committed — unarchive it in-place
 		const chatSession = this._findChatSession(sessionId);
-		if (chatSession && (chatSession instanceof CopilotCLISession || chatSession instanceof RemoteNewSession)) {
+		if (chatSession && isNewSession(chatSession)) {
 			chatSession.setArchived(false);
 			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [this._chatToSession(chatSession)] });
 		}
@@ -1264,7 +1437,11 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 			await this.commandService.executeCommand('github.copilot.cli.sessions.setTitle', { resource: chatUri }, title);
 			return;
 		}
-		throw new Error('Renaming is only supported for Copilot CLI sessions');
+		if (agentSession?.providerType === AgentSessionProviders.Claude) {
+			await this.commandService.executeCommand('github.copilot.claude.sessions.rename', { resource: chatUri }, title);
+			return;
+		}
+		throw new Error('Renaming is not supported for this session type');
 	}
 
 	async deleteChat(sessionId: string, chatUri: URI): Promise<void> {
@@ -1398,7 +1575,7 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 	 * Sends the first chat for a newly created session.
 	 * Adds the temp session to the cache, waits for commit, then replaces it.
 	 */
-	private async _sendFirstChat(session: CopilotCLISession | RemoteNewSession, options: ISendRequestOptions): Promise<ISession> {
+	private async _sendFirstChat(session: CopilotCLISession | RemoteNewSession | ClaudeCodeNewSession, options: ISendRequestOptions): Promise<ISession> {
 
 		const { query, attachedContext } = options;
 
@@ -1701,6 +1878,10 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 			throw new Error('Multiple chats per session is not supported for cloud sessions');
 		}
 
+		if (chat.sessionType === AgentSessionProviders.Claude) {
+			throw new Error('Multiple chats per session is not supported for Claude sessions');
+		}
+
 		const workspace = chat.workspace.get();
 		if (!workspace) {
 			throw new Error('Chat session has no associated workspace');
@@ -1918,7 +2099,7 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 		const removedSession = this._chatToSession(chatSession);
 		this._sessionGroupCache.delete(chatSession.id);
 		this._onDidChangeSessions.fire({ added: [], removed: [removedSession], changed: [] });
-		if (chatSession instanceof CopilotCLISession || chatSession instanceof RemoteNewSession) {
+		if (isNewSession(chatSession)) {
 			chatSession.dispose();
 		}
 	}
@@ -1930,7 +2111,12 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 
 		for (const session of this.agentSessionsService.model.sessions) {
 			if (session.providerType !== AgentSessionProviders.Background
-				&& session.providerType !== AgentSessionProviders.Cloud) {
+				&& session.providerType !== AgentSessionProviders.Cloud
+				&& session.providerType !== AgentSessionProviders.Claude) {
+				continue;
+			}
+
+			if (session.providerType === AgentSessionProviders.Claude && !this._claudeEnabled) {
 				continue;
 			}
 
diff --git a/src/vs/sessions/contrib/copilotChatSessions/browser/isolationPicker.ts b/src/vs/sessions/contrib/copilotChatSessions/browser/isolationPicker.ts
index 11b60551d1a..f913ebd00fe 100644
--- a/src/vs/sessions/contrib/copilotChatSessions/browser/isolationPicker.ts
+++ b/src/vs/sessions/contrib/copilotChatSessions/browser/isolationPicker.ts
@@ -4,6 +4,7 @@
  *--------------------------------------------------------------------------------------------*/
 
 import * as dom from '../../../../base/browser/dom.js';
+import { Gesture, EventType as TouchEventType } from '../../../../base/browser/touch.js';
 import { Codicon } from '../../../../base/common/codicons.js';
 import { Disposable, DisposableStore } from '../../../../base/common/lifecycle.js';
 import { autorun } from '../../../../base/common/observable.js';
@@ -103,10 +104,13 @@ export class IsolationPicker extends Disposable {
 		this._triggerElement = trigger;
 		this._updateTriggerLabel();
 
-		this._renderDisposables.add(dom.addDisposableListener(trigger, dom.EventType.CLICK, (e) => {
-			dom.EventHelper.stop(e, true);
-			this._showPicker();
-		}));
+		this._renderDisposables.add(Gesture.addTarget(trigger));
+		for (const eventType of [dom.EventType.CLICK, TouchEventType.Tap]) {
+			this._renderDisposables.add(dom.addDisposableListener(trigger, eventType, (e) => {
+				dom.EventHelper.stop(e, true);
+				this._showPicker();
+			}));
+		}
 
 		this._renderDisposables.add(dom.addDisposableListener(trigger, dom.EventType.KEY_DOWN, (e) => {
 			if (e.key === 'Enter' || e.key === ' ') {
diff --git a/src/vs/sessions/contrib/copilotChatSessions/browser/modePicker.ts b/src/vs/sessions/contrib/copilotChatSessions/browser/modePicker.ts
index 438ab2251c0..4fd157dc52a 100644
--- a/src/vs/sessions/contrib/copilotChatSessions/browser/modePicker.ts
+++ b/src/vs/sessions/contrib/copilotChatSessions/browser/modePicker.ts
@@ -4,6 +4,7 @@
  *--------------------------------------------------------------------------------------------*/
 
 import * as dom from '../../../../base/browser/dom.js';
+import { Gesture, EventType as TouchEventType } from '../../../../base/browser/touch.js';
 import { Codicon } from '../../../../base/common/codicons.js';
 import { Emitter, Event } from '../../../../base/common/event.js';
 import { Disposable, DisposableStore } from '../../../../base/common/lifecycle.js';
@@ -94,10 +95,13 @@ export class ModePicker extends Disposable {
 
 		this._updateTriggerLabel();
 
-		this._renderDisposables.add(dom.addDisposableListener(trigger, dom.EventType.CLICK, (e) => {
-			dom.EventHelper.stop(e, true);
-			this._showPicker();
-		}));
+		this._renderDisposables.add(Gesture.addTarget(trigger));
+		for (const eventType of [dom.EventType.CLICK, TouchEventType.Tap]) {
+			this._renderDisposables.add(dom.addDisposableListener(trigger, eventType, (e) => {
+				dom.EventHelper.stop(e, true);
+				this._showPicker();
+			}));
+		}
 
 		this._renderDisposables.add(dom.addDisposableListener(trigger, dom.EventType.KEY_DOWN, (e) => {
 			if (e.key === 'Enter' || e.key === ' ') {
diff --git a/src/vs/sessions/contrib/copilotChatSessions/browser/modelPicker.ts b/src/vs/sessions/contrib/copilotChatSessions/browser/modelPicker.ts
index e62b24fe7ec..277078c2582 100644
--- a/src/vs/sessions/contrib/copilotChatSessions/browser/modelPicker.ts
+++ b/src/vs/sessions/contrib/copilotChatSessions/browser/modelPicker.ts
@@ -4,6 +4,7 @@
  *--------------------------------------------------------------------------------------------*/
 
 import * as dom from '../../../../base/browser/dom.js';
+import { Gesture, EventType as TouchEventType } from '../../../../base/browser/touch.js';
 import { Codicon } from '../../../../base/common/codicons.js';
 import { Emitter, Event } from '../../../../base/common/event.js';
 import { Disposable, DisposableStore } from '../../../../base/common/lifecycle.js';
@@ -108,10 +109,13 @@ export class CloudModelPicker extends Disposable {
 
 		this._updateTriggerLabel();
 
-		this._renderDisposables.add(dom.addDisposableListener(trigger, dom.EventType.CLICK, (e) => {
-			dom.EventHelper.stop(e, true);
-			this._showPicker();
-		}));
+		this._renderDisposables.add(Gesture.addTarget(trigger));
+		for (const eventType of [dom.EventType.CLICK, TouchEventType.Tap]) {
+			this._renderDisposables.add(dom.addDisposableListener(trigger, eventType, (e) => {
+				dom.EventHelper.stop(e, true);
+				this._showPicker();
+			}));
+		}
 
 		this._renderDisposables.add(dom.addDisposableListener(trigger, dom.EventType.KEY_DOWN, (e) => {
 			if (e.key === 'Enter' || e.key === ' ') {
diff --git a/src/vs/sessions/contrib/copilotChatSessions/browser/permissionPicker.ts b/src/vs/sessions/contrib/copilotChatSessions/browser/permissionPicker.ts
index 8c20dcdefd8..ea75265e07a 100644
--- a/src/vs/sessions/contrib/copilotChatSessions/browser/permissionPicker.ts
+++ b/src/vs/sessions/contrib/copilotChatSessions/browser/permissionPicker.ts
@@ -4,9 +4,10 @@
  *--------------------------------------------------------------------------------------------*/
 
 import * as dom from '../../../../base/browser/dom.js';
+import { Gesture, EventType as TouchEventType } from '../../../../base/browser/touch.js';
 import { Codicon } from '../../../../base/common/codicons.js';
-import { Emitter, Event } from '../../../../base/common/event.js';
 import { Disposable, DisposableStore } from '../../../../base/common/lifecycle.js';
+import { autorun, IObservable } from '../../../../base/common/observable.js';
 import { localize } from '../../../../nls.js';
 import { IActionWidgetService } from '../../../../platform/actionWidget/browser/actionWidget.js';
 import { ActionListItemKind, IActionListDelegate, IActionListItem, IActionListOptions } from '../../../../platform/actionWidget/browser/actionList.js';
@@ -16,15 +17,42 @@ import { ISessionsManagementService } from '../../../services/sessions/common/se
 import { ISessionsProvidersService } from '../../../services/sessions/browser/sessionsProvidersService.js';
 import { renderIcon } from '../../../../base/browser/ui/iconLabel/iconLabels.js';
 import { ThemeIcon } from '../../../../base/common/themables.js';
-import { ChatConfiguration, ChatPermissionLevel } from '../../../../workbench/contrib/chat/common/constants.js';
+import { ChatConfiguration, ChatPermissionLevel, isChatPermissionLevel } from '../../../../workbench/contrib/chat/common/constants.js';
 import Severity from '../../../../base/common/severity.js';
 import { MarkdownString } from '../../../../base/common/htmlContent.js';
 import { IOpenerService } from '../../../../platform/opener/common/opener.js';
 import { URI } from '../../../../base/common/uri.js';
 import { CopilotChatSessionsProvider } from '../../copilotChatSessions/browser/copilotChatSessionsProvider.js';
 
-// Track whether warnings have been shown this VS Code session
-const shownWarnings = new Set<ChatPermissionLevel>();
+/**
+ * Strategy for the per-provider parts of {@link PermissionPicker}: how to read
+ * back the current level (if at all), whether the picker should be visible
+ * given the active session, and where to write the user's selection.
+ *
+ * Implementations live with the provider they back (e.g.
+ * {@link CopilotPermissionPickerDelegate} below for the default Copilot
+ * provider, or `AgentHostPermissionPickerDelegate` in the agent-host folder).
+ */
+export interface IPermissionPickerDelegate {
+	/**
+	 * If provided, the picker's trigger label reactively tracks this. If
+	 * omitted, the picker manages its own internal state and starts at
+	 * {@link ChatPermissionLevel.Default}.
+	 */
+	readonly currentPermissionLevel?: IObservable<ChatPermissionLevel>;
+
+	/**
+	 * If provided, the picker hides itself when this is `false`. Used by
+	 * delegates whose applicability depends on the active session.
+	 */
+	readonly isApplicable?: IObservable<boolean>;
+
+	/**
+	 * Called after the user selects a level (and any required confirmation
+	 * dialog has been accepted).
+	 */
+	setPermissionLevel(level: ChatPermissionLevel): void;
+}
 
 interface IPermissionItem {
 	readonly level?: ChatPermissionLevel;
@@ -33,50 +61,37 @@ interface IPermissionItem {
 	readonly checked: boolean;
 }
 
-export class PermissionPicker extends Disposable {
+// Track whether warnings have been shown this VS Code session
+const shownWarnings = new Set<ChatPermissionLevel>();
 
-	private readonly _onDidChangeLevel = this._register(new Emitter<ChatPermissionLevel>());
-	readonly onDidChangeLevel: Event<ChatPermissionLevel> = this._onDidChangeLevel.event;
+export class PermissionPicker extends Disposable {
 
 	private _currentLevel: ChatPermissionLevel = ChatPermissionLevel.Default;
 	private _triggerElement: HTMLElement | undefined;
 	private readonly _renderDisposables = this._register(new DisposableStore());
 
-	get permissionLevel(): ChatPermissionLevel {
-		return this._currentLevel;
-	}
-
-	set permissionLevel(level: ChatPermissionLevel) {
-		this._currentLevel = level;
-		this._updateTriggerLabel(this._triggerElement);
-	}
-
 	constructor(
+		private readonly _delegate: IPermissionPickerDelegate,
 		@IActionWidgetService private readonly actionWidgetService: IActionWidgetService,
 		@IConfigurationService private readonly configurationService: IConfigurationService,
 		@IDialogService private readonly dialogService: IDialogService,
 		@IOpenerService private readonly openerService: IOpenerService,
-		@ISessionsManagementService private readonly sessionsManagementService: ISessionsManagementService,
-		@ISessionsProvidersService private readonly sessionsProvidersService: ISessionsProvidersService,
 	) {
 		super();
-
-		// Write permission level to the active session data when it changes
-		this._register(this.onDidChangeLevel(level => {
-			const session = this.sessionsManagementService.activeSession.get();
-			if (!session) {
-				return;
-			}
-			const provider = this.sessionsProvidersService.getProvider(session.providerId);
-			if (provider instanceof CopilotChatSessionsProvider) {
-				provider.getSession(session.sessionId)?.setPermissionLevel(level);
-			}
-		}));
 	}
 
 	render(container: HTMLElement): HTMLElement {
 		this._renderDisposables.clear();
 
+		// Initialize the picker to reflect the configured default permission level
+		// (`chat.permissions.default`) whenever it is (re-)rendered. If enterprise
+		// policy disables global auto-approval, clamp to Default regardless of the
+		// configured default so we never show an elevated level the user can't pick.
+		const policyRestricted = this.configurationService.inspect<boolean>(ChatConfiguration.GlobalAutoApprove).policyValue === false;
+		const configuredDefault = this.configurationService.getValue<string>(ChatConfiguration.DefaultPermissionLevel);
+		const initialLevel = isChatPermissionLevel(configuredDefault) ? configuredDefault : ChatPermissionLevel.Default;
+		this._currentLevel = policyRestricted ? ChatPermissionLevel.Default : initialLevel;
+
 		const slot = dom.append(container, dom.$('.sessions-chat-picker-slot'));
 		this._renderDisposables.add({ dispose: () => slot.remove() });
 
@@ -87,10 +102,13 @@ export class PermissionPicker extends Disposable {
 
 		this._updateTriggerLabel(trigger);
 
-		this._renderDisposables.add(dom.addDisposableListener(trigger, dom.EventType.CLICK, (e) => {
-			dom.EventHelper.stop(e, true);
-			this.showPicker();
-		}));
+		this._renderDisposables.add(Gesture.addTarget(trigger));
+		for (const eventType of [dom.EventType.CLICK, TouchEventType.Tap]) {
+			this._renderDisposables.add(dom.addDisposableListener(trigger, eventType, (e) => {
+				dom.EventHelper.stop(e, true);
+				this.showPicker();
+			}));
+		}
 
 		this._renderDisposables.add(dom.addDisposableListener(trigger, dom.EventType.KEY_DOWN, (e) => {
 			if (e.key === 'Enter' || e.key === ' ') {
@@ -99,6 +117,21 @@ export class PermissionPicker extends Disposable {
 			}
 		}));
 
+		const currentPermissionLevel = this._delegate.currentPermissionLevel;
+		if (currentPermissionLevel) {
+			this._renderDisposables.add(autorun(reader => {
+				this._currentLevel = currentPermissionLevel.read(reader);
+				this._updateTriggerLabel(trigger);
+			}));
+		}
+
+		const isApplicable = this._delegate.isApplicable;
+		if (isApplicable) {
+			this._renderDisposables.add(autorun(reader => {
+				slot.style.display = isApplicable.read(reader) ? '' : 'none';
+			}));
+		}
+
 		return slot;
 	}
 
@@ -220,7 +253,10 @@ export class PermissionPicker extends Disposable {
 				custom: {
 					icon: Codicon.warning,
 					markdownDetails: [{
-						markdown: new MarkdownString(localize('permissions.autoApprove.warning.detail', "Bypass Approvals will auto-approve all tool calls without asking for confirmation. This includes file edits, terminal commands, and external tool calls.")),
+						markdown: new MarkdownString(
+							localize('permissions.autoApprove.warning.detail', "Bypass Approvals will auto-approve all tool calls without asking for confirmation. This includes file edits, terminal commands, and external tool calls.\n\nTo make this the starting permission level for new chat sessions, change the [{0}](command:workbench.action.openSettings?%5B%22{0}%22%5D) setting.", ChatConfiguration.DefaultPermissionLevel),
+							{ isTrusted: { enabledCommands: ['workbench.action.openSettings'] } },
+						),
 					}],
 				},
 			});
@@ -247,7 +283,10 @@ export class PermissionPicker extends Disposable {
 				custom: {
 					icon: Codicon.rocket,
 					markdownDetails: [{
-						markdown: new MarkdownString(localize('permissions.autopilot.warning.detail', "Autopilot will auto-approve all tool calls and continue working autonomously until the task is complete. The agent will make decisions on your behalf without asking for confirmation.\n\nYou can stop the agent at any time by clicking the stop button. This applies to the current session only.")),
+						markdown: new MarkdownString(
+							localize('permissions.autopilot.warning.detail', "Autopilot will auto-approve all tool calls and continue working autonomously until the task is complete. The agent will make decisions on your behalf without asking for confirmation.\n\nYou can stop the agent at any time by clicking the stop button. This applies to the current session only.\n\nTo make this the starting permission level for new chat sessions, change the [{0}](command:workbench.action.openSettings?%5B%22{0}%22%5D) setting.", ChatConfiguration.DefaultPermissionLevel),
+							{ isTrusted: { enabledCommands: ['workbench.action.openSettings'] } },
+						),
 					}],
 				},
 			});
@@ -259,7 +298,7 @@ export class PermissionPicker extends Disposable {
 
 		this._currentLevel = level;
 		this._updateTriggerLabel(this._triggerElement);
-		this._onDidChangeLevel.fire(level);
+		this._delegate.setPermissionLevel(level);
 	}
 
 	private _updateTriggerLabel(trigger: HTMLElement | undefined): void {
@@ -296,3 +335,31 @@ export class PermissionPicker extends Disposable {
 		trigger.classList.toggle('info', this._currentLevel === ChatPermissionLevel.AutoApprove);
 	}
 }
+
+/**
+ * Default-Copilot {@link IPermissionPickerDelegate}: writes the user's chosen
+ * level back to the active {@link CopilotChatSessionsProvider} session.
+ *
+ * Does not provide `currentPermissionLevel` or `isApplicable`, so the picker
+ * manages its own state and is always visible (visibility is gated at the menu
+ * contribution level via `when` clauses).
+ */
+export class CopilotPermissionPickerDelegate extends Disposable implements IPermissionPickerDelegate {
+	constructor(
+		@ISessionsManagementService private readonly _sessionsManagementService: ISessionsManagementService,
+		@ISessionsProvidersService private readonly _sessionsProvidersService: ISessionsProvidersService,
+	) {
+		super();
+	}
+
+	setPermissionLevel(level: ChatPermissionLevel): void {
+		const session = this._sessionsManagementService.activeSession.get();
+		if (!session) {
+			return;
+		}
+		const provider = this._sessionsProvidersService.getProvider(session.providerId);
+		if (provider instanceof CopilotChatSessionsProvider) {
+			provider.getSession(session.sessionId)?.setPermissionLevel(level);
+		}
+	}
+}
diff --git a/src/vs/sessions/contrib/copilotChatSessions/test/browser/claudePermissionModePicker.test.ts b/src/vs/sessions/contrib/copilotChatSessions/test/browser/claudePermissionModePicker.test.ts
new file mode 100644
index 00000000000..00faf84b696
--- /dev/null
+++ b/src/vs/sessions/contrib/copilotChatSessions/test/browser/claudePermissionModePicker.test.ts
@@ -0,0 +1,158 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import assert from 'assert';
+import { Event } from '../../../../../base/common/event.js';
+import { DisposableStore } from '../../../../../base/common/lifecycle.js';
+import { observableValue } from '../../../../../base/common/observable.js';
+import { ensureNoDisposablesAreLeakedInTestSuite } from '../../../../../base/test/common/utils.js';
+import { IActionWidgetService } from '../../../../../platform/actionWidget/browser/actionWidget.js';
+import { IActionListItem } from '../../../../../platform/actionWidget/browser/actionList.js';
+import { TestInstantiationService } from '../../../../../platform/instantiation/test/common/instantiationServiceMock.js';
+import { ISessionsProvidersService } from '../../../../services/sessions/browser/sessionsProvidersService.js';
+import { IActiveSession, ISessionsManagementService } from '../../../../services/sessions/common/sessionsManagement.js';
+import { CopilotChatSessionsProvider, ICopilotChatSession } from '../../browser/copilotChatSessionsProvider.js';
+import { ClaudePermissionModePicker } from '../../browser/claudePermissionModePicker.js';
+
+interface IPermissionModeItem {
+	readonly id: string;
+	readonly label: string;
+}
+
+function showPicker(container: HTMLElement): void {
+	const trigger = container.querySelector<HTMLElement>('a.action-label');
+	assert.ok(trigger);
+	trigger.click();
+}
+
+function createPicker(
+	disposables: DisposableStore,
+	opts?: {
+		setOptionSpy?: (optionId: string, value: { id: string; name: string }) => void;
+		hasActiveSession?: boolean;
+	},
+): { picker: ClaudePermissionModePicker; actionWidgetItems: IActionListItem<IPermissionModeItem>[]; onSelect: (item: IPermissionModeItem) => void } {
+	const instantiationService = disposables.add(new TestInstantiationService());
+	const actionWidgetItems: IActionListItem<IPermissionModeItem>[] = [];
+	let capturedOnSelect: ((item: IPermissionModeItem) => void) | undefined;
+
+	const setOptionSpy = opts?.setOptionSpy ?? (() => { });
+	const hasActiveSession = opts?.hasActiveSession ?? true;
+
+	const activeSession = hasActiveSession ? {
+		providerId: 'default-copilot',
+		sessionId: 'session-id',
+		loading: observableValue('loading', false),
+	} as unknown as IActiveSession : undefined;
+
+	const mockSession: Partial<ICopilotChatSession> = {
+		setOption: setOptionSpy as ICopilotChatSession['setOption'],
+	};
+
+	const provider = Object.assign(Object.create(CopilotChatSessionsProvider.prototype), {
+		getSession: () => mockSession,
+	});
+
+	instantiationService.stub(IActionWidgetService, {
+		isVisible: false,
+		hide: () => { },
+		show: <T>(_id: string, _supportsPreview: boolean, items: IActionListItem<T>[], delegate: { onSelect: (item: T) => void }) => {
+			actionWidgetItems.splice(0, actionWidgetItems.length, ...(items as IActionListItem<IPermissionModeItem>[]));
+			capturedOnSelect = delegate.onSelect as (item: IPermissionModeItem) => void;
+		},
+	});
+	instantiationService.stub(ISessionsManagementService, {
+		activeSession: observableValue<IActiveSession | undefined>('activeSession', activeSession),
+	} as unknown as ISessionsManagementService);
+	instantiationService.stub(ISessionsProvidersService, {
+		onDidChangeProviders: Event.None,
+		getProviders: () => [],
+		getProvider: () => provider,
+	} as unknown as ISessionsProvidersService);
+
+	const picker = disposables.add(instantiationService.createInstance(ClaudePermissionModePicker));
+
+	return {
+		picker,
+		actionWidgetItems,
+		get onSelect() { return capturedOnSelect!; },
+	};
+}
+
+suite('ClaudePermissionModePicker', () => {
+	const disposables = new DisposableStore();
+
+	teardown(() => {
+		disposables.clear();
+	});
+
+	ensureNoDisposablesAreLeakedInTestSuite();
+
+	test('shows all three permission modes', () => {
+		const { picker, actionWidgetItems } = createPicker(disposables);
+		const container = document.createElement('div');
+		picker.render(container);
+		showPicker(container);
+
+		assert.deepStrictEqual(
+			actionWidgetItems.map(item => ({ id: item.item?.id, label: item.label })),
+			[
+				{ id: 'default', label: 'Ask Before Edits' },
+				{ id: 'acceptEdits', label: 'Edit Automatically' },
+				{ id: 'plan', label: 'Plan Mode' },
+			],
+		);
+	});
+
+	test('selecting a mode updates the trigger label', () => {
+		const result = createPicker(disposables);
+		const container = document.createElement('div');
+		result.picker.render(container);
+		showPicker(container);
+
+		result.onSelect({ id: 'plan', label: 'Plan Mode' } as IPermissionModeItem);
+
+		const labelSpan = container.querySelector<HTMLElement>('span.sessions-chat-dropdown-label');
+		assert.ok(labelSpan);
+		assert.strictEqual(labelSpan.textContent, 'Plan Mode');
+	});
+
+	test('selecting a mode calls setOption on the session', () => {
+		const calls: { optionId: string; value: { id: string; name: string } }[] = [];
+		const result = createPicker(disposables, {
+			setOptionSpy: (optionId, value) => calls.push({ optionId, value }),
+		});
+		const container = document.createElement('div');
+		result.picker.render(container);
+		showPicker(container);
+
+		result.onSelect({ id: 'default', label: 'Ask Before Edits' } as IPermissionModeItem);
+
+		assert.deepStrictEqual(calls, [{
+			optionId: 'permissionMode',
+			value: { id: 'default', name: 'Ask Before Edits' },
+		}]);
+	});
+
+	test('selecting a mode does not throw when no active session', () => {
+		const result = createPicker(disposables, { hasActiveSession: false });
+		const container = document.createElement('div');
+		result.picker.render(container);
+		showPicker(container);
+
+		assert.doesNotThrow(() => result.onSelect({ id: 'plan', label: 'Plan Mode' } as IPermissionModeItem));
+	});
+
+	test('trigger has correct aria label', () => {
+		const { picker } = createPicker(disposables);
+		const container = document.createElement('div');
+		picker.render(container);
+
+		const trigger = container.querySelector<HTMLElement>('a.action-label');
+		assert.ok(trigger);
+		// Default mode is 'acceptEdits' → "Edit Automatically"
+		assert.ok(trigger.ariaLabel?.includes('Edit Automatically'));
+	});
+});
diff --git a/src/vs/sessions/contrib/copilotChatSessions/test/browser/copilotChatSessionsProvider.test.ts b/src/vs/sessions/contrib/copilotChatSessions/test/browser/copilotChatSessionsProvider.test.ts
index e8c903a794c..db3ee3ffebb 100644
--- a/src/vs/sessions/contrib/copilotChatSessions/test/browser/copilotChatSessionsProvider.test.ts
+++ b/src/vs/sessions/contrib/copilotChatSessions/test/browser/copilotChatSessionsProvider.test.ts
@@ -10,7 +10,7 @@ import { DisposableStore, toDisposable } from '../../../../../base/common/lifecy
 import { URI } from '../../../../../base/common/uri.js';
 import { mock } from '../../../../../base/test/common/mock.js';
 import { ensureNoDisposablesAreLeakedInTestSuite } from '../../../../../base/test/common/utils.js';
-import { IConfigurationService } from '../../../../../platform/configuration/common/configuration.js';
+import { ConfigurationTarget, IConfigurationService } from '../../../../../platform/configuration/common/configuration.js';
 import { TestConfigurationService } from '../../../../../platform/configuration/test/common/testConfigurationService.js';
 import { ICommandService } from '../../../../../platform/commands/common/commands.js';
 import { IDialogService, IFileDialogService } from '../../../../../platform/dialogs/common/dialogs.js';
@@ -30,8 +30,8 @@ import { IChatResponseModel } from '../../../../../workbench/contrib/chat/common
 import { IChatAgentData } from '../../../../../workbench/contrib/chat/common/participants/chatAgents.js';
 import { IGitService } from '../../../../../workbench/contrib/git/common/gitService.js';
 import { ISessionChangeEvent } from '../../../../services/sessions/common/sessionsProvider.js';
-import { CopilotCLISessionType, SessionStatus } from '../../../../services/sessions/common/session.js';
-import { CopilotChatSessionsProvider, COPILOT_PROVIDER_ID } from '../../browser/copilotChatSessionsProvider.js';
+import { ClaudeCodeSessionType, CopilotCLISessionType, GITHUB_REMOTE_FILE_SCHEME, SessionStatus } from '../../../../services/sessions/common/session.js';
+import { CLAUDE_CODE_ENABLED_SETTING, CopilotChatSessionsProvider, COPILOT_PROVIDER_ID } from '../../browser/copilotChatSessionsProvider.js';
 import { ILogService, NullLogService } from '../../../../../platform/log/common/log.js';
 
 // ---- Helpers ----------------------------------------------------------------
@@ -41,6 +41,7 @@ function createMockAgentSession(resource: URI, opts?: {
 	title?: string;
 	archived?: boolean;
 	read?: boolean;
+	metadata?: Record<string, unknown>;
 }): IAgentSession {
 	const providerType = opts?.providerType ?? AgentSessionProviders.Background;
 	let archived = opts?.archived ?? false;
@@ -53,7 +54,7 @@ function createMockAgentSession(resource: URI, opts?: {
 		override readonly status = ChatSessionStatus.Completed;
 		override readonly icon = Codicon.copilot;
 		override readonly timing = { created: Date.now(), lastRequestStarted: undefined, lastRequestEnded: undefined };
-		override readonly metadata = { repositoryPath: '/test/repo' };
+		override readonly metadata = opts?.metadata ?? { repositoryPath: '/test/repo' };
 		override isArchived(): boolean { return archived; }
 		override setArchived(value: boolean): void { archived = value; }
 		override isPinned(): boolean { return false; }
@@ -106,12 +107,21 @@ class MockAgentSessionsModel {
 function createProvider(
 	disposables: DisposableStore,
 	model: MockAgentSessionsModel,
-	opts?: { multiChatEnabled?: boolean },
+	opts?: { multiChatEnabled?: boolean; claudeEnabled?: boolean },
 ): CopilotChatSessionsProvider {
+	return createProviderWithConfig(disposables, model, opts).provider;
+}
+
+function createProviderWithConfig(
+	disposables: DisposableStore,
+	model: MockAgentSessionsModel,
+	opts?: { multiChatEnabled?: boolean; claudeEnabled?: boolean },
+): { provider: CopilotChatSessionsProvider; configService: TestConfigurationService } {
 	const instantiationService = disposables.add(new TestInstantiationService());
 
 	const configService = new TestConfigurationService();
 	configService.setUserConfiguration('sessions.github.copilot.multiChatSessions', opts?.multiChatEnabled ?? true);
+	configService.setUserConfiguration(CLAUDE_CODE_ENABLED_SETTING, opts?.claudeEnabled ?? false);
 
 	instantiationService.stub(IConfigurationService, configService);
 	instantiationService.stub(IStorageService, disposables.add(new TestStorageService()));
@@ -170,7 +180,7 @@ function createProvider(
 	instantiationService.stub(IInstantiationService, instantiationService);
 
 	const provider = disposables.add(instantiationService.createInstance(CopilotChatSessionsProvider));
-	return provider;
+	return { provider, configService };
 }
 
 // ---- Provider factory for send/cancel tests ---------------------------------
@@ -187,12 +197,13 @@ function createProviderForSendTests(
 	disposables: DisposableStore,
 	model: MockAgentSessionsModel,
 	sendRequest: () => Promise<ChatSendResult>,
-	opts?: { onDidCommitSession?: Event<{ original: URI; committed: URI }> },
+	opts?: { onDidCommitSession?: Event<{ original: URI; committed: URI }>; claudeEnabled?: boolean },
 ): CopilotChatSessionsProvider {
 	const instantiationService = disposables.add(new TestInstantiationService());
 
 	const configService = new TestConfigurationService();
 	configService.setUserConfiguration('sessions.github.copilot.multiChatSessions', true);
+	configService.setUserConfiguration(CLAUDE_CODE_ENABLED_SETTING, opts?.claudeEnabled ?? false);
 
 	instantiationService.stub(ILogService, NullLogService);
 	instantiationService.stub(IConfigurationService, configService);
@@ -262,6 +273,83 @@ suite('CopilotChatSessionsProvider', () => {
 		assert.strictEqual(provider.sessionTypes.length, 2);
 	});
 
+	test('sessionTypes includes Claude when setting is enabled', () => {
+		const provider = createProvider(disposables, model, { claudeEnabled: true });
+		assert.strictEqual(provider.sessionTypes.length, 3);
+		assert.ok(provider.sessionTypes.some(t => t.id === ClaudeCodeSessionType.id));
+	});
+
+	test('onDidChangeSessionTypes fires when claude setting changes', () => {
+		const { provider, configService } = createProviderWithConfig(disposables, model);
+		assert.strictEqual(provider.sessionTypes.length, 2);
+
+		let fired = false;
+		disposables.add(provider.onDidChangeSessionTypes(() => { fired = true; }));
+
+		// Enable claude via config change
+		configService.setUserConfiguration(CLAUDE_CODE_ENABLED_SETTING, true);
+		configService.onDidChangeConfigurationEmitter.fire({
+			source: ConfigurationTarget.USER,
+			affectedKeys: new Set([CLAUDE_CODE_ENABLED_SETTING]),
+			change: { keys: [CLAUDE_CODE_ENABLED_SETTING], overrides: [] },
+			affectsConfiguration: (key: string) => key === CLAUDE_CODE_ENABLED_SETTING,
+		});
+
+		assert.ok(fired, 'onDidChangeSessionTypes should have fired');
+		assert.strictEqual(provider.sessionTypes.length, 3);
+	});
+
+	test('toggling claude setting refreshes sessions list', () => {
+		const claudeResource = URI.from({ scheme: AgentSessionProviders.Claude, path: '/claude-session' });
+		model.addSession(createMockAgentSession(claudeResource, { providerType: AgentSessionProviders.Claude }));
+
+		const { provider, configService } = createProviderWithConfig(disposables, model);
+		assert.strictEqual(provider.getSessions().length, 0, 'Claude sessions should be hidden when disabled');
+
+		// Enable Claude
+		configService.setUserConfiguration(CLAUDE_CODE_ENABLED_SETTING, true);
+		configService.onDidChangeConfigurationEmitter.fire({
+			source: ConfigurationTarget.USER,
+			affectedKeys: new Set([CLAUDE_CODE_ENABLED_SETTING]),
+			change: { keys: [CLAUDE_CODE_ENABLED_SETTING], overrides: [] },
+			affectsConfiguration: (key: string) => key === CLAUDE_CODE_ENABLED_SETTING,
+		});
+
+		assert.strictEqual(provider.getSessions().length, 1, 'Claude sessions should appear after enabling');
+
+		// Disable Claude
+		configService.setUserConfiguration(CLAUDE_CODE_ENABLED_SETTING, false);
+		configService.onDidChangeConfigurationEmitter.fire({
+			source: ConfigurationTarget.USER,
+			affectedKeys: new Set([CLAUDE_CODE_ENABLED_SETTING]),
+			change: { keys: [CLAUDE_CODE_ENABLED_SETTING], overrides: [] },
+			affectsConfiguration: (key: string) => key === CLAUDE_CODE_ENABLED_SETTING,
+		});
+
+		assert.strictEqual(provider.getSessions().length, 0, 'Claude sessions should disappear after disabling');
+	});
+
+	// ---- getSessionTypes -------
+
+	test('getSessionTypes returns Claude for local workspace when enabled', () => {
+		const provider = createProvider(disposables, model, { claudeEnabled: true });
+		const types = provider.getSessionTypes(URI.file('/test/project'));
+		assert.ok(types.some(t => t.id === ClaudeCodeSessionType.id));
+	});
+
+	test('getSessionTypes does not return Claude for local workspace when disabled', () => {
+		const provider = createProvider(disposables, model);
+		const types = provider.getSessionTypes(URI.file('/test/project'));
+		assert.ok(!types.some(t => t.id === ClaudeCodeSessionType.id));
+	});
+
+	test('getSessionTypes returns only Cloud for remote workspace regardless of claude setting', () => {
+		const provider = createProvider(disposables, model, { claudeEnabled: true });
+		const types = provider.getSessionTypes(URI.from({ scheme: GITHUB_REMOTE_FILE_SCHEME, path: '/owner/repo' }));
+		assert.strictEqual(types.length, 1);
+		assert.ok(!types.some(t => t.id === ClaudeCodeSessionType.id));
+	});
+
 	// ---- Session listing -------
 
 	test('getSessions returns empty array initially', () => {
@@ -281,7 +369,7 @@ suite('CopilotChatSessionsProvider', () => {
 		assert.strictEqual(sessions.length, 2);
 	});
 
-	test('getSessions ignores non-Background/Cloud sessions', () => {
+	test('getSessions ignores non-Background/Cloud/Claude sessions', () => {
 		const bgResource = URI.from({ scheme: AgentSessionProviders.Background, path: '/bg-session' });
 		const localResource = URI.from({ scheme: AgentSessionProviders.Local, path: '/local-session' });
 		model.addSession(createMockAgentSession(bgResource));
@@ -293,6 +381,26 @@ suite('CopilotChatSessionsProvider', () => {
 		assert.strictEqual(sessions.length, 1);
 	});
 
+	test('getSessions includes Claude agent sessions when enabled', () => {
+		const claudeResource = URI.from({ scheme: AgentSessionProviders.Claude, path: '/claude-session' });
+		model.addSession(createMockAgentSession(claudeResource, { providerType: AgentSessionProviders.Claude }));
+
+		const provider = createProvider(disposables, model, { claudeEnabled: true });
+		const sessions = provider.getSessions();
+
+		assert.strictEqual(sessions.length, 1);
+	});
+
+	test('getSessions excludes Claude agent sessions when disabled', () => {
+		const claudeResource = URI.from({ scheme: AgentSessionProviders.Claude, path: '/claude-session' });
+		model.addSession(createMockAgentSession(claudeResource, { providerType: AgentSessionProviders.Claude }));
+
+		const provider = createProvider(disposables, model);
+		const sessions = provider.getSessions();
+
+		assert.strictEqual(sessions.length, 0);
+	});
+
 	test('onDidChangeSessions fires when agent model changes', () => {
 		const provider = createProvider(disposables, model);
 		provider.getSessions(); // Initialize cache
@@ -377,6 +485,17 @@ suite('CopilotChatSessionsProvider', () => {
 		assert.strictEqual(sessions[0].capabilities.supportsMultipleChats, false);
 	});
 
+	test('claude sessions do not have supportsMultipleChats capability', () => {
+		const resource = URI.from({ scheme: AgentSessionProviders.Claude, path: '/session-1' });
+		model.addSession(createMockAgentSession(resource, { providerType: AgentSessionProviders.Claude }));
+
+		const provider = createProvider(disposables, model, { claudeEnabled: true });
+		const sessions = provider.getSessions();
+
+		assert.strictEqual(sessions.length, 1);
+		assert.strictEqual(sessions[0].capabilities.supportsMultipleChats, false);
+	});
+
 	// ---- Session listing & grouping -------
 
 	test('each session has exactly one chat initially', () => {
@@ -628,6 +747,24 @@ suite('CopilotChatSessionsProvider', () => {
 		assert.strictEqual(workspace.requiresWorkspaceTrust, true);
 	});
 
+	test('builds an unknown workspace fallback when repository metadata is missing', () => {
+		const resource = URI.from({ scheme: AgentSessionProviders.Background, path: '/unknown-workspace-session' });
+		model.addSession(createMockAgentSession(resource, { metadata: {} }));
+
+		const provider = createProvider(disposables, model);
+		const sessions = provider.getSessions();
+		const workspace = sessions[0].workspace.get();
+
+		assert.ok(workspace);
+		assert.strictEqual(workspace.repositories.length, 1);
+		assert.strictEqual(workspace.repositories[0].uri.toString(), URI.parse('unknown:///').toString());
+		assert.strictEqual(workspace.requiresWorkspaceTrust, true);
+
+		// The core symptom of #310777: any of these calls must not throw.
+		assert.doesNotThrow(() => URI.joinPath(workspace.repositories[0].uri, '.vscode', 'settings.json'));
+		assert.doesNotThrow(() => URI.joinPath(workspace.repositories[0].uri, '.vscode/extensions.json'));
+	});
+
 	test('has folder and repo browse actions', () => {
 		const provider = createProvider(disposables, model);
 		assert.strictEqual(provider.browseActions.length, 2);
@@ -635,6 +772,130 @@ suite('CopilotChatSessionsProvider', () => {
 		assert.strictEqual(provider.browseActions[1].providerId, COPILOT_PROVIDER_ID);
 	});
 
+	// ---- Claude session creation -------
+
+	function makeClaudeInFlightProvider(): { provider: CopilotChatSessionsProvider; cancelRequest: () => void } {
+		let resolveComplete!: () => void;
+		let resolveCreated!: (r: IChatResponseModel) => void;
+		const responseCompletePromise = new Promise<void>(r => { resolveComplete = r; });
+		const responseCreatedPromise = new Promise<IChatResponseModel>(r => { resolveCreated = r; });
+
+		const provider = createProviderForSendTests(disposables, model, async () => ({
+			kind: 'sent' as const,
+			data: {
+				responseCompletePromise,
+				responseCreatedPromise,
+				agent: new class extends mock<IChatAgentData>() { }(),
+			} as IChatSendRequestData,
+		}), { claudeEnabled: true });
+
+		return {
+			provider,
+			cancelRequest: () => {
+				resolveCreated({ isCanceled: true } as unknown as IChatResponseModel);
+				resolveComplete();
+			},
+		};
+	}
+
+	function waitForSessionAdded(provider: CopilotChatSessionsProvider): Promise<void> {
+		return new Promise<void>(resolve => {
+			const d = provider.onDidChangeSessions(e => {
+				if (e.added.length > 0) {
+					d.dispose();
+					resolve();
+				}
+			});
+		});
+	}
+
+	test('createNewSession with Claude type creates a session', async () => {
+		const { provider, cancelRequest } = makeClaudeInFlightProvider();
+		const workspace = URI.file('/test/project');
+
+		const session = provider.createNewSession(workspace, ClaudeCodeSessionType.id);
+
+		assert.ok(session);
+		assert.strictEqual(session.sessionType, ClaudeCodeSessionType.id);
+		assert.strictEqual(session.status.get(), SessionStatus.Untitled);
+
+		// Send and clean up so the session enters the cache and can be disposed
+		const added = waitForSessionAdded(provider);
+		const sendPromise = provider.sendAndCreateChat(session.sessionId, { query: 'test' });
+		await added;
+		cancelRequest();
+		await assert.doesNotReject(sendPromise);
+		await provider.deleteSession(session.sessionId);
+	});
+
+	test('archiveSession archives a Claude temp session', async () => {
+		const { provider, cancelRequest } = makeClaudeInFlightProvider();
+		const workspace = URI.file('/test/project');
+		const session = provider.createNewSession(workspace, ClaudeCodeSessionType.id);
+
+		const added = waitForSessionAdded(provider);
+		const sendPromise = provider.sendAndCreateChat(session.sessionId, { query: 'test' });
+		await added;
+
+		await provider.archiveSession(session.sessionId);
+		assert.strictEqual(provider.getSessions()[0].isArchived.get(), true);
+
+		cancelRequest();
+		await assert.doesNotReject(sendPromise);
+
+		// Clean up
+		await provider.deleteSession(session.sessionId);
+	});
+
+	test('unarchiveSession unarchives a Claude temp session', async () => {
+		const { provider, cancelRequest } = makeClaudeInFlightProvider();
+		const workspace = URI.file('/test/project');
+		const session = provider.createNewSession(workspace, ClaudeCodeSessionType.id);
+
+		const added = waitForSessionAdded(provider);
+		const sendPromise = provider.sendAndCreateChat(session.sessionId, { query: 'test' });
+		await added;
+
+		await provider.archiveSession(session.sessionId);
+		assert.strictEqual(provider.getSessions()[0].isArchived.get(), true);
+
+		await provider.unarchiveSession(session.sessionId);
+		assert.strictEqual(provider.getSessions()[0].isArchived.get(), false);
+
+		cancelRequest();
+		await assert.doesNotReject(sendPromise);
+
+		// Clean up
+		await provider.deleteSession(session.sessionId);
+	});
+
+	// ---- Rename -------
+
+	test('renameChat delegates to claude rename command', async () => {
+		const claudeResource = URI.from({ scheme: AgentSessionProviders.Claude, path: '/claude-session' });
+		model.addSession(createMockAgentSession(claudeResource, { providerType: AgentSessionProviders.Claude }));
+
+		const provider = createProvider(disposables, model, { claudeEnabled: true });
+		const sessions = provider.getSessions();
+		assert.strictEqual(sessions.length, 1);
+
+		// Should not throw — delegates to ICommandService.executeCommand
+		await provider.renameChat(sessions[0].sessionId, claudeResource, 'New Title');
+	});
+
+	test('renameChat throws for unsupported session type', async () => {
+		const resource = URI.from({ scheme: AgentSessionProviders.Cloud, path: '/cloud-session' });
+		model.addSession(createMockAgentSession(resource, { providerType: AgentSessionProviders.Cloud }));
+
+		const provider = createProvider(disposables, model);
+		const sessions = provider.getSessions();
+
+		await assert.rejects(
+			() => provider.renameChat(sessions[0].sessionId, resource, 'New Title'),
+			/not supported/,
+		);
+	});
+
 	// ---- Uncommitted temp session cleanup ------------------------------------
 
 	suite('uncommitted temp session cleanup', () => {
diff --git a/src/vs/sessions/contrib/editor/browser/editor.contribution.ts b/src/vs/sessions/contrib/editor/browser/editor.contribution.ts
new file mode 100644
index 00000000000..0d6e2ab4bd9
--- /dev/null
+++ b/src/vs/sessions/contrib/editor/browser/editor.contribution.ts
@@ -0,0 +1,219 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import { localize2 } from '../../../../nls.js';
+import { Codicon } from '../../../../base/common/codicons.js';
+import { ServicesAccessor } from '../../../../editor/browser/editorExtensions.js';
+import { Action2, MenuId, registerAction2 } from '../../../../platform/actions/common/actions.js';
+import { ICommandService } from '../../../../platform/commands/common/commands.js';
+import { ContextKeyExpr } from '../../../../platform/contextkey/common/contextkey.js';
+import { EditorPartModalContext, IsSessionsWindowContext } from '../../../../workbench/common/contextkeys.js';
+import { IAgentWorkbenchLayoutService } from '../../../browser/workbench.js';
+import { EditorMaximizedContext } from '../../../common/contextkeys.js';
+import { IViewsService } from '../../../../workbench/services/views/common/viewsService.js';
+import { IConfigurationService } from '../../../../platform/configuration/common/configuration.js';
+import { IEditorGroupsService } from '../../../../workbench/services/editor/common/editorGroupsService.js';
+import { MultiDiffEditorInput } from '../../../../workbench/contrib/multiDiffEditor/browser/multiDiffEditorInput.js';
+import { CHANGES_VIEW_ID } from '../../changes/common/changes.js';
+import { ChangesViewPane } from '../../changes/browser/changesView.js';
+import { prepareMoveCopyEditors } from '../../../../workbench/browser/parts/editor/editor.js';
+import { Parts } from '../../../../workbench/services/layout/browser/layoutService.js';
+import { MOVE_MODAL_EDITOR_TO_MAIN_COMMAND_ID } from '../../../../workbench/browser/parts/editor/editorCommands.js';
+
+class MaximizeMainEditorPartAction extends Action2 {
+	static readonly ID = 'workbench.action.agentSessions.maximizeMainEditorPart';
+
+	constructor() {
+		super({
+			id: MaximizeMainEditorPartAction.ID,
+			title: localize2('maximizeMainEditorPart', "Maximize Editor"),
+			icon: Codicon.screenFull,
+			f1: false,
+			menu: {
+				id: MenuId.EditorTitleLayout,
+				group: 'navigation',
+				order: 99,
+				when: ContextKeyExpr.and(
+					IsSessionsWindowContext,
+					EditorMaximizedContext.negate())
+			}
+		});
+	}
+
+	async run(accessor: ServicesAccessor): Promise<void> {
+		const layoutService = accessor.get(IAgentWorkbenchLayoutService);
+		layoutService.setEditorMaximized(true);
+	}
+}
+
+registerAction2(MaximizeMainEditorPartAction);
+
+class RestoreMainEditorPartAction extends Action2 {
+	static readonly ID = 'workbench.action.agentSessions.restoreMainEditorPart';
+
+	constructor() {
+		super({
+			id: RestoreMainEditorPartAction.ID,
+			title: localize2('restoreMainEditorPart', "Restore Editor"),
+			icon: Codicon.screenNormal,
+			f1: false,
+			menu: {
+				id: MenuId.EditorTitleLayout,
+				group: 'navigation',
+				order: 99,
+				when: ContextKeyExpr.and(
+					IsSessionsWindowContext,
+					EditorMaximizedContext)
+			}
+		});
+	}
+
+	async run(accessor: ServicesAccessor): Promise<void> {
+		const layoutService = accessor.get(IAgentWorkbenchLayoutService);
+		layoutService.setEditorMaximized(false);
+	}
+}
+
+registerAction2(RestoreMainEditorPartAction);
+
+class CloseMainEditorPartAction extends Action2 {
+	static readonly ID = 'workbench.action.agentSessions.closeMainEditorPart';
+
+	constructor() {
+		super({
+			id: CloseMainEditorPartAction.ID,
+			title: localize2('closeMainEditorPart', "Close Editor"),
+			icon: Codicon.close,
+			f1: false,
+			menu: {
+				id: MenuId.EditorTitleLayout,
+				group: 'navigation',
+				order: 100,
+				when: IsSessionsWindowContext
+			}
+		});
+	}
+
+	async run(accessor: ServicesAccessor): Promise<void> {
+		const commandService = accessor.get(ICommandService);
+		await commandService.executeCommand('workbench.action.closeAllGroups');
+	}
+}
+
+registerAction2(CloseMainEditorPartAction);
+
+class OpenEditorInModalEditorAction extends Action2 {
+	static readonly ID = 'workbench.action.agentSessions.openEditorInModal';
+
+	constructor() {
+		super({
+			id: OpenEditorInModalEditorAction.ID,
+			title: localize2('openEditorInModal', "Open in Modal Editor"),
+			icon: Codicon.openInWindow,
+			f1: false,
+			menu: {
+				id: MenuId.EditorTitleLayout,
+				group: 'navigation',
+				order: 1,
+				when: IsSessionsWindowContext
+			}
+		});
+	}
+
+	async run(accessor: ServicesAccessor): Promise<void> {
+		const viewsService = accessor.get(IViewsService);
+		const configurationService = accessor.get(IConfigurationService);
+		const editorGroupsService = accessor.get(IEditorGroupsService);
+
+		// Set the `workbench.editor.useModal` setting to 'all'
+		await configurationService.updateValue('workbench.editor.useModal', 'all');
+
+		// Move all editors from the active group to the modal editor
+		const activeGroup = editorGroupsService.mainPart.activeGroup;
+
+		// Check for multi-file diff editor
+		const multiFileDiffEditor = activeGroup.editors
+			.find(editor => editor instanceof MultiDiffEditorInput);
+
+		if (multiFileDiffEditor) {
+			// Reopen multi-file diff editor as the first editor in the modal editor
+			const view = viewsService.getViewWithId<ChangesViewPane>(CHANGES_VIEW_ID);
+			await view?.openChanges();
+
+			// Close the multi-file diff editor
+			await activeGroup.closeEditor(multiFileDiffEditor);
+		}
+
+		// Move all remaining editors to the modal editor
+		const modalPart = await editorGroupsService.createModalEditorPart();
+		const editorsToMove = prepareMoveCopyEditors(activeGroup, activeGroup.editors.slice(), true);
+		activeGroup.moveEditors(editorsToMove, modalPart.activeGroup);
+		modalPart.activeGroup.focus();
+	}
+}
+
+registerAction2(OpenEditorInModalEditorAction);
+
+class OpenModalEditorInEditorAction extends Action2 {
+	static readonly ID = 'workbench.action.agentSessions.openModalEditorInEditor';
+
+	constructor() {
+		super({
+			id: OpenModalEditorInEditorAction.ID,
+			title: localize2('openModalEditorInEditor', "Open in Editor"),
+			icon: Codicon.openInWindow,
+			f1: false,
+			menu: {
+				id: MenuId.ModalEditorTitle,
+				group: 'navigation',
+				order: 98,
+				when: ContextKeyExpr.and(
+					IsSessionsWindowContext,
+					EditorPartModalContext)
+			}
+		});
+	}
+
+	async run(accessor: ServicesAccessor): Promise<void> {
+		const viewsService = accessor.get(IViewsService);
+		const commandService = accessor.get(ICommandService);
+		const configurationService = accessor.get(IConfigurationService);
+		const editorGroupsService = accessor.get(IEditorGroupsService);
+		const layoutService = accessor.get(IAgentWorkbenchLayoutService);
+
+		const activeGroup = editorGroupsService.activeModalEditorPart?.activeGroup;
+		if (!activeGroup) {
+			return;
+		}
+
+		// Set the `workbench.editor.useModal` setting back to 'some'
+		await configurationService.updateValue('workbench.editor.useModal', 'some');
+
+		// Show the main editor part
+		layoutService.setPartHidden(false, Parts.EDITOR_PART);
+
+		// Check for navigation in the modal editor
+		const navigation = activeGroup.activeEditorPane?.options?.modal?.navigation;
+		if (navigation) {
+			const view = viewsService.getViewWithId<ChangesViewPane>(CHANGES_VIEW_ID);
+			const changes = view?.viewModel.activeSessionChangesObs.get();
+
+			if (changes && navigation.current < changes.length) {
+				// Reopen multi-file diff editor for the current file
+				await view?.openChanges(changes[navigation.current].modifiedUri ?? changes[navigation.current].originalUri);
+
+				// Close the editor in the modal editor (assume that the
+				// multi-file diff editor is the first editor in the modal
+				// editor)
+				await activeGroup.closeEditor(activeGroup.editors[0]);
+			}
+		}
+
+		// Move all remaining editors to the main editor part
+		await commandService.executeCommand(MOVE_MODAL_EDITOR_TO_MAIN_COMMAND_ID);
+	}
+}
+
+registerAction2(OpenModalEditorInEditorAction);
diff --git a/src/vs/sessions/contrib/remoteAgentHost/browser/remoteAgentHost.contribution.ts b/src/vs/sessions/contrib/remoteAgentHost/browser/remoteAgentHost.contribution.ts
index 2349a0a4699..518c56e1df4 100644
--- a/src/vs/sessions/contrib/remoteAgentHost/browser/remoteAgentHost.contribution.ts
+++ b/src/vs/sessions/contrib/remoteAgentHost/browser/remoteAgentHost.contribution.ts
@@ -10,7 +10,7 @@ import { URI } from '../../../../base/common/uri.js';
 import * as nls from '../../../../nls.js';
 import { agentHostAuthority } from '../../../../platform/agentHost/common/agentHostUri.js';
 import { type AgentProvider, type IAgentConnection } from '../../../../platform/agentHost/common/agentService.js';
-import { IRemoteAgentHostConnectionInfo, IRemoteAgentHostEntry, IRemoteAgentHostService, RemoteAgentHostConnectionStatus, RemoteAgentHostEntryType, RemoteAgentHostsEnabledSettingId, RemoteAgentHostsSettingId, getEntryAddress } from '../../../../platform/agentHost/common/remoteAgentHostService.js';
+import { IRemoteAgentHostConnectionInfo, IRemoteAgentHostEntry, IRemoteAgentHostService, RemoteAgentHostAutoConnectSettingId, RemoteAgentHostConnectionStatus, RemoteAgentHostEntryType, RemoteAgentHostsEnabledSettingId, RemoteAgentHostsSettingId, getEntryAddress } from '../../../../platform/agentHost/common/remoteAgentHostService.js';
 import { TunnelAgentHostsSettingId } from '../../../../platform/agentHost/common/tunnelAgentHost.js';
 import { type IProtectedResourceMetadata, type URI as ProtocolURI } from '../../../../platform/agentHost/common/state/protocol/state.js';
 import { type IAgentInfo, type ICustomizationRef, type IRootState } from '../../../../platform/agentHost/common/state/sessionState.js';
@@ -102,7 +102,7 @@ export class RemoteAgentHostContribution extends Disposable implements IWorkbenc
 
 		// Reconcile providers when configured entries change
 		this._register(this._configurationService.onDidChangeConfiguration(e => {
-			if (e.affectsConfiguration(RemoteAgentHostsSettingId) || e.affectsConfiguration(RemoteAgentHostsEnabledSettingId)) {
+			if (e.affectsConfiguration(RemoteAgentHostsSettingId) || e.affectsConfiguration(RemoteAgentHostsEnabledSettingId) || e.affectsConfiguration(RemoteAgentHostAutoConnectSettingId)) {
 				this._reconcile();
 			}
 		}));
@@ -194,6 +194,7 @@ export class RemoteAgentHostContribution extends Disposable implements IWorkbenc
 	 * sshConfigHost but no active connection.
 	 */
 	private _reconnectSSHEntries(): void {
+		const autoConnect = this._configurationService.getValue<boolean>(RemoteAgentHostAutoConnectSettingId);
 		const entries = this._remoteAgentHostService.configuredEntries;
 		for (const entry of entries) {
 			if (entry.connection.type !== RemoteAgentHostEntryType.SSH || !entry.connection.sshConfigHost) {
@@ -208,6 +209,9 @@ export class RemoteAgentHostContribution extends Disposable implements IWorkbenc
 			if (hasConnection || this._pendingSSHReconnects.has(sshConfigHost)) {
 				continue;
 			}
+			if (!autoConnect) {
+				continue;
+			}
 			this._pendingSSHReconnects.add(sshConfigHost);
 			this._logService.info(`[RemoteAgentHost] Re-establishing SSH tunnel for ${sshConfigHost}`);
 			this._sshService.reconnect(sshConfigHost, entry.name).then(() => {
@@ -216,6 +220,10 @@ export class RemoteAgentHostContribution extends Disposable implements IWorkbenc
 			}).catch(err => {
 				this._pendingSSHReconnects.delete(sshConfigHost);
 				this._logService.error(`[RemoteAgentHost] SSH reconnect failed for ${sshConfigHost}`, err);
+				// Host is unreachable — unpublish any cached sessions we
+				// were showing so the UI doesn't list stale entries for a
+				// host we cannot currently reach.
+				this._providerInstances.get(address)?.unpublishCachedSessions();
 			});
 		}
 	}
@@ -590,6 +598,13 @@ Registry.as<IConfigurationRegistry>(ConfigurationExtensions.Configuration).regis
 			scope: ConfigurationScope.APPLICATION,
 			tags: ['experimental', 'advanced'],
 		},
+		[RemoteAgentHostAutoConnectSettingId]: {
+			type: 'boolean',
+			description: nls.localize('chat.remoteAgentHosts.autoConnect', "Automatically connect to online dev tunnel and SSH-configured remote agent hosts on startup. When disabled, cached sessions are still shown but connections are established only on demand."),
+			default: true,
+			scope: ConfigurationScope.APPLICATION,
+			tags: ['experimental', 'advanced'],
+		},
 		'chat.sshRemoteAgentHostCommand': {
 			type: 'string',
 			description: nls.localize('chat.sshRemoteAgentHostCommand', "For development: Override the command used to start the remote agent host over SSH. When set, skips automatic CLI installation and runs this command instead. The command must print a WebSocket URL matching ws://127.0.0.1:PORT (optionally with ?tkn=TOKEN) to stdout or stderr./"),
@@ -627,4 +642,4 @@ Registry.as<IConfigurationRegistry>(ConfigurationExtensions.Configuration).regis
 
 // Side-effect registrations for the remote agent host feature
 import './remoteAgentHostActions.js';
-import '../../chat/browser/agentHostModelPicker.js';
+import '../../chat/browser/agentHost/agentHostModelPicker.js';
diff --git a/src/vs/sessions/contrib/remoteAgentHost/browser/remoteAgentHostSessionsProvider.ts b/src/vs/sessions/contrib/remoteAgentHost/browser/remoteAgentHostSessionsProvider.ts
index 89716bf057e..a487bf9d254 100644
--- a/src/vs/sessions/contrib/remoteAgentHost/browser/remoteAgentHostSessionsProvider.ts
+++ b/src/vs/sessions/contrib/remoteAgentHost/browser/remoteAgentHostSessionsProvider.ts
@@ -3,150 +3,92 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import { raceTimeout } from '../../../../base/common/async.js';
-import { CancellationToken, CancellationTokenSource } from '../../../../base/common/cancellation.js';
 import { Codicon } from '../../../../base/common/codicons.js';
 import { Emitter, Event } from '../../../../base/common/event.js';
-import { IMarkdownString, MarkdownString } from '../../../../base/common/htmlContent.js';
-import { Disposable, DisposableMap, DisposableStore } from '../../../../base/common/lifecycle.js';
+import { MarkdownString } from '../../../../base/common/htmlContent.js';
+import { DisposableStore } from '../../../../base/common/lifecycle.js';
 import { Schemas } from '../../../../base/common/network.js';
 import { basename } from '../../../../base/common/resources.js';
-import { constObservable, derived, IObservable, ISettableObservable, observableValue } from '../../../../base/common/observable.js';
+import { IObservable, observableValue } from '../../../../base/common/observable.js';
 import { ThemeIcon } from '../../../../base/common/themables.js';
 import { URI } from '../../../../base/common/uri.js';
-import { generateUuid } from '../../../../base/common/uuid.js';
 import { localize } from '../../../../nls.js';
 import { agentHostUri } from '../../../../platform/agentHost/common/agentHostFileSystemProvider.js';
 import { AGENT_HOST_SCHEME, agentHostAuthority, toAgentHostUri } from '../../../../platform/agentHost/common/agentHostUri.js';
 import { AgentSession, type IAgentConnection, type IAgentSessionMetadata } from '../../../../platform/agentHost/common/agentService.js';
 import { RemoteAgentHostConnectionStatus } from '../../../../platform/agentHost/common/remoteAgentHostService.js';
-import { ActionType, isSessionAction } from '../../../../platform/agentHost/common/state/sessionActions.js';
-import { NotificationType } from '../../../../platform/agentHost/common/state/protocol/notifications.js';
-import type { IResolveSessionConfigResult, ISessionConfigValueItem } from '../../../../platform/agentHost/common/state/protocol/commands.js';
-import type { IFileEdit, IModelSelection, IRootState, ISessionConfigPropertySchema, ISessionState, ISessionSummary } from '../../../../platform/agentHost/common/state/protocol/state.js';
-import { StateComponents } from '../../../../platform/agentHost/common/state/sessionState.js';
 import { IFileDialogService } from '../../../../platform/dialogs/common/dialogs.js';
 import { INotificationService } from '../../../../platform/notification/common/notification.js';
-import { ChatViewPaneTarget, IChatWidgetService } from '../../../../workbench/contrib/chat/browser/chat.js';
-import { IChatSendRequestOptions, IChatService } from '../../../../workbench/contrib/chat/common/chatService/chatService.js';
-import { IChatSessionFileChange, IChatSessionsService } from '../../../../workbench/contrib/chat/common/chatSessionsService.js';
-import { ChatAgentLocation, ChatModeKind } from '../../../../workbench/contrib/chat/common/constants.js';
+import { IStorageService, StorageScope, StorageTarget } from '../../../../platform/storage/common/storage.js';
+import { IChatWidgetService } from '../../../../workbench/contrib/chat/browser/chat.js';
+import { IChatService } from '../../../../workbench/contrib/chat/common/chatService/chatService.js';
+import { IChatSessionsService } from '../../../../workbench/contrib/chat/common/chatSessionsService.js';
 import { ILanguageModelsService } from '../../../../workbench/contrib/chat/common/languageModels.js';
-import { agentHostSessionWorkspaceKey, buildAgentHostSessionWorkspace } from '../../../common/agentHostSessionWorkspace.js';
-import { isSessionConfigComplete } from '../../../common/sessionConfig.js';
-import { diffsToChanges, diffsEqual, mapProtocolStatus } from '../../../common/agentHostDiffs.js';
-import { ISessionChangeEvent, ISendRequestOptions } from '../../../services/sessions/common/sessionsProvider.js';
-import { IAgentHostSessionsProvider, resolvedConfigsEqual } from '../../../common/agentHostSessionsProvider.js';
-import { ISession, IChat, IGitHubInfo, ISessionWorkspace, ISessionWorkspaceBrowseAction, SessionStatus, ISessionType, COPILOT_CLI_SESSION_TYPE } from '../../../services/sessions/common/session.js';
+import { AgentHostSessionAdapter, BaseAgentHostSessionsProvider } from '../../agentHost/browser/baseAgentHostSessionsProvider.js';
+import { buildAgentHostSessionWorkspace } from '../../../common/agentHostSessionWorkspace.js';
+import { ISession, ISessionType, ISessionWorkspace, ISessionWorkspaceBrowseAction } from '../../../services/sessions/common/session.js';
 import { remoteAgentHostSessionTypeId } from '../common/remoteAgentHostSessionType.js';
 
-/** The default agent provider name used by agent hosts when no explicit provider is specified. */
-const DEFAULT_AGENT_HOST_PROVIDER = 'copilot';
+/** Storage key prefix for cached session summaries, per remote address. */
+const CACHED_SESSIONS_STORAGE_PREFIX = 'remoteAgentHost.cachedSessions.';
+
+/** Maximum number of cached session summaries persisted per host. */
+const CACHED_SESSIONS_MAX_PER_HOST = 100;
 
 /**
- * Maps well-known agent host provider names to the local platform session type
- * they should be associated with. Agent providers not in this map keep the
- * unique per-connection ID as their logical session type.
+ * Serialized shape of an {@link IAgentSessionMetadata} suitable for
+ * persisting via {@link IStorageService}. URIs are stored as strings
+ * and diffs are intentionally omitted (they are re-populated when the
+ * connection refreshes sessions).
  */
-const WELL_KNOWN_AGENT_SESSION_TYPES: ReadonlyMap<string, string> = new Map([
-	[DEFAULT_AGENT_HOST_PROVIDER, COPILOT_CLI_SESSION_TYPE],
-]);
-
-/**
- * Look up the well-known local session type for an agent host provider name.
- * Returns the mapped type (e.g. `copilotcli`) or `undefined` for unknown providers.
- */
-function wellKnownSessionType(agentProvider: string): string | undefined {
-	return WELL_KNOWN_AGENT_SESSION_TYPES.get(agentProvider);
+interface ISerializedSessionMetadata {
+	readonly session: string;
+	readonly startTime: number;
+	readonly modifiedTime: number;
+	readonly summary?: string;
+	readonly model?: IAgentSessionMetadata['model'];
+	readonly workingDirectory?: string;
+	readonly isRead?: boolean;
+	readonly isDone?: boolean;
+	readonly project?: { readonly uri: string; readonly displayName: string };
 }
 
-/**
- * Reverse lookup: given a local session type, find the well-known agent host
- * provider name. Returns `undefined` when the session type is a per-connection
- * ID rather than a well-known mapping.
- */
-function wellKnownAgentProvider(sessionType: string): string | undefined {
-	for (const [provider, type] of WELL_KNOWN_AGENT_SESSION_TYPES) {
-		if (type === sessionType) {
-			return provider;
-		}
-	}
-	return undefined;
+function serializeMetadata(meta: IAgentSessionMetadata): ISerializedSessionMetadata {
+	return {
+		session: meta.session.toString(),
+		startTime: meta.startTime,
+		modifiedTime: meta.modifiedTime,
+		summary: meta.summary,
+		model: meta.model,
+		workingDirectory: meta.workingDirectory?.toString(),
+		isRead: meta.isRead,
+		isDone: meta.isDone,
+		project: meta.project ? { uri: meta.project.uri.toString(), displayName: meta.project.displayName } : undefined,
+	};
 }
 
-/** Known auto-approve config values. */
-const AUTO_APPROVE_ENUM = ['default', 'autoApprove', 'autopilot'];
-
-/**
- * Builds a minimal session-mutable config schema from changed values.
- * Used when a restored session receives a ConfigChanged action before
- * the full schema has been hydrated.
- */
-function buildMutableConfigSchema(config: Record<string, string>): Record<string, { type: 'string'; title: string; sessionMutable: true; enum: string[] }> {
-	const properties: Record<string, { type: 'string'; title: string; sessionMutable: true; enum: string[] }> = {};
-	for (const key of Object.keys(config)) {
-		properties[key] = {
-			type: 'string',
-			title: key,
-			sessionMutable: true,
-			enum: key === 'autoApprove' ? AUTO_APPROVE_ENUM : [config[key]],
+function deserializeMetadata(raw: ISerializedSessionMetadata): IAgentSessionMetadata | undefined {
+	try {
+		return {
+			session: URI.parse(raw.session),
+			startTime: raw.startTime,
+			modifiedTime: raw.modifiedTime,
+			summary: raw.summary,
+			model: raw.model,
+			workingDirectory: raw.workingDirectory ? URI.parse(raw.workingDirectory) : undefined,
+			isRead: raw.isRead,
+			isDone: raw.isDone,
+			project: raw.project ? { uri: URI.parse(raw.project.uri), displayName: raw.project.displayName } : undefined,
 		};
+	} catch {
+		return undefined;
 	}
-	return properties;
 }
 
 function toLocalProjectUri(uri: URI, connectionAuthority: string): URI {
 	return uri.scheme === Schemas.file ? toAgentHostUri(uri, connectionAuthority) : uri;
 }
 
-function toLocalDiffUri(connectionAuthority: string): (uri: URI) => URI {
-	return uri => toAgentHostUri(uri, connectionAuthority);
-}
-
-interface IChatData {
-	/** Globally unique session ID (`providerId:localId`). */
-	readonly id: string;
-	/** Resource URI identifying this session. */
-	readonly resource: URI;
-	/** ID of the provider that owns this session. */
-	readonly providerId: string;
-	/** Session type ID (e.g., 'copilot-cli', 'copilot-cloud'). */
-	readonly sessionType: string;
-	/** Icon for this session. */
-	readonly icon: ThemeIcon;
-	/** When the session was created. */
-	readonly createdAt: Date;
-	/** Workspace this session operates on. */
-	readonly workspace: IObservable<ISessionWorkspace | undefined>;
-
-	// Reactive properties
-
-	/** Session display title (changes when auto-titled or renamed). */
-	readonly title: IObservable<string>;
-	/** When the session was last updated. */
-	readonly updatedAt: IObservable<Date>;
-	/** Current session status. */
-	readonly status: IObservable<SessionStatus>;
-	/** File changes produced by the session. */
-	readonly changes: IObservable<readonly IChatSessionFileChange[]>;
-	/** Currently selected model identifier. */
-	readonly modelId: IObservable<string | undefined>;
-	/** Currently selected mode identifier and kind. */
-	readonly mode: IObservable<{ readonly id: string; readonly kind: string } | undefined>;
-	/** Whether the session is still initializing (e.g., resolving git repository). */
-	readonly loading: ISettableObservable<boolean>;
-	/** Whether the session is archived. */
-	readonly isArchived: IObservable<boolean>;
-	/** Whether the session has been read. */
-	readonly isRead: IObservable<boolean>;
-	/** Status description shown while the session is active (e.g., current agent action). */
-	readonly description: IObservable<IMarkdownString | undefined>;
-	/** Timestamp of when the last agent turn ended, if any. */
-	readonly lastTurnEnd: IObservable<Date | undefined>;
-	/** GitHub information associated with this session, if any. */
-	readonly gitHubInfo: IObservable<IGitHubInfo | undefined>;
-}
-
 export interface IRemoteAgentHostSessionsProviderConfig {
 	readonly address: string;
 	readonly name: string;
@@ -155,237 +97,90 @@ export interface IRemoteAgentHostSessionsProviderConfig {
 }
 
 /**
- * Adapts agent host session metadata into the {@link IChatData} facade.
- */
-class RemoteSessionAdapter implements IChatData {
-
-	readonly id: string;
-	readonly resource: URI;
-	readonly providerId: string;
-	readonly sessionType: string;
-	readonly icon = Codicon.remote;
-	readonly createdAt: Date;
-	readonly workspace: ISettableObservable<ISessionWorkspace | undefined>;
-	readonly title: ISettableObservable<string>;
-	readonly updatedAt: ISettableObservable<Date>;
-	readonly status: ISettableObservable<SessionStatus>;
-	readonly changes = observableValue<readonly IChatSessionFileChange[]>('changes', []);
-	readonly modelId: ISettableObservable<string | undefined>;
-	modelSelection: IModelSelection | undefined;
-	readonly mode = observableValue<{ readonly id: string; readonly kind: string } | undefined>('mode', undefined);
-	readonly loading = observableValue('loading', false);
-	readonly isArchived = observableValue('isArchived', false);
-	readonly isRead = observableValue('isRead', true);
-	readonly description: ISettableObservable<IMarkdownString | undefined>;
-	readonly lastTurnEnd: ISettableObservable<Date | undefined>;
-	readonly gitHubInfo = observableValue<IGitHubInfo | undefined>('gitHubInfo', undefined);
-
-	/** The agent provider name (e.g. 'copilot') for constructing backend URIs. */
-	readonly agentProvider: string;
-
-	constructor(
-		metadata: IAgentSessionMetadata,
-		providerId: string,
-		resourceScheme: string,
-		logicalSessionType: string,
-		private readonly _providerLabel: string,
-		private readonly _mapUri: (uri: URI) => URI,
-	) {
-		const rawId = AgentSession.id(metadata.session);
-		this.agentProvider = AgentSession.provider(metadata.session) ?? DEFAULT_AGENT_HOST_PROVIDER;
-		this.resource = URI.from({ scheme: resourceScheme, path: `/${rawId}` });
-		this.id = `${providerId}:${this.resource.toString()}`;
-		this.providerId = providerId;
-		this.sessionType = logicalSessionType;
-		this.createdAt = new Date(metadata.startTime);
-		this.title = observableValue('title', metadata.summary || `Session ${rawId.substring(0, 8)}`);
-		this.updatedAt = observableValue('updatedAt', new Date(metadata.modifiedTime));
-		this.modelSelection = metadata.model;
-		this.status = observableValue<SessionStatus>('status', metadata.status !== undefined ? mapProtocolStatus(metadata.status) : SessionStatus.Completed);
-		this.modelId = observableValue<string | undefined>('modelId', metadata.model ? `${resourceScheme}:${metadata.model.id}` : undefined);
-		this.lastTurnEnd = observableValue('lastTurnEnd', metadata.modifiedTime ? new Date(metadata.modifiedTime) : undefined);
-		this.description = observableValue('description', new MarkdownString().appendText(this._providerLabel));
-		this.workspace = observableValue('workspace', RemoteAgentHostSessionsProvider.buildWorkspace(metadata.project, metadata.workingDirectory, this._providerLabel));
-
-		if (metadata.isRead === false) {
-			this.isRead.set(false, undefined);
-		}
-		if (metadata.isDone) {
-			this.isArchived.set(true, undefined);
-		}
-		if (metadata.diffs && metadata.diffs.length > 0) {
-			this.changes.set(diffsToChanges(metadata.diffs, this._mapUri), undefined);
-		}
-	}
-
-	update(metadata: IAgentSessionMetadata): void {
-		this.title.set(metadata.summary || this.title.get(), undefined);
-		this.updatedAt.set(new Date(metadata.modifiedTime), undefined);
-		this.lastTurnEnd.set(metadata.modifiedTime ? new Date(metadata.modifiedTime) : undefined, undefined);
-		if (metadata.status !== undefined) {
-			const uiStatus = mapProtocolStatus(metadata.status);
-			if (uiStatus !== this.status.get()) {
-				this.status.set(uiStatus, undefined);
-			}
-		}
-		if (metadata.isRead !== undefined) {
-			this.isRead.set(metadata.isRead, undefined);
-		}
-		if (metadata.isDone !== undefined) {
-			this.isArchived.set(metadata.isDone, undefined);
-		}
-		this.modelSelection = metadata.model;
-		this.modelId.set(metadata.model ? `${this.resource.scheme}:${metadata.model.id}` : undefined, undefined);
-		const workspace = RemoteAgentHostSessionsProvider.buildWorkspace(metadata.project, metadata.workingDirectory, this._providerLabel);
-		if (agentHostSessionWorkspaceKey(workspace) !== agentHostSessionWorkspaceKey(this.workspace.get())) {
-			this.workspace.set(workspace, undefined);
-		}
-		if (metadata.diffs && !diffsEqual(this.changes.get(), metadata.diffs, this._mapUri)) {
-			this.changes.set(diffsToChanges(metadata.diffs, this._mapUri), undefined);
-		}
-	}
-}
-
-/**
- * Sessions provider for a remote agent host connection.
- * One instance is created per connection and handles all agents on it.
- *
- * Fully implements {@link ISessionsProvider}:
- * - Session listing via {@link IAgentConnection.listSessions} with incremental updates
- * - Session creation and initial request sending via {@link IChatService}
- * - Session actions (delete, rename, etc.) where supported by the protocol
+ * Sessions provider for a remote agent host connection. A thin subclass of
+ * {@link BaseAgentHostSessionsProvider} that adds the connection-lifecycle
+ * surface (`setConnection`/`clearConnection`), sticky authentication-pending
+ * tracking, the well-known session-type mapping, and a remote folder picker.
  *
  * **URI/ID scheme:**
  * - **rawId** - unique session identifier (e.g. `abc123`), used as the cache key.
- * - **resource** - `{resourceScheme}:///{rawId}` (e.g. `remote-host__4321-copilot:///abc123`).
- *   The scheme is the unique per-connection id and routes the chat service to the
- *   correct {@link AgentHostSessionHandler}.
- * - **sessionType** - the logical session type (e.g. `copilotcli` for copilot agents,
- *   or the per-connection id for other agents). Distinct from the resource scheme.
+ * - **resource** - `{resourceScheme}:///{rawId}`. The scheme is the unique
+ *   per-connection id and routes the chat service to the correct
+ *   {@link AgentHostSessionHandler}.
+ * - **sessionType** - the logical session type (e.g. `copilotcli` for copilot
+ *   agents, or the per-connection id for other agents). Distinct from the
+ *   resource scheme.
  * - **sessionId** - `{providerId}:{resource}` - the provider-scoped ID used by
- *   {@link ISessionsProvider} methods. The rawId can be extracted from the resource path.
- * - Protocol operations (e.g. `disposeSession`) use the canonical agent session URI
- *   (`copilot:///abc123`), reconstructed via {@link AgentSession.uri}.
+ *   {@link ISessionsProvider} methods.
+ * - Protocol operations (e.g. `disposeSession`) use the canonical agent
+ *   session URI (`copilot:///abc123`), reconstructed via {@link AgentSession.uri}.
  */
-export class RemoteAgentHostSessionsProvider extends Disposable implements IAgentHostSessionsProvider {
+export class RemoteAgentHostSessionsProvider extends BaseAgentHostSessionsProvider {
 
 	readonly id: string;
 	readonly label: string;
 	readonly icon: ThemeIcon = Codicon.remote;
 	readonly remoteAddress: string;
+	readonly browseActions: readonly ISessionWorkspaceBrowseAction[];
+
 	private _outputChannelId: string | undefined;
 	get outputChannelId(): string | undefined { return this._outputChannelId; }
 
-	/**
-	 * Session types for this provider, one per agent discovered on the host.
-	 * Populated dynamically from the connection's root state and updated when
-	 * agents appear or disappear. Each entry's id is the logical session type
-	 * (e.g. `copilotcli` for copilot agents, the unique per-connection ID for
-	 * other agents). The resource URI scheme and language model vendor remain
-	 * the unique per-connection ID produced by {@link remoteAgentHostSessionTypeId}.
-	 */
-	private _sessionTypes: ISessionType[] = [];
-	get sessionTypes(): readonly ISessionType[] { return this._sessionTypes; }
-
-	/**
-	 * Maps logical session type id → unique per-connection resource scheme.
-	 * Copilot agents map to `COPILOT_CLI_SESSION_TYPE` as the logical type
-	 * but keep the unique per-connection id as the resource scheme.
-	 */
-	private readonly _sessionTypeToResourceScheme = new Map<string, string>();
-
-	private readonly _onDidChangeSessionTypes = this._register(new Emitter<void>());
-	readonly onDidChangeSessionTypes: Event<void> = this._onDidChangeSessionTypes.event;
-
 	private readonly _connectionStatus = observableValue<RemoteAgentHostConnectionStatus>('connectionStatus', RemoteAgentHostConnectionStatus.Disconnected);
 	readonly connectionStatus: IObservable<RemoteAgentHostConnectionStatus> = this._connectionStatus;
 
 	/**
 	 * `true` while we are still resolving and pushing tokens for the host's
 	 * `protectedResources`. Defaults to `true` so that sessions surface as
-	 * loading until the first authentication pass settles. Toggled by
-	 * {@link RemoteAgentHostContribution} around each per-connection auth pass.
+	 * loading until the first authentication pass settles.
 	 */
 	private readonly _authenticationPending = observableValue('authenticationPending', true);
-	readonly authenticationPending: IObservable<boolean> = this._authenticationPending;
 	private _authenticationSettled = false;
 
-	setAuthenticationPending(pending: boolean): void {
-		// Sticky: once the first authentication pass settles, never surface
-		// pending again. Subsequent re-auths (account/session changes, reconnect)
-		// happen silently in the background and should not flicker the UI.
-		if (this._authenticationSettled) {
-			return;
-		}
-		if (!pending) {
-			this._authenticationSettled = true;
-		}
-		this._authenticationPending.set(pending, undefined);
-	}
-
-	private readonly _onDidChangeSessions = this._register(new Emitter<ISessionChangeEvent>());
-	readonly onDidChangeSessions: Event<ISessionChangeEvent> = this._onDidChangeSessions.event;
-
-	private readonly _onDidReplaceSession = this._register(new Emitter<{ readonly from: ISession; readonly to: ISession }>());
-	readonly onDidReplaceSession: Event<{ readonly from: ISession; readonly to: ISession }> = this._onDidReplaceSession.event;
-	private readonly _onDidChangeSessionConfig = this._register(new Emitter<string>());
-	readonly onDidChangeSessionConfig = this._onDidChangeSessionConfig.event;
-
-	readonly browseActions: readonly ISessionWorkspaceBrowseAction[];
-
-	/** Cache of adapted sessions, keyed by raw session ID. */
-	private readonly _sessionCache = new Map<string, RemoteSessionAdapter>();
-
-	/**
-	 * Temporary session that has been sent (first turn dispatched) but not yet
-	 * committed to a real backend session. Shown in the session list until the
-	 * server creates the backend session, at which point it is replaced via
-	 * {@link _onDidReplaceSession}.
-	 */
-	private _pendingSession: ISession | undefined;
-
-	/** Selected model for the current new session. */
-	private _selectedModelId: string | undefined;
-	/** Settable status for the current new session, kept to avoid unsafe cast from IObservable. */
-	private _currentNewSessionStatus: ISettableObservable<SessionStatus> | undefined;
-	/** Settable model for the current new session, kept to avoid unsafe cast from IObservable. */
-	private _currentNewSessionModelId: ISettableObservable<string | undefined> | undefined;
-	private readonly _newSessionWorkspaces = new Map<string, URI>();
-	private readonly _newSessionConfigs = new Map<string, IResolveSessionConfigResult>();
-	private readonly _newSessionAgentProviders = new Map<string, string>();
-	private readonly _newSessionConfigRequests = new Map<string, number>();
-
-	/** Config for running sessions (session-mutable properties only), keyed by session ID. */
-	private readonly _runningSessionConfigs = new Map<string, IResolveSessionConfigResult>();
-
-	/**
-	 * Lazy session-state subscriptions used to seed {@link _runningSessionConfigs}
-	 * for sessions that already exist on the agent host (e.g. created in a prior
-	 * window or after a reconnect). The underlying wire subscription is
-	 * reference-counted by {@link IAgentConnection.getSubscription}, so when
-	 * the session handler is also subscribed (chat content open) this shares
-	 * the existing wire subscription rather than opening a new one. Cleared
-	 * when the connection is replaced or removed. Keyed by session ID.
-	 */
-	private readonly _sessionStateSubscriptions = this._register(new DisposableMap<string, DisposableStore>());
+	private readonly _onDidDisconnect = this._register(new Emitter<void>());
+	protected override get onConnectionLost(): Event<void> { return this._onDidDisconnect.event; }
 
 	private _connection: IAgentConnection | undefined;
 	private _defaultDirectory: string | undefined;
 	private readonly _connectionListeners = this._register(new DisposableStore());
-	private readonly _onDidDisconnect = this._register(new Emitter<void>());
 	private readonly _connectionAuthority: string;
 	private readonly _connectOnDemand: (() => Promise<void>) | undefined;
+	/** Storage key used for persisting {@link _sessionCache} snapshots. */
+	private readonly _storageKey: string;
+	/**
+	 * Set when {@link _sessionCache} has changed since the last persist.
+	 * The actual write happens on the next `onWillSaveState` signal from
+	 * {@link IStorageService} so that bursts of notifications do not
+	 * repeatedly re-serialize the whole cache.
+	 */
+	private _cacheDirty = false;
+	/**
+	 * Snapshot of the source metadata for each adapter in {@link _sessionCache},
+	 * keyed by raw session ID. Captured in {@link createAdapter} and re-used by
+	 * {@link _persistCache} to serialize sessions without having to reconstruct
+	 * every `IAgentSessionMetadata` field from observables.
+	 */
+	private readonly _metaByRawId = new Map<string, IAgentSessionMetadata>();
+	/**
+	 * When `true`, the provider has been marked unreachable and sessions are
+	 * hidden from {@link getSessions}, even though {@link _sessionCache} and
+	 * persistent storage are retained. Cleared when a new connection is wired
+	 * up in {@link setConnection}, at which point the cached entries are
+	 * re-announced so the UI can repopulate.
+	 */
+	private _unpublished = false;
 
 	constructor(
 		config: IRemoteAgentHostSessionsProviderConfig,
 		@IFileDialogService private readonly _fileDialogService: IFileDialogService,
-		@IChatSessionsService private readonly _chatSessionsService: IChatSessionsService,
-		@IChatService private readonly _chatService: IChatService,
-		@IChatWidgetService private readonly _chatWidgetService: IChatWidgetService,
-		@ILanguageModelsService private readonly _languageModelsService: ILanguageModelsService,
 		@INotificationService private readonly _notificationService: INotificationService,
+		@IStorageService private readonly _storageService: IStorageService,
+		@IChatSessionsService chatSessionsService: IChatSessionsService,
+		@IChatService chatService: IChatService,
+		@IChatWidgetService chatWidgetService: IChatWidgetService,
+		@ILanguageModelsService languageModelsService: ILanguageModelsService,
 	) {
-		super();
+		super(chatSessionsService, chatService, chatWidgetService, languageModelsService);
 
 		this._connectionAuthority = agentHostAuthority(config.address);
 		this._connectOnDemand = config.connectOnDemand;
@@ -394,32 +189,116 @@ export class RemoteAgentHostSessionsProvider extends Disposable implements IAgen
 		this.id = `agenthost-${this._connectionAuthority}`;
 		this.label = displayName;
 		this.remoteAddress = config.address;
+		this._storageKey = `${CACHED_SESSIONS_STORAGE_PREFIX}${this._connectionAuthority}`;
 
 		this.browseActions = [{
 			label: localize('folders', "Folders"),
-			// label: localize('browseRemote', "Browse Folders ({0})...", displayName),
 			icon: Codicon.remote,
 			providerId: this.id,
 			run: () => this._browseForFolder(),
 		}];
+
+		this._loadCachedSessions();
+
+		this._register(this._onDidChangeSessions.event(e => {
+			if (this._unpublished) {
+				return;
+			}
+			if (e.added.length > 0 || e.removed.length > 0 || e.changed.length > 0) {
+				this._cacheDirty = true;
+			}
+			for (const removed of e.removed) {
+				const rawId = this._rawIdFromChatId(removed.sessionId);
+				if (rawId) {
+					this._metaByRawId.delete(rawId);
+				}
+			}
+		}));
+
+		this._register(this._storageService.onWillSaveState(() => {
+			if (this._cacheDirty) {
+				this._persistCache();
+				this._cacheDirty = false;
+			}
+		}));
 	}
 
-	/**
-	 * Update the connection status for this provider.
-	 * Called by the contribution when connection state changes.
-	 */
+	// -- BaseAgentHostSessionsProvider hooks ---------------------------------
+
+	protected get connection(): IAgentConnection | undefined { return this._connection; }
+
+	protected get authenticationPending(): IObservable<boolean> { return this._authenticationPending; }
+
+	protected override createAdapter(meta: IAgentSessionMetadata): AgentHostSessionAdapter {
+		this._metaByRawId.set(AgentSession.id(meta.session), meta);
+		return super.createAdapter(meta);
+	}
+
+	protected _adapterOptions() {
+		return {
+			description: new MarkdownString().appendText(this.label),
+			buildWorkspace: (project: IAgentSessionMetadata['project'], workingDirectory: URI | undefined) =>
+				RemoteAgentHostSessionsProvider.buildWorkspace(project, workingDirectory, this.label),
+		};
+	}
+
+	protected resourceSchemeForProvider(provider: string): string {
+		return remoteAgentHostSessionTypeId(this._connectionAuthority, provider);
+	}
+
+	override getSessions(): ISession[] {
+		return this._unpublished ? [] : super.getSessions();
+	}
+
+	protected override mapWorkingDirectoryUri(uri: URI): URI {
+		return toAgentHostUri(uri, this._connectionAuthority);
+	}
+
+	protected override mapProjectUri(uri: URI): URI {
+		return toLocalProjectUri(uri, this._connectionAuthority);
+	}
+
+	protected override _diffUriMapper(): (uri: URI) => URI {
+		return uri => toAgentHostUri(uri, this._connectionAuthority);
+	}
+
+	protected override _validateBeforeCreate(_sessionType: ISessionType): void {
+		if (!this._connection) {
+			throw new Error(localize('notConnectedSession', "Cannot create session: not connected to remote agent host '{0}'.", this.label));
+		}
+	}
+
+	protected override _noAgentsErrorMessage(): string {
+		return localize('noAgents', "Remote agent host '{0}' has not advertised any agents yet.", this.label);
+	}
+
+	protected override _notConnectedSendErrorMessage(): string {
+		return localize('notConnectedSend', "Cannot send request: not connected to remote agent host '{0}'.", this.label);
+	}
+
+	// -- Connection lifecycle ------------------------------------------------
+
+	/** Update the connection status for this provider. */
 	setConnectionStatus(status: RemoteAgentHostConnectionStatus): void {
 		this._connectionStatus.set(status, undefined);
 	}
 
-	/**
-	 * Set the output channel ID for this provider's IPC log.
-	 */
+	/** Set the output channel ID for this provider's IPC log. */
 	setOutputChannelId(id: string): void {
 		this._outputChannelId = id;
 	}
 
-	// -- Connection Management --
+	setAuthenticationPending(pending: boolean): void {
+		// Sticky: once the first authentication pass settles, never surface
+		// pending again. Subsequent re-auths happen silently in the background.
+		if (this._authenticationSettled) {
+			return;
+		}
+		if (!pending) {
+			this._authenticationSettled = true;
+		}
+		this._authenticationPending.set(pending, undefined);
+	}
 
 	/**
 	 * Wire a live connection to this provider, enabling session operations and folder browsing.
@@ -433,11 +312,9 @@ export class RemoteAgentHostSessionsProvider extends Disposable implements IAgen
 		this._sessionStateSubscriptions.clearAndDisposeAll();
 		this._connection = connection;
 		this._defaultDirectory = defaultDirectory;
+		this._unpublished = false;
 
 		// Dynamically discover session types from the host's advertised agents.
-		// One `ISessionType` per agent provider, with the type id matching the
-		// URI scheme used by `registerChatSessionContentProvider` and the
-		// `targetChatSessionType` published by `AgentHostLanguageModelProvider`.
 		const rootStateValue = connection.rootState.value;
 		if (rootStateValue && !(rootStateValue instanceof Error)) {
 			this._syncSessionTypesFromRootState(rootStateValue);
@@ -446,112 +323,19 @@ export class RemoteAgentHostSessionsProvider extends Disposable implements IAgen
 			this._syncSessionTypesFromRootState(rootState);
 		}));
 
-		this._connectionListeners.add(connection.onDidNotification(n => {
-			if (n.type === NotificationType.SessionAdded) {
-				this._handleSessionAdded(n.summary);
-			} else if (n.type === NotificationType.SessionRemoved) {
-				this._handleSessionRemoved(n.session);
-			} else if (n.type === NotificationType.SessionSummaryChanged) {
-				this._handleSessionSummaryChanged(n.session, n.changes);
-			}
-		}));
-
-		// Handle session state changes from the server
-		this._connectionListeners.add(this._connection.onDidAction(e => {
-			if (e.action.type === ActionType.SessionTurnComplete && isSessionAction(e.action)) {
-				const cts = new CancellationTokenSource();
-				this._refreshSessions(cts.token).finally(() => cts.dispose());
-			} else if (e.action.type === ActionType.SessionTitleChanged && isSessionAction(e.action)) {
-				this._handleTitleChanged(e.action.session, e.action.title);
-			} else if (e.action.type === ActionType.SessionModelChanged && isSessionAction(e.action)) {
-				this._handleModelChanged(e.action.session, e.action.model);
-			} else if (e.action.type === ActionType.SessionIsReadChanged && isSessionAction(e.action)) {
-				this._handleIsReadChanged(e.action.session, e.action.isRead);
-			} else if (e.action.type === ActionType.SessionIsDoneChanged && isSessionAction(e.action)) {
-				this._handleIsDoneChanged(e.action.session, e.action.isDone);
-			} else if (e.action.type === ActionType.SessionConfigChanged && isSessionAction(e.action)) {
-				this._handleConfigChanged(e.action.session, e.action.config);
-			} else if (e.action.type === ActionType.SessionDiffsChanged && isSessionAction(e.action)) {
-				this._handleDiffsChanged(e.action.session, e.action.diffs);
-			}
-		}));
+		this._attachConnectionListeners(connection, this._connectionListeners);
 
 		// Always refresh sessions when a connection is (re)established
-		const cts = new CancellationTokenSource();
 		this._cacheInitialized = true;
-		this._refreshSessions(cts.token).finally(() => cts.dispose());
-	}
-
-	/**
-	 * Reconcile `_sessionTypes` against the agents advertised by the host's
-	 * root state. Adds new types, removes types whose agents disappeared, and
-	 * fires {@link onDidChangeSessionTypes} if anything actually changed.
-	 *
-	 * Each entry's label is formatted as `<agent display name> [<host label>]`
-	 * so the session type picker shows both the agent identity and which
-	 * remote host it lives on. When an agent does not advertise a display
-	 * name, fall back to the host label alone rather than emitting a bare
-	 * `(<host label>)` with an empty prefix.
-	 */
-	private _syncSessionTypesFromRootState(rootState: IRootState): void {
-		const nextMap = new Map<string, string>();
-		const next = rootState.agents.map((agent): ISessionType => {
-			const resourceScheme = remoteAgentHostSessionTypeId(this._connectionAuthority, agent.provider);
-			const logicalType = this._logicalSessionTypeForProvider(agent.provider);
-			nextMap.set(logicalType, resourceScheme);
-			return {
-				id: logicalType,
-				label: this._formatSessionTypeLabel(agent.displayName?.trim() || agent.provider),
-				icon: Codicon.remote,
-			};
-		});
-
-		const prev = this._sessionTypes;
-		if (prev.length === next.length && prev.every((t, i) => t.id === next[i].id && t.label === next[i].label)) {
-			return;
-		}
-		this._sessionTypes = next;
-		this._sessionTypeToResourceScheme.clear();
-		for (const [key, value] of nextMap) {
-			this._sessionTypeToResourceScheme.set(key, value);
-		}
-		this._onDidChangeSessionTypes.fire();
-	}
-
-	private _formatSessionTypeLabel(agentLabel: string): string {
-		return `${agentLabel} [${this.label}]`;
-	}
-
-	/**
-	 * Returns the logical session type for a given agent provider.
-	 * Well-known providers (see {@link WELL_KNOWN_AGENT_SESSION_TYPES}) map
-	 * to the corresponding platform session type so that remote sessions
-	 * align with local and cloud sessions of the same kind.
-	 * Other agents keep the unique per-connection ID.
-	 */
-	private _logicalSessionTypeForProvider(provider: string): string {
-		return wellKnownSessionType(provider) ?? remoteAgentHostSessionTypeId(this._connectionAuthority, provider);
-	}
-
-	/**
-	 * Returns the unique per-connection resource scheme for a session metadata entry.
-	 */
-	private _resourceSchemeForMetadata(meta: IAgentSessionMetadata): string {
-		const provider = AgentSession.provider(meta.session) ?? DEFAULT_AGENT_HOST_PROVIDER;
-		return remoteAgentHostSessionTypeId(this._connectionAuthority, provider);
-	}
-
-	/**
-	 * Returns the logical session type for a session metadata entry.
-	 */
-	private _logicalSessionTypeForMetadata(meta: IAgentSessionMetadata): string {
-		const provider = AgentSession.provider(meta.session) ?? DEFAULT_AGENT_HOST_PROVIDER;
-		return this._logicalSessionTypeForProvider(provider);
+		this._refreshSessions();
 	}
 
 	/**
 	 * Clear the connection, e.g. when the remote host disconnects.
-	 * Retains the provider registration so it remains visible in the UI.
+	 * Retains the provider registration so it remains visible in the UI,
+	 * and **preserves** the cached session list so previously loaded
+	 * sessions stay visible while we're offline. Callers that know the
+	 * host is unreachable should follow up with {@link unpublishCachedSessions}.
 	 */
 	clearConnection(): void {
 		this._connectionListeners.clear();
@@ -560,36 +344,112 @@ export class RemoteAgentHostSessionsProvider extends Disposable implements IAgen
 		this._connection = undefined;
 		this._defaultDirectory = undefined;
 		if (this._currentNewSession) {
-			this._clearNewSessionConfig(this._currentNewSession.id);
+			this._clearNewSessionConfig(this._currentNewSession.sessionId);
 			this._currentNewSession = undefined;
 		}
 		this._currentNewSessionStatus = undefined;
+		this._currentNewSessionModelId = undefined;
+		this._currentNewSessionLoading = undefined;
 		this._selectedModelId = undefined;
 
 		if (this._sessionTypes.length > 0) {
 			this._sessionTypes = [];
-			this._sessionTypeToResourceScheme.clear();
 			this._onDidChangeSessionTypes.fire();
 		}
 
-		const removed: ISession[] = Array.from(this._sessionCache.values()).map(cached => this._chatToSession(cached));
+		// Drop only the transient pending/draft session; keep the persisted
+		// cache so the workspace picker keeps showing offline sessions.
 		if (this._pendingSession) {
-			removed.push(this._pendingSession);
+			const pending = this._pendingSession;
 			this._pendingSession = undefined;
+			this._onDidChangeSessions.fire({ added: [], removed: [pending], changed: [] });
 		}
-		this._sessionCache.clear();
-		this._runningSessionConfigs.clear();
+
+		// Reset the in-memory cache-initialized flag so a fresh connection
+		// triggers a full list refresh (which will reconcile against the
+		// persisted entries we keep on disk).
 		this._cacheInitialized = false;
+	}
+
+	/**
+	 * Hide cached sessions from the UI without discarding them. Called by the
+	 * host-tracking contributions when they determine the remote host is
+	 * unreachable (tunnel offline or SSH reconnect failed). The in-memory
+	 * cache and persisted storage are left intact so the sessions can be
+	 * restored if the host comes back online in this session, or on the next
+	 * launch. The next {@link setConnection} call re-announces the cached
+	 * entries.
+	 */
+	unpublishCachedSessions(): void {
+		if (this._unpublished) {
+			return;
+		}
+		this._unpublished = true;
+		const removed: ISession[] = Array.from(this._sessionCache.values());
 		if (removed.length > 0) {
 			this._onDidChangeSessions.fire({ added: [], removed, changed: [] });
 		}
 	}
 
-	// -- Workspaces --
+	/** Load persisted session summaries into {@link _sessionCache}. */
+	private _loadCachedSessions(): void {
+		const parsed = this._storageService.getObject(this._storageKey, StorageScope.APPLICATION);
+		if (!Array.isArray(parsed)) {
+			return;
+		}
+		for (const entry of parsed as readonly ISerializedSessionMetadata[]) {
+			const meta = deserializeMetadata(entry);
+			if (!meta) {
+				continue;
+			}
+			const rawId = AgentSession.id(meta.session);
+			if (this._sessionCache.has(rawId)) {
+				continue;
+			}
+			const cached = this.createAdapter(meta);
+			this._sessionCache.set(rawId, cached);
+		}
+	}
 
 	/**
-	 * Builds workspace metadata from a working directory path on the remote host.
+	 * Persist the current {@link _sessionCache} to storage, capping at
+	 * {@link CACHED_SESSIONS_MAX_PER_HOST} most-recently-modified entries.
+	 * Mutable fields are read from each adapter's observables and overlaid on
+	 * top of the original metadata snapshot captured in {@link _metaByRawId}.
 	 */
+	private _persistCache(): void {
+		const entries: ISerializedSessionMetadata[] = [];
+		for (const [rawId, adapter] of this._sessionCache) {
+			const base = this._metaByRawId.get(rawId);
+			if (!base) {
+				continue;
+			}
+			entries.push(serializeMetadata({
+				...base,
+				summary: adapter.title.get() || base.summary,
+				modifiedTime: adapter.updatedAt.get().getTime(),
+				model: adapter.modelSelection ?? base.model,
+				isRead: adapter.isRead.get(),
+				isDone: adapter.isArchived.get(),
+			}));
+		}
+		if (entries.length === 0) {
+			this._storageService.remove(this._storageKey, StorageScope.APPLICATION);
+			return;
+		}
+		entries.sort((a, b) => b.modifiedTime - a.modifiedTime);
+		const limited = entries.slice(0, CACHED_SESSIONS_MAX_PER_HOST);
+		this._storageService.store(this._storageKey, JSON.stringify(limited), StorageScope.APPLICATION, StorageTarget.USER);
+	}
+
+	// -- Session-type sync ---------------------------------------------------
+
+	protected _formatSessionTypeLabel(agentLabel: string): string {
+		return `${agentLabel} [${this.label}]`;
+	}
+
+	// -- Workspaces ----------------------------------------------------------
+
 	static buildWorkspace(project: IAgentSessionMetadata['project'], workingDirectory: URI | undefined, providerLabel: string): ISessionWorkspace | undefined {
 		return buildAgentHostSessionWorkspace(project, workingDirectory, { providerLabel, fallbackIcon: Codicon.remote, requiresWorkspaceTrust: false });
 	}
@@ -608,784 +468,17 @@ export class RemoteAgentHostSessionsProvider extends Disposable implements IAgen
 		return this._buildWorkspaceFromUri(repositoryUri);
 	}
 
-	// -- Sessions --
-
-	getSessionTypes(repositoryUri: URI): ISessionType[] {
-		return [...this.sessionTypes];
-	}
-
-	getSessions(): ISession[] {
-		this._ensureSessionCache();
-		const sessions: ISession[] = Array.from(this._sessionCache.values()).map(cached => this._chatToSession(cached));
-		if (this._pendingSession) {
-			sessions.push(this._pendingSession);
-		}
-		return sessions;
-	}
-
-	getSessionByResource(resource: URI): ISession | undefined {
-		if (this._currentNewSession?.resource.toString() === resource.toString()) {
-			return this._chatToSession(this._currentNewSession);
-		}
-
-		if (this._pendingSession?.resource.toString() === resource.toString()) {
-			return this._pendingSession;
-		}
-
-		this._ensureSessionCache();
-		for (const cached of this._sessionCache.values()) {
-			if (cached.resource.toString() === resource.toString()) {
-				return this._chatToSession(cached);
-			}
-		}
-
-		return undefined;
-	}
-
-	// -- Session Lifecycle --
-
-	private _currentNewSession: IChatData | undefined;
-
-	createNewSession(workspaceUri: URI, sessionTypeId: string): ISession {
-		if (!this._connection) {
-			throw new Error(localize('notConnectedSession', "Cannot create session: not connected to remote agent host '{0}'.", this.label));
-		}
-
-		const sessionType = this.sessionTypes.find(t => t.id === sessionTypeId);
-		if (!sessionType) {
-			throw new Error(localize('noAgents', "Remote agent host '{0}' has not advertised any agents yet.", this.label));
-		}
-
-		// Reset draft state from any prior unsent session
-		if (this._currentNewSession) {
-			this._clearNewSessionConfig(this._currentNewSession.id);
-		}
-		this._currentNewSession = undefined;
-		this._selectedModelId = undefined;
-		this._currentNewSessionModelId = undefined;
-
-		const sessionWorkspace = this.resolveWorkspace(workspaceUri);
-		const built = this._buildNewSessionData(sessionWorkspace, sessionType);
-		this._currentNewSession = built.data;
-		this._currentNewSessionStatus = built.status;
-		this._currentNewSessionModelId = built.modelId;
-		return this._chatToSession(built.data);
-	}
-
-	/**
-	 * Build a fresh {@link IChatData} for an untitled session rooted on
-	 * {@link workspace} and targeting {@link sessionType}. The resource URI
-	 * scheme is the unique per-connection resource scheme (looked up from
-	 * {@link _sessionTypeToResourceScheme}), which routes to the correct
-	 * chat session content provider. The logical session type (e.g.
-	 * `copilotcli`) is stored as `ISession.sessionType`.
-	 *
-	 * Returns the status observable separately so callers can still drive
-	 * state transitions (e.g. to {@link SessionStatus.InProgress}) without
-	 * casting away the readonly declaration on {@link IChatData.status}.
-	 */
-	private _buildNewSessionData(workspace: ISessionWorkspace, sessionType: ISessionType): { data: IChatData; status: ISettableObservable<SessionStatus>; modelId: ISettableObservable<string | undefined> } {
-		const workspaceUri = workspace.repositories[0]?.uri;
-		if (!workspaceUri) {
-			throw new Error('Workspace has no repository URI');
-		}
-		const resourceScheme = this._sessionTypeToResourceScheme.get(sessionType.id) ?? sessionType.id;
-		const resource = URI.from({ scheme: resourceScheme, path: `/untitled-${generateUuid()}` });
-		const status = observableValue<SessionStatus>(this, SessionStatus.Untitled);
-		const modelId = observableValue<string | undefined>(this, undefined);
-		const loading = observableValue(this, true);
-		const data: IChatData = {
-			id: `${this.id}:${resource.toString()}`,
-			resource,
-			providerId: this.id,
-			sessionType: sessionType.id,
-			icon: Codicon.remote,
-			createdAt: new Date(),
-			workspace: observableValue(this, workspace),
-			title: observableValue(this, ''),
-			updatedAt: observableValue(this, new Date()),
-			status,
-			changes: observableValue<readonly IChatSessionFileChange[]>(this, []),
-			modelId,
-			mode: observableValue(this, undefined),
-			loading,
-			isArchived: observableValue(this, false),
-			isRead: observableValue(this, true),
-			description: observableValue(this, undefined),
-			lastTurnEnd: observableValue(this, undefined),
-			gitHubInfo: observableValue(this, undefined),
-		};
-		const agentProvider = this._agentProviderFromSessionType(sessionType.id);
-		this._newSessionWorkspaces.set(data.id, workspaceUri);
-		this._newSessionAgentProviders.set(data.id, agentProvider);
-		this._newSessionConfigs.set(data.id, { schema: { type: 'object', properties: {} }, values: {} });
-		this._onDidChangeSessionConfig.fire(data.id);
-		this._resolveSessionConfig(data.id, agentProvider, workspaceUri, undefined);
-		return { data, status, modelId };
-	}
-
-	getSessionConfig(sessionId: string): IResolveSessionConfigResult | undefined {
-		const newSessionConfig = this._newSessionConfigs.get(sessionId);
-		if (newSessionConfig) {
-			return newSessionConfig;
-		}
-		this._ensureSessionStateSubscription(sessionId);
-		return this._runningSessionConfigs.get(sessionId);
-	}
-
-	async setSessionConfigValue(sessionId: string, property: string, value: string): Promise<void> {
-		// New session (pre-creation): re-resolve the full config schema
-		const workingDirectory = this._newSessionWorkspaces.get(sessionId);
-		if (workingDirectory) {
-			const current = this._newSessionConfigs.get(sessionId)?.values ?? {};
-			this._newSessionConfigs.set(sessionId, { schema: { type: 'object', properties: {} }, values: { ...current, [property]: value } });
-			this._setNewSessionLoading(sessionId, true);
-			this._onDidChangeSessionConfig.fire(sessionId);
-			await this._resolveSessionConfig(sessionId, this._getAgentProviderForSession(sessionId), workingDirectory, { ...current, [property]: value });
-			return;
-		}
-
-		// Running session: dispatch SessionConfigChanged for sessionMutable properties
-		const runningConfig = this._runningSessionConfigs.get(sessionId);
-		if (!runningConfig || !this._connection) {
-			return;
-		}
-		const schema = runningConfig.schema.properties[property];
-		if (!schema?.sessionMutable) {
-			return;
-		}
-
-		// Update local cache optimistically
-		this._runningSessionConfigs.set(sessionId, {
-			...runningConfig,
-			values: { ...runningConfig.values, [property]: value },
-		});
-		this._onDidChangeSessionConfig.fire(sessionId);
-
-		// Dispatch to the agent host connection
-		const rawId = this._rawIdFromChatId(sessionId);
-		const cached = rawId ? this._sessionCache.get(rawId) : undefined;
-		if (cached && rawId) {
-			const action = { type: ActionType.SessionConfigChanged as const, session: AgentSession.uri(cached.agentProvider, rawId).toString(), config: { [property]: value } };
-			this._connection.dispatch(action);
-		}
-	}
-
-	async getSessionConfigCompletions(sessionId: string, property: string, query?: string): Promise<readonly ISessionConfigValueItem[]> {
-		const workingDirectory = this._newSessionWorkspaces.get(sessionId);
-		if (!workingDirectory || !this._connection) {
-			return [];
-		}
-		const result = await this._connection.sessionConfigCompletions({
-			provider: this._getAgentProviderForSession(sessionId),
-			workingDirectory,
-			config: this._newSessionConfigs.get(sessionId)?.values,
-			property,
-			query,
-		});
-		return result.items;
-	}
-
-	getCreateSessionConfig(sessionId: string): Record<string, string> | undefined {
-		return this._newSessionConfigs.get(sessionId)?.values;
-	}
-
-	clearSessionConfig(sessionId: string): void {
-		this._clearNewSessionConfig(sessionId);
-	}
-
-
-	setModel(sessionId: string, modelId: string): void {
-		if (this._currentNewSession?.id === sessionId) {
-			this._selectedModelId = modelId;
-			this._currentNewSessionModelId?.set(modelId, undefined);
-			return;
-		}
-
-		const rawId = this._rawIdFromChatId(sessionId);
-		const cached = rawId ? this._sessionCache.get(rawId) : undefined;
-		if (cached && rawId && this._connection) {
-			cached.modelId.set(modelId, undefined);
-			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [this._chatToSession(cached)] });
-			const resourceScheme = cached.resource.scheme;
-			const rawModelId = modelId.startsWith(`${resourceScheme}:`) ? modelId.substring(resourceScheme.length + 1) : modelId;
-			const model = cached.modelSelection?.id === rawModelId ? cached.modelSelection : { id: rawModelId };
-			const action = { type: ActionType.SessionModelChanged as const, session: AgentSession.uri(cached.agentProvider, rawId).toString(), model };
-			this._connection.dispatch(action);
-		}
-	}
-
-	// -- Session Actions --
-
-	async archiveSession(sessionId: string): Promise<void> {
-		const rawId = this._rawIdFromChatId(sessionId);
-		const cached = rawId ? this._sessionCache.get(rawId) : undefined;
-		if (cached && rawId) {
-			cached.isArchived.set(true, undefined);
-			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [this._chatToSession(cached)] });
-			if (this._connection) {
-				const action = { type: ActionType.SessionIsDoneChanged as const, session: AgentSession.uri(cached.agentProvider, rawId).toString(), isDone: true };
-				this._connection.dispatch(action);
-			}
-		}
-	}
-
-	async unarchiveSession(sessionId: string): Promise<void> {
-		const rawId = this._rawIdFromChatId(sessionId);
-		const cached = rawId ? this._sessionCache.get(rawId) : undefined;
-		if (cached && rawId) {
-			cached.isArchived.set(false, undefined);
-			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [this._chatToSession(cached)] });
-			if (this._connection) {
-				const action = { type: ActionType.SessionIsDoneChanged as const, session: AgentSession.uri(cached.agentProvider, rawId).toString(), isDone: false };
-				this._connection.dispatch(action);
-			}
-		}
-	}
-
-	async deleteSession(sessionId: string): Promise<void> {
-		const rawId = this._rawIdFromChatId(sessionId);
-		const cached = rawId ? this._sessionCache.get(rawId) : undefined;
-		if (cached && rawId && this._connection) {
-			await this._connection.disposeSession(AgentSession.uri(cached.agentProvider, rawId));
-			this._sessionCache.delete(rawId);
-			this._runningSessionConfigs.delete(sessionId);
-			this._onDidChangeSessions.fire({ added: [], removed: [this._chatToSession(cached)], changed: [] });
-		}
-	}
-
-	async renameChat(sessionId: string, _chatUri: URI, _title: string): Promise<void> {
-		const rawId = this._rawIdFromChatId(sessionId);
-		const cached = rawId ? this._sessionCache.get(rawId) : undefined;
-		if (cached && rawId && this._connection) {
-			cached.title.set(_title, undefined);
-			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [this._chatToSession(cached)] });
-			const action = { type: ActionType.SessionTitleChanged as const, session: AgentSession.uri(cached.agentProvider, rawId).toString(), title: _title };
-			this._connection.dispatch(action);
-		}
-	}
-
-	async deleteChat(_sessionId: string, _chatUri: URI): Promise<void> {
-		// Agent host sessions don't support deleting individual chats
-	}
-
-	async sendAndCreateChat(chatId: string, options: ISendRequestOptions): Promise<ISession> {
-		if (!this._connection) {
-			throw new Error(localize('notConnectedSend', "Cannot send request: not connected to remote agent host '{0}'.", this.label));
-		}
-
-		const session = this._currentNewSession;
-		if (!session || session.id !== chatId) {
-			throw new Error(`Session '${chatId}' not found or not a new session`);
-		}
-
-		const { query, attachedContext } = options;
-
-		const contribution = this._chatSessionsService.getChatSessionContribution(session.resource.scheme);
-
-		const sendOptions: IChatSendRequestOptions = {
-			location: ChatAgentLocation.Chat,
-			userSelectedModelId: this._selectedModelId,
-			modeInfo: {
-				kind: ChatModeKind.Agent,
-				isBuiltin: true,
-				modeInstructions: undefined,
-				modeId: 'agent',
-				applyCodeBlockSuggestionId: undefined,
-				permissionLevel: undefined,
-			},
-			agentIdSilent: contribution?.type,
-			attachedContext,
-			agentHostSessionConfig: this.getCreateSessionConfig(chatId),
-		};
-
-		// Open chat widget
-		await this._chatSessionsService.getOrCreateChatSession(session.resource, CancellationToken.None);
-		const chatWidget = await this._chatWidgetService.openSession(session.resource, ChatViewPaneTarget);
-		if (!chatWidget) {
-			throw new Error('[RemoteAgentHost] Failed to open chat widget');
-		}
-
-		// Load session model and apply selected model
-		const modelRef = await this._chatService.acquireOrLoadSession(session.resource, ChatAgentLocation.Chat, CancellationToken.None);
-		if (modelRef) {
-			if (this._selectedModelId) {
-				const languageModel = this._languageModelsService.lookupLanguageModel(this._selectedModelId);
-				if (languageModel) {
-					modelRef.object.inputModel.setState({ selectedModel: { identifier: this._selectedModelId, metadata: languageModel } });
-				}
-			}
-			modelRef.dispose();
-		}
-
-		// Capture existing session keys before sending so we can detect the new
-		// backend session. Must be captured before sendRequest because the
-		// backend session may be created during the send and arrive via
-		// notification before sendRequest resolves.
-		const existingKeys = new Set(this._sessionCache.keys());
-
-		// Send request through the chat service, which delegates to the
-		// AgentHostSessionHandler content provider for turn handling
-		const result = await this._chatService.sendRequest(session.resource, query, sendOptions);
-		if (result.kind === 'rejected') {
-			throw new Error(`[RemoteAgentHost] sendRequest rejected: ${result.reason}`);
-		}
-
-		// Add the untitled session to the pending set so it stays visible in the
-		// session list while the turn is in progress. It will be replaced
-		// by the committed session once the backend session appears.
-		this._currentNewSessionStatus?.set(SessionStatus.InProgress, undefined);
-		const newSession = this._chatToSession(session);
-		this._pendingSession = newSession;
-		this._onDidChangeSessions.fire({ added: [newSession], removed: [], changed: [] });
-
-		this._selectedModelId = undefined;
-		this._currentNewSessionStatus = undefined;
-		this._currentNewSessionModelId = undefined;
-
-		// Wait for the real backend session to appear (via server notification
-		// after the handler creates it), then replace the temporary entry.
-		try {
-			const committedSession = await this._waitForNewSession(existingKeys);
-			if (committedSession) {
-				this._preserveSessionMutableConfig(chatId, committedSession.sessionId);
-				this._currentNewSession = undefined;
-				this._currentNewSessionModelId = undefined;
-				this._clearNewSessionConfig(chatId);
-				this._onDidReplaceSession.fire({ from: newSession, to: committedSession });
-				return committedSession;
-			}
-		} catch {
-			// Connection lost or timeout — clean up
-		} finally {
-			this._pendingSession = undefined;
-		}
-
-		// Fallback: keep the temp session visible
-		this._currentNewSession = undefined;
-		this._currentNewSessionModelId = undefined;
-		this._clearNewSessionConfig(chatId);
-		return newSession;
-	}
-
-	addChat(_sessionId: string): IChat {
-		throw new Error('Multiple chats per session is not supported for remote agent host sessions');
-	}
-
-	async sendRequest(_sessionId: string, _chatResource: URI, _options: ISendRequestOptions): Promise<ISession> {
-		throw new Error('Multiple chats per session is not supported for remote agent host sessions');
-	}
-
-	private async _resolveSessionConfig(sessionId: string, agentProvider: string, workingDirectory: URI, config: Record<string, string> | undefined): Promise<void> {
-		if (!this._connection) {
-			this._setNewSessionLoading(sessionId, false);
-			return;
-		}
-		const request = (this._newSessionConfigRequests.get(sessionId) ?? 0) + 1;
-		this._newSessionConfigRequests.set(sessionId, request);
-		try {
-			const result = await this._connection.resolveSessionConfig({
-				provider: agentProvider,
-				workingDirectory,
-				config,
-			});
-			if (this._newSessionConfigRequests.get(sessionId) !== request) {
-				return;
-			}
-			this._newSessionConfigs.set(sessionId, result);
-			this._setNewSessionLoading(sessionId, !isSessionConfigComplete(result));
-		} catch {
-			if (this._newSessionConfigRequests.get(sessionId) !== request) {
-				return;
-			}
-			this._newSessionConfigs.delete(sessionId);
-			this._setNewSessionLoading(sessionId, false);
-		}
-		this._onDidChangeSessionConfig.fire(sessionId);
-	}
-
-	private _clearNewSessionConfig(sessionId: string): void {
-		this._newSessionWorkspaces.delete(sessionId);
-		this._newSessionConfigs.delete(sessionId);
-		this._newSessionAgentProviders.delete(sessionId);
-		this._newSessionConfigRequests.delete(sessionId);
-	}
-
-	/**
-	 * When a session transitions from untitled (new) to committed (running),
-	 * preserve the session-mutable config properties so they can be changed
-	 * during the running session.
-	 */
-	private _preserveSessionMutableConfig(oldSessionId: string, newSessionId: string): void {
-		const config = this._newSessionConfigs.get(oldSessionId);
-		if (!config) {
-			return;
-		}
-		// Filter schema to only include session-mutable properties
-		const mutableProperties: IResolveSessionConfigResult['schema']['properties'] = {};
-		const mutableValues: Record<string, string> = {};
-		for (const [key, propSchema] of Object.entries(config.schema.properties)) {
-			if (propSchema.sessionMutable) {
-				mutableProperties[key] = propSchema;
-				if (Object.hasOwn(config.values, key)) {
-					mutableValues[key] = config.values[key];
-				}
-			}
-		}
-		if (Object.keys(mutableProperties).length > 0) {
-			this._runningSessionConfigs.set(newSessionId, {
-				schema: { type: 'object', properties: mutableProperties },
-				values: mutableValues,
-			});
-		}
-	}
-
-	// -- Private: Session Cache --
-
-	private _cacheInitialized = false;
-
-	private _ensureSessionCache(): void {
-		if (this._cacheInitialized) {
-			return;
-		}
-		this._cacheInitialized = true;
-		const cts = new CancellationTokenSource();
-		this._refreshSessions(cts.token).finally(() => cts.dispose());
-	}
-
-	private async _refreshSessions(_token: unknown): Promise<void> {
-		if (!this._connection) {
-			return;
-		}
-		try {
-			const sessions = await this._connection.listSessions();
-			const currentKeys = new Set<string>();
-			const added: ISession[] = [];
-			const changed: ISession[] = [];
-
-			for (const meta of sessions) {
-				const rawId = AgentSession.id(meta.session);
-				currentKeys.add(rawId);
-
-				const existing = this._sessionCache.get(rawId);
-				if (existing) {
-					existing.update(meta);
-					changed.push(this._chatToSession(existing));
-				} else {
-					const resourceScheme = this._resourceSchemeForMetadata(meta);
-					const logicalType = this._logicalSessionTypeForMetadata(meta);
-					const cached = new RemoteSessionAdapter(meta, this.id, resourceScheme, logicalType, this.label, toLocalDiffUri(this._connectionAuthority));
-					this._sessionCache.set(rawId, cached);
-					added.push(this._chatToSession(cached));
-				}
-			}
-
-			const removed: ISession[] = [];
-			for (const [key, cached] of this._sessionCache) {
-				if (!currentKeys.has(key)) {
-					this._sessionCache.delete(key);
-					this._runningSessionConfigs.delete(cached.id);
-					removed.push(this._chatToSession(cached));
-				}
-			}
-
-			if (added.length > 0 || removed.length > 0 || changed.length > 0) {
-				this._onDidChangeSessions.fire({ added, removed, changed });
-			}
-		} catch {
-			// Connection may not be ready yet
-		}
-	}
-
-	/**
-	 * Wait for a new session to appear in the cache that wasn't present before.
-	 * Tries an immediate refresh, then listens for the session-added notification.
-	 * Returns `undefined` if the connection is lost or a timeout expires.
-	 */
-	private async _waitForNewSession(existingKeys: Set<string>): Promise<ISession | undefined> {
-		// First, try an immediate refresh
-		await this._refreshSessions(CancellationToken.None);
-		for (const [key, cached] of this._sessionCache) {
-			if (!existingKeys.has(key)) {
-				return this._chatToSession(cached);
-			}
-		}
-
-		// If not found yet, wait for the next onDidChangeSessions event,
-		// bounded by a timeout and aborted on disconnect.
-		const waitDisposables = new DisposableStore();
-		try {
-			const sessionPromise = new Promise<ISession | undefined>((resolve) => {
-				waitDisposables.add(this._onDidChangeSessions.event(e => {
-					const newSession = e.added.find(s => {
-						const rawId = s.resource.path.substring(1);
-						return !existingKeys.has(rawId);
-					});
-					if (newSession) {
-						resolve(newSession);
-					}
-				}));
-				waitDisposables.add(this._onDidDisconnect.event(() => resolve(undefined)));
-			});
-			return await raceTimeout(sessionPromise, 30_000);
-		} finally {
-			waitDisposables.dispose();
-		}
-	}
-
-	private _handleSessionAdded(summary: ISessionSummary): void {
-		const sessionUri = URI.parse(summary.resource);
-		const rawId = AgentSession.id(sessionUri);
-		if (this._sessionCache.has(rawId)) {
-			return;
-		}
-
-		const workingDir = typeof summary.workingDirectory === 'string'
-			? toAgentHostUri(URI.parse(summary.workingDirectory), this._connectionAuthority)
-			: undefined;
-		const meta: IAgentSessionMetadata = {
-			session: sessionUri,
-			startTime: summary.createdAt,
-			modifiedTime: summary.modifiedAt,
-			summary: summary.title,
-			...(summary.project ? { project: { uri: toLocalProjectUri(URI.parse(summary.project.uri), this._connectionAuthority), displayName: summary.project.displayName } } : {}),
-			model: summary.model,
-			workingDirectory: workingDir,
-			isRead: summary.isRead,
-			isDone: summary.isDone,
-		};
-		const resourceScheme = this._resourceSchemeForMetadata(meta);
-		const logicalType = this._logicalSessionTypeForMetadata(meta);
-		const cached = new RemoteSessionAdapter(meta, this.id, resourceScheme, logicalType, this.label, toLocalDiffUri(this._connectionAuthority));
-		this._sessionCache.set(rawId, cached);
-		this._onDidChangeSessions.fire({ added: [this._chatToSession(cached)], removed: [], changed: [] });
-	}
-
-	private _handleSessionRemoved(session: URI | string): void {
-		const rawId = AgentSession.id(session);
-		const cached = this._sessionCache.get(rawId);
-		if (cached) {
-			this._sessionCache.delete(rawId);
-			this._runningSessionConfigs.delete(cached.id);
-			this._sessionStateSubscriptions.deleteAndDispose(cached.id);
-			this._onDidChangeSessions.fire({ added: [], removed: [this._chatToSession(cached)], changed: [] });
-		}
-	}
-
-	private _handleTitleChanged(session: string, title: string): void {
-		const rawId = AgentSession.id(session);
-		const cached = this._sessionCache.get(rawId);
-		if (cached) {
-			cached.title.set(title, undefined);
-			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [this._chatToSession(cached)] });
-		}
-	}
-
-	private _handleModelChanged(session: string, model: IModelSelection): void {
-		const rawId = AgentSession.id(session);
-		const cached = this._sessionCache.get(rawId);
-		if (cached) {
-			cached.modelSelection = model;
-		}
-		const modelId = cached ? `${cached.resource.scheme}:${model.id}` : undefined;
-		if (cached && cached.modelId.get() !== modelId) {
-			cached.modelId.set(modelId, undefined);
-			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [this._chatToSession(cached)] });
-		}
-	}
-
-	private _handleIsReadChanged(session: string, isRead: boolean): void {
-		const rawId = AgentSession.id(session);
-		const cached = this._sessionCache.get(rawId);
-		if (cached) {
-			cached.isRead.set(isRead, undefined);
-			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [this._chatToSession(cached)] });
-		}
-	}
-
-	private _handleIsDoneChanged(session: string, isDone: boolean): void {
-		const rawId = AgentSession.id(session);
-		const cached = this._sessionCache.get(rawId);
-		if (cached) {
-			cached.isArchived.set(isDone, undefined);
-			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [this._chatToSession(cached)] });
-		}
-	}
-
-	private _handleDiffsChanged(session: string, diffs: IFileEdit[]): void {
-		const rawId = AgentSession.id(session);
-		const cached = this._sessionCache.get(rawId);
-		if (cached) {
-			const mapUri = toLocalDiffUri(this._connectionAuthority);
-			cached.changes.set(diffsToChanges(diffs, mapUri), undefined);
-			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [this._chatToSession(cached)] });
-		}
-	}
-
-	private _handleSessionSummaryChanged(session: string, changes: Partial<ISessionSummary>): void {
-		const rawId = AgentSession.id(session);
-		const cached = this._sessionCache.get(rawId);
-		if (!cached) {
-			return;
-		}
-
-		let didChange = false;
-
-		if (changes.status !== undefined) {
-			const uiStatus = mapProtocolStatus(changes.status);
-			if (uiStatus !== cached.status.get()) {
-				cached.status.set(uiStatus, undefined);
-				didChange = true;
-			}
-		}
-
-		if (changes.title !== undefined && changes.title !== cached.title.get()) {
-			cached.title.set(changes.title, undefined);
-			didChange = true;
-		}
-
-		if (changes.diffs !== undefined) {
-			const mapUri = toLocalDiffUri(this._connectionAuthority);
-			if (!diffsEqual(cached.changes.get(), changes.diffs, mapUri)) {
-				cached.changes.set(diffsToChanges(changes.diffs, mapUri), undefined);
-				didChange = true;
-			}
-		}
-
-		if (didChange) {
-			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [this._chatToSession(cached)] });
-		}
-	}
-
-	private _handleConfigChanged(session: string, config: Record<string, string>): void {
-		const rawId = AgentSession.id(session);
-		const cached = this._sessionCache.get(rawId);
-		if (!cached) {
-			return;
-		}
-		const sessionId = cached.id;
-		const existing = this._runningSessionConfigs.get(sessionId);
-		if (existing) {
-			this._runningSessionConfigs.set(sessionId, {
-				...existing,
-				values: { ...existing.values, ...config },
-			});
-		} else {
-			// Session was restored (e.g. after reconnect) — create a minimal
-			// config entry from the changed values so the picker can render.
-			this._runningSessionConfigs.set(sessionId, {
-				schema: { type: 'object', properties: buildMutableConfigSchema(config) },
-				values: config,
-			});
-		}
-		this._onDidChangeSessionConfig.fire(sessionId);
-	}
-
-	/**
-	 * Lazily acquire a session-state subscription for `sessionId` so that
-	 * `_runningSessionConfigs` is seeded from the AHP `ISessionState.config`
-	 * snapshot. Safe to call repeatedly — no-op once a subscription exists.
-	 *
-	 * The subscription is reference-counted by {@link IAgentConnection.getSubscription},
-	 * so when the session handler is also subscribed (chat content open) this
-	 * shares the existing wire subscription rather than opening a new one.
-	 * Subscriptions are cleared on connection replace via
-	 * {@link _sessionStateSubscriptions} so reconnects re-seed from a fresh snapshot.
-	 */
-	private _ensureSessionStateSubscription(sessionId: string): void {
-		if (this._sessionStateSubscriptions.has(sessionId)) {
-			return;
-		}
-		if (!this._connection) {
-			return;
-		}
-		const rawId = this._rawIdFromChatId(sessionId);
-		if (!rawId) {
-			return;
-		}
-		const cached = this._sessionCache.get(rawId);
-		if (!cached) {
-			return;
-		}
-		const sessionUri = AgentSession.uri(cached.agentProvider, rawId);
-		const ref = this._connection.getSubscription(StateComponents.Session, sessionUri);
-		const store = new DisposableStore();
-		store.add(ref);
-		store.add(ref.object.onDidChange(state => this._seedRunningConfigFromState(sessionId, state)));
-		this._sessionStateSubscriptions.set(sessionId, store);
-
-		const value = ref.object.value;
-		if (value && !(value instanceof Error)) {
-			this._seedRunningConfigFromState(sessionId, value);
-		}
-	}
-
-	/**
-	 * Filter `state.config` to session-mutable properties and update
-	 * {@link _runningSessionConfigs} if changed. No-op if the seeded value is
-	 * structurally equal to the existing entry to avoid spurious
-	 * `onDidChangeSessionConfig` fires.
-	 */
-	private _seedRunningConfigFromState(sessionId: string, state: ISessionState): void {
-		const stateConfig = state.config;
-		if (!stateConfig) {
-			return;
-		}
-		const properties: Record<string, ISessionConfigPropertySchema> = {};
-		const values: Record<string, string> = {};
-		for (const [key, propSchema] of Object.entries(stateConfig.schema.properties)) {
-			if (!propSchema.sessionMutable) {
-				continue;
-			}
-			properties[key] = propSchema;
-			if (Object.hasOwn(stateConfig.values, key)) {
-				values[key] = stateConfig.values[key];
-			}
-		}
-		if (Object.keys(properties).length === 0) {
-			return;
-		}
-		const seeded: IResolveSessionConfigResult = {
-			schema: { type: 'object', properties },
-			values,
-		};
-		const existing = this._runningSessionConfigs.get(sessionId);
-		if (existing && resolvedConfigsEqual(existing, seeded)) {
-			return;
-		}
-		this._runningSessionConfigs.set(sessionId, seeded);
-		this._onDidChangeSessionConfig.fire(sessionId);
-	}
-
-	private _rawIdFromChatId(chatId: string): string | undefined {
-		const prefix = `${this.id}:`;
-		const resourceStr = chatId.startsWith(prefix) ? chatId.substring(prefix.length) : chatId;
-		try {
-			return URI.parse(resourceStr).path.substring(1) || undefined;
-		} catch {
-			return undefined;
-		}
-	}
-
-	private _setNewSessionLoading(sessionId: string, loading: boolean): void {
-		if (this._currentNewSession?.id === sessionId) {
-			this._currentNewSession.loading.set(loading, undefined);
-		}
-	}
-
-	private _agentProviderFromSessionType(sessionType: string): string {
-		return wellKnownAgentProvider(sessionType) ?? sessionType.substring(`remote-${this._connectionAuthority}-`.length);
-	}
-
-	private _getAgentProviderForSession(sessionId: string): string {
-		return this._newSessionAgentProviders.get(sessionId) ?? DEFAULT_AGENT_HOST_PROVIDER;
-	}
-	// -- Private: Browse --
+	// -- Browse --------------------------------------------------------------
 
 	private async _browseForFolder(): Promise<ISessionWorkspace | undefined> {
 		// Establish connection on demand if a hook is provided (e.g. tunnel relay)
 		if (!this._connection && this._connectOnDemand) {
-			await this._connectOnDemand();
+			try {
+				await this._connectOnDemand();
+			} catch (err) {
+				this._notificationService.error(localize('connectFailed', "Failed to connect to remote agent host '{0}': {1}", this.label, err instanceof Error ? err.message : String(err)));
+				return undefined;
+			}
 		}
 
 		if (!this._connection) {
@@ -1412,46 +505,4 @@ export class RemoteAgentHostSessionsProvider extends Disposable implements IAgen
 		}
 		return undefined;
 	}
-
-	private _chatToSession(chat: IChatData): ISession {
-		const mainChat: IChat = {
-			resource: chat.resource,
-			createdAt: chat.createdAt,
-			title: chat.title,
-			updatedAt: chat.updatedAt,
-			status: chat.status,
-			changes: chat.changes,
-			modelId: chat.modelId,
-			mode: chat.mode,
-			isArchived: chat.isArchived,
-			isRead: chat.isRead,
-			description: chat.description,
-			lastTurnEnd: chat.lastTurnEnd,
-		};
-		const session: ISession = {
-			sessionId: chat.id,
-			resource: chat.resource,
-			providerId: chat.providerId,
-			sessionType: chat.sessionType,
-			icon: chat.icon,
-			createdAt: chat.createdAt,
-			workspace: chat.workspace,
-			title: chat.title,
-			updatedAt: chat.updatedAt,
-			status: chat.status,
-			changes: chat.changes,
-			modelId: chat.modelId,
-			mode: chat.mode,
-			loading: derived(reader => chat.loading.read(reader) || this._authenticationPending.read(reader)),
-			isArchived: chat.isArchived,
-			isRead: chat.isRead,
-			description: chat.description,
-			lastTurnEnd: chat.lastTurnEnd,
-			gitHubInfo: chat.gitHubInfo,
-			chats: constObservable([mainChat]),
-			mainChat,
-			capabilities: { supportsMultipleChats: false },
-		};
-		return session;
-	}
 }
diff --git a/src/vs/sessions/contrib/remoteAgentHost/browser/tunnelAgentHost.contribution.ts b/src/vs/sessions/contrib/remoteAgentHost/browser/tunnelAgentHost.contribution.ts
index 4f8e3fd342f..4b7379bd122 100644
--- a/src/vs/sessions/contrib/remoteAgentHost/browser/tunnelAgentHost.contribution.ts
+++ b/src/vs/sessions/contrib/remoteAgentHost/browser/tunnelAgentHost.contribution.ts
@@ -7,7 +7,7 @@ import { Disposable, DisposableMap, DisposableStore, toDisposable } from '../../
 import { isWeb } from '../../../../base/common/platform.js';
 import { mainWindow } from '../../../../base/browser/window.js';
 import * as nls from '../../../../nls.js';
-import { IRemoteAgentHostService, RemoteAgentHostConnectionStatus, RemoteAgentHostsEnabledSettingId } from '../../../../platform/agentHost/common/remoteAgentHostService.js';
+import { IRemoteAgentHostService, RemoteAgentHostAutoConnectSettingId, RemoteAgentHostConnectionStatus, RemoteAgentHostsEnabledSettingId } from '../../../../platform/agentHost/common/remoteAgentHostService.js';
 import { ITunnelAgentHostService, TUNNEL_ADDRESS_PREFIX, type ITunnelInfo } from '../../../../platform/agentHost/common/tunnelAgentHost.js';
 import { IConfigurationService } from '../../../../platform/configuration/common/configuration.js';
 import { IInstantiationService } from '../../../../platform/instantiation/common/instantiation.js';
@@ -15,7 +15,7 @@ import { ILogService } from '../../../../platform/log/common/log.js';
 import { INotificationService, Severity } from '../../../../platform/notification/common/notification.js';
 import { ITelemetryService } from '../../../../platform/telemetry/common/telemetry.js';
 import { IWorkbenchContribution, registerWorkbenchContribution2, WorkbenchPhase } from '../../../../workbench/common/contributions.js';
-import { IAuthenticationService } from '../../../../workbench/services/authentication/common/authentication.js';
+import { AuthenticationSessionsChangeEvent, IAuthenticationService } from '../../../../workbench/services/authentication/common/authentication.js';
 import { logTunnelConnectAttempt, logTunnelConnectResolved, TunnelConnectErrorCategory, TunnelConnectFailureReason } from '../../../common/sessionsTelemetry.js';
 import { ISessionsProvidersService } from '../../../services/sessions/browser/sessionsProvidersService.js';
 import { RemoteAgentHostSessionsProvider } from './remoteAgentHostSessionsProvider.js';
@@ -34,6 +34,9 @@ const RECONNECT_MAX_DELAY = 30_000;
  */
 const RECONNECT_MAX_ATTEMPTS = 10;
 
+/** Minimum gap between wake/visibility-triggered resumes. */
+const RESUME_RATE_LIMIT_MS = 10_000;
+
 export class TunnelAgentHostContribution extends Disposable implements IWorkbenchContribution {
 
 	static readonly ID = 'sessions.contrib.tunnelAgentHostContribution';
@@ -42,6 +45,12 @@ export class TunnelAgentHostContribution extends Disposable implements IWorkbenc
 	private readonly _providerInstances = new Map<string, RemoteAgentHostSessionsProvider>();
 	private readonly _pendingConnects = new Map<string, Promise<void>>();
 	private _lastStatusCheck = 0;
+	/**
+	 * `false` until the first {@link _silentStatusCheck} resolves. Until then
+	 * we keep newly-created providers in the `Connecting` state so the picker
+	 * doesn't briefly show every cached tunnel as "Offline" on startup.
+	 */
+	private _initialStatusChecked = false;
 
 	/** Previous connection status per address — used to detect Connected→Disconnected transitions. */
 	private readonly _previousStatuses = new Map<string, RemoteAgentHostConnectionStatus>();
@@ -51,6 +60,8 @@ export class TunnelAgentHostContribution extends Disposable implements IWorkbenc
 	private readonly _reconnectAttempts = new Map<string, number>();
 	/** Addresses whose auto-reconnect loop has paused after too many failures. */
 	private readonly _reconnectPaused = new Set<string>();
+	/** Addresses paused specifically because the remote host is offline. */
+	private readonly _hostOfflinePaused = new Set<string>();
 	/** Timestamp of the last wake-triggered resume, to rate-limit rapid tab toggles. */
 	private _lastResumeAt = 0;
 
@@ -91,13 +102,14 @@ export class TunnelAgentHostContribution extends Disposable implements IWorkbenc
 			this._pruneReconnectState();
 		}));
 
-		// Re-run discovery when a GitHub session becomes available
-		// (e.g. after the walkthrough completes sign-in).
+		// Re-run discovery when a GitHub session becomes available,
+		// and tear down tunnel state bound to that provider if its session
+		// is removed.
 		this._register(this._authenticationService.onDidChangeSessions(e => {
-			if (e.providerId === 'github') {
-				this._logService.info('[TunnelAgentHost] GitHub sessions changed, retrying discovery...');
-				this._silentStatusCheck();
+			if (e.providerId !== 'github') {
+				return;
 			}
+			this._handleSessionsChange(e);
 		}));
 
 		// Wake-triggered retry: when the browser regains connectivity or
@@ -171,9 +183,13 @@ export class TunnelAgentHostContribution extends Disposable implements IWorkbenc
 			RemoteAgentHostSessionsProvider, {
 			address,
 			name,
-			connectOnDemand: () => this._connectTunnel(address),
+			connectOnDemand: () => this._connectTunnel(address, { userInitiated: true }),
 		},
 		);
+		// Surface as "Connecting" until the first silent status check or an
+		// auto-connect attempt determines the real state; otherwise the picker
+		// flashes "Offline" for every cached tunnel on startup.
+		provider.setConnectionStatus(RemoteAgentHostConnectionStatus.Connecting);
 		store.add(provider);
 		store.add(this._sessionsProvidersService.registerProvider(provider));
 		this._providerInstances.set(address, provider);
@@ -190,6 +206,10 @@ export class TunnelAgentHostContribution extends Disposable implements IWorkbenc
 				provider.setConnectionStatus(connectionInfo.status);
 			} else if (this._pendingConnects.has(address)) {
 				provider.setConnectionStatus(RemoteAgentHostConnectionStatus.Connecting);
+			} else if (!this._initialStatusChecked) {
+				// Keep the initial "Connecting" state so the picker doesn't
+				// flash "Offline" before the first silent status check runs.
+				provider.setConnectionStatus(RemoteAgentHostConnectionStatus.Connecting);
 			} else {
 				provider.setConnectionStatus(RemoteAgentHostConnectionStatus.Disconnected);
 			}
@@ -219,7 +239,7 @@ export class TunnelAgentHostContribution extends Disposable implements IWorkbenc
 	 * Establish a relay connection to a cached tunnel. Called on demand
 	 * when the user invokes the browse action on an online-but-not-connected tunnel.
 	 */
-	private _connectTunnel(address: string): Promise<void> {
+	private _connectTunnel(address: string, options: { readonly userInitiated: boolean }): Promise<void> {
 		const existing = this._pendingConnects.get(address);
 		if (existing) {
 			return existing;
@@ -239,15 +259,16 @@ export class TunnelAgentHostContribution extends Disposable implements IWorkbenc
 
 		const promise = (async () => {
 			// Show a progress notification after a short delay so quick
-			// connects don't flash a notification.
+			// connects don't flash a notification. Only show for user-initiated
+			// connects; background auto-connects and reconnects stay silent.
 			let handle: { close(): void } | undefined;
-			const timer = setTimeout(() => {
+			const timer = options.userInitiated ? setTimeout(() => {
 				handle = this._notificationService.notify({
 					severity: Severity.Info,
 					message: nls.localize('tunnelConnecting', "Connecting to tunnel '{0}'...", cached.name),
 					progress: { infinite: true },
 				});
-			}, 1000);
+			}, 1000) : undefined;
 
 			this._updateConnectionStatuses();
 			try {
@@ -263,6 +284,7 @@ export class TunnelAgentHostContribution extends Disposable implements IWorkbenc
 				this._finishConnectAttempt(address, { success: true, attemptNumber, attemptStart, session, isReconnect });
 			} catch (err) {
 				this._logService.warn(`[TunnelAgentHost] Connect to ${cached.name} failed:`, err);
+				const errorCategory = this._categorizeError(err);
 				this._finishConnectAttempt(address, { success: false, attemptNumber, attemptStart, session, isReconnect, error: err });
 				// Clear the pending-connect entry BEFORE deciding what to do
 				// next; otherwise `_scheduleReconnect`'s in-flight guard
@@ -270,6 +292,15 @@ export class TunnelAgentHostContribution extends Disposable implements IWorkbenc
 				// we'd never re-arm the timer, leaving the tunnel stuck.
 				this._pendingConnects.delete(address);
 
+				// Auth failures are not worth retrying — a fresh token must
+				// be acquired by the user or by a session-change event. Pause
+				// immediately and let `_handleSessionsChange` resume us when
+				// a new session appears.
+				if (errorCategory === 'authExpired' || errorCategory === 'auth') {
+					this._pauseReconnect(address, errorCategory);
+					throw err;
+				}
+
 				const hostOnline = await this._probeHostOnline(cached.tunnelId);
 				if (hostOnline === false) {
 					this._pauseReconnect(address, 'hostOffline');
@@ -279,7 +310,9 @@ export class TunnelAgentHostContribution extends Disposable implements IWorkbenc
 				}
 				throw err;
 			} finally {
-				clearTimeout(timer);
+				if (timer !== undefined) {
+					clearTimeout(timer);
+				}
 				handle?.close();
 				this._pendingConnects.delete(address);
 				this._updateConnectionStatuses();
@@ -412,7 +445,7 @@ export class TunnelAgentHostContribution extends Disposable implements IWorkbenc
 			}
 
 			this._reconnectAttempts.set(address, attempt + 1);
-			this._connectTunnel(address).catch(() => { /* _connectTunnel already re-schedules on failure */ });
+			this._connectTunnel(address, { userInitiated: false }).catch(() => { /* _connectTunnel already re-schedules on failure */ });
 		}, delay);
 		this._reconnectTimeouts.set(address, timer);
 	}
@@ -450,6 +483,7 @@ export class TunnelAgentHostContribution extends Disposable implements IWorkbenc
 	private _clearReconnectBackoff(address: string): void {
 		this._reconnectAttempts.delete(address);
 		this._reconnectPaused.delete(address);
+		this._hostOfflinePaused.delete(address);
 	}
 
 	/** Drop all reconnect + telemetry state for an address (e.g. on removal). */
@@ -459,6 +493,39 @@ export class TunnelAgentHostContribution extends Disposable implements IWorkbenc
 		this._connectSessions.delete(address);
 	}
 
+	/**
+	 * React to auth session add/remove. Additions re-run discovery (a fresh
+	 * token may unblock a previously auth-paused tunnel). Removals drop any
+	 * tunnel state that depended on that provider — otherwise we'd sit on a
+	 * stale auth pause forever, or hammer a provider whose session is gone.
+	 */
+	private _handleSessionsChange(e: { providerId: string; label: string; event: AuthenticationSessionsChangeEvent }): void {
+		const added = (e.event.added?.length ?? 0) > 0;
+		const removed = (e.event.removed?.length ?? 0) > 0;
+
+		if (removed) {
+			const cached = this._tunnelService.getCachedTunnels();
+			for (const tunnel of cached) {
+				if (tunnel.authProvider !== e.providerId) {
+					continue;
+				}
+				const address = `${TUNNEL_ADDRESS_PREFIX}${tunnel.tunnelId}`;
+				this._logService.info(
+					`[TunnelAgentHost] Auth session removed for ${e.providerId}; tearing down ${address}.`
+				);
+				this._resetReconnectState(address);
+				// Best-effort disconnect — the transport may already be dead.
+				this._tunnelService.disconnect(address).catch(() => { /* ignore */ });
+			}
+		}
+
+		if (added) {
+			this._logService.info(`[TunnelAgentHost] ${e.providerId} session added; resuming reconnects and rediscovering.`);
+			this._resumeReconnects('sessionAdded');
+			this._silentStatusCheck();
+		}
+	}
+
 	/**
 	 * Stop auto-reconnecting for an address until a wake/online/visibility
 	 * event resumes us, and close out any active telemetry session.
@@ -467,9 +534,14 @@ export class TunnelAgentHostContribution extends Disposable implements IWorkbenc
 		this._cancelReconnect(address);
 		this._reconnectAttempts.delete(address);
 		this._reconnectPaused.add(address);
+		if (reason === 'hostOffline') {
+			this._hostOfflinePaused.add(address);
+		} else {
+			this._hostOfflinePaused.delete(address);
+		}
 		this._logService.info(
 			`[TunnelAgentHost] Pausing auto-reconnect for ${address} (${reason}); ` +
-			`will resume on network-online, tab-visible, or next status check.`
+			`will resume on network-online, tab-visible, session change, or next status check.`
 		);
 		const session = this._connectSessions.get(address);
 		if (session) {
@@ -527,13 +599,20 @@ export class TunnelAgentHostContribution extends Disposable implements IWorkbenc
 
 	private _categorizeError(err: unknown): TunnelConnectErrorCategory {
 		const message = err instanceof Error ? err.message : String(err);
-		if (/WebSocket relay connection failed/i.test(message)) {
-			return 'relayConnectionFailed';
+		// Expired / invalid credential — callers short-circuit this category
+		// to avoid burning retry budget on a token the user has to refresh.
+		if (/\b(401|403)\b|token.*expired|expired.*token|invalid[_ -]?grant/i.test(message)) {
+			return 'authExpired';
 		}
-		if (/authenticat|token|unauthor/i.test(message)) {
+		// Match authentication-specific language but NOT "connection token"
+		// or other protocol uses of the word "token".
+		if (/authenticat|unauthoriz|auth.*(fail|error|invalid)/i.test(message)) {
 			return 'auth';
 		}
-		if (/network|fetch|offline/i.test(message)) {
+		if (/WebSocket relay connection failed|failed to connect to relay/i.test(message)) {
+			return 'relayConnectionFailed';
+		}
+		if (/network|fetch|offline|ECONN|ENOTFOUND|ETIMEDOUT/i.test(message)) {
 			return 'network';
 		}
 		return 'other';
@@ -549,12 +628,15 @@ export class TunnelAgentHostContribution extends Disposable implements IWorkbenc
 	 * sequence (by clearing the pause flag) rather than zeroing the
 	 * attempt counter.
 	 */
-	private _resumeReconnects(trigger: 'wake' | 'visible'): void {
+	private _resumeReconnects(trigger: 'wake' | 'visible' | 'sessionAdded'): void {
 		if (!this._configurationService.getValue<boolean>(RemoteAgentHostsEnabledSettingId)) {
 			return;
 		}
 
-		const RESUME_RATE_LIMIT_MS = 10_000;
+		// Rate-limit rapid wake/visibility events (e.g. alt-tab bursts or
+		// flaky Wi-Fi toggling online/offline) so we don't hammer the relay
+		// with immediate retries. This is an event-smoothing gate, not an
+		// error-backoff — that's handled by `_scheduleReconnect`.
 		const now = Date.now();
 		if (now - this._lastResumeAt < RESUME_RATE_LIMIT_MS) {
 			return;
@@ -607,6 +689,8 @@ export class TunnelAgentHostContribution extends Disposable implements IWorkbenc
 	private async _silentStatusCheck(): Promise<void> {
 		const enabled = this._configurationService.getValue<boolean>(RemoteAgentHostsEnabledSettingId);
 		if (!enabled) {
+			this._initialStatusChecked = true;
+			this._updateConnectionStatuses();
 			return;
 		}
 
@@ -618,6 +702,8 @@ export class TunnelAgentHostContribution extends Disposable implements IWorkbenc
 			onlineTunnels = await this._tunnelService.listTunnels({ silent: true });
 		} catch {
 			// No cached token or network error — leave statuses as-is
+			this._initialStatusChecked = true;
+			this._updateConnectionStatuses();
 			return;
 		}
 
@@ -633,17 +719,20 @@ export class TunnelAgentHostContribution extends Disposable implements IWorkbenc
 
 			// Auto-cache online tunnels that aren't cached yet so they
 			// appear in the UI on first discovery (e.g. fresh web session).
+			// Pass 'github' as authProvider so _handleSessionsChange can
+			// match these tunnels for teardown on session removal.
 			const cachedIds = new Set(cached.map(t => t.tunnelId));
 			for (const tunnel of onlineTunnels) {
 				if (!cachedIds.has(tunnel.tunnelId) && tunnel.hostConnectionCount > 0) {
-					this._tunnelService.cacheTunnel(tunnel);
+					this._tunnelService.cacheTunnel(tunnel, 'github');
 				}
 			}
 
 			// Update online/offline status based on hostConnectionCount.
 			// For tunnels, Connected means "host is online" (clickable to connect),
 			// Disconnected means "host is offline". Actual relay connection
-			// establishment happens when the user clicks the tunnel.
+			// establishment happens when the user clicks the tunnel (or via
+			// auto-connect below when enabled).
 			const onlineTunnelMap = new Map(onlineTunnels.map(t => [t.tunnelId, t]));
 			for (const [address, provider] of this._providerInstances) {
 				// Skip tunnels that already have an active relay connection
@@ -658,15 +747,33 @@ export class TunnelAgentHostContribution extends Disposable implements IWorkbenc
 				const info = onlineTunnelMap.get(tunnelId);
 				if (info && info.hostConnectionCount > 0) {
 					provider.setConnectionStatus(RemoteAgentHostConnectionStatus.Connected);
+
+					// If we paused reconnects because the host had gone
+					// offline, the status check is our cue to resume —
+					// don't wait for a wake/visibility event. Covers the
+					// common "my laptop came back, the remote host came
+					// back first" scenario deterministically.
+					if (this._hostOfflinePaused.has(address)) {
+						this._logService.info(
+							`[TunnelAgentHost] Host came back online for ${address}; auto-resuming reconnect.`
+						);
+						this._clearReconnectBackoff(address);
+						this._scheduleReconnect(address, /*immediate*/ true);
+					}
 				} else {
 					provider.setConnectionStatus(RemoteAgentHostConnectionStatus.Disconnected);
+					// Host is not online — drop any cached sessions we were
+					// showing for it so the UI doesn't list stale entries.
+					provider.unpublishCachedSessions();
 				}
 			}
 
-			// Auto-connect online tunnels that aren't connected yet.
-			// On web there is no workspace picker to trigger manual connection,
-			// so we connect eagerly when a tunnel is discovered and online.
-			if (isWeb) {
+			// Auto-connect online tunnels that aren't connected yet when the
+			// user has opted into auto-connect (default on). This mirrors the
+			// web embedder behaviour where no workspace picker is available
+			// to trigger manual connection.
+			const autoConnect = this._configurationService.getValue<boolean>(RemoteAgentHostAutoConnectSettingId);
+			if (autoConnect) {
 				for (const tunnel of onlineTunnels) {
 					if (tunnel.hostConnectionCount > 0) {
 						const address = `${TUNNEL_ADDRESS_PREFIX}${tunnel.tunnelId}`;
@@ -674,12 +781,15 @@ export class TunnelAgentHostContribution extends Disposable implements IWorkbenc
 							c => c.address === address && c.status === RemoteAgentHostConnectionStatus.Connected
 						);
 						if (!alreadyConnected) {
-							this._connectTunnel(address);
+							this._connectTunnel(address, { userInitiated: false });
 						}
 					}
 				}
 			}
 		}
+
+		this._initialStatusChecked = true;
+		this._updateConnectionStatuses();
 	}
 }
 
diff --git a/src/vs/sessions/contrib/remoteAgentHost/browser/webTunnelAgentHostService.ts b/src/vs/sessions/contrib/remoteAgentHost/browser/webTunnelAgentHostService.ts
index d6a25425e69..5b4a1b8f4a8 100644
--- a/src/vs/sessions/contrib/remoteAgentHost/browser/webTunnelAgentHostService.ts
+++ b/src/vs/sessions/contrib/remoteAgentHost/browser/webTunnelAgentHostService.ts
@@ -9,6 +9,7 @@ import { RemoteAgentHostProtocolClient } from '../../../../platform/agentHost/br
 import { RemoteAgentHostEntryType, IRemoteAgentHostService, RemoteAgentHostsEnabledSettingId } from '../../../../platform/agentHost/common/remoteAgentHostService.js';
 import type { IProtocolTransport } from '../../../../platform/agentHost/common/state/sessionTransport.js';
 import type { IProtocolMessage, IAhpServerNotification, IJsonRpcResponse } from '../../../../platform/agentHost/common/state/sessionProtocol.js';
+import { MALFORMED_FRAMES_FORCE_CLOSE_THRESHOLD, MALFORMED_FRAMES_LOG_CAP } from '../../../../platform/agentHost/common/transportConstants.js';
 import {
 	ITunnelAgentHostService,
 	TUNNEL_ADDRESS_PREFIX,
@@ -130,7 +131,7 @@ export class WebTunnelAgentHostService extends Disposable implements ITunnelAgen
 		// Derive connection token from tunnel ID (same convention as CLI and desktop)
 		const connectionToken = await deriveConnectionToken(tunnelId);
 
-		const transport = new TunnelConnectionTransport(connection);
+		const transport = new TunnelConnectionTransport(connection, this._logService);
 		const address = `${TUNNEL_ADDRESS_PREFIX}${tunnelId}`;
 		const protocolClient = this._instantiationService.createInstance(
 			RemoteAgentHostProtocolClient, address, transport,
@@ -233,14 +234,35 @@ class TunnelConnectionTransport extends Disposable implements IProtocolTransport
 	private readonly _onClose = this._register(new Emitter<void>());
 	readonly onClose = this._onClose.event;
 
-	constructor(private readonly _connection: ITunnelConnection) {
+	private _malformedFrames = 0;
+
+	constructor(
+		private readonly _connection: ITunnelConnection,
+		private readonly _logService: ILogService,
+	) {
 		super();
 		this._register(_connection.onMessage((data: string) => {
+			let message: IProtocolMessage;
 			try {
-				this._onMessage.fire(JSON.parse(data) as IProtocolMessage);
-			} catch {
-				// Malformed message - drop.
+				message = JSON.parse(data) as IProtocolMessage;
+			} catch (err) {
+				this._malformedFrames++;
+				if (this._malformedFrames <= MALFORMED_FRAMES_LOG_CAP) {
+					const preview = data.length > 80 ? data.slice(0, 80) + '…' : data;
+					this._logService.warn(
+						`[TunnelConnectionTransport] Malformed frame #${this._malformedFrames} (len=${data.length}): ${preview}`,
+						err instanceof Error ? err.message : String(err)
+					);
+				}
+				if (this._malformedFrames > MALFORMED_FRAMES_FORCE_CLOSE_THRESHOLD) {
+					this._logService.warn(
+						'[TunnelConnectionTransport] Malformed frame threshold exceeded; forcing tunnel close.'
+					);
+					this._connection.close();
+				}
+				return;
 			}
+			this._onMessage.fire(message);
 		}));
 		this._register(_connection.onClose(() => {
 			this._onClose.fire();
diff --git a/src/vs/sessions/contrib/remoteAgentHost/test/browser/remoteAgentHostSessionsProvider.test.ts b/src/vs/sessions/contrib/remoteAgentHost/test/browser/remoteAgentHostSessionsProvider.test.ts
index 5109b3ebad7..d4c016225fa 100644
--- a/src/vs/sessions/contrib/remoteAgentHost/test/browser/remoteAgentHostSessionsProvider.test.ts
+++ b/src/vs/sessions/contrib/remoteAgentHost/test/browser/remoteAgentHostSessionsProvider.test.ts
@@ -29,7 +29,6 @@ import { IChatSessionsService } from '../../../../../workbench/contrib/chat/comm
 import { ILanguageModelsService } from '../../../../../workbench/contrib/chat/common/languageModels.js';
 import { ISessionChangeEvent } from '../../../../services/sessions/common/sessionsProvider.js';
 import { SessionStatus, COPILOT_CLI_SESSION_TYPE } from '../../../../services/sessions/common/session.js';
-import { remoteAgentHostSessionTypeId } from '../../common/remoteAgentHostSessionType.js';
 import { RemoteAgentHostSessionsProvider, type IRemoteAgentHostSessionsProviderConfig } from '../../browser/remoteAgentHostSessionsProvider.js';
 
 // ---- Mock connection --------------------------------------------------------
@@ -43,7 +42,7 @@ class MockAgentConnection extends mock<IAgentConnection>() {
 	override readonly onDidNotification = this._onDidNotification.event;
 
 	private readonly _onDidRootStateChange = new Emitter<IRootState>();
-	private _rootStateValue: IRootState = { agents: [{ provider: 'copilot', displayName: 'Copilot', description: '', models: [] } as IAgentInfo] };
+	private _rootStateValue: IRootState = { agents: [{ provider: 'copilotcli', displayName: 'Copilot', description: '', models: [] } as IAgentInfo] };
 	override readonly rootState: IAgentSubscription<IRootState>;
 
 	override readonly clientId = 'test-client-1';
@@ -167,7 +166,7 @@ class MockAgentConnection extends mock<IAgentConnection>() {
 
 function createSession(id: string, opts?: { provider?: string; summary?: string; model?: string; project?: { uri: URI; displayName: string }; workingDirectory?: URI; startTime?: number; modifiedTime?: number }): IAgentSessionMetadata {
 	return {
-		session: AgentSession.uri(opts?.provider ?? 'copilot', id),
+		session: AgentSession.uri(opts?.provider ?? 'copilotcli', id),
 		startTime: opts?.startTime ?? 1000,
 		modifiedTime: opts?.modifiedTime ?? 2000,
 		summary: opts?.summary,
@@ -177,7 +176,7 @@ function createSession(id: string, opts?: { provider?: string; summary?: string;
 	};
 }
 
-function createProvider(disposables: DisposableStore, connection: MockAgentConnection, overrides?: { address?: string; connectionName?: string | undefined; sendRequest?: (resource: URI, message: string, options?: IChatSendRequestOptions) => Promise<ChatSendResult>; openSession?: boolean }): RemoteAgentHostSessionsProvider {
+function createProvider(disposables: DisposableStore, connection: MockAgentConnection, overrides?: { address?: string; connectionName?: string | undefined; sendRequest?: (resource: URI, message: string, options?: IChatSendRequestOptions) => Promise<ChatSendResult>; openSession?: boolean; storageService?: IStorageService; noConnection?: boolean }): RemoteAgentHostSessionsProvider {
 	const instantiationService = disposables.add(new TestInstantiationService());
 
 	instantiationService.stub(IFileDialogService, {});
@@ -196,7 +195,7 @@ function createProvider(disposables: DisposableStore, connection: MockAgentConne
 	instantiationService.stub(ILanguageModelsService, {
 		lookupLanguageModel: () => undefined,
 	});
-	instantiationService.stub(IStorageService, disposables.add(new InMemoryStorageService()));
+	instantiationService.stub(IStorageService, overrides?.storageService ?? disposables.add(new InMemoryStorageService()));
 
 	const config: IRemoteAgentHostSessionsProviderConfig = {
 		address: overrides?.address ?? 'localhost:4321',
@@ -204,7 +203,9 @@ function createProvider(disposables: DisposableStore, connection: MockAgentConne
 	};
 
 	const provider = disposables.add(instantiationService.createInstance(RemoteAgentHostSessionsProvider, config));
-	provider.setConnection(connection);
+	if (!overrides?.noConnection) {
+		provider.setConnection(connection);
+	}
 	return provider;
 }
 
@@ -224,7 +225,7 @@ async function waitForSessionConfig(provider: RemoteAgentHostSessionsProvider, s
 }
 
 function fireSessionAdded(connection: MockAgentConnection, rawId: string, opts?: { provider?: string; title?: string; model?: string; modelConfig?: Record<string, string>; project?: { uri: string; displayName: string }; workingDirectory?: string }): void {
-	const provider = opts?.provider ?? 'copilot';
+	const provider = opts?.provider ?? 'copilotcli';
 	const sessionUri = AgentSession.uri(provider, rawId);
 	connection.fireNotification({
 		type: NotificationType.SessionAdded,
@@ -242,7 +243,7 @@ function fireSessionAdded(connection: MockAgentConnection, rawId: string, opts?:
 	});
 }
 
-function fireSessionRemoved(connection: MockAgentConnection, rawId: string, provider = 'copilot'): void {
+function fireSessionRemoved(connection: MockAgentConnection, rawId: string, provider = 'copilotcli'): void {
 	const sessionUri = AgentSession.uri(provider, rawId);
 	connection.fireNotification({
 		type: NotificationType.SessionRemoved,
@@ -287,14 +288,14 @@ suite('RemoteAgentHostSessionsProvider', () => {
 		disposables.add(provider.onDidChangeSessionTypes!(() => changes++));
 
 		connection.setAgents([
-			{ provider: 'copilot', displayName: 'Copilot', description: '', models: [] } as IAgentInfo,
+			{ provider: 'copilotcli', displayName: 'Copilot', description: '', models: [] } as IAgentInfo,
 			{ provider: 'openai', displayName: 'OpenAI', description: '', models: [] } as IAgentInfo,
 		]);
 
 		assert.strictEqual(changes, 1);
 		assert.deepStrictEqual(provider.sessionTypes.map(t => ({ id: t.id, label: t.label })), [
 			{ id: COPILOT_CLI_SESSION_TYPE, label: 'Copilot [My Host]' },
-			{ id: remoteAgentHostSessionTypeId('10.0.0.1__8080', 'openai'), label: 'OpenAI [My Host]' },
+			{ id: 'openai', label: 'OpenAI [My Host]' },
 		]);
 	});
 
@@ -343,12 +344,12 @@ suite('RemoteAgentHostSessionsProvider', () => {
 
 	test('session added notifications ingest any advertised agent provider', () => runWithFakedTimers<void>({ useFakeTimers: true }, async () => {
 		connection.setAgents([
-			{ provider: 'copilot', displayName: 'Copilot', description: '', models: [] } as IAgentInfo,
+			{ provider: 'copilotcli', displayName: 'Copilot', description: '', models: [] } as IAgentInfo,
 			{ provider: 'openai', displayName: 'OpenAI', description: '', models: [] } as IAgentInfo,
 		]);
 		const provider = createProvider(disposables, connection);
 
-		fireSessionAdded(connection, 'cop-1', { provider: 'copilot', title: 'Copilot Session' });
+		fireSessionAdded(connection, 'cop-1', { provider: 'copilotcli', title: 'Copilot Session' });
 		fireSessionAdded(connection, 'oai-1', { provider: 'openai', title: 'OpenAI Session' });
 
 		const sessions = provider.getSessions();
@@ -356,7 +357,7 @@ suite('RemoteAgentHostSessionsProvider', () => {
 			sessions.map(s => ({ title: s.title.get(), sessionType: s.sessionType })).sort((a, b) => a.title.localeCompare(b.title)),
 			[
 				{ title: 'Copilot Session', sessionType: COPILOT_CLI_SESSION_TYPE },
-				{ title: 'OpenAI Session', sessionType: remoteAgentHostSessionTypeId('localhost__4321', 'openai') },
+				{ title: 'OpenAI Session', sessionType: 'openai' },
 			],
 		);
 	}));
@@ -468,7 +469,7 @@ suite('RemoteAgentHostSessionsProvider', () => {
 		await timeout(0);
 
 		const session = provider.getSessions().find(s => s.title.get() === 'Model Session');
-		assert.strictEqual(session?.modelId.get(), 'remote-localhost__4321-copilot:claude-sonnet-4.5');
+		assert.strictEqual(session?.modelId.get(), 'remote-localhost__4321-copilotcli:claude-sonnet-4.5');
 	}));
 
 	test('uses model metadata from session added notification', () => {
@@ -476,7 +477,7 @@ suite('RemoteAgentHostSessionsProvider', () => {
 		fireSessionAdded(connection, 'notif-model', { title: 'Notif Model Session', model: 'gpt-5' });
 
 		const session = provider.getSessions().find(s => s.title.get() === 'Notif Model Session');
-		assert.strictEqual(session?.modelId.get(), 'remote-localhost__4321-copilot:gpt-5');
+		assert.strictEqual(session?.modelId.get(), 'remote-localhost__4321-copilotcli:gpt-5');
 	});
 
 	test('setModel updates existing session model and dispatches raw model', () => {
@@ -486,12 +487,12 @@ suite('RemoteAgentHostSessionsProvider', () => {
 		const session = provider.getSessions().find(s => s.title.get() === 'Set Model Session');
 		assert.ok(session);
 
-		provider.setModel(session!.sessionId, 'remote-localhost__4321-copilot:new-model');
+		provider.setModel(session!.sessionId, 'remote-localhost__4321-copilotcli:new-model');
 
-		assert.strictEqual(session!.modelId.get(), 'remote-localhost__4321-copilot:new-model');
+		assert.strictEqual(session!.modelId.get(), 'remote-localhost__4321-copilotcli:new-model');
 		assert.deepStrictEqual(connection.dispatchedActions.at(-1)?.action, {
 			type: ActionType.SessionModelChanged,
-			session: AgentSession.uri('copilot', 'set-model').toString(),
+			session: AgentSession.uri('copilotcli', 'set-model').toString(),
 			model: { id: 'new-model' },
 		});
 	});
@@ -503,11 +504,11 @@ suite('RemoteAgentHostSessionsProvider', () => {
 		const session = provider.getSessions().find(s => s.title.get() === 'Set Model Config Session');
 		assert.ok(session);
 
-		provider.setModel(session!.sessionId, 'remote-localhost__4321-copilot:configured-model');
+		provider.setModel(session!.sessionId, 'remote-localhost__4321-copilotcli:configured-model');
 
 		assert.deepStrictEqual(connection.dispatchedActions.at(-1)?.action, {
 			type: ActionType.SessionModelChanged,
-			session: AgentSession.uri('copilot', 'set-model-config').toString(),
+			session: AgentSession.uri('copilotcli', 'set-model-config').toString(),
 			model: { id: 'configured-model', config: { thinkingLevel: 'high' } },
 		});
 	});
@@ -576,7 +577,7 @@ suite('RemoteAgentHostSessionsProvider', () => {
 		// The disposed URI must be a backend agent session URI (copilot://del-sess),
 		// not the UI resource (remote-localhost_4321-copilot:///del-sess)
 		const disposedUri = connection.disposedSessions[0];
-		assert.strictEqual(AgentSession.provider(disposedUri), 'copilot');
+		assert.strictEqual(AgentSession.provider(disposedUri), 'copilotcli');
 		assert.strictEqual(AgentSession.id(disposedUri), 'del-sess');
 		// Session should no longer appear in getSessions
 		const remaining = provider.getSessions();
@@ -601,7 +602,7 @@ suite('RemoteAgentHostSessionsProvider', () => {
 		assert.strictEqual((dispatched.action as { title: string }).title, 'New Title');
 		// The session URI in the action must be the backend agent session URI
 		const actionSession = (dispatched.action as { session: string }).session;
-		assert.strictEqual(AgentSession.provider(actionSession), 'copilot');
+		assert.strictEqual(AgentSession.provider(actionSession), 'copilotcli');
 		assert.strictEqual(AgentSession.id(actionSession), 'rename-sess');
 		assert.strictEqual(dispatched.clientId, 'test-client-1');
 	});
@@ -659,7 +660,7 @@ suite('RemoteAgentHostSessionsProvider', () => {
 		connection.fireAction({
 			action: {
 				type: ActionType.SessionTitleChanged,
-				session: AgentSession.uri('copilot', 'echo-sess').toString(),
+				session: AgentSession.uri('copilotcli', 'echo-sess').toString(),
 				title: 'Server Title',
 			},
 			serverSeq: 1,
@@ -684,14 +685,14 @@ suite('RemoteAgentHostSessionsProvider', () => {
 		connection.fireAction({
 			action: {
 				type: ActionType.SessionModelChanged,
-				session: AgentSession.uri('copilot', 'model-change').toString(),
+				session: AgentSession.uri('copilotcli', 'model-change').toString(),
 				model: { id: 'new-model' } satisfies IModelSelection,
 			},
 			serverSeq: 1,
 			origin: undefined,
 		} as IActionEnvelope);
 
-		assert.strictEqual(target!.modelId.get(), 'remote-localhost__4321-copilot:new-model');
+		assert.strictEqual(target!.modelId.get(), 'remote-localhost__4321-copilotcli:new-model');
 		assert.strictEqual(changes.length, 1);
 		assert.strictEqual(changes[0].changed.length, 1);
 	});
@@ -716,7 +717,7 @@ suite('RemoteAgentHostSessionsProvider', () => {
 		connection.fireAction({
 			action: {
 				type: 'session/turnComplete',
-				session: AgentSession.uri('copilot', 'persist-sess').toString(),
+				session: AgentSession.uri('copilotcli', 'persist-sess').toString(),
 			},
 			serverSeq: 1,
 			origin: undefined,
@@ -761,6 +762,61 @@ suite('RemoteAgentHostSessionsProvider', () => {
 		assert.strictEqual(session!.loading.get(), false);
 	}));
 
+	test('unpublishCachedSessions hides sessions but retains persisted cache', () => runWithFakedTimers<void>({ useFakeTimers: true }, async () => {
+		const storageService = disposables.add(new InMemoryStorageService());
+		connection.addSession(createSession('keep-me', { summary: 'Keep Me' }));
+		const provider = createProvider(disposables, connection, { storageService });
+		await timeout(0);
+		assert.strictEqual(provider.getSessions().length, 1);
+
+		const events: ISessionChangeEvent[] = [];
+		disposables.add(provider.onDidChangeSessions(e => events.push(e)));
+
+		provider.unpublishCachedSessions();
+
+		// Sessions are hidden from the listing immediately.
+		assert.deepStrictEqual(
+			{
+				sessionCount: provider.getSessions().length,
+				eventRemovedTitles: events.flatMap(e => e.removed.map(s => s.title.get())),
+			},
+			{ sessionCount: 0, eventRemovedTitles: ['Keep Me'] },
+		);
+
+		// Flush triggers onWillSaveState; the metadata must survive so the
+		// session re-serializes instead of being dropped from storage.
+		await storageService.flush();
+
+		const provider2 = createProvider(disposables, new MockAgentConnection(), { storageService, noConnection: true });
+		assert.deepStrictEqual(
+			provider2.getSessions().map(s => s.title.get()),
+			['Keep Me'],
+		);
+	}));
+
+	test('setConnection after unpublishCachedSessions restores cached sessions', () => runWithFakedTimers<void>({ useFakeTimers: true }, async () => {
+		connection.addSession(createSession('restore-me', { summary: 'Restore Me' }));
+		const provider = createProvider(disposables, connection);
+		await timeout(0);
+		assert.strictEqual(provider.getSessions().length, 1);
+
+		provider.unpublishCachedSessions();
+		assert.strictEqual(provider.getSessions().length, 0);
+
+		// Simulate the host coming back online with a fresh connection that
+		// still reports the same session.
+		const reconnected = new MockAgentConnection();
+		disposables.add(toDisposable(() => reconnected.dispose()));
+		reconnected.addSession(createSession('restore-me', { summary: 'Restore Me' }));
+		provider.setConnection(reconnected);
+		await timeout(0);
+
+		assert.deepStrictEqual(
+			provider.getSessions().map(s => s.title.get()),
+			['Restore Me'],
+		);
+	}));
+
 	test('sendAndCreateChat throws for unknown session', async () => {
 		const provider = createProvider(disposables, connection);
 		await assert.rejects(
@@ -852,7 +908,7 @@ suite('RemoteAgentHostSessionsProvider', () => {
 		connection.fireAction({
 			action: {
 				type: 'session/turnComplete',
-				session: AgentSession.uri('copilot', 'turn-sess').toString(),
+				session: AgentSession.uri('copilotcli', 'turn-sess').toString(),
 			},
 			serverSeq: 1,
 			origin: undefined,
@@ -888,12 +944,12 @@ suite('RemoteAgentHostSessionsProvider', () => {
 			values: { autoApprove: 'default', isolation: 'worktree' },
 		};
 		const fakeState: ISessionState = {
-			summary: { resource: AgentSession.uri('copilot', 'seed-1').toString(), provider: 'copilot', title: 'Seeded Session', status: ProtocolSessionStatus.Idle, createdAt: 0, modifiedAt: 0 },
+			summary: { resource: AgentSession.uri('copilotcli', 'seed-1').toString(), provider: 'copilotcli', title: 'Seeded Session', status: ProtocolSessionStatus.Idle, createdAt: 0, modifiedAt: 0 },
 			lifecycle: SessionLifecycle.Ready,
 			turns: [],
 			config,
 		};
-		connection.setSessionState('seed-1', 'copilot', fakeState);
+		connection.setSessionState('seed-1', 'copilotcli', fakeState);
 
 		await waitForSessionConfig(provider, session!.sessionId, c => c?.values.autoApprove === 'default');
 
@@ -916,7 +972,7 @@ suite('RemoteAgentHostSessionsProvider', () => {
 		assert.ok(session);
 
 		provider.getSessionConfig(session!.sessionId);
-		const sessionUriStr = AgentSession.uri('copilot', 'seed-2').toString();
+		const sessionUriStr = AgentSession.uri('copilotcli', 'seed-2').toString();
 		assert.strictEqual(connection.sessionSubscribeCounts.get(sessionUriStr), 1);
 		assert.strictEqual(connection.sessionUnsubscribeCounts.get(sessionUriStr) ?? 0, 0);
 
@@ -934,7 +990,7 @@ suite('RemoteAgentHostSessionsProvider', () => {
 		assert.ok(session);
 
 		provider.getSessionConfig(session!.sessionId);
-		const sessionUriStr = AgentSession.uri('copilot', 'seed-3').toString();
+		const sessionUriStr = AgentSession.uri('copilotcli', 'seed-3').toString();
 		assert.strictEqual(connection.sessionSubscribeCounts.get(sessionUriStr), 1);
 		assert.strictEqual(connection.sessionUnsubscribeCounts.get(sessionUriStr) ?? 0, 0);
 
diff --git a/src/vs/sessions/contrib/sessions/browser/media/sessionsViewPane.css b/src/vs/sessions/contrib/sessions/browser/media/sessionsViewPane.css
index aed456756f4..c16dc394883 100644
--- a/src/vs/sessions/contrib/sessions/browser/media/sessionsViewPane.css
+++ b/src/vs/sessions/contrib/sessions/browser/media/sessionsViewPane.css
@@ -139,6 +139,16 @@
 		top: 1.5px;
 	}
 
+	/* Match the find widget's close button size to the header toolbar action buttons (22x22) */
+	.agent-sessions-find-widget-container > .monaco-tree-type-filter > .monaco-tree-type-filter-actionbar .monaco-action-bar .action-label {
+		width: 22px;
+		height: 22px;
+		padding: 0;
+		display: flex;
+		align-items: center;
+		justify-content: center;
+	}
+
 	/* Compact "New" button in header */
 	.agent-sessions-compact-new-button.monaco-button {
 		display: inline-flex;
diff --git a/src/vs/sessions/contrib/sessions/browser/views/sessionsList.ts b/src/vs/sessions/contrib/sessions/browser/views/sessionsList.ts
index c6f81b34bea..2bf8add8446 100644
--- a/src/vs/sessions/contrib/sessions/browser/views/sessionsList.ts
+++ b/src/vs/sessions/contrib/sessions/browser/views/sessionsList.ts
@@ -457,7 +457,7 @@ class SessionItemRenderer implements ITreeRenderer<SessionListItem, FuzzyScore,
 
 	private getStatusIcon(status: SessionStatus, isRead: boolean, isArchived: boolean, pullRequestIcon?: ThemeIcon): ThemeIcon {
 		switch (status) {
-			case SessionStatus.InProgress: return { ...Codicon.sessionInProgress, color: themeColorFromId('textLink.foreground') };
+			case SessionStatus.InProgress: return { ...ThemeIcon.modify(Codicon.loading, 'spin'), color: themeColorFromId('textLink.foreground') };
 			case SessionStatus.NeedsInput: return { ...Codicon.circleFilled, color: themeColorFromId('list.warningForeground') };
 			case SessionStatus.Error: return { ...Codicon.error, color: themeColorFromId('errorForeground') };
 			default:
diff --git a/src/vs/sessions/contrib/sessions/browser/views/sessionsView.ts b/src/vs/sessions/contrib/sessions/browser/views/sessionsView.ts
index 9ee4fa2ce35..11ff92bfffa 100644
--- a/src/vs/sessions/contrib/sessions/browser/views/sessionsView.ts
+++ b/src/vs/sessions/contrib/sessions/browser/views/sessionsView.ts
@@ -147,6 +147,9 @@ export class SessionsView extends ViewPane {
 
 		const headerActions = this.headerActions = DOM.append(headerRow, $('.agent-sessions-header-actions'));
 
+		// Header actions (visual order: New, Filter, Search)
+		this.createNewSessionButton(headerActions);
+
 		const scopedInstantiationService = this._register(this.instantiationService.createChild(new ServiceCollection([IContextKeyService, this.scopedContextKeyService])));
 		this._register(scopedInstantiationService.createInstance(MenuWorkbenchToolBar, headerActions, Menus.SidebarSessionsHeader, {
 			hiddenItemStrategy: HiddenItemStrategy.NoHide,
@@ -154,76 +157,10 @@ export class SessionsView extends ViewPane {
 			toolbarOptions: { primaryGroup: () => true },
 		}));
 
-		// Container for the tree's find widget (rendered in-place in the header)
+		// Container for the tree's find widget (toggled by the toolbar's Find action)
 		const findWidgetContainer = this.findWidgetContainer = DOM.append(headerRow, $('.agent-sessions-find-widget-container'));
 		findWidgetContainer.style.display = 'none';
 
-		// Compact New Session Button
-		const newSessionButton = this._register(new Button(headerActions, {
-			...defaultButtonStyles,
-			buttonSecondaryBackground: asCssVariable(agentsNewSessionButtonBackground),
-			buttonSecondaryForeground: asCssVariable(agentsNewSessionButtonForeground),
-			buttonSecondaryHoverBackground: asCssVariable(agentsNewSessionButtonHoverBackground),
-			buttonSecondaryBorder: asCssVariable(agentsNewSessionButtonBorder),
-			secondary: true,
-			supportIcons: true,
-		}));
-		newSessionButton.element.classList.add('agent-sessions-compact-new-button');
-		this._register(newSessionButton.onDidClick(() => {
-			logSessionsInteraction(this.telemetryService, 'newSession');
-			this.sessionsManagementService.openNewSessionView();
-		}));
-
-		newSessionButton.label = localize('newCompact', "New");
-		const buttonLabel = $('span.new-session-button-label', undefined, localize('newCompact', "New"));
-		const keybindingHint = $('span.new-session-keybinding-hint');
-		const keybindingHintLabel = this._register(new KeybindingLabel(keybindingHint, OS, {
-			disableTitle: true,
-			keybindingLabelBackground: 'transparent',
-			keybindingLabelForeground: 'inherit',
-			keybindingLabelBorder: 'transparent',
-			keybindingLabelBottomBorder: undefined,
-			keybindingLabelShadow: undefined,
-		}));
-		DOM.reset(newSessionButton.element, buttonLabel);
-
-		const getNewSessionKeybinding = () => {
-			const primaryKeybinding = this.keybindingService.lookupKeybinding(ACTION_ID_NEW_SESSION, this.scopedContextKeyService, true);
-			const resolvedKeybindings = this.keybindingService.lookupKeybindings(ACTION_ID_NEW_SESSION);
-			return primaryKeybinding ?? resolvedKeybindings[0];
-		};
-
-		let lastRenderedKeybindingLabel: string | undefined | null = null;
-		let lastRenderedKeybindingAriaLabel: string | undefined | null = null;
-		const updateNewSessionButton = () => {
-			const keybinding = getNewSessionKeybinding();
-			const keybindingLabel = keybinding?.getLabel() ?? undefined;
-			const keybindingAriaLabel = keybinding?.getAriaLabel() ?? undefined;
-			if (lastRenderedKeybindingLabel === keybindingLabel && lastRenderedKeybindingAriaLabel === keybindingAriaLabel) {
-				return;
-			}
-
-			lastRenderedKeybindingLabel = keybindingLabel;
-			lastRenderedKeybindingAriaLabel = keybindingAriaLabel;
-
-			keybindingHintLabel.set(keybinding);
-			if (keybinding) {
-				if (keybindingHint.parentElement !== newSessionButton.element) {
-					DOM.append(newSessionButton.element, keybindingHint);
-				}
-			} else {
-				keybindingHint.remove();
-			}
-
-			newSessionButton.element.title = keybindingLabel
-				? localize('newSessionButtonTitle', "New Session ({0})", keybindingLabel)
-				: localize('newSessionButtonTitleWithoutKeybinding', "New Session");
-			newSessionButton.element.setAttribute('aria-label', keybindingAriaLabel
-				? localize('newSessionButtonAriaLabel', "New Session ({0})", keybindingAriaLabel)
-				: localize('newSessionButtonAriaLabelWithoutKeybinding', "New Session"));
-		};
-		this._register(Event.runAndSubscribe(this.keybindingService.onDidUpdateKeybindings, updateNewSessionButton));
-
 		// Sessions List Control
 		this.sessionsControlContainer = DOM.append(sessionsContent, $('.agent-sessions-control-container'));
 		const sessionsControl = this.sessionsControl = this._register(this.instantiationService.createInstance(SessionsList, this.sessionsControlContainer, {
@@ -305,6 +242,73 @@ export class SessionsView extends ViewPane {
 		}));
 	}
 
+	private createNewSessionButton(container: HTMLElement): void {
+		const newSessionButton = this._register(new Button(container, {
+			...defaultButtonStyles,
+			buttonSecondaryBackground: asCssVariable(agentsNewSessionButtonBackground),
+			buttonSecondaryForeground: asCssVariable(agentsNewSessionButtonForeground),
+			buttonSecondaryHoverBackground: asCssVariable(agentsNewSessionButtonHoverBackground),
+			buttonSecondaryBorder: asCssVariable(agentsNewSessionButtonBorder),
+			secondary: true,
+			supportIcons: true,
+		}));
+		newSessionButton.element.classList.add('agent-sessions-compact-new-button');
+		this._register(newSessionButton.onDidClick(() => {
+			logSessionsInteraction(this.telemetryService, 'newSession');
+			this.sessionsManagementService.openNewSessionView();
+		}));
+
+		const newSessionLabel = localize('newCompact', "New");
+		const buttonLabel = $('span.new-session-button-label', undefined, newSessionLabel);
+		const keybindingHint = $('span.new-session-keybinding-hint');
+		const keybindingHintLabel = this._register(new KeybindingLabel(keybindingHint, OS, {
+			disableTitle: true,
+			keybindingLabelBackground: 'transparent',
+			keybindingLabelForeground: 'inherit',
+			keybindingLabelBorder: 'transparent',
+			keybindingLabelBottomBorder: undefined,
+			keybindingLabelShadow: undefined,
+		}));
+		DOM.reset(newSessionButton.element, buttonLabel);
+
+		const getNewSessionKeybinding = () => {
+			const primaryKeybinding = this.keybindingService.lookupKeybinding(ACTION_ID_NEW_SESSION, this.scopedContextKeyService, true);
+			const resolvedKeybindings = this.keybindingService.lookupKeybindings(ACTION_ID_NEW_SESSION);
+			return primaryKeybinding ?? resolvedKeybindings[0];
+		};
+
+		let lastRenderedKeybindingLabel: string | undefined | null = null;
+		let lastRenderedKeybindingAriaLabel: string | undefined | null = null;
+		const updateNewSessionButton = () => {
+			const keybinding = getNewSessionKeybinding();
+			const keybindingLabel = keybinding?.getLabel() ?? undefined;
+			const keybindingAriaLabel = keybinding?.getAriaLabel() ?? undefined;
+			if (lastRenderedKeybindingLabel === keybindingLabel && lastRenderedKeybindingAriaLabel === keybindingAriaLabel) {
+				return;
+			}
+
+			lastRenderedKeybindingLabel = keybindingLabel;
+			lastRenderedKeybindingAriaLabel = keybindingAriaLabel;
+
+			keybindingHintLabel.set(keybinding);
+			if (keybinding) {
+				if (keybindingHint.parentElement !== newSessionButton.element) {
+					DOM.append(newSessionButton.element, keybindingHint);
+				}
+			} else {
+				keybindingHint.remove();
+			}
+
+			newSessionButton.element.title = keybindingLabel
+				? localize('newSessionButtonTitle', "New Session ({0})", keybindingLabel)
+				: localize('newSessionButtonTitleWithoutKeybinding', "New Session");
+			newSessionButton.element.setAttribute('aria-label', keybindingAriaLabel
+				? localize('newSessionButtonAriaLabel', "New Session ({0})", keybindingAriaLabel)
+				: localize('newSessionButtonAriaLabelWithoutKeybinding', "New Session"));
+		};
+		this._register(Event.runAndSubscribe(this.keybindingService.onDidUpdateKeybindings, updateNewSessionButton));
+	}
+
 	focusCustomizations(): void {
 		this._customizationsWidget?.focus();
 	}
diff --git a/src/vs/sessions/contrib/sessions/browser/views/sessionsViewActions.ts b/src/vs/sessions/contrib/sessions/browser/views/sessionsViewActions.ts
index db623858e2b..8bb4d36db1f 100644
--- a/src/vs/sessions/contrib/sessions/browser/views/sessionsViewActions.ts
+++ b/src/vs/sessions/contrib/sessions/browser/views/sessionsViewActions.ts
@@ -66,6 +66,14 @@ KeybindingsRegistry.registerKeybindingRule({
 
 //  View Title Menu
 
+MenuRegistry.appendMenuItem(Menus.SidebarSessionsHeader, {
+	submenu: SessionsViewFilterSubMenu,
+	title: localize2('filterSessions', "Filter Sessions"),
+	icon: Codicon.settings,
+	group: 'navigation',
+	order: 10,
+});
+
 MenuRegistry.appendMenuItem(Menus.SidebarSessionsHeader, {
 	command: {
 		id: 'sessionsViewPane.find',
@@ -73,15 +81,7 @@ MenuRegistry.appendMenuItem(Menus.SidebarSessionsHeader, {
 		icon: Codicon.search,
 	},
 	group: 'navigation',
-	order: 0,
-});
-
-MenuRegistry.appendMenuItem(Menus.SidebarSessionsHeader, {
-	submenu: SessionsViewFilterSubMenu,
-	title: localize2('filterSessions', "Filter Sessions"),
-	icon: Codicon.settings,
-	group: 'navigation',
-	order: 1,
+	order: 20,
 });
 
 MenuRegistry.appendMenuItem(SessionsViewFilterSubMenu, {
diff --git a/src/vs/sessions/contrib/welcome/browser/welcome.contribution.ts b/src/vs/sessions/contrib/welcome/browser/welcome.contribution.ts
index 8efccdb6b73..3ad2a355b19 100644
--- a/src/vs/sessions/contrib/welcome/browser/welcome.contribution.ts
+++ b/src/vs/sessions/contrib/welcome/browser/welcome.contribution.ts
@@ -136,6 +136,7 @@ export class SessionsWelcomeContribution extends Disposable implements IWorkbenc
 			// Auth is handled by the walkthrough's GitHub button via
 			// IAuthenticationService. Discovery runs separately after auth.
 			this._checkWebAuth();
+			this._watchWebAuth();
 			return;
 		}
 		const isFirstLaunch = !this.storageService.getBoolean(WELCOME_COMPLETE_KEY, StorageScope.APPLICATION, false);
@@ -165,6 +166,32 @@ export class SessionsWelcomeContribution extends Disposable implements IWorkbenc
 		this.showWalkthrough();
 	}
 
+	/**
+	 * Web-only: react to GitHub session loss. When the user's last GitHub
+	 * session is removed (token expired, secret storage wiped, or explicit
+	 * sign-out from the account menu), clear the welcome completion marker
+	 * and show the sign-in walkthrough again. Without this, passive sign-out
+	 * leaves the user on a seemingly-working workbench with a stale UI.
+	 */
+	private _watchWebAuth(): void {
+		this._register(this.authenticationService.onDidChangeSessions(async e => {
+			if (e.providerId !== 'github' || !e.event.removed?.length) {
+				return;
+			}
+			try {
+				const remaining = await this.authenticationService.getSessions('github');
+				if (remaining.length > 0) {
+					return;
+				}
+			} catch {
+				// Provider became unavailable — treat as signed out
+			}
+			this.logService.info('[sessions welcome] GitHub session removed on web, re-showing walkthrough');
+			this.storageService.remove(WELCOME_COMPLETE_KEY, StorageScope.APPLICATION);
+			this.showWalkthrough();
+		}));
+	}
+
 	private showWalkthroughIfNeeded(): void {
 		if (this._needsChatSetup()) {
 			this.showWalkthrough();
diff --git a/src/vs/sessions/contrib/workspace/browser/workspaceFolderManagement.ts b/src/vs/sessions/contrib/workspace/browser/workspaceFolderManagement.ts
index 83652b1ea7a..a881628e6ce 100644
--- a/src/vs/sessions/contrib/workspace/browser/workspaceFolderManagement.ts
+++ b/src/vs/sessions/contrib/workspace/browser/workspaceFolderManagement.ts
@@ -14,7 +14,6 @@ import { URI } from '../../../../base/common/uri.js';
 import { autorun } from '../../../../base/common/observable.js';
 import { IWorkspaceFolderCreationData } from '../../../../platform/workspaces/common/workspaces.js';
 import { Queue } from '../../../../base/common/async.js';
-import { AGENT_HOST_SCHEME } from '../../../../platform/agentHost/common/agentHostUri.js';
 import { ISession } from '../../../services/sessions/common/session.js';
 
 export class WorkspaceFolderManagementContribution extends Disposable implements IWorkbenchContribution {
@@ -72,12 +71,6 @@ export class WorkspaceFolderManagementContribution extends Disposable implements
 		const worktree = repo?.workingDirectory;
 		const branchName = repo?.detail;
 
-		// Remote agent host sessions use a read-only FS provider that
-		// should not be added as a workspace folder.
-		if (worktree?.scheme === AGENT_HOST_SCHEME || repository?.scheme === AGENT_HOST_SCHEME) {
-			return undefined;
-		}
-
 		if (worktree) {
 			return {
 				uri: worktree,
diff --git a/src/vs/sessions/services/sessions/browser/sessionsManagementService.ts b/src/vs/sessions/services/sessions/browser/sessionsManagementService.ts
index 41615e5a2fb..cc00fbeccd1 100644
--- a/src/vs/sessions/services/sessions/browser/sessionsManagementService.ts
+++ b/src/vs/sessions/services/sessions/browser/sessionsManagementService.ts
@@ -262,13 +262,11 @@ class SessionsManagementService extends Disposable implements ISessionsManagemen
 		}
 
 		if (!sessionTypeId) {
-			const defaultType = provider.getSessionTypes(repositoryUri)[0];
-			if (!defaultType) {
+			sessionTypeId = provider.getSessionTypes(repositoryUri)[0]?.id;
+			if (!sessionTypeId) {
 				throw new Error(`No session types available for provider '${providerId}'`);
 			}
-			sessionTypeId = defaultType.id;
 		}
-
 		const session = provider.createNewSession(repositoryUri, sessionTypeId);
 		this.setActiveSession(session);
 		return session;
diff --git a/src/vs/sessions/services/sessions/common/session.ts b/src/vs/sessions/services/sessions/common/session.ts
index 2d26f435abf..8d97f27a750 100644
--- a/src/vs/sessions/services/sessions/common/session.ts
+++ b/src/vs/sessions/services/sessions/common/session.ts
@@ -40,6 +40,16 @@ export const CopilotCloudSessionType: ISessionType = {
 	icon: Codicon.cloud,
 };
 
+/** Session type ID for Claude Code sessions. */
+export const CLAUDE_CODE_SESSION_TYPE = 'claude-code';
+
+/** Claude Code session type — local agent powered by Claude. */
+export const ClaudeCodeSessionType: ISessionType = {
+	id: CLAUDE_CODE_SESSION_TYPE,
+	label: localize('claudeCode', "Claude"),
+	icon: Codicon.claude,
+};
+
 export const GITHUB_REMOTE_FILE_SCHEME = 'github-remote-file';
 
 /**
diff --git a/src/vs/sessions/sessions.common.main.ts b/src/vs/sessions/sessions.common.main.ts
index a279fc1fdaf..d4a45aeae67 100644
--- a/src/vs/sessions/sessions.common.main.ts
+++ b/src/vs/sessions/sessions.common.main.ts
@@ -264,13 +264,8 @@ import '../workbench/contrib/git/browser/git.contributions.js';
 // SCM
 import '../workbench/contrib/scm/browser/scm.contribution.js';
 
-// Debug
-import '../workbench/contrib/debug/browser/debug.contribution.js';
-import '../workbench/contrib/debug/browser/debugEditorContribution.js';
-import '../workbench/contrib/debug/browser/breakpointEditorContribution.js';
-import '../workbench/contrib/debug/browser/callStackEditorContribution.js';
-import '../workbench/contrib/debug/browser/repl.js';
-import '../workbench/contrib/debug/browser/debugViewlet.js';
+// Debug (service)
+import '../workbench/contrib/debug/browser/debug.service.contribution.js';
 
 // Markers
 import '../workbench/contrib/markers/browser/markers.contribution.js';
@@ -460,7 +455,7 @@ import './browser/layoutActions.js';
 import './contrib/accountMenu/browser/account.contribution.js';
 import './contrib/aiCustomizationTreeView/browser/aiCustomizationTreeView.contribution.js';
 import './contrib/chat/browser/chat.contribution.js';
-import './contrib/chat/browser/agentHostSessionConfigPicker.js';
+import './contrib/chat/browser/agentHost/agentHostSessionConfigPicker.js';
 import './contrib/chat/browser/customizationsDebugLog.contribution.js';
 import './contrib/copilotChatSessions/browser/copilotChatSessions.contribution.js';
 import './contrib/sessions/browser/sessions.contribution.js';
@@ -475,6 +470,7 @@ import './contrib/applyCommitsToParentRepo/browser/applyChangesToParentRepo.js';
 import './contrib/fileTreeView/browser/fileTreeView.contribution.js'; // view registration disabled; filesystem provider still needed
 import './contrib/configuration/browser/configuration.contribution.js';
 import './contrib/workingSet/browser/workingSet.contribution.js';
+import './contrib/editor/browser/editor.contribution.js';
 
 import './contrib/terminal/browser/sessionsTerminalContribution.js';
 import './contrib/logs/browser/logs.contribution.js';
diff --git a/src/vs/sessions/sessions.desktop.main.ts b/src/vs/sessions/sessions.desktop.main.ts
index 9dc4b5ac3a6..3175f775b7e 100644
--- a/src/vs/sessions/sessions.desktop.main.ts
+++ b/src/vs/sessions/sessions.desktop.main.ts
@@ -207,7 +207,7 @@ import './contrib/remoteAgentHost/browser/remoteAgentHostTerminal.contribution.j
 import './contrib/remoteAgentHost/browser/tunnelAgentHost.contribution.js';
 
 // Local Agent Host
-import './contrib/localAgentHost/browser/localAgentHost.contribution.js';
+import './contrib/agentHost/browser/localAgentHost.contribution.js';
 
 // Tunnel Host (allow remote connections to local agent host)
 import './contrib/tunnelHost/electron-browser/tunnelHost.contribution.js';
diff --git a/src/vs/workbench/api/common/extHostSCM.ts b/src/vs/workbench/api/common/extHostSCM.ts
index bf479e9ebb1..b4926d93d5f 100644
--- a/src/vs/workbench/api/common/extHostSCM.ts
+++ b/src/vs/workbench/api/common/extHostSCM.ts
@@ -1026,6 +1026,24 @@ export class ExtHostSCM implements ExtHostSCMShape {
 		sourceControls.push(sourceControl);
 		this._sourceControlsByExtension.set(extension.identifier, sourceControls);
 
+		Event.once(sourceControl.onDidDispose)(() => {
+			this.logService.trace('ExtHostSCM#disposeSourceControl', extension.identifier.value, id, label, rootUri);
+
+			this._sourceControls.delete(sourceControl.handle);
+
+			const sourceControls = this._sourceControlsByExtension.get(extension.identifier);
+			if (sourceControls) {
+				const index = sourceControls.indexOf(sourceControl);
+				if (index !== -1) {
+					sourceControls.splice(index, 1);
+				}
+
+				if (sourceControls.length === 0) {
+					this._sourceControlsByExtension.delete(extension.identifier);
+				}
+			}
+		});
+
 		return sourceControl;
 	}
 
diff --git a/src/vs/workbench/api/test/common/extHostSCM.test.ts b/src/vs/workbench/api/test/common/extHostSCM.test.ts
new file mode 100644
index 00000000000..b0c6706ebe7
--- /dev/null
+++ b/src/vs/workbench/api/test/common/extHostSCM.test.ts
@@ -0,0 +1,58 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import * as assert from 'assert';
+import { URI } from '../../../../base/common/uri.js';
+import { mock } from '../../../../base/test/common/mock.js';
+import { ensureNoDisposablesAreLeakedInTestSuite } from '../../../../base/test/common/utils.js';
+import { NullLogService } from '../../../../platform/log/common/log.js';
+import { ExtensionIdentifier } from '../../../../platform/extensions/common/extensions.js';
+import { nullExtensionDescription } from '../../../services/extensions/common/extensions.js';
+import { MainContext, MainThreadSCMShape, MainThreadTelemetryShape } from '../../common/extHost.protocol.js';
+import { ArgumentProcessor, ExtHostCommands } from '../../common/extHostCommands.js';
+import { ExtHostDocuments } from '../../common/extHostDocuments.js';
+import { ExtHostSCM } from '../../common/extHostSCM.js';
+import { TestRPCProtocol } from './testRPCProtocol.js';
+
+suite('ExtHostSCM', () => {
+	ensureNoDisposablesAreLeakedInTestSuite();
+
+	test('disposed source controls are removed from extension bookkeeping', () => {
+		const rpcProtocol = new TestRPCProtocol();
+		rpcProtocol.set(MainContext.MainThreadSCM, new class extends mock<MainThreadSCMShape>() {
+			override async $registerSourceControl(): Promise<void> { }
+			override async $unregisterSourceControl(): Promise<void> { }
+		});
+		rpcProtocol.set(MainContext.MainThreadTelemetry, new class extends mock<MainThreadTelemetryShape>() {
+			override $publicLog2(): void { }
+		});
+
+		const commands = new class extends mock<ExtHostCommands>() {
+			override registerArgumentProcessor(_processor: ArgumentProcessor): void { }
+		};
+		const extension = {
+			...nullExtensionDescription,
+			identifier: new ExtensionIdentifier('vscode.git'),
+			name: 'git',
+			displayName: 'Git',
+			extensionLocation: URI.file('/extension'),
+			isBuiltin: true
+		};
+
+		const extHostSCM = new ExtHostSCM(
+			rpcProtocol,
+			commands,
+			{} as ExtHostDocuments,
+			new NullLogService()
+		);
+
+		const sourceControl = extHostSCM.createSourceControl(extension, 'git', 'Git', URI.file('/repo'), undefined, undefined, undefined);
+		assert.ok(extHostSCM.getLastInputBox(extension));
+
+		sourceControl.dispose();
+
+		assert.strictEqual(extHostSCM.getLastInputBox(extension), undefined);
+	});
+});
diff --git a/src/vs/workbench/browser/parts/editor/editorCommands.ts b/src/vs/workbench/browser/parts/editor/editorCommands.ts
index ef66fad7e3b..7c8fdbf44be 100644
--- a/src/vs/workbench/browser/parts/editor/editorCommands.ts
+++ b/src/vs/workbench/browser/parts/editor/editorCommands.ts
@@ -1515,7 +1515,7 @@ function registerModalEditorCommands(): void {
 				menu: {
 					id: MenuId.ModalEditorTitle,
 					group: 'navigation',
-					order: 1
+					order: 99
 				}
 			});
 		}
@@ -1552,7 +1552,7 @@ function registerModalEditorCommands(): void {
 				menu: {
 					id: MenuId.ModalEditorTitle,
 					group: 'navigation',
-					order: 2
+					order: 100
 				}
 			});
 		}
diff --git a/src/vs/workbench/browser/parts/editor/editorTabsControl.ts b/src/vs/workbench/browser/parts/editor/editorTabsControl.ts
index b0a44e2c23a..2ba6b32bccf 100644
--- a/src/vs/workbench/browser/parts/editor/editorTabsControl.ts
+++ b/src/vs/workbench/browser/parts/editor/editorTabsControl.ts
@@ -6,7 +6,7 @@
 import './media/editortabscontrol.css';
 import { localize } from '../../../../nls.js';
 import { DataTransfers } from '../../../../base/browser/dnd.js';
-import { $, Dimension, getActiveWindow, getWindow, isMouseEvent } from '../../../../base/browser/dom.js';
+import { $, Dimension, getActiveWindow, getWindow, isMouseEvent, setVisibility } from '../../../../base/browser/dom.js';
 import { StandardMouseEvent } from '../../../../base/browser/mouseEvent.js';
 import { ActionsOrientation, IActionViewItem, prepareActions } from '../../../../base/browser/ui/actionbar/actionbar.js';
 import { IAction, ActionRunner } from '../../../../base/common/actions.js';
@@ -32,7 +32,7 @@ import { assertReturnsDefined } from '../../../../base/common/types.js';
 import { isFirefox } from '../../../../base/browser/browser.js';
 import { isCancellationError } from '../../../../base/common/errors.js';
 import { SideBySideEditorInput } from '../../../common/editor/sideBySideEditorInput.js';
-import { WorkbenchToolBar } from '../../../../platform/actions/browser/toolbar.js';
+import { WorkbenchToolBar, HiddenItemStrategy } from '../../../../platform/actions/browser/toolbar.js';
 import { LocalSelectionTransfer } from '../../../../platform/dnd/browser/dnd.js';
 import { DraggedTreeItemsIdentifier } from '../../../../editor/common/services/treeViewsDnd.js';
 import { IEditorResolverService } from '../../../services/editor/common/editorResolverService.js';
@@ -109,6 +109,12 @@ export abstract class EditorTabsControl extends Themable implements IEditorTabsC
 	private readonly editorActionsToolbarDisposables = this._register(new DisposableStore());
 	private readonly editorActionsDisposables = this._register(new DisposableStore());
 
+	private editorLayoutActionsSeparator: HTMLElement | undefined;
+	protected editorLayoutActionsToolbarContainer: HTMLElement | undefined;
+	private editorLayoutActionsToolbar: WorkbenchToolBar | undefined;
+	private readonly editorLayoutActionsToolbarDisposables = this._register(new DisposableStore());
+	private readonly editorLayoutActionsDisposables = this._register(new DisposableStore());
+
 	private readonly contextMenuContextKeyService: IContextKeyService;
 	private resourceContext: ResourceContextKey;
 
@@ -182,6 +188,14 @@ export abstract class EditorTabsControl extends Themable implements IEditorTabsC
 		parent.appendChild(this.editorActionsToolbarContainer);
 
 		this.handleEditorActionToolBarVisibility(this.editorActionsToolbarContainer);
+
+		this.editorLayoutActionsSeparator = $('div.editor-actions-separator');
+		parent.appendChild(this.editorLayoutActionsSeparator);
+
+		this.editorLayoutActionsToolbarContainer = $('div.editor-layout-actions');
+		parent.appendChild(this.editorLayoutActionsToolbarContainer);
+
+		this.handleEditorLayoutActionsToolBarVisibility(this.editorLayoutActionsToolbarContainer);
 	}
 
 	private handleEditorActionToolBarVisibility(container: HTMLElement): void {
@@ -203,6 +217,32 @@ export abstract class EditorTabsControl extends Themable implements IEditorTabsC
 		container.classList.toggle('hidden', !editorActionsEnabled);
 	}
 
+	private handleEditorLayoutActionsToolBarVisibility(container: HTMLElement): void {
+		const editorActionsEnabled = this.editorActionsEnabled;
+		const editorActionsVisible = !!this.editorLayoutActionsToolbar;
+
+		// Create toolbar if it is enabled (and not yet created)
+		if (editorActionsEnabled && !editorActionsVisible) {
+			this.doCreateEditorLayoutActionsToolBar(container);
+		}
+		// Remove toolbar if it is not enabled (and is visible)
+		else if (!editorActionsEnabled && editorActionsVisible) {
+			this.editorLayoutActionsToolbar?.getElement().remove();
+			this.editorLayoutActionsToolbar = undefined;
+			this.editorLayoutActionsToolbarDisposables.clear();
+			this.editorLayoutActionsDisposables.clear();
+		}
+
+		container.classList.toggle('hidden', !editorActionsEnabled);
+
+		// Keep the sibling separator in sync with the toolbar. The separator lives outside
+		// the hidden containers so it must be explicitly hidden whenever the layout toolbar
+		// is disabled/removed; otherwise it would remain visible as an orphan line.
+		if (this.editorLayoutActionsSeparator && !editorActionsEnabled) {
+			setVisibility(false, this.editorLayoutActionsSeparator);
+		}
+	}
+
 	private doCreateEditorActionsToolBar(container: HTMLElement): void {
 		const context: IEditorCommandsContext = { groupId: this.groupView.id };
 
@@ -234,6 +274,38 @@ export abstract class EditorTabsControl extends Themable implements IEditorTabsC
 		}));
 	}
 
+	private doCreateEditorLayoutActionsToolBar(container: HTMLElement): void {
+		const context: IEditorCommandsContext = { groupId: this.groupView.id };
+
+		// Toolbar Widget (no overflow, no hidden-item "..." button so layout actions
+		// are always rendered inline after the primary toolbar's own overflow).
+		this.editorLayoutActionsToolbar = this.editorLayoutActionsToolbarDisposables.add(this.instantiationService.createInstance(WorkbenchToolBar, container, {
+			actionViewItemProvider: (action, options) => this.actionViewItemProvider(action, options),
+			orientation: ActionsOrientation.HORIZONTAL,
+			ariaLabel: localize('ariaLabelEditorActionsLayout', "Editor layout actions"),
+			getKeyBinding: action => this.getKeybinding(action),
+			actionRunner: this.editorLayoutActionsToolbarDisposables.add(new EditorCommandsContextActionRunner(context)),
+			anchorAlignmentProvider: () => AnchorAlignment.RIGHT,
+			renderDropdownAsChildElement: this.renderDropdownAsChildElement,
+			telemetrySource: 'editorPartTrailing',
+			resetMenu: MenuId.EditorTitleLayout,
+			hiddenItemStrategy: HiddenItemStrategy.NoHide,
+			highlightToggledItems: true
+		}));
+
+		// Context
+		this.editorLayoutActionsToolbar.context = context;
+
+		// Action Run Handling
+		this.editorLayoutActionsToolbarDisposables.add(this.editorLayoutActionsToolbar.actionRunner.onDidRun(e => {
+
+			// Notify for Error
+			if (e.error && !isCancellationError(e.error)) {
+				this.notificationService.error(e.error);
+			}
+		}));
+	}
+
 	private actionViewItemProvider(action: IAction, options: IBaseActionViewItemOptions): IActionViewItem | undefined {
 		const activeEditorPane = this.groupView.activeEditorPane;
 
@@ -263,9 +335,33 @@ export abstract class EditorTabsControl extends Themable implements IEditorTabsC
 		const editorActionsToolbar = assertReturnsDefined(this.editorActionsToolbar);
 		const { primary, secondary } = this.prepareEditorActions(editorActions.actions);
 		editorActionsToolbar.setActions(prepareActions(primary), prepareActions(secondary));
+
+		this.updateEditorLayoutActionsToolbar();
+	}
+
+	private updateEditorLayoutActionsToolbar(): void {
+		if (!this.editorActionsEnabled || !this.editorLayoutActionsToolbar) {
+			return;
+		}
+
+		this.editorLayoutActionsDisposables.clear();
+
+		const editorActions = this.groupView.createEditorActions(this.editorLayoutActionsDisposables, MenuId.EditorTitleLayout);
+		this.editorLayoutActionsDisposables.add(editorActions.onDidChange(() => this.updateEditorLayoutActionsToolbar()));
+
+		const { primary, secondary } = this.prepareEditorLayoutActions(editorActions.actions);
+		this.editorLayoutActionsToolbar.setActions(prepareActions(primary), prepareActions(secondary));
+
+		// Only show the separator when the layout toolbar actually has actions.
+		if (this.editorLayoutActionsSeparator) {
+			setVisibility(primary.length > 0 || secondary.length > 0, this.editorLayoutActionsSeparator);
+		}
 	}
 
 	protected abstract prepareEditorActions(editorActions: IToolbarActions): IToolbarActions;
+
+	protected abstract prepareEditorLayoutActions(editorActions: IToolbarActions): IToolbarActions;
+
 	private getEditorPaneAwareContextKeyService(): IContextKeyService {
 		return this.groupView.activeEditorPane?.scopedContextKeyService ?? this.contextKeyService;
 	}
@@ -277,6 +373,11 @@ export abstract class EditorTabsControl extends Themable implements IEditorTabsC
 
 		const editorActionsToolbar = assertReturnsDefined(this.editorActionsToolbar);
 		editorActionsToolbar.setActions([], []);
+
+		this.editorLayoutActionsToolbar?.setActions([], []);
+		if (this.editorLayoutActionsSeparator) {
+			setVisibility(false, this.editorLayoutActionsSeparator);
+		}
 	}
 
 	protected onGroupDragStart(e: DragEvent, element: HTMLElement): boolean {
@@ -483,6 +584,10 @@ export abstract class EditorTabsControl extends Themable implements IEditorTabsC
 				this.handleEditorActionToolBarVisibility(this.editorActionsToolbarContainer);
 				this.updateEditorActionsToolbar();
 			}
+			if (this.editorLayoutActionsToolbarContainer) {
+				this.handleEditorLayoutActionsToolBarVisibility(this.editorLayoutActionsToolbarContainer);
+				this.updateEditorLayoutActionsToolbar();
+			}
 		}
 	}
 
diff --git a/src/vs/workbench/browser/parts/editor/media/multieditortabscontrol.css b/src/vs/workbench/browser/parts/editor/media/multieditortabscontrol.css
index 4f9477d0865..d57abaaf412 100644
--- a/src/vs/workbench/browser/parts/editor/media/multieditortabscontrol.css
+++ b/src/vs/workbench/browser/parts/editor/media/multieditortabscontrol.css
@@ -285,7 +285,7 @@
 .monaco-workbench .part.editor > .content .editor-group-container > .title .tabs-container > .tab.active.tab-border-top > .tab-border-top-container,
 .monaco-workbench .part.editor > .content .editor-group-container > .title .tabs-container > .tab.selected.tab-border-top > .tab-border-top-container,
 .monaco-workbench .part.editor > .content .editor-group-container > .title:not(.two-tab-bars) .tabs-container > .tab.active.tab-border-bottom > .tab-border-bottom-container,
-.monaco-workbench .part.editor > .content .editor-group-container > .title.two-tab-bars .tabs-and-actions-container:not(:first-child)  .tabs-container > .tab.active.tab-border-bottom > .tab-border-bottom-container,
+.monaco-workbench .part.editor > .content .editor-group-container > .title.two-tab-bars .tabs-and-actions-container:not(:first-child) .tabs-container > .tab.active.tab-border-bottom > .tab-border-bottom-container,
 .monaco-workbench .part.editor > .content .editor-group-container > .title .tabs-container > .tab.dirty-border-top > .tab-border-top-container {
 	display: block;
 	position: absolute;
@@ -329,8 +329,8 @@
 	position: relative;
 }
 
-.monaco-workbench .part.editor > .content .editor-group-container > .title .tabs-container >  .tab.sizing-shrink > .tab-label > .monaco-icon-label-container::after,
-.monaco-workbench .part.editor > .content .editor-group-container > .title .tabs-container >  .tab.sizing-fixed > .tab-label > .monaco-icon-label-container::after {
+.monaco-workbench .part.editor > .content .editor-group-container > .title .tabs-container > .tab.sizing-shrink > .tab-label > .monaco-icon-label-container::after,
+.monaco-workbench .part.editor > .content .editor-group-container > .title .tabs-container > .tab.sizing-fixed > .tab-label > .monaco-icon-label-container::after {
 	content: ''; /* enables a linear gradient to overlay the end of the label when tabs overflow */
 	position: absolute;
 	right: 0;
@@ -343,13 +343,13 @@
 	height: calc(100% - 2px);
 }
 
-.monaco-workbench .part.editor > .content .editor-group-container > .title .tabs-container >  .tab.sizing-shrink:focus > .tab-label > .monaco-icon-label-container::after,
-.monaco-workbench .part.editor > .content .editor-group-container > .title .tabs-container >  .tab.sizing-fixed:focus > .tab-label > .monaco-icon-label-container::after {
+.monaco-workbench .part.editor > .content .editor-group-container > .title .tabs-container > .tab.sizing-shrink:focus > .tab-label > .monaco-icon-label-container::after,
+.monaco-workbench .part.editor > .content .editor-group-container > .title .tabs-container > .tab.sizing-fixed:focus > .tab-label > .monaco-icon-label-container::after {
 	opacity: 0; /* when tab has the focus this shade breaks the tab border (fixes https://github.com/microsoft/vscode/issues/57819) */
 }
 
-.monaco-workbench .part.editor > .content .editor-group-container > .title .tabs-container >  .tab.sizing-shrink > .tab-label.tab-label-has-badge::after,
-.monaco-workbench .part.editor > .content .editor-group-container > .title .tabs-container >  .tab.sizing-fixed > .tab-label.tab-label-has-badge::after {
+.monaco-workbench .part.editor > .content .editor-group-container > .title .tabs-container > .tab.sizing-shrink > .tab-label.tab-label-has-badge::after,
+.monaco-workbench .part.editor > .content .editor-group-container > .title .tabs-container > .tab.sizing-fixed > .tab-label.tab-label-has-badge::after {
 	margin-right: 5px; /* with tab sizing shrink/fixed and badges, we want a right-margin because the close button is hidden. Use margin instead of padding to support animating the badge (https://github.com/microsoft/vscode/issues/242661) */
 }
 
@@ -526,6 +526,14 @@
 	right: 0;
 }
 
+.monaco-workbench .part.editor > .content .editor-group-container > .title .editor-actions-separator {
+	display: none;
+}
+
+.monaco-workbench .part.editor > .content .editor-group-container > .title .editor-layout-actions {
+	display: none;
+}
+
 .monaco-workbench .part.editor > .content .editor-group-container > .title.two-tab-bars > .tabs-and-actions-container:first-child .editor-actions {
 
 	/* When multiple tab bars are visible, only show editor actions for the last tab bar */
diff --git a/src/vs/workbench/browser/parts/editor/multiEditorTabsControl.ts b/src/vs/workbench/browser/parts/editor/multiEditorTabsControl.ts
index b56047d66e1..1fe80afb1db 100644
--- a/src/vs/workbench/browser/parts/editor/multiEditorTabsControl.ts
+++ b/src/vs/workbench/browser/parts/editor/multiEditorTabsControl.ts
@@ -1775,6 +1775,10 @@ export class MultiEditorTabsControl extends EditorTabsControl {
 		}
 	}
 
+	protected override prepareEditorLayoutActions(editorActions: IToolbarActions): IToolbarActions {
+		return editorActions;
+	}
+
 	getHeight(): number {
 
 		// Return quickly if our used dimensions are known
@@ -1880,6 +1884,9 @@ export class MultiEditorTabsControl extends EditorTabsControl {
 	private doLayoutTabsWrapping(dimensions: IEditorTitleControlDimensions): boolean {
 		const [tabsAndActionsContainer, tabsContainer, editorToolbarContainer, tabsScrollbar] = assertReturnsAllDefined(this.tabsAndActionsContainer, this.tabsContainer, this.editorActionsToolbarContainer, this.tabsScrollbar);
 
+		const layoutActionsContainer = this.editorLayoutActionsToolbarContainer;
+		const editorToolbarWidth = () => editorToolbarContainer.offsetWidth + (layoutActionsContainer?.offsetWidth ?? 0);
+
 		// Handle wrapping tabs according to setting:
 		// - enabled: only add class if tabs wrap and don't exceed available dimensions
 		// - disabled: remove class and margin-right variable
@@ -1896,7 +1903,8 @@ export class MultiEditorTabsControl extends EditorTabsControl {
 			// Update `last-tab-margin-right` CSS variable to account for the absolute
 			// positioned editor actions container when tabs wrap. The margin needs to
 			// be the width of the editor actions container to avoid screen cheese.
-			tabsContainer.style.setProperty('--last-tab-margin-right', tabsWrapMultiLine ? `${editorToolbarContainer.offsetWidth}px` : '0');
+			tabsContainer.style.setProperty('--last-tab-margin-right', tabsWrapMultiLine ? `${editorToolbarWidth()}px` : '0');
+			tabsAndActionsContainer.style.setProperty('--last-tab-layout-actions-width', `${layoutActionsContainer?.offsetWidth ?? 0}px`);
 
 			// Remove old css classes that are not needed anymore
 			for (const tab of tabsContainer.children) {
@@ -1914,7 +1922,7 @@ export class MultiEditorTabsControl extends EditorTabsControl {
 					return true; // no tab always fits
 				}
 
-				const lastTabOverlapWithToolbarWidth = lastTab.offsetWidth + editorToolbarContainer.offsetWidth - dimensions.available.width;
+				const lastTabOverlapWithToolbarWidth = lastTab.offsetWidth + editorToolbarWidth() - dimensions.available.width;
 				if (lastTabOverlapWithToolbarWidth > 1) {
 					// Allow for slight rounding errors related to zooming here
 					// https://github.com/microsoft/vscode/issues/116385
diff --git a/src/vs/workbench/browser/parts/editor/noEditorTabsControl.ts b/src/vs/workbench/browser/parts/editor/noEditorTabsControl.ts
index af16587fdb0..8d1c807d833 100644
--- a/src/vs/workbench/browser/parts/editor/noEditorTabsControl.ts
+++ b/src/vs/workbench/browser/parts/editor/noEditorTabsControl.ts
@@ -20,6 +20,13 @@ export class NoEditorTabsControl extends EditorTabsControl {
 		};
 	}
 
+	protected override prepareEditorLayoutActions(): IToolbarActions {
+		return {
+			primary: [],
+			secondary: []
+		};
+	}
+
 	openEditor(editor: EditorInput): boolean {
 		return this.handleOpenedEditors();
 	}
diff --git a/src/vs/workbench/browser/parts/editor/singleEditorTabsControl.ts b/src/vs/workbench/browser/parts/editor/singleEditorTabsControl.ts
index 0ef439569e1..6b1732c7850 100644
--- a/src/vs/workbench/browser/parts/editor/singleEditorTabsControl.ts
+++ b/src/vs/workbench/browser/parts/editor/singleEditorTabsControl.ts
@@ -359,6 +359,13 @@ export class SingleEditorTabsControl extends EditorTabsControl {
 		}
 	}
 
+	protected override prepareEditorLayoutActions(): IToolbarActions {
+		return {
+			primary: [],
+			secondary: []
+		};
+	}
+
 	getHeight(): number {
 		return this.tabHeight;
 	}
diff --git a/src/vs/workbench/contrib/chat/browser/actions/chatActions.ts b/src/vs/workbench/contrib/chat/browser/actions/chatActions.ts
index d285ce397ab..f7d4917de68 100644
--- a/src/vs/workbench/contrib/chat/browser/actions/chatActions.ts
+++ b/src/vs/workbench/contrib/chat/browser/actions/chatActions.ts
@@ -1085,36 +1085,6 @@ export function registerChatActions() {
 		}
 	});
 
-	registerAction2(class ToggleSessionCloudSyncAction extends Action2 {
-		private static readonly _settingKey = 'github.copilot.chat.sessionSearch.cloudSync.enabled';
-		constructor() {
-			super({
-				id: 'workbench.action.chat.toggleSessionCloudSync',
-				title: localize2('chat.toggleSessionCloudSync', "Sync Chat Sessions to Cloud"),
-				category: CHAT_CATEGORY,
-				f1: false,
-				toggled: ContextKeyExpr.equals(`config.${ToggleSessionCloudSyncAction._settingKey}`, true),
-				menu: [{
-					id: CHAT_CONFIG_MENU_ID,
-					when: ContextKeyExpr.and(ChatContextKeys.enabled, ContextKeyExpr.equals('view', ChatViewId), ContextKeyExpr.equals('github.copilot.sessionSearch.enabled', true)),
-					order: 2,
-					group: '4_logs'
-				}, {
-					id: MenuId.ViewTitle,
-					when: ContextKeyExpr.and(ChatContextKeys.enabled, ContextKeyExpr.equals('view', ChatViewId), ContextKeyExpr.equals('github.copilot.sessionSearch.enabled', true)),
-					order: 2,
-					group: '4_logs'
-				}]
-			});
-		}
-
-		async run(accessor: ServicesAccessor): Promise<void> {
-			const configurationService = accessor.get(IConfigurationService);
-			const currentValue = configurationService.getValue<boolean>(ToggleSessionCloudSyncAction._settingKey);
-			await configurationService.updateValue(ToggleSessionCloudSyncAction._settingKey, !currentValue);
-		}
-	});
-
 	const nonEnterpriseCopilotUsers = ContextKeyExpr.and(ChatContextKeys.enabled, ContextKeyExpr.notEquals(`config.${defaultChat.completionsAdvancedSetting}.authProvider`, defaultChat.provider.enterprise.id));
 	registerAction2(class extends Action2 {
 		constructor() {
diff --git a/src/vs/workbench/contrib/chat/browser/actions/chatDeveloperActions.ts b/src/vs/workbench/contrib/chat/browser/actions/chatDeveloperActions.ts
index 8f0a5ef2760..b784174eaa7 100644
--- a/src/vs/workbench/contrib/chat/browser/actions/chatDeveloperActions.ts
+++ b/src/vs/workbench/contrib/chat/browser/actions/chatDeveloperActions.ts
@@ -17,6 +17,8 @@ import { ChatContextKeys } from '../../common/actions/chatContextKeys.js';
 import { IChatService } from '../../common/chatService/chatService.js';
 import { ILanguageModelsService } from '../../common/languageModels.js';
 import { IChatWidgetService } from '../chat.js';
+import { IStorageService, StorageScope } from '../../../../../platform/storage/common/storage.js';
+import { AUTOPILOT_DONT_SHOW_AGAIN_KEY, AUTO_APPROVE_DONT_SHOW_AGAIN_KEY } from '../../common/chatPermissionStorageKeys.js';
 
 function uriReplacer(_key: string, value: unknown): unknown {
 	if (URI.isUri(value)) {
@@ -37,6 +39,7 @@ export function registerChatDeveloperActions() {
 	registerAction2(InspectChatModelAction);
 	registerAction2(InspectChatModelReferencesAction);
 	registerAction2(ClearRecentlyUsedLanguageModelsAction);
+	registerAction2(ResetChatPermissionWarningDialogsAction);
 }
 
 function formatChatModelReferenceInspection(accessor: ServicesAccessor): string {
@@ -233,3 +236,23 @@ class ClearRecentlyUsedLanguageModelsAction extends Action2 {
 		accessor.get(ILanguageModelsService).clearRecentlyUsedList();
 	}
 }
+
+class ResetChatPermissionWarningDialogsAction extends Action2 {
+	static readonly ID = 'workbench.action.chat.resetPermissionWarningDialogs';
+
+	constructor() {
+		super({
+			id: ResetChatPermissionWarningDialogsAction.ID,
+			title: localize2('workbench.action.chat.resetPermissionWarningDialogs.label', "Reset Permission Warning Dialogs (Autopilot, Bypass Approvals)"),
+			category: Categories.Developer,
+			f1: true,
+			precondition: ChatContextKeys.enabled
+		});
+	}
+
+	override run(accessor: ServicesAccessor): void {
+		const storageService = accessor.get(IStorageService);
+		storageService.remove(AUTOPILOT_DONT_SHOW_AGAIN_KEY, StorageScope.PROFILE);
+		storageService.remove(AUTO_APPROVE_DONT_SHOW_AGAIN_KEY, StorageScope.PROFILE);
+	}
+}
diff --git a/src/vs/workbench/contrib/chat/browser/agentSessions/agentHost/agentHostSessionHandler.ts b/src/vs/workbench/contrib/chat/browser/agentSessions/agentHost/agentHostSessionHandler.ts
index 73fa5961b06..a79f531f9ef 100644
--- a/src/vs/workbench/contrib/chat/browser/agentSessions/agentHost/agentHostSessionHandler.ts
+++ b/src/vs/workbench/contrib/chat/browser/agentSessions/agentHost/agentHostSessionHandler.ts
@@ -21,7 +21,6 @@ import { ISessionTruncatedAction } from '../../../../../../platform/agentHost/co
 import { ICustomizationRef, TerminalClaimKind, ToolResultContentType, type IProtectedResourceMetadata, type IToolDefinition } from '../../../../../../platform/agentHost/common/state/protocol/state.js';
 import { ActionType, ISessionTurnStartedAction, type ISessionAction } from '../../../../../../platform/agentHost/common/state/sessionActions.js';
 import { AHP_AUTH_REQUIRED, ProtocolError } from '../../../../../../platform/agentHost/common/state/sessionProtocol.js';
-import { getToolKind } from '../../../../../../platform/agentHost/common/state/sessionReducers.js';
 import { AttachmentType, buildSubagentSessionUri, getToolFileEdits, getToolSubagentContent, PendingMessageKind, ResponsePartKind, SessionInputAnswerState, SessionInputAnswerValueKind, SessionInputQuestionKind, SessionInputResponseKind, StateComponents, ToolCallCancellationReason, ToolCallConfirmationReason, ToolCallStatus, TurnState, type ICompletedToolCall, type IMessageAttachment, type IModelSelection, type IResponsePart, type IRootState, type ISessionInputAnswer, type ISessionInputRequest, type ISessionState, type IToolCallState, type ITurn } from '../../../../../../platform/agentHost/common/state/sessionState.js';
 import { IConfigurationService } from '../../../../../../platform/configuration/common/configuration.js';
 import { ExtensionIdentifier } from '../../../../../../platform/extensions/common/extensions.js';
@@ -43,7 +42,7 @@ import { ILanguageModelToolsService, IToolData, IToolInvocation, IToolResult, To
 import { getAgentHostIcon } from '../agentSessions.js';
 import { AgentHostEditingSession } from './agentHostEditingSession.js';
 import { IAgentHostSessionWorkingDirectoryResolver } from './agentHostSessionWorkingDirectoryResolver.js';
-import { activeTurnToProgress, completedToolCallToEditParts, completedToolCallToSerialized, finalizeToolInvocation, getTerminalContentUri, makeAhpTerminalToolSessionId, parseAhpTerminalToolSessionId, rawMarkdownToString, stringOrMarkdownToString, toolCallStateToInvocation, turnsToHistory, updateRunningToolSpecificData, type IToolCallFileEdit } from './stateToProgressAdapter.js';
+import { activeTurnToProgress, completedToolCallToEditParts, completedToolCallToSerialized, finalizeToolInvocation, getTerminalContentUri, isSubagentTool, makeAhpTerminalToolSessionId, parseAhpTerminalToolSessionId, rawMarkdownToString, stringOrMarkdownToString, toolCallStateToInvocation, turnsToHistory, updateRunningToolSpecificData, type IToolCallFileEdit } from './stateToProgressAdapter.js';
 
 // =============================================================================
 // AgentHostSessionHandler - renderer-side handler for a single agent host
@@ -200,7 +199,6 @@ class AgentHostChatSession extends Disposable implements IChatSession {
 			this.progressObs.set(initialProgress, undefined);
 		}
 
-		this._register(toDisposable(() => this._onWillDispose.fire()));
 		this._register(toDisposable(onDispose));
 
 		// Always provide an interrupt callback so the chat UI's stop button
@@ -211,6 +209,16 @@ class AgentHostChatSession extends Disposable implements IChatSession {
 		this.forkSession = this._forkSession;
 	}
 
+	override dispose(): void {
+		// Fire `onWillDispose` BEFORE `super.dispose()` so listeners (notably
+		// `ContributedChatSessionData` in `ChatSessionsService`) can evict
+		// this session from their caches.
+		if (!this._store.isDisposed) {
+			this._onWillDispose.fire();
+		}
+		super.dispose();
+	}
+
 	/**
 	 * Registers a disposable to be cleaned up when this session is disposed.
 	 */
@@ -1794,7 +1802,7 @@ export class AgentHostSessionHandler extends Disposable implements IChatSessionC
 			if (rp.kind === ResponsePartKind.ToolCall) {
 				const tc = rp.toolCall;
 				const existing = activeToolInvocations.get(tc.toolCallId);
-				if (existing && !observedSubagentToolIds.has(tc.toolCallId) && (getToolKind(tc) === 'subagent' || ((tc.status === ToolCallStatus.Running || tc.status === ToolCallStatus.Completed) && getToolSubagentContent(tc)))) {
+				if (existing && !observedSubagentToolIds.has(tc.toolCallId) && (isSubagentTool(tc) || ((tc.status === ToolCallStatus.Running || tc.status === ToolCallStatus.Completed) && getToolSubagentContent(tc)))) {
 					observedSubagentToolIds.add(tc.toolCallId);
 					this._observeSubagentSession(backendSession, tc.toolCallId, progress, disposables, observedSubagentToolIds);
 				}
@@ -2250,6 +2258,12 @@ export class AgentHostSessionHandler extends Disposable implements IChatSessionC
 			}
 		}
 
+		const activeClient = {
+			clientId: this._config.connection.clientId,
+			tools: this._clientToolsObs.get().map(toolDataToDefinition),
+			customizations: this._config.customizations?.get() ?? [],
+		};
+
 		let session: URI;
 		try {
 			session = await this._config.connection.createSession({
@@ -2258,6 +2272,7 @@ export class AgentHostSessionHandler extends Disposable implements IChatSessionC
 				workingDirectory,
 				fork,
 				config,
+				activeClient,
 			});
 		} catch (err) {
 			// If authentication is required (e.g. token expired), try interactive auth and retry once
@@ -2271,6 +2286,7 @@ export class AgentHostSessionHandler extends Disposable implements IChatSessionC
 						workingDirectory,
 						fork,
 						config,
+						activeClient,
 					});
 				} else {
 					throw new Error(localize('agentHost.authRequired', "Authentication is required to start a session. Please sign in and try again."));
@@ -2291,10 +2307,6 @@ export class AgentHostSessionHandler extends Disposable implements IChatSessionC
 			});
 		}
 
-		// Claim the active client role with current customizations
-		const customizations = this._config.customizations?.get() ?? [];
-		this._dispatchActiveClient(session, customizations);
-
 		// Start syncing the chat model's pending requests to the protocol
 		this._ensurePendingMessageSubscription(sessionResource, session);
 
diff --git a/src/vs/workbench/contrib/chat/browser/agentSessions/agentHost/agentHostTerminalContribution.ts b/src/vs/workbench/contrib/chat/browser/agentSessions/agentHost/agentHostTerminalContribution.ts
index f178541476d..514f6bb6ec0 100644
--- a/src/vs/workbench/contrib/chat/browser/agentSessions/agentHost/agentHostTerminalContribution.ts
+++ b/src/vs/workbench/contrib/chat/browser/agentSessions/agentHost/agentHostTerminalContribution.ts
@@ -3,9 +3,10 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import { Disposable, MutableDisposable } from '../../../../../../base/common/lifecycle.js';
+import { Disposable, DisposableStore, MutableDisposable } from '../../../../../../base/common/lifecycle.js';
 import { localize } from '../../../../../../nls.js';
-import { IAgentHostService } from '../../../../../../platform/agentHost/common/agentService.js';
+import { AgentHostEnabledSettingId, IAgentHostService } from '../../../../../../platform/agentHost/common/agentService.js';
+import { IConfigurationService } from '../../../../../../platform/configuration/common/configuration.js';
 import { IInstantiationService } from '../../../../../../platform/instantiation/common/instantiation.js';
 import { IWorkbenchContribution } from '../../../../../../workbench/common/contributions.js';
 import { LoggingAgentConnection } from '../../../../../../workbench/contrib/chat/browser/agentSessions/agentHost/loggingAgentConnection.js';
@@ -14,22 +15,45 @@ import { IAgentHostTerminalService } from '../../../../../../workbench/contrib/t
 /**
  * Registers local agent host terminal entries with
  * {@link IAgentHostTerminalService} so they appear in the terminal dropdown.
+ *
+ * Gated on the `chat.agentHost.enabled` setting.
  */
 export class AgentHostTerminalContribution extends Disposable implements IWorkbenchContribution {
 	static readonly ID = 'workbench.contrib.agentHostTerminal';
 
 	private readonly _localEntry = this._register(new MutableDisposable());
+	private readonly _conditionalListeners = this._register(new MutableDisposable<DisposableStore>());
 
 	constructor(
 		@IAgentHostService private readonly _agentHostService: IAgentHostService,
 		@IAgentHostTerminalService private readonly _agentHostTerminalService: IAgentHostTerminalService,
 		@IInstantiationService private readonly _instantiationService: IInstantiationService,
+		@IConfigurationService private readonly _configurationService: IConfigurationService,
 	) {
 		super();
 
-		this._register(this._agentHostService.onAgentHostStart(() => this._reconcile()));
-		this._register(this._agentHostService.onAgentHostExit(() => this._reconcile()));
-		this._reconcile();
+		this._register(this._configurationService.onDidChangeConfiguration(e => {
+			if (e.affectsConfiguration(AgentHostEnabledSettingId)) {
+				this._updateEnabled();
+			}
+		}));
+
+		this._updateEnabled();
+	}
+
+	private _updateEnabled(): void {
+		if (this._configurationService.getValue<boolean>(AgentHostEnabledSettingId)) {
+			if (!this._conditionalListeners.value) {
+				const store = new DisposableStore();
+				store.add(this._agentHostService.onAgentHostStart(() => this._reconcile()));
+				store.add(this._agentHostService.onAgentHostExit(() => this._reconcile()));
+				this._conditionalListeners.value = store;
+				this._reconcile();
+			}
+		} else {
+			this._conditionalListeners.value = undefined;
+			this._localEntry.value = undefined;
+		}
 	}
 
 	private _reconcile(): void {
diff --git a/src/vs/workbench/contrib/chat/browser/agentSessions/agentHost/loggingAgentConnection.ts b/src/vs/workbench/contrib/chat/browser/agentSessions/agentHost/loggingAgentConnection.ts
index 8879964026e..f5533e8d923 100644
--- a/src/vs/workbench/contrib/chat/browser/agentSessions/agentHost/loggingAgentConnection.ts
+++ b/src/vs/workbench/contrib/chat/browser/agentSessions/agentHost/loggingAgentConnection.ts
@@ -4,7 +4,7 @@
  *--------------------------------------------------------------------------------------------*/
 
 import { Emitter, Event } from '../../../../../../base/common/event.js';
-import { Disposable, IReference, toDisposable } from '../../../../../../base/common/lifecycle.js';
+import { Disposable, DisposableStore, IDisposable, IReference, toDisposable } from '../../../../../../base/common/lifecycle.js';
 import { URI, UriComponents } from '../../../../../../base/common/uri.js';
 import { Registry } from '../../../../../../platform/registry/common/platform.js';
 import { IAgentConnection, IAgentCreateSessionConfig, IAgentResolveSessionConfigParams, IAgentSessionConfigCompletionsParams, IAgentSessionMetadata, IAuthenticateParams, IAuthenticateResult, AgentHostIpcLoggingSettingId } from '../../../../../../platform/agentHost/common/agentService.js';
@@ -98,6 +98,12 @@ export class LoggingAgentConnection extends Disposable implements IAgentConnecti
 	/** Ref-count per channel ID so the output channel survives reconnections. */
 	private static readonly _channelRefCounts = new Map<string, number>();
 	private static readonly _currentRootStateLogKeys = new Set<string>();
+	/**
+	 * Shared event-log subscription per channel ID. Multiple wrappers may
+	 * exist for the same underlying connection (e.g. one for chat, one for
+	 * terminal); we only want each event to appear once in the channel.
+	 */
+	private static readonly _sharedEventLog = new Map<string, IDisposable>();
 
 	private _outputChannel: IOutputChannel | undefined;
 	private readonly _enabled: boolean;
@@ -130,6 +136,10 @@ export class LoggingAgentConnection extends Disposable implements IAgentConnecti
 					log: false,
 					languageId: 'log',
 				});
+				const eventLogStore = new DisposableStore();
+				eventLogStore.add(_inner.onDidAction(e => this._log('**', 'onDidAction', e)));
+				eventLogStore.add(_inner.onDidNotification(e => this._log('**', 'onDidNotification', e)));
+				LoggingAgentConnection._sharedEventLog.set(this.channelId, eventLogStore);
 			}
 			LoggingAgentConnection._channelRefCounts.set(this.channelId, refs + 1);
 			logCurrentRootState = !LoggingAgentConnection._currentRootStateLogKeys.has(currentRootStateLogKey);
@@ -141,6 +151,8 @@ export class LoggingAgentConnection extends Disposable implements IAgentConnecti
 				if (current <= 0) {
 					LoggingAgentConnection._channelRefCounts.delete(this.channelId);
 					LoggingAgentConnection._currentRootStateLogKeys.delete(currentRootStateLogKey);
+					LoggingAgentConnection._sharedEventLog.get(this.channelId)?.dispose();
+					LoggingAgentConnection._sharedEventLog.delete(this.channelId);
 					registry.removeChannel(this.channelId);
 				} else {
 					LoggingAgentConnection._channelRefCounts.set(this.channelId, current);
@@ -148,20 +160,12 @@ export class LoggingAgentConnection extends Disposable implements IAgentConnecti
 			}));
 		}
 
-		// Wrap events with logging
-		const onDidActionEmitter = this._register(new Emitter<IActionEnvelope>());
-		this._register(_inner.onDidAction(e => {
-			this._log('**', 'onDidAction', e);
-			onDidActionEmitter.fire(e);
-		}));
-		this.onDidAction = onDidActionEmitter.event;
-
-		const onDidNotificationEmitter = this._register(new Emitter<INotification>());
-		this._register(_inner.onDidNotification(e => {
-			this._log('**', 'onDidNotification', e);
-			onDidNotificationEmitter.fire(e);
-		}));
-		this.onDidNotification = onDidNotificationEmitter.event;
+		// Expose the inner events directly. Logging happens once per channel
+		// via the shared subscription registered above; wrappers must not
+		// add their own logging listener or events would be logged N times
+		// (once per wrapper for the same channel).
+		this.onDidAction = _inner.onDidAction;
+		this.onDidNotification = _inner.onDidNotification;
 
 		this._rootState = this._register(new LoggingAgentSubscription('rootState', _inner.rootState, logCurrentRootState, (arrow, method, data) => this._log(arrow, method, data)));
 	}
diff --git a/src/vs/workbench/contrib/chat/browser/agentSessions/agentHost/stateToProgressAdapter.ts b/src/vs/workbench/contrib/chat/browser/agentSessions/agentHost/stateToProgressAdapter.ts
index 5fc1cbe6c97..4707e8d0486 100644
--- a/src/vs/workbench/contrib/chat/browser/agentSessions/agentHost/stateToProgressAdapter.ts
+++ b/src/vs/workbench/contrib/chat/browser/agentSessions/agentHost/stateToProgressAdapter.ts
@@ -60,15 +60,24 @@ function getSubagentAgentName(tc: { _meta?: Record<string, unknown> }): string |
 
 /**
  * Known tool names that spawn subagent sessions. Used as a client-side
- * fallback when the server hasn't set `_meta.toolKind` or subagent content
- * (e.g. sessions restored by an older server version).
+ * fallback when the server hasn't set `_meta.toolKind` (e.g. sessions
+ * restored by an older server version that didn't carry `_meta`).
  */
 const SUBAGENT_TOOL_NAMES: ReadonlySet<string> = new Set(['task']);
 
-function isSubagentToolName(toolName: string): boolean {
+export function isSubagentToolName(toolName: string): boolean {
 	return SUBAGENT_TOOL_NAMES.has(toolName);
 }
 
+/**
+ * Returns true if this tool call spawns a subagent session, either because
+ * the server reported `_meta.toolKind === 'subagent'` or because the tool
+ * name is in the known fallback set (older snapshots without `_meta`).
+ */
+export function isSubagentTool(tc: IToolCallState): boolean {
+	return getToolKind(tc) === 'subagent' || isSubagentToolName(tc.toolName);
+}
+
 /**
  * Finds a terminal content block in a tool call's content array.
  * Returns the terminal URI if found.
@@ -210,7 +219,7 @@ export function completedToolCallToSerialized(tc: ICompletedToolCall, subAgentIn
 
 	// Check for subagent content
 	const subagentContent = tc.status === ToolCallStatus.Completed ? getToolSubagentContent(tc) : undefined;
-	const isSubagent = subagentContent || getToolKind(tc) === 'subagent' || isSubagentToolName(tc.toolName);
+	const isSubagent = subagentContent || isSubagentTool(tc);
 	if (isSubagent && tc.status === ToolCallStatus.Completed) {
 		const resultText = getToolOutputText(tc);
 		const pastTenseMsg = isSuccess
@@ -470,7 +479,11 @@ export function toolCallStateToInvocation(tc: IToolCallState, subAgentInvocation
 	};
 
 	if (tc.status === ToolCallStatus.PendingConfirmation) {
-		// Tool needs confirmation — create with confirmation messages
+		// Tool needs confirmation — create with confirmation messages.
+		// (Subagent-spawning tools never reach this state in production: the
+		// Copilot SDK's `task` tool doesn't request permission, and the event
+		// mapper auto-emits `tool_ready` with `confirmed: NotNeeded` paired
+		// with `tool_start`. So no special-case for subagents is needed here.)
 		const confirmationMessages: IToolConfirmationMessages = {
 			title: stringOrMarkdownToString(tc.confirmationTitle, connectionAuthority) ?? tc.displayName,
 			message: stringOrMarkdownToString(tc.invocationMessage, connectionAuthority),
@@ -542,27 +555,20 @@ export function toolCallStateToInvocation(tc: IToolCallState, subAgentInvocation
 			terminalCommandUri: URI.parse(terminalContentUri),
 			terminalCommandOutput: getTerminalOutput(tc),
 		} satisfies IChatTerminalToolInvocationData;
-	} else if (getToolKind(tc) === 'subagent' || isSubagentToolName(tc.toolName)) {
+	} else if (isSubagentTool(tc)) {
 		// Subagent-spawning tool: set subagent toolSpecificData eagerly so the
-		// renderer groups it correctly from the start (before content arrives).
-		// Agent metadata is extracted from tool arguments in the event mapper.
-		const metaDesc = tc._meta?.subagentDescription;
-		const metaAgent = tc._meta?.subagentAgentName;
+		// renderer groups it correctly from the start (before child content
+		// arrives). Agent metadata comes from `_meta` (set by the event
+		// mapper from the tool's arguments) and is later refined by the
+		// Subagent content block via `updateRunningToolSpecificData`.
+		const subagentContent = (tc.status === ToolCallStatus.Running || tc.status === ToolCallStatus.Completed)
+			? getToolSubagentContent(tc)
+			: undefined;
 		invocation.toolSpecificData = {
 			kind: 'subagent',
-			description: typeof metaDesc === 'string' ? metaDesc : undefined,
-			agentName: typeof metaAgent === 'string' ? metaAgent : undefined,
+			description: getSubagentTaskDescription(tc),
+			agentName: subagentContent?.agentName ?? getSubagentAgentName(tc),
 		};
-	} else if (tc.status === ToolCallStatus.Running) {
-		// Check for subagent content on initial creation (e.g. from snapshot)
-		const subagentContent = getToolSubagentContent(tc);
-		if (subagentContent) {
-			invocation.toolSpecificData = {
-				kind: 'subagent',
-				description: getSubagentTaskDescription(tc),
-				agentName: subagentContent.agentName,
-			};
-		}
 	}
 
 	return invocation;
@@ -592,6 +598,18 @@ export function updateRunningToolSpecificData(existing: ChatToolInvocation, tc:
 		// toolSpecificData is a plain property — notify state observers
 		// so ChatSubagentContentPart re-reads the updated metadata.
 		existing.notifyToolSpecificDataChanged();
+		return;
+	}
+
+	// Refresh subagent metadata from `_meta` (set by the event mapper from
+	// the tool's arguments) in case it arrived after invocation creation.
+	if (existing.toolSpecificData?.kind === 'subagent') {
+		const description = getSubagentTaskDescription(tc) ?? existing.toolSpecificData.description;
+		const agentName = getSubagentAgentName(tc) ?? existing.toolSpecificData.agentName;
+		if (description !== existing.toolSpecificData.description || agentName !== existing.toolSpecificData.agentName) {
+			existing.toolSpecificData = { kind: 'subagent', description, agentName };
+			existing.notifyToolSpecificDataChanged();
+		}
 	}
 }
 
@@ -646,6 +664,15 @@ export function finalizeToolInvocation(invocation: ChatToolInvocation, tc: ITool
 				agentName: subagentContent.agentName,
 				result: resultText,
 			};
+		} else if (invocation.toolSpecificData?.kind === 'subagent') {
+			// Subagent-spawning tool that completed without a Subagent content
+			// block. Refresh metadata + carry the tool's output as the result.
+			invocation.toolSpecificData = {
+				kind: 'subagent',
+				description: getSubagentTaskDescription(tc) ?? invocation.toolSpecificData.description,
+				agentName: getSubagentAgentName(tc) ?? invocation.toolSpecificData.agentName,
+				result: getToolOutputText(tc),
+			};
 		}
 	}
 
diff --git a/src/vs/workbench/contrib/chat/browser/aiCustomization/aiCustomizationManagementEditor.ts b/src/vs/workbench/contrib/chat/browser/aiCustomization/aiCustomizationManagementEditor.ts
index a016b959f84..87d1743b42f 100644
--- a/src/vs/workbench/contrib/chat/browser/aiCustomization/aiCustomizationManagementEditor.ts
+++ b/src/vs/workbench/contrib/chat/browser/aiCustomization/aiCustomizationManagementEditor.ts
@@ -780,7 +780,7 @@ export class AICustomizationManagementEditor extends EditorPane {
 		this.welcomePage.rebuildCards(new Set(this.sections.map(s => s.id)));
 	}
 
-	private createBackArrowButton(): HTMLButtonElement {
+	private createBackArrowButton(onClick?: () => void): HTMLButtonElement {
 		const button = $('button.section-back-arrow-button') as HTMLButtonElement;
 		button.type = 'button';
 		button.setAttribute('aria-label', localize('backToOverview', "Back to overview"));
@@ -789,13 +789,17 @@ export class AICustomizationManagementEditor extends EditorPane {
 		icon.classList.add(...ThemeIcon.asClassNameArray(Codicon.arrowLeft));
 		icon.setAttribute('aria-hidden', 'true');
 		this.editorDisposables.add(DOM.addDisposableListener(button, 'click', () => {
-			this.showWelcomePage();
+			if (onClick) {
+				onClick();
+			} else {
+				this.showWelcomePage();
+			}
 		}));
 		return button;
 	}
 
-	private injectBackArrowIntoSearchRow(widget: { prependToSearchRow(el: HTMLElement): void }): void {
-		widget.prependToSearchRow(this.createBackArrowButton());
+	private injectBackArrowIntoSearchRow(widget: { prependToSearchRow(el: HTMLElement): void }, onClick?: () => void): void {
+		widget.prependToSearchRow(this.createBackArrowButton(onClick));
 	}
 
 	private createContent(): void {
@@ -859,7 +863,13 @@ export class AICustomizationManagementEditor extends EditorPane {
 			this.mcpContentContainer = DOM.append(contentInner, $('.mcp-content-container'));
 			this.mcpListWidget = this.editorDisposables.add(this.instantiationService.createInstance(McpListWidget));
 			this.mcpContentContainer.appendChild(this.mcpListWidget.element);
-			this.injectBackArrowIntoSearchRow(this.mcpListWidget);
+			this.injectBackArrowIntoSearchRow(this.mcpListWidget, () => {
+				if (this.mcpListWidget!.isInBrowseMode()) {
+					this.mcpListWidget!.exitBrowseMode();
+				} else {
+					this.showWelcomePage();
+				}
+			});
 
 			// Embedded MCP server detail view
 			this.mcpDetailContainer = DOM.append(contentInner, $('.mcp-detail-container'));
@@ -879,7 +889,13 @@ export class AICustomizationManagementEditor extends EditorPane {
 			this.pluginContentContainer = DOM.append(contentInner, $('.plugin-content-container'));
 			this.pluginListWidget = this.editorDisposables.add(this.instantiationService.createInstance(PluginListWidget));
 			this.pluginContentContainer.appendChild(this.pluginListWidget.element);
-			this.injectBackArrowIntoSearchRow(this.pluginListWidget);
+			this.injectBackArrowIntoSearchRow(this.pluginListWidget, () => {
+				if (this.pluginListWidget!.isInBrowseMode()) {
+					this.pluginListWidget!.exitBrowseMode();
+				} else {
+					this.showWelcomePage();
+				}
+			});
 
 			// Embedded plugin detail view
 			this.pluginDetailContainer = DOM.append(contentInner, $('.plugin-detail-container'));
diff --git a/src/vs/workbench/contrib/chat/browser/aiCustomization/mcpListWidget.ts b/src/vs/workbench/contrib/chat/browser/aiCustomization/mcpListWidget.ts
index 33a229e24a2..10d6b3a41e9 100644
--- a/src/vs/workbench/contrib/chat/browser/aiCustomization/mcpListWidget.ts
+++ b/src/vs/workbench/contrib/chat/browser/aiCustomization/mcpListWidget.ts
@@ -379,7 +379,6 @@ export class McpListWidget extends Disposable {
 	private readonly disabledLinkListener = this._register(new MutableDisposable());
 	private browseButton!: Button;
 	private addButton!: Button;
-	private backLink!: HTMLElement;
 
 	private filteredServers: IWorkbenchMcpServer[] = [];
 	private filteredBuiltinCount = 0;
@@ -470,26 +469,6 @@ export class McpListWidget extends Disposable {
 			this.commandService.executeCommand(McpCommandIds.AddConfiguration);
 		}));
 
-		// Back to installed link (shown only in browse mode)
-		this.backLink = DOM.append(this.element, $('.mcp-back-link'));
-		this.backLink.setAttribute('role', 'button');
-		this.backLink.tabIndex = 0;
-		this.backLink.setAttribute('aria-label', localize('backToInstalledAriaLabel', "Back to installed servers"));
-		const backIcon = DOM.append(this.backLink, $('span'));
-		backIcon.classList.add(...ThemeIcon.asClassNameArray(Codicon.arrowLeft));
-		const backText = DOM.append(this.backLink, $('span'));
-		backText.textContent = localize('backToInstalled', "Back to installed servers");
-		this._register(DOM.addDisposableListener(this.backLink, 'click', () => {
-			this.toggleBrowseMode(false);
-		}));
-		this._register(DOM.addDisposableListener(this.backLink, 'keydown', (e: KeyboardEvent) => {
-			if (e.key === 'Enter' || e.key === ' ') {
-				e.preventDefault();
-				this.toggleBrowseMode(false);
-			}
-		}));
-		this.backLink.style.display = 'none';
-
 		// Empty state
 		this.emptyContainer = DOM.append(this.element, $('.mcp-empty-state'));
 		const emptyHeader = DOM.append(this.emptyContainer, $('.empty-state-header'));
@@ -651,7 +630,6 @@ export class McpListWidget extends Disposable {
 		this.searchQuery = '';
 
 		// Update UI for browse vs installed mode
-		this.backLink.style.display = browse ? '' : 'none';
 		this.addButton.element.style.display = browse ? 'none' : '';
 		this.browseButton.element.parentElement!.style.display = browse ? 'none' : '';
 
@@ -942,7 +920,6 @@ export class McpListWidget extends Disposable {
 		this.filterServers();
 	}
 
-	/**
 	/**
 	 * Prepends an element to the search row (left of the search input).
 	 */
@@ -950,6 +927,22 @@ export class McpListWidget extends Disposable {
 		this.searchAndButtonContainer.insertBefore(element, this.searchAndButtonContainer.firstChild);
 	}
 
+	/**
+	 * Whether the widget is currently in marketplace browse mode.
+	 */
+	isInBrowseMode(): boolean {
+		return this.browseMode;
+	}
+
+	/**
+	 * Exits marketplace browse mode and returns to the installed servers list.
+	 */
+	exitBrowseMode(): void {
+		if (this.browseMode) {
+			this.toggleBrowseMode(false);
+		}
+	}
+
 	/**
 	 * Layouts the widget.
 	 */
@@ -969,8 +962,7 @@ export class McpListWidget extends Disposable {
 			return;
 		}
 		const footerHeight = this.sectionHeader.offsetHeight;
-		const backLinkHeight = this.browseMode ? this.backLink.offsetHeight : 0;
-		const listHeight = Math.max(0, height - searchBarHeight - footerHeight - backLinkHeight);
+		const listHeight = Math.max(0, height - searchBarHeight - footerHeight);
 
 		this.listContainer.style.height = `${listHeight}px`;
 		this.list.layout(listHeight, width);
diff --git a/src/vs/workbench/contrib/chat/browser/aiCustomization/media/aiCustomizationManagement.css b/src/vs/workbench/contrib/chat/browser/aiCustomization/media/aiCustomizationManagement.css
index f878d5f25d3..b1943a20d86 100644
--- a/src/vs/workbench/contrib/chat/browser/aiCustomization/media/aiCustomizationManagement.css
+++ b/src/vs/workbench/contrib/chat/browser/aiCustomization/media/aiCustomizationManagement.css
@@ -1008,30 +1008,6 @@
 	outline-offset: -1px;
 }
 
-/* Back to installed link */
-.mcp-list-widget .mcp-back-link {
-	display: flex;
-	align-items: center;
-	gap: 4px;
-	padding: 4px 6px;
-	cursor: pointer;
-	font-size: 12px;
-	color: var(--vscode-descriptionForeground);
-	flex-shrink: 0;
-	border-radius: 4px;
-	margin: 4px 0;
-}
-
-.mcp-list-widget .mcp-back-link:hover {
-	background-color: var(--vscode-toolbar-hoverBackground);
-	color: var(--vscode-foreground);
-}
-
-.mcp-list-widget .mcp-back-link:focus-visible {
-	outline: 1px solid var(--vscode-focusBorder);
-	outline-offset: -1px;
-}
-
 /* Gallery item specifics */
 .mcp-gallery-item .mcp-gallery-name-row {
 	display: flex;
diff --git a/src/vs/workbench/contrib/chat/browser/aiCustomization/pluginListWidget.ts b/src/vs/workbench/contrib/chat/browser/aiCustomization/pluginListWidget.ts
index 25b106d85a0..1825b7ea72d 100644
--- a/src/vs/workbench/contrib/chat/browser/aiCustomization/pluginListWidget.ts
+++ b/src/vs/workbench/contrib/chat/browser/aiCustomization/pluginListWidget.ts
@@ -345,7 +345,6 @@ export class PluginListWidget extends Disposable {
 	private disabledMessage!: HTMLElement;
 	private readonly disabledLinkListener = this._register(new MutableDisposable());
 	private browseButton!: Button;
-	private backLink!: HTMLElement;
 
 	private installedItems: IInstalledPluginItem[] = [];
 	private displayEntries: IPluginListEntry[] = [];
@@ -438,26 +437,6 @@ export class PluginListWidget extends Disposable {
 			this.commandService.executeCommand('workbench.action.chat.createPlugin');
 		}));
 
-		// Back to installed link (shown only in browse mode)
-		this.backLink = DOM.append(this.element, $('.mcp-back-link'));
-		this.backLink.setAttribute('role', 'button');
-		this.backLink.tabIndex = 0;
-		this.backLink.setAttribute('aria-label', localize('backToInstalledPluginsAriaLabel', "Back to installed plugins"));
-		const backIcon = DOM.append(this.backLink, $('span'));
-		backIcon.classList.add(...ThemeIcon.asClassNameArray(Codicon.arrowLeft));
-		const backText = DOM.append(this.backLink, $('span'));
-		backText.textContent = localize('backToInstalledPlugins', "Back to installed plugins");
-		this._register(DOM.addDisposableListener(this.backLink, 'click', () => {
-			this.toggleBrowseMode(false);
-		}));
-		this._register(DOM.addDisposableListener(this.backLink, 'keydown', (e: KeyboardEvent) => {
-			if (e.key === 'Enter' || e.key === ' ') {
-				e.preventDefault();
-				this.toggleBrowseMode(false);
-			}
-		}));
-		this.backLink.style.display = 'none';
-
 		// Empty state
 		this.emptyContainer = DOM.append(this.element, $('.mcp-empty-state'));
 		const emptyHeader = DOM.append(this.emptyContainer, $('.empty-state-header'));
@@ -646,7 +625,6 @@ export class PluginListWidget extends Disposable {
 		this.searchInput.value = '';
 		this.searchQuery = '';
 
-		this.backLink.style.display = browse ? '' : 'none';
 		this.browseButton.element.parentElement!.style.display = browse ? 'none' : '';
 
 		this.searchInput.setPlaceHolder(browse
@@ -845,6 +823,22 @@ export class PluginListWidget extends Disposable {
 		this.searchAndButtonContainer.insertBefore(element, this.searchAndButtonContainer.firstChild);
 	}
 
+	/**
+	 * Whether the widget is currently in marketplace browse mode.
+	 */
+	isInBrowseMode(): boolean {
+		return this.browseMode;
+	}
+
+	/**
+	 * Exits marketplace browse mode and returns to the installed plugins list.
+	 */
+	exitBrowseMode(): void {
+		if (this.browseMode) {
+			this.toggleBrowseMode(false);
+		}
+	}
+
 	layout(height: number, width: number): void {
 		this.lastHeight = height;
 		this.lastWidth = width;
@@ -861,8 +855,7 @@ export class PluginListWidget extends Disposable {
 			return;
 		}
 		const footerHeight = this.sectionHeader.offsetHeight;
-		const backLinkHeight = this.browseMode ? this.backLink.offsetHeight : 0;
-		const listHeight = Math.max(0, height - searchBarHeight - footerHeight - backLinkHeight);
+		const listHeight = Math.max(0, height - searchBarHeight - footerHeight);
 
 		this.listContainer.style.height = `${listHeight}px`;
 		this.list.layout(listHeight, width);
diff --git a/src/vs/workbench/contrib/chat/browser/chat.contribution.ts b/src/vs/workbench/contrib/chat/browser/chat.contribution.ts
index e76d44b8645..f01e22e3365 100644
--- a/src/vs/workbench/contrib/chat/browser/chat.contribution.ts
+++ b/src/vs/workbench/contrib/chat/browser/chat.contribution.ts
@@ -168,6 +168,9 @@ import { IPluginGitService } from '../common/plugins/pluginGitService.js';
 import { PluginInstallService } from './pluginInstallService.js';
 import './promptSyntax/promptCodingAgentActionContribution.js';
 import './promptSyntax/promptToolsCodeLensProvider.js';
+import './planReviewFeedback/planReviewFeedbackEditorContribution.js';
+import { registerPlanReviewFeedbackEditorActions } from './planReviewFeedback/planReviewFeedbackEditorActions.js';
+import { IPlanReviewFeedbackService, PlanReviewFeedbackService } from './planReviewFeedback/planReviewFeedbackService.js';
 import { ChatSlashCommandsContribution } from './chatSlashCommands.js';
 import { PluginUrlHandler } from './pluginUrlHandler.js';
 import { PromptUrlHandler } from './promptSyntax/promptUrlHandler.js';
@@ -638,7 +641,12 @@ configurationRegistry.registerConfiguration({
 		[ChatConfiguration.ChatPersistentProgressEnabled]: {
 			type: 'boolean',
 			default: product.quality !== 'stable',
-			description: nls.localize('chat.persistentProgress.enabled', "Show elapsed time and token usage in chat response progress."),
+			description: nls.localize('chat.persistentProgress.enabled', "Always show progress in chat."),
+		},
+		[ChatConfiguration.ProgressBorder]: {
+			type: 'boolean',
+			default: false,
+			markdownDescription: nls.localize('chat.progressBorder.enabled', "Show an animated gradient border around the chat input while the agent is working or thinking. When enabled, this overrides {0} to be off.", '`#chat.persistentProgress.enabled#`'),
 		},
 		[ChatConfiguration.NotifyWindowOnResponseReceived]: {
 			type: 'string',
@@ -2159,6 +2167,7 @@ registerChatElicitationActions();
 registerChatToolActions();
 registerLanguageModelActions();
 registerChatPluginActions();
+registerPlanReviewFeedbackEditorActions();
 registerAction2(ConfigureToolSets);
 registerEditorFeature(ChatPasteProvidersFeature);
 
@@ -2204,6 +2213,7 @@ registerSingleton(IChatTodoListService, ChatTodoListService, InstantiationType.D
 registerSingleton(IChatArtifactsService, ChatArtifactsService, InstantiationType.Delayed);
 registerSingleton(IChatOutputRendererService, ChatOutputRendererService, InstantiationType.Delayed);
 registerSingleton(IChatLayoutService, ChatLayoutService, InstantiationType.Delayed);
+registerSingleton(IPlanReviewFeedbackService, PlanReviewFeedbackService, InstantiationType.Delayed);
 registerSingleton(IChatTipService, ChatTipService, InstantiationType.Delayed);
 registerSingleton(IChatDebugService, ChatDebugServiceImpl, InstantiationType.Delayed);
 registerSingleton(IChatImageCarouselService, ChatImageCarouselService, InstantiationType.Delayed);
diff --git a/src/vs/workbench/contrib/chat/browser/planReviewFeedback/media/planReviewFeedback.css b/src/vs/workbench/contrib/chat/browser/planReviewFeedback/media/planReviewFeedback.css
new file mode 100644
index 00000000000..a00c20cdca3
--- /dev/null
+++ b/src/vs/workbench/contrib/chat/browser/planReviewFeedback/media/planReviewFeedback.css
@@ -0,0 +1,160 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+.plan-review-feedback-input-widget {
+	position: absolute;
+	z-index: 10000;
+	background-color: var(--vscode-panel-background);
+	border: 1px solid var(--vscode-editorWidget-border, var(--vscode-contrastBorder));
+	box-shadow: var(--vscode-shadow-lg);
+	border-radius: 8px;
+	padding: 4px;
+	display: flex;
+	flex-direction: row;
+	align-items: flex-end;
+	animation: planReviewFeedbackInputAppear 0.15s ease-out;
+}
+
+@keyframes planReviewFeedbackInputAppear {
+	from {
+		opacity: 0;
+		transform: translateY(4px);
+	}
+	to {
+		opacity: 1;
+		transform: translateY(0);
+	}
+}
+
+@media (prefers-reduced-motion: reduce) {
+	.plan-review-feedback-input-widget {
+		animation: none;
+		transform: none;
+	}
+}
+
+.plan-review-feedback-input-widget textarea {
+	background-color: var(--vscode-panel-background);
+	border: none;
+	color: var(--vscode-input-foreground);
+	font: inherit;
+	border-radius: 4px;
+	padding: 0 0 0 6px;
+	outline: none;
+	min-width: 150px;
+	max-width: 400px;
+	resize: none;
+	overflow-y: hidden;
+	white-space: pre-wrap;
+	word-wrap: break-word;
+	box-sizing: border-box;
+	display: block;
+	flex: 1;
+}
+
+.plan-review-feedback-input-widget textarea:focus {
+	border-color: var(--vscode-focusBorder);
+	outline: none !important;
+}
+
+.plan-review-feedback-input-widget textarea::placeholder {
+	color: var(--vscode-input-placeholderForeground);
+}
+
+.plan-review-feedback-input-widget .plan-review-feedback-input-measure {
+	position: absolute;
+	visibility: hidden;
+	height: 0;
+	overflow: hidden;
+	white-space: pre;
+	font: inherit;
+	font-size: 13px;
+}
+
+.plan-review-feedback-input-widget .plan-review-feedback-input-actions {
+	display: flex;
+	align-items: center;
+	margin-left: 2px;
+	flex-shrink: 0;
+}
+
+.plan-review-feedback-input-widget .plan-review-feedback-input-actions .action-bar .action-item .action-label {
+	width: 16px;
+	height: 16px;
+}
+
+/* Overlay toolbar (submit / navigate / clear actions) */
+.plan-review-feedback-overlay-widget {
+	padding: 2px 4px;
+	color: var(--vscode-foreground);
+	background-color: var(--vscode-editorWidget-background);
+	border-radius: 6px;
+	border: 1px solid var(--vscode-editorHoverWidget-border);
+	display: flex;
+	align-items: center;
+	justify-content: center;
+	gap: 4px;
+	z-index: 10;
+	box-shadow: var(--vscode-shadow-lg);
+	overflow: hidden;
+}
+
+.plan-review-feedback-overlay-widget .action-item > .action-label {
+	padding: 4px 6px;
+	font-size: 11px;
+	line-height: 14px;
+	border-radius: 4px;
+}
+
+.plan-review-feedback-overlay-widget .monaco-action-bar .actions-container {
+	gap: 4px;
+}
+
+.plan-review-feedback-overlay-widget .action-item.primary > .action-label {
+	background-color: var(--vscode-button-background);
+	color: var(--vscode-button-foreground);
+}
+
+.monaco-workbench .plan-review-feedback-overlay-widget .monaco-action-bar .action-item.primary > .action-label:hover {
+	background-color: var(--vscode-button-hoverBackground);
+}
+
+.plan-review-feedback-overlay-widget .action-item > .action-label.codicon:not(.separator) {
+	color: var(--vscode-foreground);
+	width: 22px;
+	height: 22px;
+	padding: 0;
+	font-size: 16px;
+	line-height: 22px;
+	display: flex;
+	align-items: center;
+	justify-content: center;
+}
+
+.plan-review-feedback-overlay-widget .monaco-action-bar .action-item.disabled {
+
+	> .action-label.codicon::before,
+	> .action-label.codicon,
+	> .action-label,
+	> .action-label:hover {
+		color: var(--vscode-button-separator);
+		opacity: 1;
+	}
+}
+
+.plan-review-feedback-overlay-widget .action-item.label-item {
+	font-variant-numeric: tabular-nums;
+}
+
+.plan-review-feedback-overlay-widget .monaco-action-bar .action-item.label-item > .action-label,
+.plan-review-feedback-overlay-widget .monaco-action-bar .action-item.label-item > .action-label:hover {
+	color: var(--vscode-foreground);
+	opacity: 1;
+}
+
+/* Gutter decoration for feedback lines */
+.plan-review-feedback-line-number {
+	color: var(--vscode-editorInfo-foreground);
+}
diff --git a/src/vs/workbench/contrib/chat/browser/planReviewFeedback/planReviewFeedbackEditorActions.ts b/src/vs/workbench/contrib/chat/browser/planReviewFeedback/planReviewFeedbackEditorActions.ts
new file mode 100644
index 00000000000..e10a1da9413
--- /dev/null
+++ b/src/vs/workbench/contrib/chat/browser/planReviewFeedback/planReviewFeedbackEditorActions.ts
@@ -0,0 +1,169 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import { Codicon } from '../../../../../base/common/codicons.js';
+import { localize, localize2 } from '../../../../../nls.js';
+import { Action2, MenuId, MenuRegistry, registerAction2 } from '../../../../../platform/actions/common/actions.js';
+import { ContextKeyExpr, RawContextKey } from '../../../../../platform/contextkey/common/contextkey.js';
+import { ServicesAccessor } from '../../../../../platform/instantiation/common/instantiation.js';
+import { URI } from '../../../../../base/common/uri.js';
+import { IEditorService } from '../../../../services/editor/common/editorService.js';
+import { isCodeEditor } from '../../../../../editor/browser/editorBrowser.js';
+import { IPlanReviewFeedbackService } from './planReviewFeedbackService.js';
+import { CHAT_CATEGORY } from '../actions/chatActions.js';
+
+export const PlanReviewFeedbackMenuId = MenuId.for('planReviewFeedback.editorContent');
+
+export const hasPlanReviewFeedback = new RawContextKey<boolean>('planReviewFeedback.hasFeedback', false);
+
+export const submitPlanReviewFeedbackActionId = 'planReviewFeedback.action.submit';
+export const navigatePreviousPlanReviewFeedbackActionId = 'planReviewFeedback.action.navigatePrevious';
+export const navigateNextPlanReviewFeedbackActionId = 'planReviewFeedback.action.navigateNext';
+export const clearAllPlanReviewFeedbackActionId = 'planReviewFeedback.action.clearAll';
+export const navigationBearingFakeActionId = 'planReviewFeedback.navigation.bearings';
+
+function getActivePlanUri(accessor: ServicesAccessor): URI | undefined {
+	const editorService = accessor.get(IEditorService);
+	const planReviewFeedbackService = accessor.get(IPlanReviewFeedbackService);
+
+	const activeEditor = editorService.activeEditor;
+	if (!activeEditor) {
+		return undefined;
+	}
+
+	const resource = activeEditor.resource;
+	if (!resource) {
+		return undefined;
+	}
+
+	if (planReviewFeedbackService.isActivePlanReview(resource)) {
+		return resource;
+	}
+
+	return undefined;
+}
+
+class SubmitPlanReviewFeedbackAction extends Action2 {
+
+	constructor() {
+		super({
+			id: submitPlanReviewFeedbackActionId,
+			title: localize2('planReviewFeedback.submit', 'Submit Feedback'),
+			shortTitle: localize2('planReviewFeedback.submitShort', 'Submit'),
+			icon: Codicon.send,
+			category: CHAT_CATEGORY,
+			precondition: hasPlanReviewFeedback,
+			menu: {
+				id: PlanReviewFeedbackMenuId,
+				group: 'a_submit',
+				order: 0,
+				when: hasPlanReviewFeedback,
+			},
+		});
+	}
+
+	override run(accessor: ServicesAccessor): void {
+		const planUri = getActivePlanUri(accessor);
+		if (!planUri) {
+			return;
+		}
+
+		const planReviewFeedbackService = accessor.get(IPlanReviewFeedbackService);
+		planReviewFeedbackService.submitAllFeedback(planUri);
+	}
+}
+
+class NavigatePlanReviewFeedbackAction extends Action2 {
+
+	constructor(private readonly _next: boolean) {
+		super({
+			id: _next ? navigateNextPlanReviewFeedbackActionId : navigatePreviousPlanReviewFeedbackActionId,
+			title: _next
+				? localize2('planReviewFeedback.next', 'Go to Next Feedback Comment')
+				: localize2('planReviewFeedback.previous', 'Go to Previous Feedback Comment'),
+			icon: _next ? Codicon.arrowDown : Codicon.arrowUp,
+			category: CHAT_CATEGORY,
+			f1: true,
+			precondition: hasPlanReviewFeedback,
+			menu: {
+				id: PlanReviewFeedbackMenuId,
+				group: 'navigate',
+				order: _next ? 2 : 1,
+				when: hasPlanReviewFeedback,
+			},
+		});
+	}
+
+	override run(accessor: ServicesAccessor): void {
+		const planUri = getActivePlanUri(accessor);
+		if (!planUri) {
+			return;
+		}
+
+		const planReviewFeedbackService = accessor.get(IPlanReviewFeedbackService);
+		const editorService = accessor.get(IEditorService);
+
+		const item = planReviewFeedbackService.getNextFeedback(planUri, this._next);
+		if (!item) {
+			return;
+		}
+
+		// Reveal the feedback item in the editor
+		const editor = editorService.activeTextEditorControl;
+		if (editor && isCodeEditor(editor)) {
+			editor.revealLineInCenter(item.line);
+			editor.setPosition({ lineNumber: item.line, column: item.column });
+		}
+	}
+}
+
+class ClearAllPlanReviewFeedbackAction extends Action2 {
+
+	constructor() {
+		super({
+			id: clearAllPlanReviewFeedbackActionId,
+			title: localize2('planReviewFeedback.clear', 'Clear'),
+			tooltip: localize2('planReviewFeedback.clearAllTooltip', 'Clear All Feedback'),
+			icon: Codicon.clearAll,
+			category: CHAT_CATEGORY,
+			f1: true,
+			precondition: hasPlanReviewFeedback,
+			menu: {
+				id: PlanReviewFeedbackMenuId,
+				group: 'a_submit',
+				order: 1,
+				when: hasPlanReviewFeedback,
+			},
+		});
+	}
+
+	override run(accessor: ServicesAccessor): void {
+		const planUri = getActivePlanUri(accessor);
+		if (!planUri) {
+			return;
+		}
+
+		const planReviewFeedbackService = accessor.get(IPlanReviewFeedbackService);
+		planReviewFeedbackService.clearFeedback(planUri);
+	}
+}
+
+export function registerPlanReviewFeedbackEditorActions(): void {
+	registerAction2(SubmitPlanReviewFeedbackAction);
+	registerAction2(class extends NavigatePlanReviewFeedbackAction { constructor() { super(false); } });
+	registerAction2(class extends NavigatePlanReviewFeedbackAction { constructor() { super(true); } });
+	registerAction2(ClearAllPlanReviewFeedbackAction);
+
+	MenuRegistry.appendMenuItem(PlanReviewFeedbackMenuId, {
+		command: {
+			id: navigationBearingFakeActionId,
+			title: localize('label', 'Navigation Status'),
+			precondition: ContextKeyExpr.false(),
+		},
+		group: 'navigate',
+		order: -1,
+		when: hasPlanReviewFeedback,
+	});
+}
diff --git a/src/vs/workbench/contrib/chat/browser/planReviewFeedback/planReviewFeedbackEditorContribution.ts b/src/vs/workbench/contrib/chat/browser/planReviewFeedback/planReviewFeedbackEditorContribution.ts
new file mode 100644
index 00000000000..a1e651e4a23
--- /dev/null
+++ b/src/vs/workbench/contrib/chat/browser/planReviewFeedback/planReviewFeedbackEditorContribution.ts
@@ -0,0 +1,723 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import './media/planReviewFeedback.css';
+import { Disposable, DisposableStore } from '../../../../../base/common/lifecycle.js';
+import { ICodeEditor, IOverlayWidget, IOverlayWidgetPosition, OverlayWidgetPositionPreference } from '../../../../../editor/browser/editorBrowser.js';
+import { IEditorContribution, IEditorDecorationsCollection } from '../../../../../editor/common/editorCommon.js';
+import { EditorContributionInstantiation, registerEditorContribution } from '../../../../../editor/browser/editorExtensions.js';
+import { EditorOption } from '../../../../../editor/common/config/editorOptions.js';
+import { SelectionDirection } from '../../../../../editor/common/core/selection.js';
+import { Range } from '../../../../../editor/common/core/range.js';
+import { OverviewRulerLane } from '../../../../../editor/common/model.js';
+import { themeColorFromId } from '../../../../../platform/theme/common/themeService.js';
+import { overviewRulerInfo } from '../../../../../editor/common/core/editorColorRegistry.js';
+import { addStandardDisposableListener, getWindow, ModifierKeyEmitter } from '../../../../../base/browser/dom.js';
+import { KeyCode } from '../../../../../base/common/keyCodes.js';
+import { localize } from '../../../../../nls.js';
+import { ActionBar } from '../../../../../base/browser/ui/actionbar/actionbar.js';
+import { Action } from '../../../../../base/common/actions.js';
+import { Codicon } from '../../../../../base/common/codicons.js';
+import { ThemeIcon } from '../../../../../base/common/themables.js';
+import { Emitter, Event } from '../../../../../base/common/event.js';
+import { IContextKeyService } from '../../../../../platform/contextkey/common/contextkey.js';
+import { IInstantiationService } from '../../../../../platform/instantiation/common/instantiation.js';
+import { HiddenItemStrategy, MenuWorkbenchToolBar } from '../../../../../platform/actions/browser/toolbar.js';
+import { IPlanReviewFeedbackService } from './planReviewFeedbackService.js';
+import { hasPlanReviewFeedback, navigationBearingFakeActionId, PlanReviewFeedbackMenuId, submitPlanReviewFeedbackActionId } from './planReviewFeedbackEditorActions.js';
+import { ActionViewItem } from '../../../../../base/browser/ui/actionbar/actionViewItems.js';
+import { autorun, observableValue } from '../../../../../base/common/observable.js';
+
+class PlanReviewFeedbackInputWidget implements IOverlayWidget {
+
+	private static readonly _ID = 'planReviewFeedback.inputWidget';
+	private static readonly _MIN_WIDTH = 150;
+	private static readonly _MAX_WIDTH = 400;
+
+	readonly allowEditorOverflow = false;
+
+	private readonly _domNode: HTMLElement;
+	private readonly _inputElement: HTMLTextAreaElement;
+	private readonly _measureElement: HTMLElement;
+	private readonly _actionBar: ActionBar;
+	private readonly _addAction: Action;
+	private readonly _addAndSubmitAction: Action;
+	private _position: IOverlayWidgetPosition | null = null;
+	private _lineHeight = 22;
+
+	private readonly _onDidTriggerAdd = new Emitter<void>();
+	readonly onDidTriggerAdd: Event<void> = this._onDidTriggerAdd.event;
+
+	private readonly _onDidTriggerAddAndSubmit = new Emitter<void>();
+	readonly onDidTriggerAddAndSubmit: Event<void> = this._onDidTriggerAddAndSubmit.event;
+
+	constructor(
+		private readonly _editor: ICodeEditor,
+	) {
+		this._domNode = document.createElement('div');
+		this._domNode.classList.add('plan-review-feedback-input-widget');
+		this._domNode.style.display = 'none';
+
+		this._inputElement = document.createElement('textarea');
+		this._inputElement.rows = 1;
+		this._inputElement.placeholder = localize('planReviewFeedback.addFeedback', "Add Feedback");
+		this._domNode.appendChild(this._inputElement);
+
+		// Hidden element used to measure text width for auto-growing
+		this._measureElement = document.createElement('span');
+		this._measureElement.classList.add('plan-review-feedback-input-measure');
+		this._domNode.appendChild(this._measureElement);
+
+		// Action bar with add/submit actions
+		const actionsContainer = document.createElement('div');
+		actionsContainer.classList.add('plan-review-feedback-input-actions');
+		this._domNode.appendChild(actionsContainer);
+
+		this._addAction = new Action(
+			'planReviewFeedback.add',
+			localize('planReviewFeedback.add', "Add Feedback (Enter)"),
+			ThemeIcon.asClassName(Codicon.plus),
+			false,
+			() => { this._onDidTriggerAdd.fire(); return Promise.resolve(); }
+		);
+
+		this._addAndSubmitAction = new Action(
+			'planReviewFeedback.addAndSubmit',
+			localize('planReviewFeedback.addAndSubmit', "Add Feedback and Submit (Alt+Enter)"),
+			ThemeIcon.asClassName(Codicon.send),
+			false,
+			() => { this._onDidTriggerAddAndSubmit.fire(); return Promise.resolve(); }
+		);
+
+		this._actionBar = new ActionBar(actionsContainer);
+		this._actionBar.push(this._addAction, { icon: true, label: false, keybinding: localize('enter', "Enter") });
+
+		// Toggle to alt action when Alt key is held
+		const modifierKeyEmitter = ModifierKeyEmitter.getInstance();
+		modifierKeyEmitter.event(status => {
+			this._updateActionForAlt(status.altKey);
+		});
+
+		this._inputElement.style.lineHeight = `${this._lineHeight}px`;
+	}
+
+	private _isShowingAlt = false;
+
+	private _updateActionForAlt(altKey: boolean): void {
+		if (altKey && !this._isShowingAlt) {
+			this._isShowingAlt = true;
+			this._actionBar.clear();
+			this._actionBar.push(this._addAndSubmitAction, { icon: true, label: false, keybinding: localize('altEnter', "Alt+Enter") });
+		} else if (!altKey && this._isShowingAlt) {
+			this._isShowingAlt = false;
+			this._actionBar.clear();
+			this._actionBar.push(this._addAction, { icon: true, label: false, keybinding: localize('enter', "Enter") });
+		}
+	}
+
+	getId(): string {
+		return PlanReviewFeedbackInputWidget._ID;
+	}
+
+	getDomNode(): HTMLElement {
+		return this._domNode;
+	}
+
+	getPosition(): IOverlayWidgetPosition | null {
+		return this._position;
+	}
+
+	get inputElement(): HTMLTextAreaElement {
+		return this._inputElement;
+	}
+
+	setPosition(position: IOverlayWidgetPosition | null): void {
+		this._position = position;
+		this._editor.layoutOverlayWidget(this);
+	}
+
+	show(): void {
+		this._domNode.style.display = '';
+	}
+
+	hide(): void {
+		this._domNode.style.display = 'none';
+	}
+
+	clearInput(): void {
+		this._inputElement.value = '';
+		this._updateActionEnabled();
+		this._autoSize();
+	}
+
+	autoSize(): void {
+		this._autoSize();
+	}
+
+	updateActionEnabled(): void {
+		this._updateActionEnabled();
+	}
+
+	private _updateActionEnabled(): void {
+		const hasText = this._inputElement.value.trim().length > 0;
+		this._addAction.enabled = hasText;
+		this._addAndSubmitAction.enabled = hasText;
+	}
+
+	private _autoSize(): void {
+		const text = this._inputElement.value || this._inputElement.placeholder;
+
+		// Measure the text width using the hidden span
+		this._measureElement.textContent = text;
+		const textWidth = this._measureElement.scrollWidth;
+
+		// Clamp width between min and max
+		const width = Math.max(PlanReviewFeedbackInputWidget._MIN_WIDTH, Math.min(textWidth + 10, PlanReviewFeedbackInputWidget._MAX_WIDTH));
+		this._inputElement.style.width = `${width}px`;
+
+		// Reset height to auto then expand to fit all content, with a minimum of 1 line
+		this._inputElement.style.height = 'auto';
+		const newHeight = Math.max(this._inputElement.scrollHeight, this._lineHeight);
+		this._inputElement.style.height = `${newHeight}px`;
+	}
+
+	dispose(): void {
+		this._actionBar.dispose();
+		this._addAction.dispose();
+		this._addAndSubmitAction.dispose();
+		this._onDidTriggerAdd.dispose();
+		this._onDidTriggerAddAndSubmit.dispose();
+	}
+}
+
+class PlanReviewFeedbackOverlayWidget implements IOverlayWidget {
+
+	private static readonly _ID = 'planReviewFeedback.overlayWidget';
+
+	private readonly _domNode: HTMLElement;
+	private readonly _toolbarNode: HTMLElement;
+	private readonly _showStore = new DisposableStore();
+	private readonly _navigationBearings = observableValue<{ activeIdx: number; totalCount: number }>('planReviewFeedbackBearings', { activeIdx: -1, totalCount: 0 });
+
+	constructor(
+		_codeEditor: ICodeEditor,
+		private readonly _instaService: IInstantiationService,
+	) {
+		this._domNode = document.createElement('div');
+		this._domNode.classList.add('plan-review-feedback-overlay-widget');
+		this._domNode.style.display = 'none';
+
+		this._toolbarNode = document.createElement('div');
+		this._toolbarNode.classList.add('plan-review-feedback-overlay-toolbar');
+		this._domNode.appendChild(this._toolbarNode);
+	}
+
+	getId(): string {
+		return PlanReviewFeedbackOverlayWidget._ID;
+	}
+
+	getDomNode(): HTMLElement {
+		return this._domNode;
+	}
+
+	getPosition(): IOverlayWidgetPosition | null {
+		return { preference: OverlayWidgetPositionPreference.BOTTOM_RIGHT_CORNER };
+	}
+
+	show(navigationBearings: { activeIdx: number; totalCount: number }): void {
+		this._showStore.clear();
+		this._navigationBearings.set(navigationBearings, undefined);
+		this._domNode.style.display = '';
+
+		this._showStore.add(this._instaService.createInstance(MenuWorkbenchToolBar, this._toolbarNode, PlanReviewFeedbackMenuId, {
+			telemetrySource: 'planReviewFeedback.overlayToolbar',
+			hiddenItemStrategy: HiddenItemStrategy.Ignore,
+			toolbarOptions: {
+				primaryGroup: () => true,
+				useSeparatorsInPrimaryActions: true,
+			},
+			menuOptions: { renderShortTitle: true },
+			actionViewItemProvider: (action, options) => {
+				if (action.id === navigationBearingFakeActionId) {
+					const that = this;
+					return new class extends ActionViewItem {
+						constructor() {
+							super(undefined, action, { ...options, icon: false, label: true, keybindingNotRenderedWithLabel: true });
+						}
+
+						override render(container: HTMLElement): void {
+							super.render(container);
+							container.classList.add('label-item');
+
+							this._store.add(autorun(r => {
+								if (!this.label) {
+									return;
+								}
+								const { activeIdx, totalCount } = that._navigationBearings.read(r);
+								if (totalCount > 0) {
+									const current = activeIdx === -1 ? 1 : activeIdx + 1;
+									this.label.innerText = localize('nOfM', '{0}/{1}', current, totalCount);
+								} else {
+									this.label.innerText = localize('zero', '0/0');
+								}
+							}));
+						}
+					};
+				}
+
+				const isPrimary = action.id === submitPlanReviewFeedbackActionId;
+				return new class extends ActionViewItem {
+					constructor() {
+						super(undefined, action, { ...options, icon: !isPrimary, label: isPrimary, keybindingNotRenderedWithLabel: true });
+					}
+
+					override render(container: HTMLElement): void {
+						super.render(container);
+						if (isPrimary) {
+							this.element?.classList.add('primary');
+						}
+					}
+				};
+			},
+		}));
+	}
+
+	hide(): void {
+		this._showStore.clear();
+		this._domNode.style.display = 'none';
+		this._navigationBearings.set({ activeIdx: -1, totalCount: 0 }, undefined);
+	}
+
+	dispose(): void {
+		this._showStore.dispose();
+	}
+}
+
+export class PlanReviewFeedbackEditorContribution extends Disposable implements IEditorContribution {
+
+	static readonly ID = 'planReviewFeedback.editorContribution';
+
+	private _widget: PlanReviewFeedbackInputWidget | undefined;
+	private _overlayWidget: PlanReviewFeedbackOverlayWidget | undefined;
+	private _visible = false;
+	private _mouseDown = false;
+	private _suppressSelectionChangeOnce = false;
+	private _isActivePlan = false;
+	private readonly _widgetListeners = this._register(new DisposableStore());
+	private readonly _decorations: IEditorDecorationsCollection;
+	private readonly _hasFeedbackContextKey;
+
+	constructor(
+		private readonly _editor: ICodeEditor,
+		@IPlanReviewFeedbackService private readonly _planReviewFeedbackService: IPlanReviewFeedbackService,
+		@IContextKeyService contextKeyService: IContextKeyService,
+		@IInstantiationService private readonly _instantiationService: IInstantiationService,
+	) {
+		super();
+
+		this._decorations = this._editor.createDecorationsCollection();
+		this._hasFeedbackContextKey = hasPlanReviewFeedback.bindTo(contextKeyService);
+
+		this._register(this._editor.onDidChangeCursorSelection(() => this._onSelectionChanged()));
+		this._register(this._editor.onDidChangeModel(() => this._onModelChanged()));
+		this._register(this._editor.onDidScrollChange(() => {
+			if (this._visible) {
+				this._updatePosition();
+			}
+		}));
+		this._register(this._editor.onMouseDown((e) => {
+			if (this._isWidgetTarget(e.event.target)) {
+				return;
+			}
+			this._mouseDown = true;
+			this._hide();
+		}));
+		this._register(this._editor.onMouseUp((e) => {
+			this._mouseDown = false;
+			if (this._isWidgetTarget(e.event.target)) {
+				return;
+			}
+			this._onSelectionChanged();
+		}));
+		this._register(this._editor.onDidBlurEditorWidget(() => {
+			if (!this._visible) {
+				return;
+			}
+			getWindow(this._editor.getDomNode()!).setTimeout(() => {
+				if (!this._visible) {
+					return;
+				}
+				if (this._isWidgetTarget(getWindow(this._editor.getDomNode()!).document.activeElement)) {
+					return;
+				}
+				this._hide();
+			}, 0);
+		}));
+		this._register(this._editor.onDidFocusEditorText(() => this._onSelectionChanged()));
+		this._register(this._planReviewFeedbackService.onDidChangeRegistrations(() => this._onModelChanged()));
+		this._register(this._planReviewFeedbackService.onDidChangeFeedback(() => this._updateDecorations()));
+		this._register(this._planReviewFeedbackService.onDidChangeNavigation(() => this._updateDecorations()));
+	}
+
+	private _isWidgetTarget(target: EventTarget | Element | null): boolean {
+		return !!this._widget && !!target && this._widget.getDomNode().contains(target as Node);
+	}
+
+	private _ensureWidget(): PlanReviewFeedbackInputWidget {
+		if (!this._widget) {
+			this._widget = new PlanReviewFeedbackInputWidget(this._editor);
+			this._register(this._widget.onDidTriggerAdd(() => this._addFeedback()));
+			this._register(this._widget.onDidTriggerAddAndSubmit(() => this._addFeedbackAndSubmit()));
+			this._editor.addOverlayWidget(this._widget);
+		}
+		return this._widget;
+	}
+
+	private _onModelChanged(): void {
+		this._hide();
+		this._suppressSelectionChangeOnce = false;
+
+		const model = this._editor.getModel();
+		this._isActivePlan = !!model && this._planReviewFeedbackService.isActivePlanReview(model.uri);
+		this._updateDecorations();
+	}
+
+	private _onSelectionChanged(): void {
+		if (this._suppressSelectionChangeOnce) {
+			this._suppressSelectionChangeOnce = false;
+			return;
+		}
+
+		if (this._mouseDown || !this._editor.hasTextFocus()) {
+			return;
+		}
+
+		if (!this._isActivePlan) {
+			this._hide();
+			return;
+		}
+
+		const selection = this._editor.getSelection();
+		if (!selection) {
+			this._hide();
+			return;
+		}
+
+		const model = this._editor.getModel();
+		if (!model) {
+			this._hide();
+			return;
+		}
+
+		this._show();
+	}
+
+	private _show(): void {
+		const widget = this._ensureWidget();
+
+		if (!this._visible) {
+			this._visible = true;
+			this._registerWidgetListeners(widget);
+		}
+
+		widget.clearInput();
+		widget.show();
+		this._updatePosition();
+	}
+
+	private _hide(): void {
+		if (!this._visible) {
+			return;
+		}
+
+		this._visible = false;
+		this._widgetListeners.clear();
+
+		if (this._widget) {
+			this._widget.hide();
+			this._widget.setPosition(null);
+			this._widget.clearInput();
+		}
+	}
+
+	private _registerWidgetListeners(widget: PlanReviewFeedbackInputWidget): void {
+		this._widgetListeners.clear();
+
+		const editorDomNode = this._editor.getDomNode();
+		if (editorDomNode) {
+			this._widgetListeners.add(addStandardDisposableListener(editorDomNode, 'keydown', e => {
+				if (!this._visible) {
+					return;
+				}
+
+				if (!this._editor.hasTextFocus()) {
+					return;
+				}
+
+				if (e.keyCode === KeyCode.Ctrl || e.keyCode === KeyCode.Shift || e.keyCode === KeyCode.Alt || e.keyCode === KeyCode.Meta) {
+					return;
+				}
+
+				if (e.keyCode === KeyCode.Escape) {
+					this._hide();
+					this._editor.focus();
+					return;
+				}
+
+				// Ctrl+I / Cmd+I explicitly focuses the feedback input
+				if ((e.ctrlKey || e.metaKey) && e.keyCode === KeyCode.KeyI) {
+					e.preventDefault();
+					e.stopPropagation();
+					widget.inputElement.focus();
+					return;
+				}
+
+				if (e.ctrlKey || e.altKey || e.metaKey) {
+					return;
+				}
+
+				// Keep caret/navigation keys in the editor
+				if (
+					e.keyCode === KeyCode.UpArrow
+					|| e.keyCode === KeyCode.DownArrow
+					|| e.keyCode === KeyCode.LeftArrow
+					|| e.keyCode === KeyCode.RightArrow
+				) {
+					return;
+				}
+
+				// Only auto-focus the input on typing when the document is readonly
+				if (!this._editor.getOption(EditorOption.readOnly)) {
+					return;
+				}
+
+				if (getWindow(widget.inputElement).document.activeElement !== widget.inputElement) {
+					widget.inputElement.focus();
+				}
+			}));
+		}
+
+		// Listen for keydown on the input element
+		this._widgetListeners.add(addStandardDisposableListener(widget.inputElement, 'keydown', e => {
+			if (e.keyCode === KeyCode.Escape) {
+				e.preventDefault();
+				e.stopPropagation();
+				this._hide();
+				this._editor.focus();
+				return;
+			}
+
+			if (e.keyCode === KeyCode.Enter && e.altKey) {
+				e.preventDefault();
+				e.stopPropagation();
+				this._addFeedbackAndSubmit();
+				return;
+			}
+
+			if (e.keyCode === KeyCode.Enter) {
+				e.preventDefault();
+				e.stopPropagation();
+				this._addFeedback();
+				return;
+			}
+		}));
+
+		// Stop propagation of input events so the editor doesn't handle them
+		this._widgetListeners.add(addStandardDisposableListener(widget.inputElement, 'keypress', e => {
+			e.stopPropagation();
+		}));
+
+		// Auto-size the textarea as the user types
+		this._widgetListeners.add(addStandardDisposableListener(widget.inputElement, 'input', () => {
+			widget.autoSize();
+			widget.updateActionEnabled();
+			this._updatePosition();
+		}));
+
+		// Hide when input loses focus to something outside both editor and widget
+		this._widgetListeners.add(addStandardDisposableListener(widget.inputElement, 'blur', () => {
+			const win = getWindow(widget.inputElement);
+			win.setTimeout(() => {
+				if (!this._visible) {
+					return;
+				}
+				if (this._editor.hasWidgetFocus()) {
+					return;
+				}
+				this._hide();
+			}, 0);
+		}));
+	}
+
+	private _hideAndRefocusEditor(): void {
+		this._suppressSelectionChangeOnce = true;
+		this._hide();
+		this._editor.focus();
+	}
+
+	private _addFeedback(): boolean {
+		if (!this._widget) {
+			return false;
+		}
+
+		const text = this._widget.inputElement.value.trim();
+		if (!text) {
+			return false;
+		}
+
+		const selection = this._editor.getSelection();
+		const model = this._editor.getModel();
+		if (!selection || !model) {
+			return false;
+		}
+
+		const line = selection.startLineNumber;
+		const column = selection.startColumn;
+		this._planReviewFeedbackService.addFeedback(model.uri, line, column, text);
+		this._hideAndRefocusEditor();
+		return true;
+	}
+
+	private _addFeedbackAndSubmit(): void {
+		if (!this._widget) {
+			return;
+		}
+
+		const text = this._widget.inputElement.value.trim();
+		if (!text) {
+			return;
+		}
+
+		const selection = this._editor.getSelection();
+		const model = this._editor.getModel();
+		if (!selection || !model) {
+			return;
+		}
+
+		const line = selection.startLineNumber;
+		const column = selection.startColumn;
+		this._planReviewFeedbackService.addFeedback(model.uri, line, column, text);
+		this._hideAndRefocusEditor();
+		this._planReviewFeedbackService.submitAllFeedback(model.uri);
+	}
+
+	private _updatePosition(): void {
+		if (!this._widget || !this._visible) {
+			return;
+		}
+
+		const selection = this._editor.getSelection();
+		if (!selection) {
+			this._hide();
+			return;
+		}
+
+		const lineHeight = this._editor.getOption(EditorOption.lineHeight);
+		const layoutInfo = this._editor.getLayoutInfo();
+		const widgetDom = this._widget.getDomNode();
+		const widgetHeight = widgetDom.offsetHeight || 30;
+		const widgetWidth = widgetDom.offsetWidth || 150;
+
+		const cursorPosition = selection.getDirection() === SelectionDirection.LTR
+			? selection.getEndPosition()
+			: selection.getStartPosition();
+
+		const scrolledPosition = this._editor.getScrolledVisiblePosition(cursorPosition);
+		if (!scrolledPosition) {
+			this._widget.setPosition(null);
+			return;
+		}
+
+		// Place below for LTR, above for RTL, with flip if out of bounds
+		let top: number;
+		if (selection.getDirection() === SelectionDirection.LTR) {
+			top = scrolledPosition.top + lineHeight;
+			if (top + widgetHeight > layoutInfo.height) {
+				top = scrolledPosition.top - widgetHeight;
+			}
+		} else {
+			top = scrolledPosition.top - widgetHeight;
+			if (top < 0) {
+				top = scrolledPosition.top + lineHeight;
+			}
+		}
+
+		top = Math.max(0, Math.min(top, layoutInfo.height - widgetHeight));
+		const left = Math.max(0, Math.min(scrolledPosition.left, layoutInfo.width - widgetWidth));
+
+		this._widget.setPosition({ preference: { top, left } });
+	}
+
+	private _updateDecorations(): void {
+		const model = this._editor.getModel();
+		if (!model || !this._isActivePlan) {
+			this._decorations.clear();
+			this._hasFeedbackContextKey.set(false);
+			this._hideOverlayToolbar();
+			return;
+		}
+
+		const items = this._planReviewFeedbackService.getFeedback(model.uri);
+		this._hasFeedbackContextKey.set(items.length > 0);
+
+		if (items.length > 0) {
+			const bearings = this._planReviewFeedbackService.getNavigationBearing(model.uri);
+			this._showOverlayToolbar(bearings);
+		} else {
+			this._hideOverlayToolbar();
+		}
+
+		this._decorations.set(
+			items.map(item => ({
+				range: new Range(item.line, item.column, item.line, item.column),
+				options: {
+					description: 'plan-review-feedback',
+					glyphMarginClassName: ThemeIcon.asClassName(Codicon.comment),
+					glyphMarginHoverMessage: { value: item.text },
+					overviewRuler: {
+						color: themeColorFromId(overviewRulerInfo),
+						position: OverviewRulerLane.Center,
+					},
+					lineNumberClassName: 'plan-review-feedback-line-number',
+				}
+			}))
+		);
+	}
+
+	private _ensureOverlayWidget(): PlanReviewFeedbackOverlayWidget {
+		if (!this._overlayWidget) {
+			this._overlayWidget = new PlanReviewFeedbackOverlayWidget(this._editor, this._instantiationService);
+			this._editor.addOverlayWidget(this._overlayWidget);
+		}
+		return this._overlayWidget;
+	}
+
+	private _showOverlayToolbar(bearings: { activeIdx: number; totalCount: number }): void {
+		const widget = this._ensureOverlayWidget();
+		widget.show(bearings);
+	}
+
+	private _hideOverlayToolbar(): void {
+		if (this._overlayWidget) {
+			this._overlayWidget.hide();
+		}
+	}
+
+	override dispose(): void {
+		if (this._widget) {
+			this._editor.removeOverlayWidget(this._widget);
+			this._widget.dispose();
+			this._widget = undefined;
+		}
+		if (this._overlayWidget) {
+			this._editor.removeOverlayWidget(this._overlayWidget);
+			this._overlayWidget.dispose();
+			this._overlayWidget = undefined;
+		}
+		super.dispose();
+	}
+}
+
+registerEditorContribution(PlanReviewFeedbackEditorContribution.ID, PlanReviewFeedbackEditorContribution, EditorContributionInstantiation.Eventually);
diff --git a/src/vs/workbench/contrib/chat/browser/planReviewFeedback/planReviewFeedbackService.ts b/src/vs/workbench/contrib/chat/browser/planReviewFeedback/planReviewFeedbackService.ts
new file mode 100644
index 00000000000..f6d8279ae98
--- /dev/null
+++ b/src/vs/workbench/contrib/chat/browser/planReviewFeedback/planReviewFeedbackService.ts
@@ -0,0 +1,210 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import { Emitter, Event } from '../../../../../base/common/event.js';
+import { Disposable, IDisposable, toDisposable } from '../../../../../base/common/lifecycle.js';
+import { URI } from '../../../../../base/common/uri.js';
+import { generateUuid } from '../../../../../base/common/uuid.js';
+import { createDecorator } from '../../../../../platform/instantiation/common/instantiation.js';
+import { IChatPlanReviewResult } from '../../common/chatService/chatService.js';
+
+export interface IPlanReviewFeedbackItem {
+	readonly id: string;
+	readonly line: number;
+	readonly column: number;
+	readonly text: string;
+}
+
+export const IPlanReviewFeedbackService = createDecorator<IPlanReviewFeedbackService>('planReviewFeedbackService');
+
+export interface IPlanReviewFeedbackService {
+	readonly _serviceBrand: undefined;
+
+	readonly onDidChangeFeedback: Event<URI>;
+	readonly onDidChangeNavigation: Event<URI>;
+	readonly onDidChangeRegistrations: Event<void>;
+
+	registerPlanReview(planUri: URI, onSubmit: (result: IChatPlanReviewResult) => void): IDisposable;
+	isActivePlanReview(uri: URI): boolean;
+	addFeedback(planUri: URI, line: number, column: number, text: string): string;
+	removeFeedback(planUri: URI, feedbackId: string): void;
+	updateFeedback(planUri: URI, feedbackId: string, newText: string): void;
+	getFeedback(planUri: URI): readonly IPlanReviewFeedbackItem[];
+	clearFeedback(planUri: URI): void;
+	getNextFeedback(planUri: URI, next: boolean): IPlanReviewFeedbackItem | undefined;
+	getNavigationBearing(planUri: URI): { activeIdx: number; totalCount: number };
+	setNavigationAnchor(planUri: URI, itemId: string | undefined): void;
+	submitAllFeedback(planUri: URI): void;
+}
+
+interface IPlanReviewRegistration {
+	readonly onSubmit: (result: IChatPlanReviewResult) => void;
+	readonly items: IPlanReviewFeedbackItem[];
+	navigationAnchor: string | undefined;
+}
+
+export class PlanReviewFeedbackService extends Disposable implements IPlanReviewFeedbackService {
+
+	declare readonly _serviceBrand: undefined;
+
+	private readonly _registrations = new Map<string, IPlanReviewRegistration>();
+
+	private readonly _onDidChangeFeedback = this._register(new Emitter<URI>());
+	readonly onDidChangeFeedback: Event<URI> = this._onDidChangeFeedback.event;
+
+	private readonly _onDidChangeNavigation = this._register(new Emitter<URI>());
+	readonly onDidChangeNavigation: Event<URI> = this._onDidChangeNavigation.event;
+
+	private readonly _onDidChangeRegistrations = this._register(new Emitter<void>());
+	readonly onDidChangeRegistrations: Event<void> = this._onDidChangeRegistrations.event;
+
+	registerPlanReview(planUri: URI, onSubmit: (result: IChatPlanReviewResult) => void): IDisposable {
+		const key = planUri.toString();
+		this._registrations.set(key, { onSubmit, items: [], navigationAnchor: undefined });
+		this._onDidChangeRegistrations.fire();
+		return toDisposable(() => {
+			this._registrations.delete(key);
+			this._onDidChangeRegistrations.fire();
+		});
+	}
+
+	isActivePlanReview(uri: URI): boolean {
+		return this._registrations.has(uri.toString());
+	}
+
+	addFeedback(planUri: URI, line: number, column: number, text: string): string {
+		const key = planUri.toString();
+		const registration = this._registrations.get(key);
+		if (!registration) {
+			return '';
+		}
+
+		const id = generateUuid();
+		registration.items.push({ id, line, column, text });
+		// Keep items sorted by line number
+		registration.items.sort((a, b) => a.line - b.line || a.column - b.column);
+		this._onDidChangeFeedback.fire(planUri);
+		return id;
+	}
+
+	removeFeedback(planUri: URI, feedbackId: string): void {
+		const key = planUri.toString();
+		const registration = this._registrations.get(key);
+		if (!registration) {
+			return;
+		}
+
+		const idx = registration.items.findIndex(item => item.id === feedbackId);
+		if (idx >= 0) {
+			registration.items.splice(idx, 1);
+			this._onDidChangeFeedback.fire(planUri);
+		}
+	}
+
+	updateFeedback(planUri: URI, feedbackId: string, newText: string): void {
+		const key = planUri.toString();
+		const registration = this._registrations.get(key);
+		if (!registration) {
+			return;
+		}
+
+		const idx = registration.items.findIndex(item => item.id === feedbackId);
+		if (idx >= 0) {
+			const old = registration.items[idx];
+			registration.items[idx] = { id: old.id, line: old.line, column: old.column, text: newText };
+			this._onDidChangeFeedback.fire(planUri);
+		}
+	}
+
+	getFeedback(planUri: URI): readonly IPlanReviewFeedbackItem[] {
+		const key = planUri.toString();
+		return this._registrations.get(key)?.items ?? [];
+	}
+
+	clearFeedback(planUri: URI): void {
+		const key = planUri.toString();
+		const registration = this._registrations.get(key);
+		if (!registration || registration.items.length === 0) {
+			return;
+		}
+		registration.items.length = 0;
+		registration.navigationAnchor = undefined;
+		this._onDidChangeFeedback.fire(planUri);
+	}
+
+	getNextFeedback(planUri: URI, next: boolean): IPlanReviewFeedbackItem | undefined {
+		const key = planUri.toString();
+		const registration = this._registrations.get(key);
+		if (!registration || registration.items.length === 0) {
+			return undefined;
+		}
+
+		const items = registration.items;
+		const anchorIdx = registration.navigationAnchor
+			? items.findIndex(item => item.id === registration.navigationAnchor)
+			: -1;
+
+		let targetIdx: number;
+		if (anchorIdx === -1) {
+			targetIdx = next ? 0 : items.length - 1;
+		} else {
+			targetIdx = next
+				? (anchorIdx + 1) % items.length
+				: (anchorIdx - 1 + items.length) % items.length;
+		}
+
+		const target = items[targetIdx];
+		this.setNavigationAnchor(planUri, target.id);
+		return target;
+	}
+
+	getNavigationBearing(planUri: URI): { activeIdx: number; totalCount: number } {
+		const key = planUri.toString();
+		const registration = this._registrations.get(key);
+		if (!registration) {
+			return { activeIdx: -1, totalCount: 0 };
+		}
+
+		const totalCount = registration.items.length;
+		if (!registration.navigationAnchor) {
+			return { activeIdx: -1, totalCount };
+		}
+
+		const activeIdx = registration.items.findIndex(item => item.id === registration.navigationAnchor);
+		return { activeIdx, totalCount };
+	}
+
+	setNavigationAnchor(planUri: URI, itemId: string | undefined): void {
+		const key = planUri.toString();
+		const registration = this._registrations.get(key);
+		if (registration) {
+			registration.navigationAnchor = itemId;
+			this._onDidChangeNavigation.fire(planUri);
+		}
+	}
+
+	submitAllFeedback(planUri: URI): void {
+		const key = planUri.toString();
+		const registration = this._registrations.get(key);
+		if (!registration || registration.items.length === 0) {
+			return;
+		}
+
+		const formatted = this._formatFeedback(registration.items);
+		registration.onSubmit({ rejected: false, feedback: formatted });
+	}
+
+	private _formatFeedback(items: readonly IPlanReviewFeedbackItem[]): string {
+		const parts: string[] = ['Here\'s the feedback:'];
+		for (const item of items) {
+			if (item.column > 1) {
+				parts.push(`Line ${item.line}: Column ${item.column}: ${item.text}`);
+			} else {
+				parts.push(`Line ${item.line}: ${item.text}`);
+			}
+		}
+		return parts.join('\n');
+	}
+}
diff --git a/src/vs/workbench/contrib/chat/browser/widget/chatAgentHover.ts b/src/vs/workbench/contrib/chat/browser/widget/chatAgentHover.ts
index a9d7948cf98..0a282d4d840 100644
--- a/src/vs/workbench/contrib/chat/browser/widget/chatAgentHover.ts
+++ b/src/vs/workbench/contrib/chat/browser/widget/chatAgentHover.ts
@@ -4,7 +4,7 @@
  *--------------------------------------------------------------------------------------------*/
 
 import * as dom from '../../../../../base/browser/dom.js';
-import { IManagedHoverOptions } from '../../../../../base/browser/ui/hover/hover.js';
+import { IHoverAction, IManagedHoverOptions } from '../../../../../base/browser/ui/hover/hover.js';
 import { renderIcon } from '../../../../../base/browser/ui/iconLabel/iconLabels.js';
 import { CancellationTokenSource } from '../../../../../base/common/cancellation.js';
 import { Codicon } from '../../../../../base/common/codicons.js';
@@ -121,18 +121,26 @@ export class ChatAgentHover extends Disposable {
 }
 
 export function getChatAgentHoverOptions(getAgent: () => IChatAgentData | undefined, commandService: ICommandService): IManagedHoverOptions {
-	return {
-		actions: [
-			{
-				commandId: showExtensionsWithIdsCommandId,
-				label: localize('viewExtensionLabel', "View Extension"),
-				run: () => {
-					const agent = getAgent();
-					if (agent) {
-						commandService.executeCommand(showExtensionsWithIdsCommandId, [agent.extensionId.value]);
-					}
-				},
+	const viewExtensionAction: IHoverAction = {
+		commandId: showExtensionsWithIdsCommandId,
+		label: localize('viewExtensionLabel', "View Extension"),
+		run: () => {
+			const agent = getAgent();
+			if (agent) {
+				commandService.executeCommand(showExtensionsWithIdsCommandId, [agent.extensionId.value]);
 			}
-		]
+		},
+	};
+
+	// `actions` is a getter so the agent is only resolved at hover-show time.
+	// Some callers (e.g. chatListRenderer) construct these options before the
+	// surrounding template is initialized, so calling `getAgent()` eagerly here
+	// would hit a TDZ on the captured `template` variable.
+	// Core agents (e.g. agent host) have a placeholder extension id and no real
+	// extension to view, so we omit the action for them.
+	return {
+		get actions() {
+			return getAgent()?.isCore ? [] : [viewExtensionAction];
+		}
 	};
 }
diff --git a/src/vs/workbench/contrib/chat/browser/widget/chatContentMarkdownRenderer.ts b/src/vs/workbench/contrib/chat/browser/widget/chatContentMarkdownRenderer.ts
index 4e035d1c320..ac9e9876907 100644
--- a/src/vs/workbench/contrib/chat/browser/widget/chatContentMarkdownRenderer.ts
+++ b/src/vs/workbench/contrib/chat/browser/widget/chatContentMarkdownRenderer.ts
@@ -15,6 +15,7 @@ import { IHoverService } from '../../../../../platform/hover/browser/hover.js';
 import { IOpenerService } from '../../../../../platform/opener/common/opener.js';
 import product from '../../../../../platform/product/common/product.js';
 import { Schemas } from '../../../../../base/common/network.js';
+import { AGENT_HOST_SCHEME } from '../../../../../platform/agentHost/common/agentHostUri.js';
 
 const _remoteImageDisallowed = () => false;
 
@@ -81,7 +82,7 @@ export class ChatContentMarkdownRenderer implements IMarkdownRenderer {
 					override: allowedChatMarkdownHtmlTags,
 				},
 				...options?.sanitizerConfig,
-				allowedLinkSchemes: { augment: [product.urlProtocol, 'copilot-skill', Schemas.vscodeBrowser] },
+				allowedLinkSchemes: { augment: [product.urlProtocol, 'copilot-skill', Schemas.vscodeBrowser, AGENT_HOST_SCHEME] },
 				remoteImageIsAllowed: _remoteImageDisallowed,
 			}
 		};
diff --git a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatIncrementalRendering/buffers/paragraphBuffer.ts b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatIncrementalRendering/buffers/paragraphBuffer.ts
index f6258db1a3f..d539df5cc1b 100644
--- a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatIncrementalRendering/buffers/paragraphBuffer.ts
+++ b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatIncrementalRendering/buffers/paragraphBuffer.ts
@@ -53,14 +53,14 @@ export function lastBlockBoundary(text: string): number {
 export class ParagraphBuffer implements IIncrementalRenderingBuffer {
 	readonly handlesFlush = false;
 
-	getRenderable(fullMarkdown: string, lastRendered: string): string {
+	getRenderable(fullMarkdown: string, _lastRendered: string): string {
 		const lastBlock = lastBlockBoundary(fullMarkdown);
 		let renderable = lastBlock === -1
-			? lastRendered   // no complete block yet — keep current
+			? fullMarkdown   // no paragraph breaks — single block, render as-is
 			: fullMarkdown.slice(0, lastBlock + 2);
 
-		// Escape hatch: if too much content has accumulated without a
-		// block boundary, render what we have.
+		// Escape hatch: if too much content has accumulated beyond the
+		// last block boundary, render what we have.
 		if (fullMarkdown.length - renderable.length > MAX_BUFFERED_CHARS) {
 			renderable = fullMarkdown;
 		}
diff --git a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatIncrementalRendering/chatIncrementalRendering.ts b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatIncrementalRendering/chatIncrementalRendering.ts
index 80ecb6679d8..ad3ca63fa88 100644
--- a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatIncrementalRendering/chatIncrementalRendering.ts
+++ b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatIncrementalRendering/chatIncrementalRendering.ts
@@ -114,12 +114,23 @@ export class IncrementalDOMMorpher extends Disposable {
 
 	/**
 	 * Forward the stream's word-rate estimate to the active buffer
-	 * (word buffer or line buffer).
+	 * (word buffer or line buffer). When the stream completes,
+	 * also flushes any remaining buffered content for buffers
+	 * that don't handle their own flushing (e.g. ParagraphBuffer).
 	 */
 	updateStreamRate(rate: number, isComplete: boolean): void {
 		if (this._buffer instanceof WordBuffer) {
 			this._buffer.setRate(rate, isComplete);
 		}
+
+		// For buffers that don't handle their own flushing (e.g.
+		// ParagraphBuffer), force-render any remaining buffered
+		// content when the stream completes. Without this, content
+		// after the last \n\n boundary is never rendered.
+		if (isComplete && !this._buffer.handlesFlush && this._lastMarkdown.length > this._renderedMarkdown.length) {
+			this._pendingMarkdown = this._lastMarkdown;
+			this._scheduleRender();
+		}
 	}
 
 	/**
diff --git a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatPlanReviewPart.ts b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatPlanReviewPart.ts
index b75e9091c59..4b35a3c2107 100644
--- a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatPlanReviewPart.ts
+++ b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatPlanReviewPart.ts
@@ -26,6 +26,7 @@ import { IMarkdownRendererService } from '../../../../../../platform/markdown/br
 import { defaultButtonStyles } from '../../../../../../platform/theme/browser/defaultStyles.js';
 import { IEditorService } from '../../../../../services/editor/common/editorService.js';
 import { IChatPlanApprovalAction, IChatPlanReview, IChatPlanReviewResult } from '../../../common/chatService/chatService.js';
+import { IPlanReviewFeedbackItem, IPlanReviewFeedbackService } from '../../planReviewFeedback/planReviewFeedbackService.js';
 import { ChatPlanReviewData } from '../../../common/model/chatProgressTypes/chatPlanReviewData.js';
 import { IChatRendererContent, isResponseVM } from '../../../common/model/chatViewModel.js';
 import { ChatTreeItem } from '../../chat.js';
@@ -60,6 +61,7 @@ export class ChatPlanReviewPart extends Disposable implements IChatContentPart {
 	private _feedbackTextarea: HTMLTextAreaElement | undefined;
 	private _feedbackSection: HTMLElement | undefined;
 	private _isFeedbackMode = false;
+	private readonly _planReviewRegistration = this._register(new MutableDisposable());
 
 	constructor(
 		public readonly review: IChatPlanReview,
@@ -70,6 +72,7 @@ export class ChatPlanReviewPart extends Disposable implements IChatContentPart {
 		@IDialogService private readonly _dialogService: IDialogService,
 		@IEditorService private readonly _editorService: IEditorService,
 		@IHoverService private readonly _hoverService: IHoverService,
+		@IPlanReviewFeedbackService private readonly _planReviewFeedbackService: IPlanReviewFeedbackService,
 	) {
 		super();
 
@@ -82,6 +85,22 @@ export class ChatPlanReviewPart extends Disposable implements IChatContentPart {
 		const isResponseComplete = isResponseVM(context.element) && context.element.isComplete;
 		this._isSubmitted = !!review.isUsed || isResponseComplete;
 
+		// Register with the plan review feedback service so the editor
+		// contribution can show inline feedback input for this plan file.
+		// Only register when feedback is allowed and the review hasn't
+		// already been submitted.
+		if (review.planUri && review.canProvideFeedback && !this._isSubmitted) {
+			const planUri = URI.revive(review.planUri);
+			this._planReviewRegistration.value = this._planReviewFeedbackService.registerPlanReview(planUri, (result) => {
+				if (this._isSubmitted) {
+					return;
+				}
+				this._isSubmitted = true;
+				this._options.onSubmit(result);
+				this.markUsed();
+			});
+		}
+
 		// Build DOM that mirrors chat-confirmation-widget2 so we inherit its
 		// styling (title bar, scrollable message, blue/grey button row).
 		const elements = dom.h('.chat-confirmation-widget-container.chat-plan-review-container@container', [
@@ -337,6 +356,7 @@ export class ChatPlanReviewPart extends Disposable implements IChatContentPart {
 
 	private updateCollapsedPresentation(): void {
 		this.domNode.classList.toggle('chat-plan-review-collapsed', this._isCollapsed);
+		this._restoreButton.element.classList.toggle('chat-plan-review-hidden', this._isCollapsed);
 		this._collapseButton.label = this._isCollapsed
 			? `$(${Codicon.chevronDown.id})`
 			: `$(${Codicon.chevronUp.id})`;
@@ -423,10 +443,37 @@ export class ChatPlanReviewPart extends Disposable implements IChatContentPart {
 		if (this._isSubmitted) {
 			return;
 		}
-		const feedback = this._feedbackTextarea?.value.trim();
-		if (!feedback) {
+		const textareaFeedback = this._feedbackTextarea?.value.trim();
+
+		// Collect any inline editor feedback for this plan file.
+		let editorFeedbackItems: readonly IPlanReviewFeedbackItem[] = [];
+		if (this.review.planUri) {
+			const planUri = URI.revive(this.review.planUri);
+			editorFeedbackItems = this._planReviewFeedbackService.getFeedback(planUri);
+		}
+
+		if (!textareaFeedback && editorFeedbackItems.length === 0) {
 			return;
 		}
+
+		// Merge textarea feedback with editor-collected inline feedback.
+		const feedbackParts: string[] = [];
+		if (textareaFeedback) {
+			feedbackParts.push(textareaFeedback);
+		}
+		if (editorFeedbackItems.length > 0) {
+			const filePath = this.review.planUri?.path ? `(${this.review.planUri.path})` : '';
+			feedbackParts.push(`Here's the feedback for contents of the plan file ${filePath}:`);
+			for (const item of editorFeedbackItems) {
+				if (item.column > 1) {
+					feedbackParts.push(`Line ${item.line}: Column ${item.column}: ${item.text}`);
+				} else {
+					feedbackParts.push(`Line ${item.line}: ${item.text}`);
+				}
+			}
+		}
+
+		const feedback = feedbackParts.join('\n');
 		this._isSubmitted = true;
 		this._options.onSubmit({ rejected: false, feedback });
 		this.markUsed();
@@ -459,6 +506,9 @@ export class ChatPlanReviewPart extends Disposable implements IChatContentPart {
 	private markUsed(): void {
 		this.domNode.classList.add('chat-plan-review-used');
 		this._buttonStore.clear();
+		// Unregister from the feedback service so the editor contribution
+		// hides/disables immediately, even if the plan file is still open.
+		this._planReviewRegistration.clear();
 		if (this._feedbackTextarea) {
 			this._feedbackTextarea.disabled = true;
 		}
diff --git a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatProgressContentPart.ts b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatProgressContentPart.ts
index dacfc4d1184..ac8bcdf076c 100644
--- a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatProgressContentPart.ts
+++ b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatProgressContentPart.ts
@@ -186,7 +186,8 @@ export class ChatWorkingProgressContentPart extends Disposable implements IChatC
 	) {
 		super();
 		this.explicitContent = workingProgress.content;
-		const persistentProgressEnabled = configurationService.getValue<boolean>(ChatConfiguration.ChatPersistentProgressEnabled) !== false;
+		const persistentProgressEnabled = configurationService.getValue<boolean>(ChatConfiguration.ChatPersistentProgressEnabled) !== false
+			&& configurationService.getValue<boolean>(ChatConfiguration.ProgressBorder) !== true;
 		if (persistentProgressEnabled) {
 			const pool = buildPhrasePool(defaultThinkingMessages, configurationService);
 			this.label = pool[Math.floor(Math.random() * pool.length)];
diff --git a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatQuestionCarouselPart.ts b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatQuestionCarouselPart.ts
index 588704e3c36..305eda8bcc9 100644
--- a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatQuestionCarouselPart.ts
+++ b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatQuestionCarouselPart.ts
@@ -687,13 +687,14 @@ export class ChatQuestionCarouselPart extends Disposable implements IChatContent
 			const title = dom.$('.chat-question-title');
 			const messageContent = this.getQuestionText(questionText);
 			title.setAttribute('aria-label', messageContent);
-			questionRenderStore.add(this._hoverService.setupDelayedHover(title, { content: messageContent }));
 
-			const titleText = question.required
-				? new MarkdownString(`${isMarkdownString(questionText) ? questionText.value : questionText} *`)
-				: (isMarkdownString(questionText) ? MarkdownString.lift(questionText) : new MarkdownString(questionText));
-			const renderedTitle = questionRenderStore.add(this._markdownRendererService.render(titleText));
-			title.appendChild(renderedTitle.element);
+			const rawValue = isMarkdownString(questionText) ? questionText.value : questionText;
+			const suffixed = question.required ? `${rawValue} *` : rawValue;
+			const md = isMarkdownString(questionText)
+				? MarkdownString.lift({ ...questionText, value: suffixed })
+				: new MarkdownString(suffixed);
+			const rendered = questionRenderStore.add(this._markdownRendererService.render(md));
+			title.appendChild(rendered.element);
 			titleRow.appendChild(title);
 		}
 
diff --git a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatSubagentContentPart.ts b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatSubagentContentPart.ts
index ea877c2f857..ed4aceae374 100644
--- a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatSubagentContentPart.ts
+++ b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatSubagentContentPart.ts
@@ -746,16 +746,23 @@ export class ChatSubagentContentPart extends ChatCollapsibleContentPart implemen
 					}
 					this.renderPromptSection();
 					this.updateTitle();
-				} else if (this._isDefaultDescription && toolInvocation.toolSpecificData?.kind === 'subagent') {
+				} else if (toolInvocation.toolSpecificData?.kind === 'subagent') {
 					// toolSpecificData was updated after initial render (e.g.
-					// subagent content arrived via SessionToolCallContentChanged).
+					// subagent content arrived via SessionToolCallContentChanged
+					// after the part was first constructed in PendingConfirmation).
 					// Re-read metadata and update the title if real values are
-					// now available.
+					// now available that we didn't have before.
 					const { description, isDefaultDescription, agentName } = ChatSubagentContentPart.extractSubagentInfo(toolInvocation);
-					if (!isDefaultDescription || agentName) {
-						this.description = description;
-						this._isDefaultDescription = isDefaultDescription;
-						this.agentName = agentName;
+					const descriptionChanged = this._isDefaultDescription && !isDefaultDescription;
+					const agentNameChanged = !!agentName && agentName !== this.agentName;
+					if (descriptionChanged || agentNameChanged) {
+						if (descriptionChanged) {
+							this.description = description;
+							this._isDefaultDescription = isDefaultDescription;
+						}
+						if (agentNameChanged) {
+							this.agentName = agentName;
+						}
 						this.updateTitle();
 					}
 				}
diff --git a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatThinkingContentPart.ts b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatThinkingContentPart.ts
index 048bcd76e1f..a4ac737f623 100644
--- a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatThinkingContentPart.ts
+++ b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatThinkingContentPart.ts
@@ -304,7 +304,8 @@ export class ChatThinkingContentPart extends ChatCollapsibleContentPart implemen
 		this.id = content.id;
 		this.content = content;
 		this.allThinkingParts.push(content);
-		this.showProgressDetails = this.configurationService.getValue<boolean>(ChatConfiguration.ChatPersistentProgressEnabled) !== false;
+		this.showProgressDetails = this.configurationService.getValue<boolean>(ChatConfiguration.ChatPersistentProgressEnabled) !== false
+			&& this.configurationService.getValue<boolean>(ChatConfiguration.ProgressBorder) !== true;
 		const configuredMode = this.configurationService.getValue<ThinkingDisplayMode>('chat.agent.thinkingStyle') ?? ThinkingDisplayMode.Collapsed;
 
 		this.fixedScrollingMode = configuredMode === ThinkingDisplayMode.FixedScrolling;
@@ -359,6 +360,9 @@ export class ChatThinkingContentPart extends ChatCollapsibleContentPart implemen
 
 		if (this.fixedScrollingMode) {
 			node.classList.add('chat-thinking-fixed-mode');
+			if (!this.streamingCompleted && !this.element.isComplete && this.showProgressDetails) {
+				node.classList.add('chat-thinking-persistent-streaming');
+			}
 			this.currentTitle = this.defaultTitle;
 		}
 
@@ -946,6 +950,7 @@ export class ChatThinkingContentPart extends ChatCollapsibleContentPart implemen
 			this.wrapper.classList.remove('chat-thinking-streaming');
 		}
 		this.domNode.classList.remove('chat-thinking-active');
+		this.domNode.classList.remove('chat-thinking-persistent-streaming');
 		this.domNode.classList.remove('chat-thinking-fade-top', 'chat-thinking-fade-bottom');
 		this.streamingCompleted = true;
 
@@ -1352,6 +1357,7 @@ ${this.hookCount > 0 ? `EXAMPLES WITH BLOCKED CONTENT (from hooks):
 			this.wrapper.classList.remove('chat-thinking-streaming');
 		}
 		this.domNode.classList.remove('chat-thinking-active');
+		this.domNode.classList.remove('chat-thinking-persistent-streaming');
 		this.streamingCompleted = true;
 
 		if (this._collapseButton) {
diff --git a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatTodoListWidget.ts b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatTodoListWidget.ts
index 8f0f2c486bc..4badd750fb8 100644
--- a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatTodoListWidget.ts
+++ b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/chatTodoListWidget.ts
@@ -287,6 +287,7 @@ export class ChatTodoListWidget extends Disposable {
 
 		if (!shouldShow) {
 			this.domNode.classList.remove('has-todos');
+			this.hideWidget();
 			return;
 		}
 
diff --git a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/codeBlockPart.ts b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/codeBlockPart.ts
index 0022affa044..e7f303cfd9d 100644
--- a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/codeBlockPart.ts
+++ b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/codeBlockPart.ts
@@ -119,6 +119,7 @@ export interface ICodeBlockRenderOptions {
 }
 
 const defaultCodeblockPadding = 10;
+const defaultChatScrollbarSize = 7;
 export class CodeBlockPart extends Disposable {
 
 	/**
@@ -380,6 +381,15 @@ export class CodeBlockPart extends Disposable {
 	}
 
 	private getEditorOptionsFromConfig(): IEditorOptions {
+		const renderOptions = this.currentCodeBlockData?.renderOptions;
+		// When the code block is height-capped via `maxHeightInLines`, content can
+		// exceed the visible area. In that case the default hidden vertical
+		// scrollbar leaves users unable to reach the clipped content (see #283242).
+		// Enable a chat-sized visible scrollbar. Callers can still override
+		// via `renderOptions.editorOptions.scrollbar`.
+		const scrollbar: IEditorOptions['scrollbar'] | undefined = renderOptions?.maxHeightInLines
+			? { vertical: 'auto', verticalScrollbarSize: defaultChatScrollbarSize, ...renderOptions?.editorOptions?.scrollbar }
+			: undefined;
 		return {
 			wordWrap: this.editorOptions.configuration.resultEditor.wordWrap,
 			fontLigatures: this.editorOptions.configuration.resultEditor.fontLigatures,
@@ -390,7 +400,8 @@ export class CodeBlockPart extends Disposable {
 			fontSize: this.editorOptions.configuration.resultEditor.fontSize,
 			fontWeight: this.editorOptions.configuration.resultEditor.fontWeight,
 			lineHeight: this.editorOptions.configuration.resultEditor.lineHeight,
-			...this.currentCodeBlockData?.renderOptions?.editorOptions,
+			...renderOptions?.editorOptions,
+			...(scrollbar ? { scrollbar } : {}),
 		};
 	}
 
diff --git a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/media/chatPlanReview.css b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/media/chatPlanReview.css
index ed4307e8dc1..aaf8596568a 100644
--- a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/media/chatPlanReview.css
+++ b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/media/chatPlanReview.css
@@ -234,6 +234,11 @@
 	width: auto;
 }
 
+/* ---------- Hidden helper ---------- */
+.interactive-session .chat-plan-review-container .monaco-button.chat-plan-review-hidden {
+	display: none;
+}
+
 /* ---------- Collapsed state ---------- */
 .interactive-session .chat-plan-review-container.chat-plan-review-collapsed > .chat-confirmation-widget2.chat-plan-review > .chat-confirmation-widget-message-scrollable,
 .interactive-session .chat-plan-review-container.chat-plan-review-collapsed > .chat-confirmation-widget2.chat-plan-review > .chat-plan-review-feedback,
diff --git a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/media/chatThinkingContent.css b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/media/chatThinkingContent.css
index 150b0c63886..0fe0b4f3d4b 100644
--- a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/media/chatThinkingContent.css
+++ b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/media/chatThinkingContent.css
@@ -375,6 +375,10 @@
 		display: none;
 	}
 
+	&.chat-thinking-persistent-streaming {
+		margin-bottom: 3px;
+	}
+
 	> .monaco-scrollable-element > .shadow {
 		display: none;
 	}
diff --git a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/media/chatToolConfirmationCarousel.css b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/media/chatToolConfirmationCarousel.css
index 06b92371129..85d1b456c81 100644
--- a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/media/chatToolConfirmationCarousel.css
+++ b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/media/chatToolConfirmationCarousel.css
@@ -29,7 +29,16 @@
 	background-color: var(--vscode-panel-background);
 	overflow: hidden;
 
-	&:focus:not(:focus-visible) {
+	&:focus {
+		outline: none !important;
+	}
+
+	&:focus-visible,
+	&:focus-within {
+		border-color: var(--vscode-focusBorder);
+	}
+
+	.chat-tool-carousel-content .chat-confirmation-widget-container:focus {
 		outline: none;
 	}
 
@@ -93,8 +102,27 @@
 		margin-left: auto;
 	}
 
-	button:focus:not(:focus-visible),
-	.monaco-button:focus:not(:focus-visible) {
+	.monaco-button.chat-tool-carousel-dismiss-button {
+		min-width: 22px;
+		width: 22px;
+		height: 22px;
+		padding: 0;
+		border: none !important;
+		box-shadow: none !important;
+		background: transparent !important;
+		color: var(--vscode-icon-foreground) !important;
+		cursor: pointer;
+		display: flex;
+		align-items: center;
+		justify-content: center;
+	}
+
+	.monaco-button.chat-tool-carousel-dismiss-button:hover {
+		background: var(--vscode-toolbar-hoverBackground) !important;
+	}
+
+	button:focus,
+	.monaco-button:focus {
 		outline: none !important;
 		box-shadow: none !important;
 	}
@@ -123,47 +151,8 @@
 		opacity: 0.4;
 	}
 
-	.monaco-button.chat-tool-carousel-header-button {
-		min-width: 22px;
-		width: 22px;
-		height: 22px;
-		padding: 0;
-		border: none !important;
-		box-shadow: none !important;
-		background: transparent !important;
-		color: var(--vscode-icon-foreground) !important;
-		cursor: pointer;
-		display: flex;
-		align-items: center;
-		justify-content: center;
-	}
-
-	.monaco-button.chat-tool-carousel-header-button:hover:not(.disabled) {
-		background: var(--vscode-toolbar-hoverBackground) !important;
-	}
-
-	&.chat-tool-carousel-content-expanded {
-		max-height: min(650px, 70vh);
-	}
-
-	&.chat-tool-carousel-collapsed {
-		.chat-tool-carousel-content {
-			display: none;
-		}
-
-		.chat-tool-carousel-overlay {
-			padding: 6px 10px 6px 12px;
-			border-bottom: none;
-		}
-
-		.chat-tool-carousel-title-group {
-			flex: 1;
-		}
-
-		.chat-tool-carousel-nav-arrows,
-		.chat-tool-carousel-step-indicator {
-			display: none;
-		}
+	.monaco-list:focus {
+		outline: none !important;
 	}
 
 	.chat-tool-carousel-content {
@@ -230,12 +219,6 @@
 			background-color: var(--vscode-sideBar-background);
 		}
 
-		.chat-tool-carousel-content-expanded & {
-			.chat-confirmation-widget-message {
-				max-height: min(500px, 55vh);
-			}
-		}
-
 		.chat-buttons-container {
 			flex-shrink: 0;
 		}
diff --git a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/toolInvocationParts/chatToolConfirmationCarouselPart.ts b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/toolInvocationParts/chatToolConfirmationCarouselPart.ts
index 99e754139a8..72251af8125 100644
--- a/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/toolInvocationParts/chatToolConfirmationCarouselPart.ts
+++ b/src/vs/workbench/contrib/chat/browser/widget/chatContentParts/toolInvocationParts/chatToolConfirmationCarouselPart.ts
@@ -12,7 +12,6 @@ import { IMarkdownString } from '../../../../../../../base/common/htmlContent.js
 import { KeyCode } from '../../../../../../../base/common/keyCodes.js';
 import { Disposable, DisposableStore, MutableDisposable, toDisposable } from '../../../../../../../base/common/lifecycle.js';
 import { autorun } from '../../../../../../../base/common/observable.js';
-import { generateUuid } from '../../../../../../../base/common/uuid.js';
 import { localize } from '../../../../../../../nls.js';
 import { defaultButtonStyles } from '../../../../../../../platform/theme/browser/defaultStyles.js';
 import { IChatToolInvocation, ToolConfirmKind } from '../../../../common/chatService/chatService.js';
@@ -20,10 +19,7 @@ import { ChatToolInvocationPart } from './chatToolInvocationPart.js';
 import '../media/chatToolConfirmationCarousel.css';
 
 const COLLAPSED_CAROUSEL_MAX_HEIGHT = 300;
-const COLLAPSED_MESSAGE_MAX_HEIGHT = 200;
-const COLLAPSED_CODE_BLOCK_MAX_HEIGHT = 150;
 const MIN_CAROUSEL_MAX_HEIGHT = 80;
-const EXPANDABLE_CONTENT_SELECTOR = '.interactive-result-editor, .chat-markdown-part.rendered-markdown';
 
 export type ToolInvocationPartFactory = (tool: IChatToolInvocation) => ChatToolInvocationPart;
 
@@ -57,14 +53,8 @@ export class ChatToolConfirmationCarouselPart extends Disposable {
 	private readonly prevButton: Button;
 	private readonly nextButton: Button;
 	private readonly allowAllButton: Button;
-	private readonly expandContentButton: Button;
-	private readonly collapseButton: Button;
+	private readonly dismissButton: Button;
 	private readonly activeContentDisposables: DisposableStore;
-	private readonly contentResizeObserver: dom.DisposableResizeObserver;
-	private readonly updateContentExpansionStateScheduler: dom.AnimationFrameScheduler;
-	private _isCollapsed = false;
-	private _isContentExpanded = false;
-	private canExpandContent = false;
 	private maxHeight: number | undefined;
 
 	constructor(
@@ -97,32 +87,23 @@ export class ChatToolConfirmationCarouselPart extends Disposable {
 		this.collapsedTitle = elements.collapsedTitle;
 		this.agentLabel = elements.agentLabel;
 		this.contentContainer = elements.content;
-		this.contentContainer.id = generateUuid();
 		this.stepIndicator = elements.stepIndicator;
 		this.activeContentDisposables = this._register(new DisposableStore());
-		this.updateContentExpansionStateScheduler = this._register(new dom.AnimationFrameScheduler(this.domNode, () => this.updateContentExpansionState()));
-		this.contentResizeObserver = this._register(new dom.DisposableResizeObserver(() => this.updateContentExpansionStateScheduler.schedule()));
-		this._register(this.contentResizeObserver.observe(this.contentContainer));
 
 		this.allowAllButton = this._register(new Button(elements.overlayActions, { ...defaultButtonStyles, small: true }));
 		this.allowAllButton.element.classList.add('chat-tool-carousel-allow-all-button');
 		this.allowAllButton.label = localize('allowAll', "Allow All");
 		this._register(this.allowAllButton.onDidClick(() => this.allowAll()));
 
-		this.expandContentButton = this._register(new Button(elements.overlayActions, { ...defaultButtonStyles, secondary: true, supportIcons: true }));
-		this.expandContentButton.element.classList.add('chat-tool-carousel-header-button', 'chat-tool-carousel-expand-content-button');
-		this.expandContentButton.element.setAttribute('aria-controls', this.contentContainer.id);
-		this.updateExpandContentButton();
-		dom.hide(this.expandContentButton.element);
-		this._register(this.expandContentButton.onDidClick(() => this.toggleContentExpanded()));
-
-		this.collapseButton = this._register(new Button(elements.overlayActions, { ...defaultButtonStyles, secondary: true, supportIcons: true }));
-		this.collapseButton.element.classList.add('chat-tool-carousel-header-button');
-		this.collapseButton.label = `$(${Codicon.chevronDown.id})`;
-		this.collapseButton.element.setAttribute('aria-label', localize('collapse', "Collapse"));
-		this.collapseButton.element.setAttribute('aria-controls', this.contentContainer.id);
-		this.collapseButton.element.setAttribute('aria-expanded', 'true');
-		this._register(this.collapseButton.onDidClick(() => this.toggleCollapse()));
+		this.dismissButton = this._register(new Button(elements.overlayActions, { ...defaultButtonStyles, secondary: true, supportIcons: true }));
+		this.dismissButton.element.classList.add('chat-tool-carousel-dismiss-button');
+		this.dismissButton.label = `$(${Codicon.close.id})`;
+		const dismissButtonLabel = this.items.length === 1
+			? localize('skip', "Skip")
+			: localize('skipAll', "Skip All");
+		this.dismissButton.element.setAttribute('aria-label', dismissButtonLabel);
+		this.dismissButton.element.title = dismissButtonLabel;
+		this._register(this.dismissButton.onDidClick(() => this.skipAll()));
 
 		this.prevButton = this._register(new Button(elements.navArrows, {
 			...defaultButtonStyles,
@@ -162,7 +143,7 @@ export class ChatToolConfirmationCarouselPart extends Disposable {
 
 	setMaxHeight(maxHeight: number | undefined): void {
 		this.maxHeight = maxHeight;
-		this.updateContentExpansionState();
+		this.updateMaxHeightStyle();
 	}
 
 	hasToolInvocation(toolCallId: string): boolean {
@@ -357,43 +338,11 @@ export class ChatToolConfirmationCarouselPart extends Disposable {
 		this.domNode.focus();
 	}
 
-	private toggleCollapse(): void {
-		this._isCollapsed = !this._isCollapsed;
-		this.domNode.classList.toggle('chat-tool-carousel-collapsed', this._isCollapsed);
-		this.collapseButton.label = this._isCollapsed
-			? `$(${Codicon.chevronUp.id})`
-			: `$(${Codicon.chevronDown.id})`;
-		this.collapseButton.element.setAttribute('aria-label',
-			this._isCollapsed ? localize('expand', "Expand") : localize('collapse', "Collapse")
-		);
-		this.collapseButton.element.setAttribute('aria-expanded', String(!this._isCollapsed));
-		if (this._isCollapsed) {
-			this._isContentExpanded = false;
-		}
-		this.updateUI();
-		this.updateContentExpansionState();
-	}
-
-	private toggleContentExpanded(): void {
-		if (!this.canExpandContent) {
-			return;
-		}
-
-		this._isContentExpanded = !this._isContentExpanded;
-		this.updateContentExpansionState();
-	}
-
 	private updateUI(): void {
 		const item = this.items[this.activeIndex];
 
-		if (this._isCollapsed) {
-			this.collapsedTitle.textContent = this.items.length === 1
-				? localize('confirmTool', "Confirm tool?")
-				: localize('confirmTools', "Confirm {0} tools?", this.items.length);
-		} else {
-			this.collapsedTitle.textContent = this.getToolTitle(item) ?? '';
-		}
-		dom.setVisibility(this._isCollapsed || !!this.collapsedTitle.textContent, this.collapsedTitle);
+		this.collapsedTitle.textContent = this.getToolTitle(item) ?? '';
+		dom.setVisibility(!!this.collapsedTitle.textContent, this.collapsedTitle);
 
 		if (item?.agentName) {
 			this.agentLabel.textContent = `\u2014 ${item.agentName}`;
@@ -416,24 +365,19 @@ export class ChatToolConfirmationCarouselPart extends Disposable {
 		dom.setVisibility(multi, this.stepIndicator);
 		dom.setVisibility(multi, this.prevButton.element);
 		dom.setVisibility(multi, this.nextButton.element);
-		dom.setVisibility(this._isCollapsed || multi, this.allowAllButton.element);
-		dom.setVisibility(!this._isCollapsed && this.canExpandContent, this.expandContentButton.element);
+		dom.setVisibility(multi, this.allowAllButton.element);
 
 		this.allowAllButton.label = multi
 			? localize('allowAll', "Allow All")
 			: localize('allow', "Allow");
-		this.updateExpandContentButton();
 	}
 
 	private renderActiveContent(): void {
 		dom.clearNode(this.contentContainer);
 		this.activeContentDisposables.clear();
-		this._isContentExpanded = false;
-		this.canExpandContent = false;
 
 		const item = this.items[this.activeIndex];
 		if (!item) {
-			this.updateContentExpansionState();
 			return;
 		}
 
@@ -445,21 +389,6 @@ export class ChatToolConfirmationCarouselPart extends Disposable {
 		}
 
 		this.contentContainer.appendChild(item.toolPart.domNode);
-		this.activeContentDisposables.add(this.contentResizeObserver.observe(item.toolPart.domNode));
-		this.observeExpandableContentElements(item.toolPart.domNode);
-		this.updateContentExpansionStateScheduler.schedule();
-	}
-
-	private updateContentExpansionState(): void {
-		this.canExpandContent = !this._isCollapsed && this.items.length > 0 && this.isActiveContentLargerThanCollapsedLimit();
-		if (!this.canExpandContent) {
-			this._isContentExpanded = false;
-		}
-
-		this.domNode.classList.toggle('chat-tool-carousel-content-expanded', this.canExpandContent && this._isContentExpanded);
-		this.updateMaxHeightStyle();
-		dom.setVisibility(!this._isCollapsed && this.canExpandContent, this.expandContentButton.element);
-		this.updateExpandContentButton();
 	}
 
 	private updateMaxHeightStyle(): void {
@@ -468,80 +397,10 @@ export class ChatToolConfirmationCarouselPart extends Disposable {
 			return;
 		}
 
-		const expanded = this.canExpandContent && this._isContentExpanded;
-		const maxHeight = expanded ? Math.max(MIN_CAROUSEL_MAX_HEIGHT, this.maxHeight) : this.getCollapsedMaxHeight();
+		const maxHeight = this.getCollapsedMaxHeight();
 		this.domNode.style.maxHeight = `${Math.floor(maxHeight)}px`;
 	}
 
-	private updateExpandContentButton(): void {
-		const expanded = this.canExpandContent && this._isContentExpanded;
-		const label = expanded
-			? localize('restoreConfirmationSize', "Restore Confirmation Size")
-			: localize('expandConfirmationUp', "Expand Confirmation Up");
-		this.expandContentButton.label = expanded
-			? `$(${Codicon.screenNormal.id})`
-			: `$(${Codicon.screenFull.id})`;
-		this.expandContentButton.element.setAttribute('aria-label', label);
-		this.expandContentButton.element.setAttribute('aria-expanded', String(expanded));
-		this.expandContentButton.setTitle(label);
-	}
-
-	private isActiveContentLargerThanCollapsedLimit(): boolean {
-		const activeContent = this.contentContainer.firstElementChild;
-		if (!dom.isHTMLElement(activeContent)) {
-			return false;
-		}
-
-		return this.hasInnerContentLargerThanCollapsedLimit(activeContent);
-	}
-
-	private hasInnerContentLargerThanCollapsedLimit(element: HTMLElement): boolean {
-		if (this.isExpandableContentElement(element) && this.getElementHeight(element) > this.getExpandableContentHeightLimit(element) + 1) {
-			return true;
-		}
-
-		for (const child of element.children) {
-			if (!dom.isHTMLElement(child)) {
-				continue;
-			}
-
-			if (this.hasInnerContentLargerThanCollapsedLimit(child)) {
-				return true;
-			}
-		}
-
-		return false;
-	}
-
-	private isExpandableContentElement(element: HTMLElement): boolean {
-		return element.matches(EXPANDABLE_CONTENT_SELECTOR);
-	}
-
-	private observeExpandableContentElements(element: HTMLElement): void {
-		if (this.isExpandableContentElement(element)) {
-			this.activeContentDisposables.add(this.contentResizeObserver.observe(element));
-		}
-
-		for (const child of element.children) {
-			if (dom.isHTMLElement(child)) {
-				this.observeExpandableContentElements(child);
-			}
-		}
-	}
-
-	private getElementHeight(element: HTMLElement): number {
-		return Math.max(element.offsetHeight, element.scrollHeight);
-	}
-
-	private getExpandableContentHeightLimit(element: HTMLElement): number {
-		const window = dom.getWindow(this.domNode);
-		if (element.classList.contains('interactive-result-editor')) {
-			return Math.min(COLLAPSED_CODE_BLOCK_MAX_HEIGHT, window.innerHeight * 0.25);
-		}
-
-		return Math.min(COLLAPSED_MESSAGE_MAX_HEIGHT, window.innerHeight * 0.3);
-	}
-
 	private getCollapsedMaxHeight(): number {
 		const configuredMaxHeight = this.maxHeight === undefined ? Number.POSITIVE_INFINITY : Math.max(MIN_CAROUSEL_MAX_HEIGHT, this.maxHeight);
 		return Math.min(configuredMaxHeight, COLLAPSED_CAROUSEL_MAX_HEIGHT, dom.getWindow(this.domNode).innerHeight * 0.45);
@@ -553,6 +412,12 @@ export class ChatToolConfirmationCarouselPart extends Disposable {
 		}
 	}
 
+	private skipAll(): void {
+		for (const item of [...this.items]) {
+			IChatToolInvocation.confirmWith(item.tool, { type: ToolConfirmKind.Skipped });
+		}
+	}
+
 	private getToolTitle(item: ICarouselToolItem | undefined): string | undefined {
 		if (!item) {
 			return undefined;
diff --git a/src/vs/workbench/contrib/chat/browser/widget/chatListRenderer.ts b/src/vs/workbench/contrib/chat/browser/widget/chatListRenderer.ts
index b9d1f1d95a3..4a1c20895e2 100644
--- a/src/vs/workbench/contrib/chat/browser/widget/chatListRenderer.ts
+++ b/src/vs/workbench/contrib/chat/browser/widget/chatListRenderer.ts
@@ -1061,7 +1061,8 @@ export class ChatListItemRenderer extends Disposable implements ITreeRenderer<Ch
 			return undefined;
 		}
 
-		const showProgressDetails = this.configService.getValue<boolean>(ChatConfiguration.ChatPersistentProgressEnabled) !== false;
+		const showProgressDetails = this.configService.getValue<boolean>(ChatConfiguration.ChatPersistentProgressEnabled) !== false
+			&& this.configService.getValue<boolean>(ChatConfiguration.ProgressBorder) !== true;
 		if (element.isComplete) {
 			return undefined;
 		}
@@ -1227,7 +1228,7 @@ export class ChatListItemRenderer extends Disposable implements ITreeRenderer<Ch
 			return;
 		}
 
-		if (element.isComplete && this.configService.getValue<boolean>(ChatConfiguration.ChatPersistentProgressEnabled) !== false) {
+		if (element.isComplete && this.configService.getValue<boolean>(ChatConfiguration.ChatPersistentProgressEnabled) !== false && this.configService.getValue<boolean>(ChatConfiguration.ProgressBorder) !== true) {
 			return;
 		}
 
diff --git a/src/vs/workbench/contrib/chat/browser/widget/chatWidget.ts b/src/vs/workbench/contrib/chat/browser/widget/chatWidget.ts
index 719d50a08e8..ea235a6c136 100644
--- a/src/vs/workbench/contrib/chat/browser/widget/chatWidget.ts
+++ b/src/vs/workbench/contrib/chat/browser/widget/chatWidget.ts
@@ -465,6 +465,9 @@ export class ChatWidget extends Disposable implements IChatWidget {
 					this.updateChatViewVisibility();
 				}
 			}
+			if (e.affectsConfiguration(ChatConfiguration.ProgressBorder)) {
+				this.updateWorkingProgressBorder();
+			}
 		}));
 
 		this._register(bindContextKey(decidedChatEditingResourceContextKey, contextKeyService, (reader) => {
@@ -656,6 +659,20 @@ export class ChatWidget extends Disposable implements IChatWidget {
 		return this.inlineInputPartDisposable.value!;
 	}
 
+	private updateWorkingProgressBorder(): void {
+		const inputPart = this.inputPartDisposable.value;
+		if (!inputPart) {
+			return;
+		}
+		const inputContainer = inputPart.inputContainerElement;
+		if (!inputContainer) {
+			return;
+		}
+		const enabled = this.configurationService.getValue<boolean>(ChatConfiguration.ProgressBorder) === true;
+		const inProgress = !!this.viewModel?.model.requestInProgress.get();
+		inputContainer.classList.toggle('working', enabled && inProgress);
+	}
+
 	get inputEditor(): ICodeEditor {
 		return this.input.inputEditor;
 	}
@@ -1973,10 +1990,14 @@ export class ChatWidget extends Disposable implements IChatWidget {
 		}
 
 		if (!model) {
+			// Flush any unsent draft to the outgoing input model before we drop our
+			// reference to it, so the host's `willDisposeModel` persistence sees it.
+			this.inputPart.flushInputStateToModel();
 			if (this.viewModel?.editing) {
 				this.finishedEditing();
 			}
 			this.viewModel = undefined;
+			this.updateWorkingProgressBorder();
 			this.onDidChangeItems();
 			this._hasPendingRequestsContextKey.set(false);
 			return;
@@ -2032,6 +2053,7 @@ export class ChatWidget extends Disposable implements IChatWidget {
 
 			this.requestInProgress.set(this.viewModel.model.requestInProgress.get());
 			this.hasActiveRequest.set(this.viewModel.model.hasActiveRequest.get());
+			this.updateWorkingProgressBorder();
 
 			// Update the editor's placeholder text when it changes in the view model
 			if (events?.some(e => e?.kind === 'changePlaceholder')) {
@@ -2050,6 +2072,7 @@ export class ChatWidget extends Disposable implements IChatWidget {
 			}
 			// Disposes the viewmodel and listeners
 			this.viewModel = undefined;
+			this.updateWorkingProgressBorder();
 			this.onDidChangeItems();
 		}));
 		this._sessionIsEmptyContextKey.set(model.getRequests().length === 0);
diff --git a/src/vs/workbench/contrib/chat/browser/widget/input/chatInputPart.ts b/src/vs/workbench/contrib/chat/browser/widget/input/chatInputPart.ts
index a6c9c0e5f58..7ece11c1e33 100644
--- a/src/vs/workbench/contrib/chat/browser/widget/input/chatInputPart.ts
+++ b/src/vs/workbench/contrib/chat/browser/widget/input/chatInputPart.ts
@@ -1076,6 +1076,17 @@ export class ChatInputPart extends Disposable implements IHistoryNavigationWidge
 		queueMicrotask(() => this.inputActionsToolbar?.relayout());
 	}
 
+	/**
+	 * Flush the current input state to the bound input model. Use this before
+	 * the host releases its model reference (e.g. on session switch) to ensure
+	 * an unsent draft is captured by `willDisposeModel` persistence.
+	 */
+	public flushInputStateToModel(): void {
+		if (this._inputModel) {
+			this._syncInputStateToModel();
+		}
+	}
+
 	public setCurrentLanguageModel(model: ILanguageModelChatMetadataAndIdentifier) {
 		this._currentLanguageModel.set(model, undefined);
 
@@ -1981,6 +1992,19 @@ export class ChatInputPart extends Disposable implements IHistoryNavigationWidge
 				this.clearQuestionCarousel();
 			}
 
+			let hasMatchingPlanReviewResource = false;
+			if (e.currentSessionResource) {
+				for (const r of this._planReviewSessionResources.values()) {
+					if (isEqual(r, e.currentSessionResource)) {
+						hasMatchingPlanReviewResource = true;
+						break;
+					}
+				}
+			}
+			if (this._planReviewSessionResources.size > 0 && (!e.currentSessionResource || !hasMatchingPlanReviewResource)) {
+				this.clearPlanReview();
+			}
+
 			// Swap the visible tool confirmation carousel for the new session
 			this._syncToolConfirmationCarouselForSession();
 
diff --git a/src/vs/workbench/contrib/chat/browser/widget/input/chatModelPicker.ts b/src/vs/workbench/contrib/chat/browser/widget/input/chatModelPicker.ts
index 57746946457..8ca3c47be60 100644
--- a/src/vs/workbench/contrib/chat/browser/widget/input/chatModelPicker.ts
+++ b/src/vs/workbench/contrib/chat/browser/widget/input/chatModelPicker.ts
@@ -616,8 +616,8 @@ export class ModelPickerWidget extends Disposable {
 
 		this._renderLabel();
 
-		// Open picker on click
-		this._register(dom.addDisposableListener(this._domNode, dom.EventType.MOUSE_DOWN, (e) => {
+		// Open picker on click (uses pointerdown on iOS where mousedown is unreliable)
+		this._register(dom.addDisposableGenericMouseDownListener(this._domNode, e => {
 			if (e.button !== 0) {
 				return; // only left click
 			}
diff --git a/src/vs/workbench/contrib/chat/browser/widget/input/chatQueuePickerActionItem.ts b/src/vs/workbench/contrib/chat/browser/widget/input/chatQueuePickerActionItem.ts
index d9beb3af8bb..52f140bfee0 100644
--- a/src/vs/workbench/contrib/chat/browser/widget/input/chatQueuePickerActionItem.ts
+++ b/src/vs/workbench/contrib/chat/browser/widget/input/chatQueuePickerActionItem.ts
@@ -50,8 +50,8 @@ export class ChatQueuePickerActionItem extends BaseActionViewItem {
 		@ICommandService private readonly commandService: ICommandService,
 		@IConfigurationService private readonly configurationService: IConfigurationService,
 		@IActionWidgetService actionWidgetService: IActionWidgetService,
-		@IKeybindingService keybindingService: IKeybindingService,
-		@IContextKeyService contextKeyService: IContextKeyService,
+		@IKeybindingService private readonly keybindingService: IKeybindingService,
+		@IContextKeyService private readonly contextKeyService: IContextKeyService,
 		@ITelemetryService telemetryService: ITelemetryService,
 	) {
 		super(undefined, action);
@@ -63,13 +63,13 @@ export class ChatQueuePickerActionItem extends BaseActionViewItem {
 			'chat.queuePickerPrimary',
 			isSteerDefault ? localize('chat.steerWithMessage', "Steer with Message") : localize('chat.queueMessage', "Add to Queue"),
 			ThemeIcon.asClassName(isSteerDefault ? Codicon.arrowUp : Codicon.add),
-			!!contextKeyService.getContextKeyValue(ChatContextKeys.inputHasText.key),
+			!!this.contextKeyService.getContextKeyValue(ChatContextKeys.inputHasText.key),
 			() => this._runDefaultAction()
 		));
 		this._primaryAction = this._register(new ActionViewItem(undefined, this._primaryActionAction, { icon: true, label: false }));
 
-		this._register(contextKeyService.onDidChangeContext(e => {
-			this._primaryActionAction.enabled = !!contextKeyService.getContextKeyValue(ChatContextKeys.inputHasText.key);
+		this._register(this.contextKeyService.onDidChangeContext(e => {
+			this._primaryActionAction.enabled = !!this.contextKeyService.getContextKeyValue(ChatContextKeys.inputHasText.key);
 		}));
 
 		// Dropdown - action widget with hover descriptions and chevron-down icon
@@ -81,8 +81,8 @@ export class ChatQueuePickerActionItem extends BaseActionViewItem {
 				showItemKeybindings: true,
 			},
 			actionWidgetService,
-			keybindingService,
-			contextKeyService,
+			this.keybindingService,
+			this.contextKeyService,
 			telemetryService,
 		));
 
@@ -176,6 +176,24 @@ export class ChatQueuePickerActionItem extends BaseActionViewItem {
 	private _getDropdownActions(): IActionWidgetDropdownAction[] {
 		const isSteerDefault = this._isSteerDefault();
 
+		// Resolve display keybindings against an overlay context that simulates the chat input
+		// being focused with a request in progress. The injected `contextKeyService` may be the
+		// chat widget's outer scope (which has `requestInProgress` but lacks `inChatInput`) or
+		// even the global scope; either way, the queue/steer keybindings' `when` clauses would
+		// not match and the resolver would fall back to the last-registered binding for each
+		// command, producing labels that contradict actual behavior. Overlaying the scope keys
+		// the bindings expect ensures we look up the binding that would actually fire.
+		// Other context keys (e.g. `editingRequestType`, `config.chat.requestQueuing.defaultAction`)
+		// are read from the parent context, so user customizations and scoped overrides like
+		// editing a queued/steer request are still respected.
+		const lookupContext = this.contextKeyService.createOverlay([
+			[ChatContextKeys.inputHasText.key, true],
+			[ChatContextKeys.inChatInput.key, true],
+			[ChatContextKeys.requestInProgress.key, true],
+		]);
+		const queueKeybinding = this.keybindingService.lookupKeybinding(ChatQueueMessageAction.ID, lookupContext, true);
+		const steerKeybinding = this.keybindingService.lookupKeybinding(ChatSteerWithMessageAction.ID, lookupContext, true);
+
 		const queueAction: IActionWidgetDropdownAction = {
 			id: ChatQueueMessageAction.ID,
 			label: localize('chat.queueMessage', "Add to Queue"),
@@ -184,6 +202,7 @@ export class ChatQueuePickerActionItem extends BaseActionViewItem {
 			checked: !isSteerDefault,
 			icon: Codicon.add,
 			class: undefined,
+			keybinding: queueKeybinding,
 			hover: {
 				content: localize('chat.queueMessage.hover', "Queue this message to send after the current request completes. The current response will finish uninterrupted before the queued message is sent."),
 			},
@@ -200,6 +219,7 @@ export class ChatQueuePickerActionItem extends BaseActionViewItem {
 			checked: isSteerDefault,
 			icon: Codicon.arrowUp,
 			class: undefined,
+			keybinding: steerKeybinding,
 			hover: {
 				content: localize('chat.steerWithMessage.hover', "Send this message at the next opportunity, signaling the current request to yield. The current response will stop and the new message will be sent immediately."),
 			},
diff --git a/src/vs/workbench/contrib/chat/browser/widget/input/permissionPickerActionItem.ts b/src/vs/workbench/contrib/chat/browser/widget/input/permissionPickerActionItem.ts
index 201d43b78d5..e5dd82824fa 100644
--- a/src/vs/workbench/contrib/chat/browser/widget/input/permissionPickerActionItem.ts
+++ b/src/vs/workbench/contrib/chat/browser/widget/input/permissionPickerActionItem.ts
@@ -24,17 +24,29 @@ import { MarkdownString } from '../../../../../../base/common/htmlContent.js';
 import { ChatInputPickerActionViewItem, IChatInputPickerOptions } from './chatInputPickerActionItem.js';
 import { IOpenerService } from '../../../../../../platform/opener/common/opener.js';
 import { URI } from '../../../../../../base/common/uri.js';
+import { IStorageService, StorageScope, StorageTarget } from '../../../../../../platform/storage/common/storage.js';
 
 // Track whether warnings have been shown this VS Code session
 const shownWarnings = new Set<ChatPermissionLevel>();
 
-function hasShownElevatedWarning(level: ChatPermissionLevel): boolean {
+import { AUTOPILOT_DONT_SHOW_AGAIN_KEY, AUTO_APPROVE_DONT_SHOW_AGAIN_KEY } from '../../../common/chatPermissionStorageKeys.js';
+
+function dontShowAgainKey(level: ChatPermissionLevel): string | undefined {
+	if (level === ChatPermissionLevel.Autopilot) {
+		return AUTOPILOT_DONT_SHOW_AGAIN_KEY;
+	}
+	if (level === ChatPermissionLevel.AutoApprove) {
+		return AUTO_APPROVE_DONT_SHOW_AGAIN_KEY;
+	}
+	return undefined;
+}
+
+function hasShownElevatedWarning(level: ChatPermissionLevel, storageService: IStorageService): boolean {
 	if (shownWarnings.has(level)) {
 		return true;
 	}
-	// Autopilot is stricter than AutoApprove, so confirming Autopilot
-	// implies the user already accepted the AutoApprove risks.
-	if (level === ChatPermissionLevel.AutoApprove && shownWarnings.has(ChatPermissionLevel.Autopilot)) {
+	const key = dontShowAgainKey(level);
+	if (key && storageService.getBoolean(key, StorageScope.PROFILE, false)) {
 		return true;
 	}
 	return false;
@@ -57,6 +69,7 @@ export class PermissionPickerActionItem extends ChatInputPickerActionViewItem {
 		@IConfigurationService configurationService: IConfigurationService,
 		@IDialogService private readonly dialogService: IDialogService,
 		@IOpenerService openerService: IOpenerService,
+		@IStorageService storageService: IStorageService,
 	) {
 		const isAutoApprovePolicyRestricted = () => configurationService.inspect<boolean>(ChatConfiguration.GlobalAutoApprove).policyValue === false;
 		const isAutopilotEnabled = () => configurationService.getValue<boolean>(ChatConfiguration.AutopilotEnabled) !== false;
@@ -98,7 +111,7 @@ export class PermissionPickerActionItem extends ChatInputPickerActionViewItem {
 								: localize('permissions.autoApprove.description', "Auto-approve all tool calls and retry on errors"),
 						},
 						run: async () => {
-							if (!hasShownElevatedWarning(ChatPermissionLevel.AutoApprove)) {
+							if (!hasShownElevatedWarning(ChatPermissionLevel.AutoApprove, storageService)) {
 								const result = await this.dialogService.prompt({
 									type: Severity.Warning,
 									message: localize('permissions.autoApprove.warning.title', "Enable Bypass Approvals?"),
@@ -112,16 +125,26 @@ export class PermissionPickerActionItem extends ChatInputPickerActionViewItem {
 											run: () => false
 										},
 									],
+									checkbox: {
+										label: localize('permissions.warning.dontShowAgain', "Don't show again"),
+										checked: false,
+									},
 									custom: {
 										icon: Codicon.warning,
 										markdownDetails: [{
-											markdown: new MarkdownString(localize('permissions.autoApprove.warning.detail', "Bypass Approvals will auto-approve all tool calls without asking for confirmation. This includes file edits, terminal commands, and external tool calls.")),
+											markdown: new MarkdownString(
+												localize('permissions.autoApprove.warning.detail', "Bypass Approvals will auto-approve all tool calls without asking for confirmation. This includes file edits, terminal commands, and external tool calls.\n\nTo make this the starting permission level for new chat sessions, change the [{0}](command:workbench.action.openSettings?%5B%22{0}%22%5D) setting.", ChatConfiguration.DefaultPermissionLevel),
+												{ isTrusted: { enabledCommands: ['workbench.action.openSettings'] } },
+											),
 										}],
 									},
 								});
 								if (result.result !== true) {
 									return;
 								}
+								if (result.checkboxChecked) {
+									storageService.store(AUTO_APPROVE_DONT_SHOW_AGAIN_KEY, true, StorageScope.PROFILE, StorageTarget.USER);
+								}
 								shownWarnings.add(ChatPermissionLevel.AutoApprove);
 							}
 							delegate.setPermissionLevel(ChatPermissionLevel.AutoApprove);
@@ -147,7 +170,7 @@ export class PermissionPickerActionItem extends ChatInputPickerActionViewItem {
 								: localize('permissions.autopilot.description', "Auto-approve all tool calls and continue until the task is done"),
 						},
 						run: async () => {
-							if (!hasShownElevatedWarning(ChatPermissionLevel.Autopilot)) {
+							if (!hasShownElevatedWarning(ChatPermissionLevel.Autopilot, storageService)) {
 								const result = await this.dialogService.prompt({
 									type: Severity.Warning,
 									message: localize('permissions.autopilot.warning.title', "Enable Autopilot?"),
@@ -161,16 +184,26 @@ export class PermissionPickerActionItem extends ChatInputPickerActionViewItem {
 											run: () => false
 										},
 									],
+									checkbox: {
+										label: localize('permissions.warning.dontShowAgain', "Don't show again"),
+										checked: false,
+									},
 									custom: {
 										icon: Codicon.rocket,
 										markdownDetails: [{
-											markdown: new MarkdownString(localize('permissions.autopilot.warning.detail', "Autopilot will auto-approve all tool calls and continue working autonomously until the task is complete. This includes terminal commands, file edits, and external tool calls. The agent will make decisions on your behalf without asking for confirmation.\n\nYou can stop the agent at any time by clicking the stop button. This applies to the current session only.")),
+											markdown: new MarkdownString(
+												localize('permissions.autopilot.warning.detail', "Autopilot will auto-approve all tool calls and continue working autonomously until the task is complete. This includes terminal commands, file edits, and external tool calls. The agent will make decisions on your behalf without asking for confirmation.\n\nYou can stop the agent at any time by clicking the stop button. This applies to the current session only.\n\nTo make this the starting permission level for new chat sessions, change the [{0}](command:workbench.action.openSettings?%5B%22{0}%22%5D) setting.", ChatConfiguration.DefaultPermissionLevel),
+												{ isTrusted: { enabledCommands: ['workbench.action.openSettings'] } },
+											),
 										}],
 									},
 								});
 								if (result.result !== true) {
 									return;
 								}
+								if (result.checkboxChecked) {
+									storageService.store(AUTOPILOT_DONT_SHOW_AGAIN_KEY, true, StorageScope.PROFILE, StorageTarget.USER);
+								}
 								shownWarnings.add(ChatPermissionLevel.Autopilot);
 							}
 							delegate.setPermissionLevel(ChatPermissionLevel.Autopilot);
diff --git a/src/vs/workbench/contrib/chat/browser/widget/media/chat.css b/src/vs/workbench/contrib/chat/browser/widget/media/chat.css
index 4b777d2711c..0b419e07c82 100644
--- a/src/vs/workbench/contrib/chat/browser/widget/media/chat.css
+++ b/src/vs/workbench/contrib/chat/browser/widget/media/chat.css
@@ -861,6 +861,7 @@ have to be updated for changes to the rules above, or to support more deeply nes
 	/* top padding is inside the editor widget */
 	width: 100%;
 	position: relative;
+	transition: box-shadow 350ms ease;
 }
 
 /* Prevent contents from covering border corners. Not applied in compact mode
@@ -871,6 +872,104 @@ have to be updated for changes to the rules above, or to support more deeply nes
 	overflow: hidden;
 }
 
+/* Animated gradient border shown around the chat input while the agent is
+	working or thinking. Toggled by the `chat.progressBorder.enabled`
+	setting and the chat widget's request-in-progress state.
+
+	The ring is rendered as a `::before` pseudo-element so it can fade in
+	and out via `opacity` when the `.working` class is toggled, without
+	disturbing the input's own background. The pseudo uses a 1px padding
+	+ inverted mask trick to paint a hairline gradient ring that follows
+	the input's corner radius. The three color stops are themeable via
+	`chat.inputWorkingBorderColor1/2/3`. */
+@property --chat-input-anim-angle {
+	syntax: '<angle>';
+	inherits: false;
+	initial-value: 135deg;
+}
+
+@keyframes chat-input-working-border-spin {
+	from {
+		--chat-input-anim-angle: 135deg;
+	}
+
+	to {
+		--chat-input-anim-angle: 495deg;
+	}
+}
+
+/* Halo that cycles through the same three theme colors as the conic ring,
+	in sync with the 3s spin, so the glow appears to emanate from the
+	rotating gradient. */
+@keyframes chat-input-working-border-glow {
+	0% {
+		box-shadow:
+			0 0 10px 0 color-mix(in srgb, var(--vscode-chat-inputWorkingBorderColor1) 22%, transparent),
+			0 0 22px 2px color-mix(in srgb, var(--vscode-chat-inputWorkingBorderColor1) 10%, transparent);
+	}
+
+	33% {
+		box-shadow:
+			0 0 10px 0 color-mix(in srgb, var(--vscode-chat-inputWorkingBorderColor2) 22%, transparent),
+			0 0 22px 2px color-mix(in srgb, var(--vscode-chat-inputWorkingBorderColor2) 10%, transparent);
+	}
+
+	66% {
+		box-shadow:
+			0 0 10px 0 color-mix(in srgb, var(--vscode-chat-inputWorkingBorderColor3) 22%, transparent),
+			0 0 22px 2px color-mix(in srgb, var(--vscode-chat-inputWorkingBorderColor3) 10%, transparent);
+	}
+
+	100% {
+		box-shadow:
+			0 0 10px 0 color-mix(in srgb, var(--vscode-chat-inputWorkingBorderColor1) 22%, transparent),
+			0 0 22px 2px color-mix(in srgb, var(--vscode-chat-inputWorkingBorderColor1) 10%, transparent);
+	}
+}
+
+.monaco-workbench .interactive-session .chat-input-container::before {
+	content: '';
+	position: absolute;
+	inset: 0;
+	border-radius: inherit;
+	padding: 1px;
+	background: conic-gradient(from var(--chat-input-anim-angle),
+		var(--vscode-chat-inputWorkingBorderColor1),
+		var(--vscode-chat-inputWorkingBorderColor2),
+		var(--vscode-chat-inputWorkingBorderColor3),
+		var(--vscode-chat-inputWorkingBorderColor2),
+		var(--vscode-chat-inputWorkingBorderColor1));
+	-webkit-mask:
+		linear-gradient(#000 0 0) content-box,
+		linear-gradient(#000 0 0);
+	mask:
+		linear-gradient(#000 0 0) content-box,
+		linear-gradient(#000 0 0);
+	-webkit-mask-composite: xor;
+	mask-composite: exclude;
+	opacity: 0;
+	transition: opacity 350ms ease;
+	pointer-events: none;
+	z-index: 1;
+}
+
+.monaco-workbench .interactive-session .chat-input-container.working {
+	border-color: transparent;
+	animation: chat-input-working-border-glow 3s linear infinite;
+}
+
+.monaco-workbench .interactive-session .chat-input-container.working::before {
+	opacity: 1;
+	animation: chat-input-working-border-spin 3s linear infinite;
+}
+
+@media (prefers-reduced-motion: reduce) {
+	.monaco-workbench .interactive-session .chat-input-container.working,
+	.monaco-workbench .interactive-session .chat-input-container.working::before {
+		animation: none;
+	}
+}
+
 /* Context usage widget container - positioned in the secondary toolbar below input */
 .interactive-session .chat-input-toolbars .chat-context-usage-container,
 .interactive-session .chat-secondary-toolbar .chat-context-usage-container {
diff --git a/src/vs/workbench/contrib/chat/common/chatPermissionStorageKeys.ts b/src/vs/workbench/contrib/chat/common/chatPermissionStorageKeys.ts
new file mode 100644
index 00000000000..85cf1b8cd08
--- /dev/null
+++ b/src/vs/workbench/contrib/chat/common/chatPermissionStorageKeys.ts
@@ -0,0 +1,9 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+// Storage keys for persisting the user's choice to skip the warning dialog
+// across sessions when "Don't show again" is checked.
+export const AUTOPILOT_DONT_SHOW_AGAIN_KEY = 'chat.permissions.autopilot.dontShowWarningAgain';
+export const AUTO_APPROVE_DONT_SHOW_AGAIN_KEY = 'chat.permissions.autoApprove.dontShowWarningAgain';
diff --git a/src/vs/workbench/contrib/chat/common/chatService/chatServiceImpl.ts b/src/vs/workbench/contrib/chat/common/chatService/chatServiceImpl.ts
index 9c5c22961fb..2f933724849 100644
--- a/src/vs/workbench/contrib/chat/common/chatService/chatServiceImpl.ts
+++ b/src/vs/workbench/contrib/chat/common/chatService/chatServiceImpl.ts
@@ -62,6 +62,22 @@ import { ChatMode } from '../chatModes.js';
 
 const serializedChatKey = 'interactive.sessions';
 
+/**
+ * True when the user has typed text or attached non-trivial context to the input
+ * but not yet sent it. Used to decide whether an external session needs metadata
+ * persisted on dispose so the draft survives switching sessions.
+ */
+function hasDraftInput(model: ChatModel): boolean {
+	const state = model.inputModel.state.get();
+	if (!state) {
+		return false;
+	}
+	if (state.inputText.trim().length > 0) {
+		return true;
+	}
+	return state.attachments.length > 0;
+}
+
 class CancellableRequest implements IDisposable {
 	private readonly _yieldRequested: ISettableObservable<boolean> = observableValue(this, false);
 
@@ -187,7 +203,9 @@ export class ChatService extends Disposable implements IChatService {
 					} else if (this._saveModelsEnabled) {
 						await this._chatSessionStore.storeSessions([model]);
 					}
-				} else if (!localSessionId && model.getRequests().length > 0) {
+				} else if (!localSessionId && (model.getRequests().length > 0 || hasDraftInput(model))) {
+					// External sessions: persist metadata when there are requests, OR when the
+					// user has typed/attached unsent input we need to restore on next open.
 					await this._chatSessionStore.storeSessionsMetadataOnly([model]);
 				}
 			}
@@ -575,7 +593,9 @@ export class ChatService extends Disposable implements IChatService {
 		const chatSessionType = getChatSessionType(sessionResource);
 		const modelId = findLast(providedSession.history.filter(m => m.type === 'request'), req => req.modelId)?.modelId;
 		const agentUri = findLast(providedSession.history.filter(m => m.type === 'request'), req => req.modeInstructions?.uri)?.modeInstructions?.uri;
-		const storedPermissionLevel = this._chatSessionStore.getMetadataForSessionSync(sessionResource)?.permissionLevel;
+		const storedMetadata = this._chatSessionStore.getMetadataForSessionSync(sessionResource);
+		const storedPermissionLevel = storedMetadata?.permissionLevel;
+		const storedInputState = storedMetadata?.inputState;
 		let initialData: ISerializedChatDataReference | undefined = undefined;
 		if ((modelId || agentUri)) {
 			const mode: ISerializableChatModelInputState['mode'] = agentUri ? { kind: ChatModeKind.Agent, id: agentUri.toString() } : { kind: ChatModeKind.Agent, id: ChatMode.Agent.id };
@@ -607,18 +627,21 @@ export class ChatService extends Disposable implements IChatService {
 			};
 		}
 
-		// Contributed sessions do not use UI tools
+		// Contributed sessions do not use UI tools.
+		// Prefer (in order): a transferred draft, a persisted draft from metadata,
+		// otherwise let the constructor fall back to initialData.value.inputState.
 		const modelRef = this._sessionModels.acquireOrCreate({
 			initialData,
 			location,
 			sessionResource: sessionResource,
 			canUseTools: false,
 			transferEditingSession: providedSession.transferredState?.editingSession,
-			inputState: providedSession.transferredState?.inputState,
+			inputState: providedSession.transferredState?.inputState ?? storedInputState,
 		}, debugOwner ?? 'ChatService#loadRemoteSession');
 
 		// Restore permission level from metadata even when initialData was not constructed
-		if (storedPermissionLevel && !initialData) {
+		// and no inputState carried it through.
+		if (storedPermissionLevel && !initialData && !storedInputState) {
 			modelRef.object.inputModel.setState({ permissionLevel: storedPermissionLevel });
 		}
 
diff --git a/src/vs/workbench/contrib/chat/common/constants.ts b/src/vs/workbench/contrib/chat/common/constants.ts
index 49a79cf797d..f26809501a5 100644
--- a/src/vs/workbench/contrib/chat/common/constants.ts
+++ b/src/vs/workbench/contrib/chat/common/constants.ts
@@ -48,6 +48,7 @@ export enum ChatConfiguration {
 	ChatViewProgressBadgeEnabled = 'chat.viewProgressBadge.enabled',
 	ChatContextUsageEnabled = 'chat.contextUsage.enabled',
 	ChatPersistentProgressEnabled = 'chat.persistentProgress.enabled',
+	ProgressBorder = 'chat.progressBorder.enabled',
 	SubagentToolCustomAgents = 'chat.customAgentInSubagent.enabled',
 	GeneralPurposeAgentEnabled = 'chat.generalPurposeAgent.enabled',
 	SubagentsAllowInvocationsFromSubagents = 'chat.subagents.allowInvocationsFromSubagents',
diff --git a/src/vs/workbench/contrib/chat/common/model/chatSessionStore.ts b/src/vs/workbench/contrib/chat/common/model/chatSessionStore.ts
index be5e704e3fe..4f529655880 100644
--- a/src/vs/workbench/contrib/chat/common/model/chatSessionStore.ts
+++ b/src/vs/workbench/contrib/chat/common/model/chatSessionStore.ts
@@ -29,7 +29,7 @@ import { awaitStatsForSession } from '../chat.js';
 import { IChatSessionStats, IChatSessionTiming, ResponseModelState } from '../chatService/chatService.js';
 import { ChatAgentLocation, ChatPermissionLevel } from '../constants.js';
 import { ModifiedFileEntryState } from '../editing/chatEditingService.js';
-import { ChatModel, ISerializableChatData, ISerializableChatDataIn, ISerializableChatsData, ISerializedChatDataReference, normalizeSerializableChatData } from './chatModel.js';
+import { ChatModel, ISerializableChatData, ISerializableChatDataIn, ISerializableChatModelInputState, ISerializableChatsData, ISerializedChatDataReference, normalizeSerializableChatData } from './chatModel.js';
 import { ChatSessionOperationLog } from './chatSessionOperationLog.js';
 import { LocalChatSessionUri } from './chatUri.js';
 
@@ -758,6 +758,13 @@ export interface IChatSessionEntryMetadata {
 	 * The permission level for tool auto-approval, if not default.
 	 */
 	permissionLevel?: ChatPermissionLevel;
+
+	/**
+	 * Serialized draft input state (text, attachments, mode, selected model, ...) for
+	 * external sessions, so that unsent input is preserved when switching away and
+	 * back. Local sessions instead persist their full state via storeSessions.
+	 */
+	inputState?: ISerializableChatModelInputState;
 }
 
 function isChatSessionEntryMetadata(obj: unknown): obj is IChatSessionEntryMetadata {
@@ -831,6 +838,15 @@ async function getSessionMetadata(session: ChatModel | ISerializableChatData): P
 		lastResponseState = ResponseModelState.Cancelled;
 	}
 
+	const isExternal = session instanceof ChatModel && !LocalChatSessionUri.parseLocalSessionId(session.sessionResource);
+	// Persist draft input state only for external sessions; local sessions already
+	// have their full state serialized via storeSessions, so duplicating here would
+	// be wasteful and risk drift between the two locations.
+	// Attachments are excluded because they can contain large binary payloads
+	// (e.g. base64-encoded images) that would bloat the session index entry.
+	const rawInputState = isExternal ? (session as ChatModel).inputModel.toJSON() : undefined;
+	const inputState = rawInputState ? { ...rawInputState, attachments: [] } : undefined;
+
 	return {
 		sessionId: session.sessionId,
 		title: title || localize('newChat', "New Chat"),
@@ -840,9 +856,10 @@ async function getSessionMetadata(session: ChatModel | ISerializableChatData): P
 		hasPendingEdits: session instanceof ChatModel ? (session.editingSession?.entries.get().some(e => e.state.get() === ModifiedFileEntryState.Modified)) : false,
 		isEmpty: session instanceof ChatModel ? session.getRequests().length === 0 : session.requests.length === 0,
 		stats,
-		isExternal: session instanceof ChatModel && !LocalChatSessionUri.parseLocalSessionId(session.sessionResource),
+		isExternal,
 		lastResponseState,
 		permissionLevel: session instanceof ChatModel ? session.inputModel.state.get()?.permissionLevel : undefined,
+		inputState,
 	};
 }
 
diff --git a/src/vs/workbench/contrib/chat/common/tools/builtinTools/manageTodoListTool.ts b/src/vs/workbench/contrib/chat/common/tools/builtinTools/manageTodoListTool.ts
index 193755bde23..8188530e13d 100644
--- a/src/vs/workbench/contrib/chat/common/tools/builtinTools/manageTodoListTool.ts
+++ b/src/vs/workbench/contrib/chat/common/tools/builtinTools/manageTodoListTool.ts
@@ -15,7 +15,8 @@ import {
 	IToolResult,
 	ToolDataSource,
 	IToolInvocationPreparationContext,
-	IPreparedToolInvocation
+	IPreparedToolInvocation,
+	ToolInvocationPresentation
 } from '../languageModelToolsService.js';
 import { ILogService } from '../../../../../../platform/log/common/log.js';
 import { ITelemetryService } from '../../../../../../platform/telemetry/common/telemetry.js';
@@ -162,6 +163,7 @@ export class ManageTodoListTool extends Disposable implements IToolImpl {
 
 		return {
 			invocationMessage,
+			presentation: items.length ? undefined : ToolInvocationPresentation.Hidden,
 			pastTenseMessage: new MarkdownString(message ?? localize('todo.updatedList', "Updated todo list")),
 			toolSpecificData: {
 				kind: 'todoList',
diff --git a/src/vs/workbench/contrib/chat/common/tools/builtinTools/tools.ts b/src/vs/workbench/contrib/chat/common/tools/builtinTools/tools.ts
index 8fae6e4d033..4a711c404fa 100644
--- a/src/vs/workbench/contrib/chat/common/tools/builtinTools/tools.ts
+++ b/src/vs/workbench/contrib/chat/common/tools/builtinTools/tools.ts
@@ -39,7 +39,6 @@ export class BuiltinToolsContribution extends Disposable implements IWorkbenchCo
 
 		const reviewPlanTool = this._register(instantiationService.createInstance(ReviewPlanTool));
 		this._register(toolsService.registerTool(ReviewPlanToolData, reviewPlanTool));
-		this._register(toolsService.vscodeToolSet.addTool(ReviewPlanToolData));
 
 		const todoToolData = createManageTodoListToolData();
 		const manageTodoListTool = this._register(instantiationService.createInstance(ManageTodoListTool));
diff --git a/src/vs/workbench/contrib/chat/common/widget/chatColors.ts b/src/vs/workbench/contrib/chat/common/widget/chatColors.ts
index bb256ebba19..7b56d9af306 100644
--- a/src/vs/workbench/contrib/chat/common/widget/chatColors.ts
+++ b/src/vs/workbench/contrib/chat/common/widget/chatColors.ts
@@ -87,3 +87,18 @@ export const chatThinkingShimmer = registerColor(
 	'chat.thinkingShimmer',
 	{ dark: '#ffffff', light: '#000000', hcDark: '#ffffff', hcLight: '#000000' },
 	localize('chat.thinkingShimmer', 'Shimmer highlight for thinking/working labels.'), true);
+
+export const chatInputWorkingBorderColor1 = registerColor(
+	'chat.inputWorkingBorderColor1',
+	{ dark: '#b44aff', light: '#b44aff', hcDark: '#b44aff', hcLight: '#b44aff' },
+	localize('chat.inputWorkingBorderColor1', 'First color stop of the animated chat input border shown while a request is in flight.'), true);
+
+export const chatInputWorkingBorderColor2 = registerColor(
+	'chat.inputWorkingBorderColor2',
+	{ dark: '#4af0c0', light: '#4af0c0', hcDark: '#4af0c0', hcLight: '#4af0c0' },
+	localize('chat.inputWorkingBorderColor2', 'Second color stop of the animated chat input border shown while a request is in flight.'), true);
+
+export const chatInputWorkingBorderColor3 = registerColor(
+	'chat.inputWorkingBorderColor3',
+	{ dark: '#51a2ff', light: '#51a2ff', hcDark: '#51a2ff', hcLight: '#51a2ff' },
+	localize('chat.inputWorkingBorderColor3', 'Third color stop of the animated chat input border shown while a request is in flight.'), true);
diff --git a/src/vs/workbench/contrib/chat/test/browser/actions/chatQueueActions.test.ts b/src/vs/workbench/contrib/chat/test/browser/actions/chatQueueActions.test.ts
new file mode 100644
index 00000000000..c00f652588f
--- /dev/null
+++ b/src/vs/workbench/contrib/chat/test/browser/actions/chatQueueActions.test.ts
@@ -0,0 +1,74 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import assert from 'assert';
+import { OS } from '../../../../../../base/common/platform.js';
+import { ensureNoDisposablesAreLeakedInTestSuite } from '../../../../../../base/test/common/utils.js';
+import { TestConfigurationService } from '../../../../../../platform/configuration/test/common/testConfigurationService.js';
+import { ContextKeyService } from '../../../../../../platform/contextkey/browser/contextKeyService.js';
+import { KeybindingsRegistry } from '../../../../../../platform/keybinding/common/keybindingsRegistry.js';
+import { KeybindingResolver } from '../../../../../../platform/keybinding/common/keybindingResolver.js';
+import { ResolvedKeybindingItem } from '../../../../../../platform/keybinding/common/resolvedKeybindingItem.js';
+import { USLayoutResolvedKeybinding } from '../../../../../../platform/keybinding/common/usLayoutResolvedKeybinding.js';
+import { ChatQueueMessageAction, ChatSteerWithMessageAction, registerChatQueueActions } from '../../../browser/actions/chatQueueActions.js';
+import { ChatContextKeys } from '../../../common/actions/chatContextKeys.js';
+import { ChatConfiguration } from '../../../common/constants.js';
+
+// Register actions once so the keybindings appear in KeybindingsRegistry.
+registerChatQueueActions();
+
+suite('Queue/Steer keybinding resolution', () => {
+
+	ensureNoDisposablesAreLeakedInTestSuite();
+
+	function buildResolverForCommands(commandIds: string[]): KeybindingResolver {
+		const items: ResolvedKeybindingItem[] = [];
+		for (const item of KeybindingsRegistry.getDefaultKeybindingsForOS(OS)) {
+			if (!item.command || !commandIds.includes(item.command) || !item.keybinding) {
+				continue;
+			}
+			const resolved = USLayoutResolvedKeybinding.resolveKeybinding(item.keybinding, OS)[0];
+			items.push(new ResolvedKeybindingItem(resolved, item.command, item.commandArgs, item.when ?? undefined, true, null, false));
+		}
+		return new KeybindingResolver(items, [], () => { });
+	}
+
+	function lookupForConfig(defaultAction: 'steer' | 'queue') {
+		const config = new TestConfigurationService({ [ChatConfiguration.RequestQueueingDefaultAction]: defaultAction });
+		const ctxService = new ContextKeyService(config);
+		// Simulate the chat input being focused with a request in progress, like the picker does.
+		const overlay = ctxService.createOverlay([
+			[ChatContextKeys.inputHasText.key, true],
+			[ChatContextKeys.inChatInput.key, true],
+			[ChatContextKeys.requestInProgress.key, true],
+		]);
+		const resolver = buildResolverForCommands([ChatQueueMessageAction.ID, ChatSteerWithMessageAction.ID]);
+		return {
+			result: {
+				queue: resolver.lookupPrimaryKeybinding(ChatQueueMessageAction.ID, overlay, true)?.resolvedKeybinding?.getDispatchChords()[0] ?? null,
+				steer: resolver.lookupPrimaryKeybinding(ChatSteerWithMessageAction.ID, overlay, true)?.resolvedKeybinding?.getDispatchChords()[0] ?? null,
+			},
+			dispose: () => ctxService.dispose(),
+		};
+	}
+
+	test('with default=steer, Enter steers and Alt+Enter queues', () => {
+		const { result, dispose } = lookupForConfig('steer');
+		try {
+			assert.deepStrictEqual(result, { queue: 'alt+Enter', steer: 'Enter' });
+		} finally {
+			dispose();
+		}
+	});
+
+	test('with default=queue, Enter queues and Alt+Enter steers', () => {
+		const { result, dispose } = lookupForConfig('queue');
+		try {
+			assert.deepStrictEqual(result, { queue: 'Enter', steer: 'alt+Enter' });
+		} finally {
+			dispose();
+		}
+	});
+});
diff --git a/src/vs/workbench/contrib/chat/test/browser/agentSessions/agentHostChatContribution.test.ts b/src/vs/workbench/contrib/chat/test/browser/agentSessions/agentHostChatContribution.test.ts
index 80d14200b5b..e5056e5e59e 100644
--- a/src/vs/workbench/contrib/chat/test/browser/agentSessions/agentHostChatContribution.test.ts
+++ b/src/vs/workbench/contrib/chat/test/browser/agentSessions/agentHostChatContribution.test.ts
@@ -19,7 +19,7 @@ import { AgentHostSessionConfigBranchNameHintKey, IAgentCreateSessionConfig, IAg
 import { isSessionAction, type IActionEnvelope, type INotification, type ISessionAction, type ITerminalAction, type IToolCallConfirmedAction, type ITurnStartedAction } from '../../../../../../platform/agentHost/common/state/sessionActions.js';
 import type { IStateSnapshot } from '../../../../../../platform/agentHost/common/state/sessionProtocol.js';
 import type { ICustomizationRef } from '../../../../../../platform/agentHost/common/state/protocol/state.js';
-import { SessionLifecycle, SessionStatus, TurnState, ToolCallStatus, ToolCallConfirmationReason, createSessionState, createActiveTurn, ROOT_STATE_URI, PolicyState, ResponsePartKind, StateComponents, type ISessionState, type ISessionSummary, IRootState } from '../../../../../../platform/agentHost/common/state/sessionState.js';
+import { SessionLifecycle, SessionStatus, TurnState, ToolCallStatus, ToolCallConfirmationReason, createSessionState, createActiveTurn, ROOT_STATE_URI, PolicyState, ResponsePartKind, StateComponents, buildSubagentSessionUri, ToolResultContentType, type ISessionState, type ISessionSummary, IRootState, type IToolCallState } from '../../../../../../platform/agentHost/common/state/sessionState.js';
 import { sessionReducer } from '../../../../../../platform/agentHost/common/state/sessionReducers.js';
 import { IDefaultAccountService } from '../../../../../../platform/defaultAccount/common/defaultAccount.js';
 import { IAuthenticationService } from '../../../../../services/authentication/common/authentication.js';
@@ -89,6 +89,24 @@ class MockAgentHostService extends mock<IAgentHostService>() {
 		const id = `sdk-session-${this._nextId++}`;
 		const session = AgentSession.uri('copilot', id);
 		this._sessions.set(id, { session, startTime: Date.now(), modifiedTime: Date.now() });
+		// Simulate the server's eager active-client claim: if the caller
+		// provided activeClient, seed the session state so subscribers see it.
+		if (config?.activeClient) {
+			const summary: ISessionSummary = {
+				resource: session.toString(),
+				provider: 'copilot',
+				title: 'Test',
+				status: SessionStatus.Idle,
+				createdAt: Date.now(),
+				modifiedAt: Date.now(),
+			};
+			const state: ISessionState = {
+				...createSessionState(summary),
+				lifecycle: SessionLifecycle.Ready,
+				activeClient: config.activeClient,
+			};
+			this.sessionStates.set(session.toString(), state);
+		}
 		return session;
 	}
 
@@ -535,6 +553,31 @@ suite('AgentHostChatContribution', () => {
 		});
 	});
 
+	// ---- Session disposal -----------------------------------------------
+
+	suite('disposal', () => {
+
+		test('fires onWillDispose before session is disposed', async () => {
+			const { sessionHandler } = createContribution(disposables);
+
+			const sessionResource = URI.from({ scheme: 'agent-host-copilot', path: '/untitled-dispose-test' });
+			const chatSession = await sessionHandler.provideChatSessionContent(sessionResource, CancellationToken.None);
+
+			// `onWillDispose` is consumed by `ContributedChatSessionData` in
+			// `ChatSessionsService` to evict disposed sessions from its cache.
+			// If this event does not fire (e.g. because the emitter was
+			// disposed before `.fire()` ran during teardown), the service
+			// would hand out the disposed `IChatSession` to subsequent
+			// `getOrCreateChatSession` callers.
+			let fired = 0;
+			disposables.add(chatSession.onWillDispose(() => { fired++; }));
+
+			chatSession.dispose();
+
+			assert.strictEqual(fired, 1, 'onWillDispose should fire exactly once when the session is disposed');
+		});
+	});
+
 	// ---- Session list (IChatSessionItemController) ----------------------
 
 	suite('session list', () => {
@@ -2499,13 +2542,14 @@ suite('AgentHostChatContribution', () => {
 			fire({ type: 'session/turnComplete', session, turnId } as ISessionAction);
 			await turnPromise;
 
-			const activeClientAction = agentHostService.dispatchedActions.find(
-				d => d.action.type === 'session/activeClientChanged'
-			);
-			assert.ok(activeClientAction, 'should dispatch activeClientChanged');
-			const ac = activeClientAction!.action as { activeClient: { customizations?: ICustomizationRef[] } };
-			assert.strictEqual(ac.activeClient.customizations?.length, 1);
-			assert.strictEqual(ac.activeClient.customizations?.[0].uri, 'file:///plugin-a');
+			// The active-client claim is now threaded through createSession
+			// rather than dispatched separately, so assert on createSessionCalls.
+			const createCall = agentHostService.createSessionCalls.at(-1);
+			assert.ok(createCall?.activeClient, 'createSession should carry activeClient');
+			assert.strictEqual(createCall!.activeClient!.clientId, agentHostService.clientId);
+			assert.ok(Array.isArray(createCall!.activeClient!.tools), 'activeClient.tools should be a defined array');
+			assert.strictEqual(createCall!.activeClient!.customizations?.length, 1);
+			assert.strictEqual(createCall!.activeClient!.customizations?.[0].uri, 'file:///plugin-a');
 		});
 
 		test('re-dispatches activeClientChanged when customizations observable changes', async () => {
@@ -2545,4 +2589,206 @@ suite('AgentHostChatContribution', () => {
 			assert.strictEqual(ac.activeClient.customizations?.[0].uri, 'file:///plugin-b');
 		});
 	});
+
+	// ---- Subagent grouping ----------------------------------------------
+
+	suite('subagent grouping', () => {
+
+		/**
+		 * Build a child session state containing a single inner tool call in the running state.
+		 */
+		function makeChildState(childUri: string, innerToolCallId: string): ISessionState {
+			const summary: ISessionSummary = {
+				resource: childUri,
+				provider: 'copilot',
+				title: 'Subagent',
+				status: SessionStatus.Idle,
+				createdAt: Date.now(),
+				modifiedAt: Date.now(),
+			};
+			const innerTool: IToolCallState = {
+				toolCallId: innerToolCallId,
+				toolName: 'read_file',
+				displayName: 'Read File',
+				status: ToolCallStatus.Running,
+				invocationMessage: 'Reading file',
+				toolInput: '{}',
+				confirmed: ToolCallConfirmationReason.NotNeeded,
+			} as IToolCallState;
+			const activeTurn = createActiveTurn('child-turn-1', { text: 'do work' });
+			activeTurn.responseParts.push({ kind: ResponsePartKind.ToolCall, toolCall: innerTool });
+			return {
+				...createSessionState(summary),
+				lifecycle: SessionLifecycle.Ready,
+				activeTurn,
+			};
+		}
+
+		test('inner subagent tool calls are forwarded with subAgentInvocationId set', () => runWithFakedTimers({ useFakeTimers: true }, async () => {
+			const { sessionHandler, agentHostService, chatAgentService } = createContribution(disposables);
+
+			const { turnPromise, collected, session, turnId, fire } = await startTurn(sessionHandler, agentHostService, chatAgentService, disposables);
+
+			// Pre-populate the child subagent session state BEFORE the parent tool
+			// call fires, so that when the handler subscribes to it the inner tool
+			// is already present.
+			const parentToolCallId = 'tc-parent-task';
+			const childSessionUri = buildSubagentSessionUri(session.toString(), parentToolCallId);
+			agentHostService.sessionStates.set(childSessionUri, makeChildState(childSessionUri, 'tc-child-1'));
+
+			// Fire the parent task tool call with toolKind=subagent metadata.
+			fire({
+				type: 'session/toolCallStart', session, turnId,
+				toolCallId: parentToolCallId, toolName: 'task', displayName: 'Task',
+				_meta: { toolKind: 'subagent', subagentDescription: 'do some work', subagentAgentName: 'helper' },
+			} as ISessionAction);
+			fire({
+				type: 'session/toolCallReady', session, turnId,
+				toolCallId: parentToolCallId, invocationMessage: 'Spawning subagent',
+				confirmed: 'not-needed',
+			} as ISessionAction);
+
+			// Allow the throttler/observation flow to flush.
+			await timeout(50);
+
+			fire({ type: 'session/turnComplete', session, turnId } as ISessionAction);
+			await turnPromise;
+
+			// Flatten all progress emissions and find tool invocations.
+			const allParts = collected.flat();
+			const toolInvocations = allParts.filter((p): p is IChatToolInvocation => p.kind === 'toolInvocation');
+
+			const parent = toolInvocations.find(t => t.toolCallId === parentToolCallId);
+			const child = toolInvocations.find(t => t.toolCallId === 'tc-child-1');
+
+			assert.ok(parent, 'parent task tool invocation should be emitted');
+			assert.strictEqual(parent!.toolSpecificData?.kind, 'subagent', 'parent should have subagent toolSpecificData');
+			assert.strictEqual(parent!.subAgentInvocationId, undefined, 'parent should not have a subAgentInvocationId');
+
+			assert.ok(child, 'inner child tool invocation should be forwarded into parent session progress');
+			assert.strictEqual(child!.subAgentInvocationId, parentToolCallId, 'child should be tagged with parent tool call id for grouping');
+		}));
+
+		test('inner subagent tool calls fired AFTER parent observation are also grouped', () => runWithFakedTimers({ useFakeTimers: true }, async () => {
+			const { sessionHandler, agentHostService, chatAgentService } = createContribution(disposables);
+
+			const { turnPromise, collected, session, turnId, fire } = await startTurn(sessionHandler, agentHostService, chatAgentService, disposables);
+
+			const parentToolCallId = 'tc-parent-task';
+			const childSessionUri = buildSubagentSessionUri(session.toString(), parentToolCallId);
+
+			// Fire the parent task tool — this should cause the handler to subscribe
+			// to the (still-empty) child subagent session.
+			fire({
+				type: 'session/toolCallStart', session, turnId,
+				toolCallId: parentToolCallId, toolName: 'task', displayName: 'Task',
+				_meta: { toolKind: 'subagent', subagentDescription: 'do work', subagentAgentName: 'helper' },
+			} as ISessionAction);
+			fire({
+				type: 'session/toolCallReady', session, turnId,
+				toolCallId: parentToolCallId, invocationMessage: 'Spawning subagent',
+				confirmed: 'not-needed',
+			} as ISessionAction);
+
+			// Allow the subscription to be set up.
+			await timeout(50);
+
+			// NOW fire the child session lifecycle: turnStarted, then a tool call.
+			const childTurnId = 'child-turn-1';
+			const childToolCallId = 'tc-child-1';
+			const fireChild = (action: ISessionAction) => {
+				agentHostService.fireAction({ action, serverSeq: 1000, origin: undefined });
+			};
+			fireChild({
+				type: 'session/turnStarted',
+				session: childSessionUri,
+				turnId: childTurnId,
+				userMessage: { text: '' },
+			} as ISessionAction);
+			fireChild({
+				type: 'session/toolCallStart', session: childSessionUri, turnId: childTurnId,
+				toolCallId: childToolCallId, toolName: 'read_file', displayName: 'Read File',
+			} as ISessionAction);
+			fireChild({
+				type: 'session/toolCallReady', session: childSessionUri, turnId: childTurnId,
+				toolCallId: childToolCallId, invocationMessage: 'Reading file',
+				confirmed: 'not-needed',
+			} as ISessionAction);
+
+			await timeout(50);
+
+			fire({ type: 'session/turnComplete', session, turnId } as ISessionAction);
+			await turnPromise;
+
+			const allParts = collected.flat();
+			const toolInvocations = allParts.filter((p): p is IChatToolInvocation => p.kind === 'toolInvocation');
+
+			const parent = toolInvocations.find(t => t.toolCallId === parentToolCallId);
+			const child = toolInvocations.find(t => t.toolCallId === childToolCallId);
+
+			assert.ok(parent, 'parent task tool invocation should be emitted');
+			assert.strictEqual(parent!.toolSpecificData?.kind, 'subagent');
+			assert.strictEqual(parent!.subAgentInvocationId, undefined);
+
+			assert.ok(child, 'child tool invocation fired after subscription should be forwarded');
+			assert.strictEqual(child!.subAgentInvocationId, parentToolCallId, 'child should be tagged for grouping');
+		}));
+
+		test('parent subagent agentName is updated when subagent content arrives later', () => runWithFakedTimers({ useFakeTimers: true }, async () => {
+			// Repro for the missing-agent-name bug: when the parent task tool
+			// fires without `subagentAgentName` in `_meta` (e.g. the agent host
+			// did not extract it from args), the renderer should still pick up
+			// the agent name once the SDK emits a `subagent_started` event,
+			// which lands as a Subagent content block on the parent tool call.
+			const { sessionHandler, agentHostService, chatAgentService } = createContribution(disposables);
+			const { turnPromise, collected, session, turnId, fire } = await startTurn(sessionHandler, agentHostService, chatAgentService, disposables);
+
+			const parentToolCallId = 'tc-parent-task';
+
+			// Parent task tool fires WITHOUT subagentAgentName meta — only description.
+			fire({
+				type: 'session/toolCallStart', session, turnId,
+				toolCallId: parentToolCallId, toolName: 'task', displayName: 'Task',
+				_meta: { toolKind: 'subagent', subagentDescription: 'Exploring codebase structure' },
+			} as ISessionAction);
+			fire({
+				type: 'session/toolCallReady', session, turnId,
+				toolCallId: parentToolCallId, invocationMessage: 'Spawning subagent',
+				confirmed: 'not-needed',
+			} as ISessionAction);
+
+			await timeout(50);
+
+			// Now the SDK emits subagent_started → handler dispatches a content
+			// change with a Subagent content block carrying the agent name.
+			fire({
+				type: 'session/toolCallContentChanged', session, turnId,
+				toolCallId: parentToolCallId,
+				content: [{
+					type: ToolResultContentType.Subagent,
+					resource: buildSubagentSessionUri(session.toString(), parentToolCallId),
+					title: 'Subagent',
+					agentName: 'explore',
+				}],
+			} as ISessionAction);
+
+			await timeout(50);
+
+			fire({ type: 'session/turnComplete', session, turnId } as ISessionAction);
+			await turnPromise;
+
+			const allParts = collected.flat();
+			const toolInvocations = allParts.filter((p): p is IChatToolInvocation => p.kind === 'toolInvocation');
+			const parent = toolInvocations.find(t => t.toolCallId === parentToolCallId);
+
+			assert.ok(parent, 'parent task tool invocation should be emitted');
+			assert.strictEqual(parent!.toolSpecificData?.kind, 'subagent', 'parent should have subagent toolSpecificData');
+			assert.strictEqual(
+				(parent!.toolSpecificData as { kind: 'subagent'; agentName?: string }).agentName,
+				'explore',
+				'parent toolSpecificData.agentName must be updated from the Subagent content block'
+			);
+		}));
+
+	});
 });
diff --git a/src/vs/workbench/contrib/chat/test/browser/agentSessions/stateToProgressAdapter.test.ts b/src/vs/workbench/contrib/chat/test/browser/agentSessions/stateToProgressAdapter.test.ts
index 620d3731445..d6a00b2371e 100644
--- a/src/vs/workbench/contrib/chat/test/browser/agentSessions/stateToProgressAdapter.test.ts
+++ b/src/vs/workbench/contrib/chat/test/browser/agentSessions/stateToProgressAdapter.test.ts
@@ -397,6 +397,27 @@ suite('stateToProgressAdapter', () => {
 
 	suite('finalizeToolInvocation', () => {
 
+		test('rewrites markdown links in pastTenseMessage through the agent host scheme', () => {
+			const tc = createToolCallState({ status: ToolCallStatus.Running });
+			const invocation = toolCallStateToInvocation(tc);
+
+			rawFinalizeToolInvocation(invocation, {
+				status: ToolCallStatus.Completed,
+				toolCallId: 'tc-1',
+				toolName: 'view_file',
+				displayName: 'View File',
+				invocationMessage: 'Reading file...',
+				confirmed: ToolCallConfirmationReason.NotNeeded,
+				success: true,
+				pastTenseMessage: { markdown: 'Read [foo.ts](file:///path/to/foo.ts)' },
+			} as ICompletedToolCall, URI.file('/'), 'ssh__macbook-air');
+
+			assert.ok(invocation.pastTenseMessage);
+			assert.strictEqual(typeof invocation.pastTenseMessage, 'object');
+			const value = (invocation.pastTenseMessage as { value: string }).value;
+			assert.strictEqual(value, 'Read [](vscode-agent-host://ssh__macbook-air/file/-/path/to/foo.ts)');
+		});
+
 		test('finalizes terminal tool with output and exit code', () => {
 			const tc = createToolCallState({
 				toolInput: 'echo hi',
diff --git a/src/vs/workbench/contrib/chat/test/browser/planReviewFeedbackService.test.ts b/src/vs/workbench/contrib/chat/test/browser/planReviewFeedbackService.test.ts
new file mode 100644
index 00000000000..89f10dc5c57
--- /dev/null
+++ b/src/vs/workbench/contrib/chat/test/browser/planReviewFeedbackService.test.ts
@@ -0,0 +1,356 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import assert from 'assert';
+import { IPlanReviewFeedbackService, PlanReviewFeedbackService } from '../../browser/planReviewFeedback/planReviewFeedbackService.js';
+import { DisposableStore } from '../../../../../base/common/lifecycle.js';
+import { URI } from '../../../../../base/common/uri.js';
+import { ensureNoDisposablesAreLeakedInTestSuite } from '../../../../../base/test/common/utils.js';
+
+function feedbackSummary(items: readonly { line: number; column: number }[]): string[] {
+	return items.map(f => `${f.line}:${f.column}`);
+}
+
+suite('PlanReviewFeedbackService - Ordering', () => {
+
+	const store = new DisposableStore();
+	let service: IPlanReviewFeedbackService;
+	let planUri: URI;
+
+	setup(() => {
+		service = store.add(new PlanReviewFeedbackService());
+		planUri = URI.parse('file:///plan.md');
+		store.add(service.registerPlanReview(planUri, () => { }));
+	});
+
+	teardown(() => {
+		store.clear();
+	});
+
+	ensureNoDisposablesAreLeakedInTestSuite();
+
+	test('items sorted by line number', () => {
+		service.addFeedback(planUri, 20, 1, 'line 20');
+		service.addFeedback(planUri, 5, 1, 'line 5');
+		service.addFeedback(planUri, 10, 1, 'line 10');
+
+		assert.deepStrictEqual(feedbackSummary(service.getFeedback(planUri)), [
+			'5:1',
+			'10:1',
+			'20:1',
+		]);
+	});
+
+	test('items sorted by line then column', () => {
+		service.addFeedback(planUri, 10, 20, 'col 20');
+		service.addFeedback(planUri, 10, 5, 'col 5');
+		service.addFeedback(planUri, 10, 10, 'col 10');
+
+		assert.deepStrictEqual(feedbackSummary(service.getFeedback(planUri)), [
+			'10:5',
+			'10:10',
+			'10:20',
+		]);
+	});
+
+	test('removing feedback preserves ordering', () => {
+		const id1 = service.addFeedback(planUri, 30, 1, 'line 30');
+		service.addFeedback(planUri, 10, 1, 'line 10');
+		service.addFeedback(planUri, 20, 1, 'line 20');
+
+		assert.deepStrictEqual(feedbackSummary(service.getFeedback(planUri)), [
+			'10:1',
+			'20:1',
+			'30:1',
+		]);
+
+		service.removeFeedback(planUri, id1);
+		assert.deepStrictEqual(feedbackSummary(service.getFeedback(planUri)), [
+			'10:1',
+			'20:1',
+		]);
+	});
+
+	test('same line number items are stable', () => {
+		const id1 = service.addFeedback(planUri, 10, 1, 'first');
+		const id2 = service.addFeedback(planUri, 10, 1, 'second');
+
+		const items = service.getFeedback(planUri);
+		assert.strictEqual(items[0].id, id1);
+		assert.strictEqual(items[1].id, id2);
+	});
+
+	test('clear removes all items', () => {
+		service.addFeedback(planUri, 1, 1, 'a');
+		service.addFeedback(planUri, 2, 1, 'b');
+		service.addFeedback(planUri, 3, 1, 'c');
+
+		assert.strictEqual(service.getFeedback(planUri).length, 3);
+		service.clearFeedback(planUri);
+		assert.strictEqual(service.getFeedback(planUri).length, 0);
+	});
+
+	test('update feedback changes text', () => {
+		const id = service.addFeedback(planUri, 10, 1, 'original');
+		service.updateFeedback(planUri, id, 'updated');
+
+		const items = service.getFeedback(planUri);
+		assert.strictEqual(items.length, 1);
+		assert.strictEqual(items[0].text, 'updated');
+		assert.strictEqual(items[0].line, 10);
+	});
+});
+
+suite('PlanReviewFeedbackService - Navigation', () => {
+
+	const store = new DisposableStore();
+	let service: IPlanReviewFeedbackService;
+	let planUri: URI;
+
+	setup(() => {
+		service = store.add(new PlanReviewFeedbackService());
+		planUri = URI.parse('file:///plan.md');
+		store.add(service.registerPlanReview(planUri, () => { }));
+	});
+
+	teardown(() => {
+		store.clear();
+	});
+
+	ensureNoDisposablesAreLeakedInTestSuite();
+
+	test('navigation follows sorted order', () => {
+		service.addFeedback(planUri, 20, 1, 'line 20');
+		service.addFeedback(planUri, 5, 1, 'line 5');
+		service.addFeedback(planUri, 10, 1, 'line 10');
+
+		// Expected order: 5, 10, 20
+		const first = service.getNextFeedback(planUri, true)!;
+		assert.strictEqual(first.line, 5);
+
+		const second = service.getNextFeedback(planUri, true)!;
+		assert.strictEqual(second.line, 10);
+
+		const third = service.getNextFeedback(planUri, true)!;
+		assert.strictEqual(third.line, 20);
+
+		// Wraps around
+		const fourth = service.getNextFeedback(planUri, true)!;
+		assert.strictEqual(fourth.line, 5);
+	});
+
+	test('navigation backwards', () => {
+		service.addFeedback(planUri, 5, 1, 'line 5');
+		service.addFeedback(planUri, 10, 1, 'line 10');
+		service.addFeedback(planUri, 20, 1, 'line 20');
+
+		// First backward nav goes to last item
+		const first = service.getNextFeedback(planUri, false)!;
+		assert.strictEqual(first.line, 20);
+
+		const second = service.getNextFeedback(planUri, false)!;
+		assert.strictEqual(second.line, 10);
+
+		const third = service.getNextFeedback(planUri, false)!;
+		assert.strictEqual(third.line, 5);
+
+		// Wraps around
+		const fourth = service.getNextFeedback(planUri, false)!;
+		assert.strictEqual(fourth.line, 20);
+	});
+
+	test('navigation bearings reflect sorted position', () => {
+		service.addFeedback(planUri, 20, 1, 'line 20');
+		service.addFeedback(planUri, 5, 1, 'line 5');
+		service.addFeedback(planUri, 10, 1, 'line 10');
+
+		// Before navigation, no anchor
+		let bearing = service.getNavigationBearing(planUri);
+		assert.strictEqual(bearing.activeIdx, -1);
+		assert.strictEqual(bearing.totalCount, 3);
+
+		// Navigate to first (5)
+		service.getNextFeedback(planUri, true);
+		bearing = service.getNavigationBearing(planUri);
+		assert.strictEqual(bearing.activeIdx, 0);
+
+		// Navigate to second (10)
+		service.getNextFeedback(planUri, true);
+		bearing = service.getNavigationBearing(planUri);
+		assert.strictEqual(bearing.activeIdx, 1);
+
+		// Navigate to third (20)
+		service.getNextFeedback(planUri, true);
+		bearing = service.getNavigationBearing(planUri);
+		assert.strictEqual(bearing.activeIdx, 2);
+	});
+
+	test('navigation returns undefined for empty feedback', () => {
+		const result = service.getNextFeedback(planUri, true);
+		assert.strictEqual(result, undefined);
+	});
+
+	test('setNavigationAnchor updates the anchor', () => {
+		const id = service.addFeedback(planUri, 10, 1, 'line 10');
+		service.addFeedback(planUri, 20, 1, 'line 20');
+
+		service.setNavigationAnchor(planUri, id);
+		const bearing = service.getNavigationBearing(planUri);
+		assert.strictEqual(bearing.activeIdx, 0);
+	});
+});
+
+suite('PlanReviewFeedbackService - Registration', () => {
+
+	const store = new DisposableStore();
+	let service: IPlanReviewFeedbackService;
+
+	setup(() => {
+		service = store.add(new PlanReviewFeedbackService());
+	});
+
+	teardown(() => {
+		store.clear();
+	});
+
+	ensureNoDisposablesAreLeakedInTestSuite();
+
+	test('isActivePlanReview returns false before registration', () => {
+		const planUri = URI.parse('file:///plan.md');
+		assert.strictEqual(service.isActivePlanReview(planUri), false);
+	});
+
+	test('isActivePlanReview returns true after registration', () => {
+		const planUri = URI.parse('file:///plan.md');
+		store.add(service.registerPlanReview(planUri, () => { }));
+		assert.strictEqual(service.isActivePlanReview(planUri), true);
+	});
+
+	test('isActivePlanReview returns false after dispose', () => {
+		const planUri = URI.parse('file:///plan.md');
+		const registration = service.registerPlanReview(planUri, () => { });
+		assert.strictEqual(service.isActivePlanReview(planUri), true);
+		registration.dispose();
+		assert.strictEqual(service.isActivePlanReview(planUri), false);
+	});
+
+	test('feedback cannot be added to unregistered plan', () => {
+		const planUri = URI.parse('file:///plan.md');
+		const id = service.addFeedback(planUri, 1, 1, 'text');
+		assert.strictEqual(id, '');
+		assert.strictEqual(service.getFeedback(planUri).length, 0);
+	});
+
+	test('dispose clears feedback items', () => {
+		const planUri = URI.parse('file:///plan.md');
+		const registration = service.registerPlanReview(planUri, () => { });
+		service.addFeedback(planUri, 1, 1, 'text');
+		assert.strictEqual(service.getFeedback(planUri).length, 1);
+		registration.dispose();
+		assert.strictEqual(service.getFeedback(planUri).length, 0);
+	});
+
+	test('onDidChangeRegistrations fires on register and dispose', () => {
+		const planUri = URI.parse('file:///plan.md');
+		let fireCount = 0;
+		store.add(service.onDidChangeRegistrations(() => fireCount++));
+
+		const registration = service.registerPlanReview(planUri, () => { });
+		assert.strictEqual(fireCount, 1);
+
+		registration.dispose();
+		assert.strictEqual(fireCount, 2);
+	});
+
+	test('onDidChangeFeedback fires on add and remove', () => {
+		const planUri = URI.parse('file:///plan.md');
+		store.add(service.registerPlanReview(planUri, () => { }));
+
+		let fireCount = 0;
+		store.add(service.onDidChangeFeedback(() => fireCount++));
+
+		const id = service.addFeedback(planUri, 1, 1, 'text');
+		assert.strictEqual(fireCount, 1);
+
+		service.removeFeedback(planUri, id);
+		assert.strictEqual(fireCount, 2);
+	});
+});
+
+suite('PlanReviewFeedbackService - Submit', () => {
+
+	const store = new DisposableStore();
+	let service: IPlanReviewFeedbackService;
+
+	setup(() => {
+		service = store.add(new PlanReviewFeedbackService());
+	});
+
+	teardown(() => {
+		store.clear();
+	});
+
+	ensureNoDisposablesAreLeakedInTestSuite();
+
+	test('submitAllFeedback calls onSubmit with formatted feedback', () => {
+		const planUri = URI.parse('file:///plan.md');
+		let submittedResult: { rejected: boolean; feedback?: string } | undefined;
+		store.add(service.registerPlanReview(planUri, (result) => { submittedResult = result; }));
+
+		service.addFeedback(planUri, 1, 1, 'fix this');
+		service.addFeedback(planUri, 45, 45, 'change that');
+
+		service.submitAllFeedback(planUri);
+
+		assert.ok(submittedResult);
+		assert.strictEqual(submittedResult!.rejected, false);
+		assert.strictEqual(submittedResult!.feedback, [
+			'Here\'s the feedback:',
+			'Line 1: fix this',
+			'Line 45: Column 45: change that',
+		].join('\n'));
+	});
+
+	test('submitAllFeedback does nothing when no items', () => {
+		const planUri = URI.parse('file:///plan.md');
+		let called = false;
+		store.add(service.registerPlanReview(planUri, () => { called = true; }));
+
+		service.submitAllFeedback(planUri);
+		assert.strictEqual(called, false);
+	});
+
+	test('feedback at column 1 omits column', () => {
+		const planUri = URI.parse('file:///plan.md');
+		let submittedResult: { feedback?: string } | undefined;
+		store.add(service.registerPlanReview(planUri, (result) => { submittedResult = result; }));
+
+		service.addFeedback(planUri, 10, 1, 'at start');
+
+		service.submitAllFeedback(planUri);
+
+		assert.ok(submittedResult);
+		assert.strictEqual(submittedResult!.feedback, [
+			'Here\'s the feedback:',
+			'Line 10: at start',
+		].join('\n'));
+	});
+
+	test('feedback at column > 1 includes column', () => {
+		const planUri = URI.parse('file:///plan.md');
+		let submittedResult: { feedback?: string } | undefined;
+		store.add(service.registerPlanReview(planUri, (result) => { submittedResult = result; }));
+
+		service.addFeedback(planUri, 10, 15, 'mid line');
+
+		service.submitAllFeedback(planUri);
+
+		assert.ok(submittedResult);
+		assert.strictEqual(submittedResult!.feedback, [
+			'Here\'s the feedback:',
+			'Line 10: Column 15: mid line',
+		].join('\n'));
+	});
+});
diff --git a/src/vs/workbench/contrib/chat/test/browser/widget/chatContentParts/chatIncrementalRendering.test.ts b/src/vs/workbench/contrib/chat/test/browser/widget/chatContentParts/chatIncrementalRendering.test.ts
index 320ee9b6b91..c8b320a04cc 100644
--- a/src/vs/workbench/contrib/chat/test/browser/widget/chatContentParts/chatIncrementalRendering.test.ts
+++ b/src/vs/workbench/contrib/chat/test/browser/widget/chatContentParts/chatIncrementalRendering.test.ts
@@ -191,6 +191,30 @@ suite('IncrementalDOMMorpher', () => {
 			// No \n\n — content is buffered
 			assert.strictEqual(morpher.tryMorph('partial paragraph'), true);
 		});
+
+		test('schedules render for content without any paragraph breaks', async () => {
+			configService.setUserConfiguration(ChatConfiguration.IncrementalRenderingBuffering, 'paragraph');
+			const morpher = createMorpher();
+			const rendered: string[] = [];
+			morpher.setRenderCallback(md => rendered.push(md));
+			morpher.seed('');
+
+			// Append content with no \n\n at all — previously this would
+			// never render because getRenderable returned lastRendered (empty seed).
+			morpher.tryMorph('single block no paragraph breaks');
+
+			// Flush the rAF — the full content should render since
+			// there are no paragraph boundaries to buffer at.
+			await new Promise(r => mainWindow.requestAnimationFrame(r));
+			assert.strictEqual(rendered.length, 1);
+			assert.strictEqual(rendered[0], 'single block no paragraph breaks');
+
+			// Further appends should also render
+			morpher.tryMorph('single block no paragraph breaks — more words');
+			await new Promise(r => mainWindow.requestAnimationFrame(r));
+			assert.strictEqual(rendered.length, 2);
+			assert.strictEqual(rendered[1], 'single block no paragraph breaks — more words');
+		});
 	});
 
 	suite('seed', () => {
@@ -293,6 +317,37 @@ suite('IncrementalDOMMorpher', () => {
 			// No error should occur — rAF is cancelled
 		});
 	});
+
+	suite('updateStreamRate', () => {
+
+		test('flushes remaining buffered content on completion for paragraph buffer', async () => {
+			// Use paragraph buffer (default)
+			configService.setUserConfiguration(ChatConfiguration.IncrementalRenderingBuffering, 'paragraph');
+			const morpher = createMorpher();
+			const rendered: string[] = [];
+			morpher.setRenderCallback(md => rendered.push(md));
+			morpher.seed('');
+
+			const fullContent = 'paragraph one\n\nparagraph two trailing';
+			// Append content where the tail has no \n\n boundary
+			morpher.tryMorph(fullContent);
+
+			// Flush the rAF so the paragraph-boundary render fires
+			await new Promise(r => mainWindow.requestAnimationFrame(r));
+			// Only content up to the last \n\n should have rendered
+			assert.strictEqual(rendered.length, 1);
+			assert.strictEqual(rendered[0], 'paragraph one\n\n');
+
+			// Signal stream completion — should schedule a render of
+			// the full content including the unbounded tail.
+			morpher.updateStreamRate(100, true);
+			await new Promise(r => mainWindow.requestAnimationFrame(r));
+
+			// The render callback should now have the full content
+			assert.strictEqual(rendered.length, 2);
+			assert.strictEqual(rendered[1], fullContent);
+		});
+	});
 });
 
 suite('BlockAnimation', () => {
diff --git a/src/vs/workbench/contrib/chat/test/browser/widget/chatContentParts/chatSubagentContentPart.test.ts b/src/vs/workbench/contrib/chat/test/browser/widget/chatContentParts/chatSubagentContentPart.test.ts
index e5d226a4ca3..0f97ee16be2 100644
--- a/src/vs/workbench/contrib/chat/test/browser/widget/chatContentParts/chatSubagentContentPart.test.ts
+++ b/src/vs/workbench/contrib/chat/test/browser/widget/chatContentParts/chatSubagentContentPart.test.ts
@@ -353,6 +353,100 @@ suite('ChatSubagentContentPart', () => {
 		});
 	});
 
+	suite('Late metadata updates', () => {
+		// The parent subagent tool is often constructed before
+		// `subagent_started` (which carries the real agentName) arrives.
+		// The autorun in `watchToolCompletion` re-reads metadata when state
+		// changes and updates the title if the description transitioned from
+		// the default placeholder to a real value, or if the agentName
+		// changed to a real value. These tests cover that branch directly.
+
+		function getTitleText(part: ChatSubagentContentPart): string {
+			const button = getCollapseButton(part);
+			assert.ok(button, 'Should have collapse button');
+			const labelElement = getCollapseButtonLabel(button);
+			return labelElement?.textContent ?? button.textContent ?? '';
+		}
+
+		function getSettableState(toolInvocation: IChatToolInvocation): ReturnType<typeof observableValue<IChatToolInvocation.State>> {
+			return toolInvocation.state as ReturnType<typeof observableValue<IChatToolInvocation.State>>;
+		}
+
+		function setToolSpecificData(toolInvocation: IChatToolInvocation, data: IChatSubagentToolInvocationData): void {
+			(toolInvocation as { toolSpecificData: IChatSubagentToolInvocationData }).toolSpecificData = data;
+		}
+
+		test('default description with no agentName → real description arrives later → title updates', () => {
+			const toolInvocation = createMockToolInvocation({
+				stateType: IChatToolInvocation.StateKind.WaitingForConfirmation,
+				toolSpecificData: { kind: 'subagent' /* no description, no agentName */ }
+			});
+			const context = createMockRenderContext(false);
+			const part = createPart(toolInvocation, context);
+
+			assert.ok(getTitleText(part).includes('Subagent:'), 'Title should start with default prefix');
+
+			// Late metadata: real description arrives via SessionToolCallContentChanged
+			setToolSpecificData(toolInvocation, { kind: 'subagent', description: 'Searching the codebase' });
+			getSettableState(toolInvocation).set(createState(IChatToolInvocation.StateKind.Executing), undefined);
+
+			assert.ok(getTitleText(part).includes('Searching the codebase'), 'Title should reflect the new description');
+		});
+
+		test('real description already set → agentName arrives later → title updates (regression)', () => {
+			const toolInvocation = createMockToolInvocation({
+				stateType: IChatToolInvocation.StateKind.WaitingForConfirmation,
+				toolSpecificData: { kind: 'subagent', description: 'Searching the codebase' /* no agentName */ }
+			});
+			const context = createMockRenderContext(false);
+			const part = createPart(toolInvocation, context);
+
+			assert.ok(getTitleText(part).includes('Searching the codebase'), 'Title should start with the real description');
+			assert.ok(!getTitleText(part).includes('CodeSearchAgent'), 'Title should not yet have agent name');
+
+			// Late metadata: agentName arrives via subagent_started after the
+			// description has already been set (the bug we fixed).
+			setToolSpecificData(toolInvocation, { kind: 'subagent', description: 'Searching the codebase', agentName: 'CodeSearchAgent' });
+			getSettableState(toolInvocation).set(createState(IChatToolInvocation.StateKind.Executing), undefined);
+
+			assert.ok(getTitleText(part).includes('CodeSearchAgent'), 'Title should reflect the new agent name');
+		});
+
+		test('agentName already set → empty agentName arrives → title NOT cleared', () => {
+			const toolInvocation = createMockToolInvocation({
+				stateType: IChatToolInvocation.StateKind.WaitingForConfirmation,
+				toolSpecificData: { kind: 'subagent', description: 'Searching the codebase', agentName: 'CodeSearchAgent' }
+			});
+			const context = createMockRenderContext(false);
+			const part = createPart(toolInvocation, context);
+
+			assert.ok(getTitleText(part).includes('CodeSearchAgent'), 'Title should start with the agent name');
+
+			// A subsequent update arrives with no agentName field — the part
+			// must NOT clear the previously-set name.
+			setToolSpecificData(toolInvocation, { kind: 'subagent', description: 'Searching the codebase' });
+			getSettableState(toolInvocation).set(createState(IChatToolInvocation.StateKind.Executing), undefined);
+
+			assert.ok(getTitleText(part).includes('CodeSearchAgent'), 'Title should still have the agent name');
+		});
+
+		test('real description already set → no further changes → title preserved', () => {
+			const toolInvocation = createMockToolInvocation({
+				stateType: IChatToolInvocation.StateKind.WaitingForConfirmation,
+				toolSpecificData: { kind: 'subagent', description: 'Searching the codebase', agentName: 'CodeSearchAgent' }
+			});
+			const context = createMockRenderContext(false);
+			const part = createPart(toolInvocation, context);
+
+			const before = getTitleText(part);
+
+			// Trigger the autorun without changing toolSpecificData.
+			getSettableState(toolInvocation).set(createState(IChatToolInvocation.StateKind.Executing), undefined);
+
+			assert.strictEqual(getTitleText(part), before, 'Title should be unchanged when no metadata changed');
+		});
+	});
+
 	suite('State management', () => {
 		test('should start as active', () => {
 			const toolInvocation = createMockToolInvocation();
diff --git a/src/vs/workbench/contrib/chat/test/common/chatService/chatService.test.ts b/src/vs/workbench/contrib/chat/test/common/chatService/chatService.test.ts
index 8302030f134..f8fc406fd5c 100644
--- a/src/vs/workbench/contrib/chat/test/common/chatService/chatService.test.ts
+++ b/src/vs/workbench/contrib/chat/test/common/chatService/chatService.test.ts
@@ -1487,6 +1487,33 @@ suite('ChatService', () => {
 			const model = ref.object as ChatModel;
 			assert.strictEqual(model.lastRequest?.response?.isComplete, true, 'Non-streaming session should complete response at load time');
 		});
+
+		test('draft input is restored after disposing and reloading a remote session', async () => {
+			const { resource } = setupRemoteProvider({ history: [] });
+
+			const testService = createChatService();
+
+			// Load the session and seed an unsent draft on its inputModel.
+			const ref1 = await testService.acquireOrLoadSession(resource, ChatAgentLocation.Chat, CancellationToken.None);
+			assert.ok(ref1, 'Should load remote session');
+			const model1 = ref1.object as ChatModel;
+			model1.inputModel.setState({
+				inputText: 'unsent draft',
+				selections: [{ selectionStartLineNumber: 1, selectionStartColumn: 1, positionLineNumber: 1, positionColumn: 12 }],
+			});
+
+			// Release the only reference -> willDisposeModel runs and persists metadata.
+			ref1.dispose();
+			await testService.waitForModelDisposals();
+
+			// Reload the same session. The draft must be restored from metadata.
+			const ref2 = await testService.acquireOrLoadSession(resource, ChatAgentLocation.Chat, CancellationToken.None);
+			assert.ok(ref2, 'Should re-load remote session');
+			testDisposables.add(ref2);
+			const model2 = ref2.object as ChatModel;
+			const restored = model2.inputModel.state.get();
+			assert.strictEqual(restored?.inputText, 'unsent draft', 'Input text should be restored');
+		});
 	});
 });
 
diff --git a/src/vs/workbench/contrib/chat/test/common/tools/builtinTools/manageTodoListTool.test.ts b/src/vs/workbench/contrib/chat/test/common/tools/builtinTools/manageTodoListTool.test.ts
index 5b8ad6895d5..cec8af2a4b1 100644
--- a/src/vs/workbench/contrib/chat/test/common/tools/builtinTools/manageTodoListTool.test.ts
+++ b/src/vs/workbench/contrib/chat/test/common/tools/builtinTools/manageTodoListTool.test.ts
@@ -4,9 +4,15 @@
  *--------------------------------------------------------------------------------------------*/
 
 import assert from 'assert';
+import { CancellationToken } from '../../../../../../../base/common/cancellation.js';
+import { Event } from '../../../../../../../base/common/event.js';
+import { URI } from '../../../../../../../base/common/uri.js';
 import { ensureNoDisposablesAreLeakedInTestSuite } from '../../../../../../../base/test/common/utils.js';
-import { createManageTodoListToolData } from '../../../../common/tools/builtinTools/manageTodoListTool.js';
-import { IToolData } from '../../../../common/tools/languageModelToolsService.js';
+import { NullLogService } from '../../../../../../../platform/log/common/log.js';
+import { NullTelemetryService } from '../../../../../../../platform/telemetry/common/telemetryUtils.js';
+import { createManageTodoListToolData, ManageTodoListTool } from '../../../../common/tools/builtinTools/manageTodoListTool.js';
+import { IChatTodo, IChatTodoListService } from '../../../../common/tools/chatTodoListService.js';
+import { IToolData, ToolInvocationPresentation } from '../../../../common/tools/languageModelToolsService.js';
 import { IJSONSchema } from '../../../../../../../base/common/jsonSchema.js';
 
 suite('ManageTodoListTool Schema', () => {
@@ -59,3 +65,83 @@ suite('ManageTodoListTool Schema', () => {
 		assert.deepStrictEqual(statusProperty.enum, ['not-started', 'in-progress', 'completed'], 'Status should have correct enum values');
 	});
 });
+
+suite('ManageTodoListTool prepareToolInvocation', () => {
+	const store = ensureNoDisposablesAreLeakedInTestSuite();
+	const sessionResource = URI.parse('vscode-chat://session/1');
+
+	function createMockTodoListService(todos: IChatTodo[] = []): IChatTodoListService {
+		return {
+			_serviceBrand: undefined,
+			onDidUpdateTodos: Event.None,
+			getTodos: () => todos,
+			setTodos: () => { },
+			migrateTodos: () => { },
+		};
+	}
+
+	function createTool(todos: IChatTodo[] = []): ManageTodoListTool {
+		return store.add(new ManageTodoListTool(
+			createMockTodoListService(todos),
+			new NullLogService(),
+			NullTelemetryService,
+		));
+	}
+
+	test('presentation is Hidden when todoList param is empty', async () => {
+		const tool = createTool();
+		const result = await tool.prepareToolInvocation({
+			parameters: { todoList: [] },
+			toolCallId: 'call-1',
+			chatSessionResource: sessionResource,
+		}, CancellationToken.None);
+
+		assert.strictEqual(result?.presentation, ToolInvocationPresentation.Hidden);
+	});
+
+	test('presentation is undefined when todoList param has items', async () => {
+		const tool = createTool();
+		const result = await tool.prepareToolInvocation({
+			parameters: {
+				todoList: [{ id: 1, title: 'Task 1', status: 'not-started' }],
+			},
+			toolCallId: 'call-1',
+			chatSessionResource: sessionResource,
+		}, CancellationToken.None);
+
+		assert.strictEqual(result?.presentation, undefined);
+	});
+
+	test('presentation is Hidden for read operation with no existing todos', async () => {
+		const tool = createTool([]);
+		const result = await tool.prepareToolInvocation({
+			parameters: { operation: 'read' },
+			toolCallId: 'call-1',
+			chatSessionResource: sessionResource,
+		}, CancellationToken.None);
+
+		assert.strictEqual(result?.presentation, ToolInvocationPresentation.Hidden);
+	});
+
+	test('presentation is undefined for read operation with existing todos', async () => {
+		const tool = createTool([{ id: 1, title: 'Existing', status: 'in-progress' }]);
+		const result = await tool.prepareToolInvocation({
+			parameters: { operation: 'read' },
+			toolCallId: 'call-1',
+			chatSessionResource: sessionResource,
+		}, CancellationToken.None);
+
+		assert.strictEqual(result?.presentation, undefined);
+	});
+
+	test('returns undefined when no chatSessionResource is provided', async () => {
+		const tool = createTool();
+		const result = await tool.prepareToolInvocation({
+			parameters: { todoList: [{ id: 1, title: 'Task', status: 'not-started' }] },
+			toolCallId: 'call-1',
+			chatSessionResource: undefined,
+		}, CancellationToken.None);
+
+		assert.strictEqual(result, undefined);
+	});
+});
diff --git a/src/vs/workbench/contrib/codeEditor/electron-browser/selectionClipboard.ts b/src/vs/workbench/contrib/codeEditor/electron-browser/selectionClipboard.ts
index ba585c28245..3ccaafb4128 100644
--- a/src/vs/workbench/contrib/codeEditor/electron-browser/selectionClipboard.ts
+++ b/src/vs/workbench/contrib/codeEditor/electron-browser/selectionClipboard.ts
@@ -85,9 +85,6 @@ export class SelectionClipboard extends Disposable implements IEditorContributio
 		}
 	}
 
-	public override dispose(): void {
-		super.dispose();
-	}
 }
 
 class LinuxSelectionClipboardPastePreventer extends Disposable implements IWorkbenchContribution {
diff --git a/src/vs/workbench/contrib/debug/browser/debug.contribution.ts b/src/vs/workbench/contrib/debug/browser/debug.contribution.ts
index 866c7bc8d33..6a10c81e6be 100644
--- a/src/vs/workbench/contrib/debug/browser/debug.contribution.ts
+++ b/src/vs/workbench/contrib/debug/browser/debug.contribution.ts
@@ -15,7 +15,6 @@ import { MenuId, MenuRegistry } from '../../../../platform/actions/common/action
 import { Extensions as ConfigurationExtensions, ConfigurationScope, IConfigurationRegistry } from '../../../../platform/configuration/common/configurationRegistry.js';
 import { ContextKeyExpr, ContextKeyExpression } from '../../../../platform/contextkey/common/contextkey.js';
 import { SyncDescriptor } from '../../../../platform/instantiation/common/descriptors.js';
-import { InstantiationType, registerSingleton } from '../../../../platform/instantiation/common/extensions.js';
 import { KeybindingWeight, KeybindingsRegistry } from '../../../../platform/keybinding/common/keybindingsRegistry.js';
 import { IQuickAccessRegistry, Extensions as QuickAccessExtensions } from '../../../../platform/quickinput/common/quickAccess.js';
 import { Registry } from '../../../../platform/registry/common/platform.js';
@@ -28,11 +27,10 @@ import { IViewContainersRegistry, IViewsRegistry, ViewContainer, ViewContainerLo
 import { launchSchemaId } from '../../../services/configuration/common/configuration.js';
 import { LifecyclePhase } from '../../../services/lifecycle/common/lifecycle.js';
 import { COPY_NOTEBOOK_VARIABLE_VALUE_ID, COPY_NOTEBOOK_VARIABLE_VALUE_LABEL } from '../../notebook/browser/contrib/notebookVariables/notebookVariableCommands.js';
-import { BREAKPOINTS_VIEW_ID, BREAKPOINT_EDITOR_CONTRIBUTION_ID, CALLSTACK_VIEW_ID, CONTEXT_BREAKPOINTS_EXIST, CONTEXT_BREAK_WHEN_VALUE_CHANGES_SUPPORTED, CONTEXT_BREAK_WHEN_VALUE_IS_ACCESSED_SUPPORTED, CONTEXT_BREAK_WHEN_VALUE_IS_READ_SUPPORTED, CONTEXT_CALLSTACK_ITEM_TYPE, CONTEXT_CAN_VIEW_MEMORY, CONTEXT_DEBUGGERS_AVAILABLE, CONTEXT_DEBUG_STATE, CONTEXT_DEBUG_UX, CONTEXT_EXPRESSION_SELECTED, CONTEXT_FOCUSED_SESSION_IS_ATTACH, CONTEXT_FOCUSED_SESSION_IS_NO_DEBUG, CONTEXT_HAS_DEBUGGED, CONTEXT_IN_DEBUG_MODE, CONTEXT_JUMP_TO_CURSOR_SUPPORTED, CONTEXT_LOADED_SCRIPTS_SUPPORTED, CONTEXT_RESTART_FRAME_SUPPORTED, CONTEXT_SET_EXPRESSION_SUPPORTED, CONTEXT_SET_VARIABLE_SUPPORTED, CONTEXT_STACK_FRAME_SUPPORTS_RESTART, CONTEXT_STEP_INTO_TARGETS_SUPPORTED, CONTEXT_SUSPEND_DEBUGGEE_SUPPORTED, CONTEXT_TERMINATE_DEBUGGEE_SUPPORTED, CONTEXT_TERMINATE_THREADS_SUPPORTED, CONTEXT_VARIABLE_EVALUATE_NAME_PRESENT, CONTEXT_VARIABLE_IS_READONLY, CONTEXT_VARIABLE_VALUE, CONTEXT_WATCH_ITEM_TYPE, DEBUG_PANEL_ID, DISASSEMBLY_VIEW_ID, EDITOR_CONTRIBUTION_ID, IDebugService, INTERNAL_CONSOLE_OPTIONS_SCHEMA, LOADED_SCRIPTS_VIEW_ID, REPL_VIEW_ID, State, VARIABLES_VIEW_ID, VIEWLET_ID, WATCH_VIEW_ID, getStateLabel } from '../common/debug.js';
+import { BREAKPOINTS_VIEW_ID, BREAKPOINT_EDITOR_CONTRIBUTION_ID, CALLSTACK_VIEW_ID, CONTEXT_BREAKPOINTS_EXIST, CONTEXT_BREAK_WHEN_VALUE_CHANGES_SUPPORTED, CONTEXT_BREAK_WHEN_VALUE_IS_ACCESSED_SUPPORTED, CONTEXT_BREAK_WHEN_VALUE_IS_READ_SUPPORTED, CONTEXT_CALLSTACK_ITEM_TYPE, CONTEXT_CAN_VIEW_MEMORY, CONTEXT_DEBUGGERS_AVAILABLE, CONTEXT_DEBUG_STATE, CONTEXT_DEBUG_UX, CONTEXT_EXPRESSION_SELECTED, CONTEXT_FOCUSED_SESSION_IS_ATTACH, CONTEXT_FOCUSED_SESSION_IS_NO_DEBUG, CONTEXT_HAS_DEBUGGED, CONTEXT_IN_DEBUG_MODE, CONTEXT_JUMP_TO_CURSOR_SUPPORTED, CONTEXT_LOADED_SCRIPTS_SUPPORTED, CONTEXT_RESTART_FRAME_SUPPORTED, CONTEXT_SET_EXPRESSION_SUPPORTED, CONTEXT_SET_VARIABLE_SUPPORTED, CONTEXT_STACK_FRAME_SUPPORTS_RESTART, CONTEXT_STEP_INTO_TARGETS_SUPPORTED, CONTEXT_SUSPEND_DEBUGGEE_SUPPORTED, CONTEXT_TERMINATE_DEBUGGEE_SUPPORTED, CONTEXT_TERMINATE_THREADS_SUPPORTED, CONTEXT_VARIABLE_EVALUATE_NAME_PRESENT, CONTEXT_VARIABLE_IS_READONLY, CONTEXT_VARIABLE_VALUE, CONTEXT_WATCH_ITEM_TYPE, DEBUG_PANEL_ID, DISASSEMBLY_VIEW_ID, EDITOR_CONTRIBUTION_ID, INTERNAL_CONSOLE_OPTIONS_SCHEMA, LOADED_SCRIPTS_VIEW_ID, REPL_VIEW_ID, State, VARIABLES_VIEW_ID, VIEWLET_ID, WATCH_VIEW_ID, getStateLabel } from '../common/debug.js';
 import { DebugWatchAccessibilityAnnouncer } from '../common/debugAccessibilityAnnouncer.js';
 import { DebugContentProvider } from '../common/debugContentProvider.js';
 import { DebugLifecycle } from '../common/debugLifecycle.js';
-import { DebugVisualizerService, IDebugVisualizerService } from '../common/debugVisualizers.js';
 import { DisassemblyViewInput } from '../common/disassemblyViewInput.js';
 import { ReplAccessibilityAnnouncer } from '../common/replAccessibilityAnnouncer.js';
 import { BreakpointEditorContribution } from './breakpointEditorContribution.js';
@@ -47,7 +45,6 @@ import { DebugEditorContribution } from './debugEditorContribution.js';
 import * as icons from './debugIcons.js';
 import { DebugProgressContribution } from './debugProgress.js';
 import { StartDebugQuickAccessProvider } from './debugQuickAccess.js';
-import { DebugService } from './debugService.js';
 import './debugSettingMigration.js';
 import { DebugStatusContribution } from './debugStatus.js';
 import { DebugTitleContribution } from './debugTitle.js';
@@ -67,10 +64,12 @@ import { ADD_WATCH_ID, ADD_WATCH_LABEL, REMOVE_WATCH_EXPRESSIONS_COMMAND_ID, REM
 import { WelcomeView } from './welcomeView.js';
 import { DebugChatContextContribution } from './debugChatIntegration.js';
 
+// Register services
+import './debug.service.contribution.js';
+
 const debugCategory = nls.localize('debugCategory', "Debug");
 registerColors();
-registerSingleton(IDebugService, DebugService, InstantiationType.Delayed);
-registerSingleton(IDebugVisualizerService, DebugVisualizerService, InstantiationType.Delayed);
+
 
 // Register Debug Workbench Contributions
 Registry.as<IWorkbenchContributionsRegistry>(WorkbenchExtensions.Workbench).registerWorkbenchContribution(DebugStatusContribution, LifecyclePhase.Eventually);
diff --git a/src/vs/workbench/contrib/debug/browser/debug.service.contribution.ts b/src/vs/workbench/contrib/debug/browser/debug.service.contribution.ts
new file mode 100644
index 00000000000..93038daa11f
--- /dev/null
+++ b/src/vs/workbench/contrib/debug/browser/debug.service.contribution.ts
@@ -0,0 +1,12 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import { registerSingleton, InstantiationType } from '../../../../platform/instantiation/common/extensions.js';
+import { DebugService } from './debugService.js';
+import { IDebugService } from '../common/debug.js';
+import { IDebugVisualizerService, DebugVisualizerService } from '../common/debugVisualizers.js';
+
+registerSingleton(IDebugService, DebugService, InstantiationType.Delayed);
+registerSingleton(IDebugVisualizerService, DebugVisualizerService, InstantiationType.Delayed);
diff --git a/src/vs/workbench/contrib/debug/browser/repl.ts b/src/vs/workbench/contrib/debug/browser/repl.ts
index 7533ef033b6..8ece6109fd6 100644
--- a/src/vs/workbench/contrib/debug/browser/repl.ts
+++ b/src/vs/workbench/contrib/debug/browser/repl.ts
@@ -33,7 +33,7 @@ import { Position } from '../../../../editor/common/core/position.js';
 import { Range } from '../../../../editor/common/core/range.js';
 import { IDecorationOptions } from '../../../../editor/common/editorCommon.js';
 import { EditorContextKeys } from '../../../../editor/common/editorContextKeys.js';
-import { CompletionContext, CompletionItem, CompletionItemInsertTextRule, CompletionItemKind, CompletionItemKinds, CompletionList } from '../../../../editor/common/languages.js';
+import { CompletionContext, CompletionItem, CompletionItemInsertTextRule, CompletionItemKind, CompletionItemKinds, CompletionItemLabel, CompletionList } from '../../../../editor/common/languages.js';
 import { ITextModel } from '../../../../editor/common/model.js';
 import { ILanguageFeaturesService } from '../../../../editor/common/services/languageFeatures.js';
 import { IModelService } from '../../../../editor/common/services/model.js';
@@ -288,10 +288,12 @@ export class Repl extends FilterViewPane implements IHistoryNavigationWidget {
 											insertText = insertText.substring(0, item.selectionStart) + placeholder + insertText.substring(item.selectionStart + selectionLength);
 										}
 
+										const label: string | CompletionItemLabel = item.detail
+											? { label: item.label, description: item.detail }
+											: item.label;
 										suggestions.push({
-											label: item.label,
+											label,
 											insertText,
-											detail: item.detail,
 											kind: CompletionItemKinds.fromString(item.type || 'property'),
 											filterText: (item.start && item.length) ? text.substring(item.start, item.start + item.length).concat(item.label) : undefined,
 											range: computeRange(item.length || 0),
diff --git a/src/vs/workbench/contrib/notebook/browser/notebookEditorWidget.ts b/src/vs/workbench/contrib/notebook/browser/notebookEditorWidget.ts
index 2c6b5576178..7c8cc185ff6 100644
--- a/src/vs/workbench/contrib/notebook/browser/notebookEditorWidget.ts
+++ b/src/vs/workbench/contrib/notebook/browser/notebookEditorWidget.ts
@@ -331,7 +331,7 @@ export class NotebookEditorWidget extends Disposable implements INotebookEditorD
 		this.isReplHistory = creationOptions.isReplHistory ?? false;
 		this._readOnly = creationOptions.isReadOnly ?? false;
 
-		this._overlayLayout = new OverlayLayoutElement();
+		this._overlayLayout = this._register(new OverlayLayoutElement());
 		this._overlayContainer = this._overlayLayout.content;
 		this.scopedContextKeyService = this._register(contextKeyService.createScoped(this._overlayContainer));
 		this.instantiationService = this._register(instantiationService.createChild(new ServiceCollection([IContextKeyService, this.scopedContextKeyService])));
@@ -1946,15 +1946,15 @@ export class NotebookEditorWidget extends Disposable implements INotebookEditorD
 
 		const modalEditorContainer = this.editorGroupsService.activeModalEditorPart?.modalElement;
 		let clippingContainer: HTMLElement | undefined;
-		if (DOM.isHTMLElement(modalEditorContainer)) {
+		if (DOM.isHTMLElement(modalEditorContainer) && modalEditorContainer.contains(shadowElement)) {
 			clippingContainer = modalEditorContainer;
 		} else {
 			clippingContainer = this.layoutService.getContainer(DOM.getWindow(this.getDomNode()), Parts.EDITOR_PART);
 		}
 
 		this._overlayContainer.style.visibility = 'visible';
-		this._overlayContainer.style.left = ''; // Clear hide offset
 		this._overlayLayout.layoutOverAnchorElement(shadowElement, { clippingContainer, fallbackDimension: dimension, fallbackPosition: position });
+		this._overlayLayout.reapplyLayoutStyles();
 	}
 
 	//#endregion
diff --git a/src/vs/workbench/contrib/relauncher/browser/relauncher.contribution.ts b/src/vs/workbench/contrib/relauncher/browser/relauncher.contribution.ts
index bb37f7a15d6..6e39e4850d7 100644
--- a/src/vs/workbench/contrib/relauncher/browser/relauncher.contribution.ts
+++ b/src/vs/workbench/contrib/relauncher/browser/relauncher.contribution.ts
@@ -31,7 +31,7 @@ interface IConfiguration extends IWindowsConfiguration {
 	window: IWindowSettings;
 	workbench?: { enableExperiments?: boolean };
 	telemetry?: { feedback?: { enabled?: boolean } };
-	chat?: { extensionUnification?: { enabled?: boolean } };
+	chat?: { extensionUnification?: { enabled?: boolean }; agentHost?: { enabled?: boolean } };
 	_extensionsGallery?: { enablePPE?: boolean };
 	accessibility?: { verbosity?: { debug?: boolean } };
 }
@@ -53,7 +53,8 @@ export class SettingsChangeRelauncher extends Disposable implements IWorkbenchCo
 		'security.restrictUNCAccess',
 		'accessibility.verbosity.debug',
 		'telemetry.feedback.enabled',
-		'chat.extensionUnification.enabled'
+		'chat.extensionUnification.enabled',
+		'chat.agentHost.enabled'
 	];
 
 	private readonly titleBarStyle = new ChangeObserver<TitlebarStyle>('string');
@@ -71,6 +72,7 @@ export class SettingsChangeRelauncher extends Disposable implements IWorkbenchCo
 	private readonly accessibilityVerbosityDebug = new ChangeObserver('boolean');
 	private readonly telemetryFeedbackEnabled = new ChangeObserver('boolean');
 	private readonly extensionUnificationEnabled = new ChangeObserver('boolean');
+	private readonly agentHostEnabled = new ChangeObserver('boolean');
 
 	constructor(
 		@IHostService private readonly hostService: IHostService,
@@ -166,6 +168,9 @@ export class SettingsChangeRelauncher extends Disposable implements IWorkbenchCo
 		// Extension Unification (only when turning on)
 		processChanged(this.extensionUnificationEnabled.handleChange(config.chat?.extensionUnification?.enabled) && config.chat?.extensionUnification?.enabled === true);
 
+		// Agent Host
+		processChanged(this.agentHostEnabled.handleChange(config.chat?.agentHost?.enabled));
+
 		if (askToRelaunch && changed && this.hostService.hasFocus) {
 			this.doConfirm(
 				isNative ?
diff --git a/src/vs/workbench/contrib/surveys/browser/nps.contribution.ts b/src/vs/workbench/contrib/surveys/browser/nps.contribution.ts
index 5c0e330d87a..f98dbed3b48 100644
--- a/src/vs/workbench/contrib/surveys/browser/nps.contribution.ts
+++ b/src/vs/workbench/contrib/surveys/browser/nps.contribution.ts
@@ -16,6 +16,7 @@ import { IOpenerService } from '../../../../platform/opener/common/opener.js';
 import { URI } from '../../../../base/common/uri.js';
 import { platform } from '../../../../base/common/process.js';
 import { IConfigurationService } from '../../../../platform/configuration/common/configuration.js';
+import { IWorkbenchEnvironmentService } from '../../../services/environment/common/environmentService.js';
 
 const PROBABILITY = 0.15;
 const SESSION_COUNT_KEY = 'nps/sessionCount';
@@ -31,9 +32,10 @@ class NPSContribution implements IWorkbenchContribution {
 		@ITelemetryService telemetryService: ITelemetryService,
 		@IOpenerService openerService: IOpenerService,
 		@IProductService productService: IProductService,
-		@IConfigurationService configurationService: IConfigurationService
+		@IConfigurationService configurationService: IConfigurationService,
+		@IWorkbenchEnvironmentService environmentService: IWorkbenchEnvironmentService
 	) {
-		if (!productService.npsSurveyUrl || !configurationService.getValue<boolean>('telemetry.feedback.enabled')) {
+		if (!productService.npsSurveyUrl || !configurationService.getValue<boolean>('telemetry.feedback.enabled') || environmentService.isSessionsWindow) {
 			return;
 		}
 
diff --git a/src/vs/workbench/contrib/terminalContrib/chatAgentTools/browser/outputHelpers.ts b/src/vs/workbench/contrib/terminalContrib/chatAgentTools/browser/outputHelpers.ts
index b5aa7e49d13..67f2c22c3eb 100644
--- a/src/vs/workbench/contrib/terminalContrib/chatAgentTools/browser/outputHelpers.ts
+++ b/src/vs/workbench/contrib/terminalContrib/chatAgentTools/browser/outputHelpers.ts
@@ -7,7 +7,7 @@ import { ITerminalInstance } from '../../../terminal/browser/terminal.js';
 import type { IMarker as IXtermMarker } from '@xterm/xterm';
 import { truncateOutputKeepingTail } from './runInTerminalHelpers.js';
 
-const MAX_OUTPUT_LENGTH = 16000;
+const MAX_OUTPUT_LENGTH = 60000;
 
 export interface IGetOutputOptions {
 	/** When set, only return the last N non-empty lines from the bottom of the buffer. */
diff --git a/src/vs/workbench/contrib/terminalContrib/chatAgentTools/browser/runInTerminalHelpers.ts b/src/vs/workbench/contrib/terminalContrib/chatAgentTools/browser/runInTerminalHelpers.ts
index da4024062f4..21074ebc7f2 100644
--- a/src/vs/workbench/contrib/terminalContrib/chatAgentTools/browser/runInTerminalHelpers.ts
+++ b/src/vs/workbench/contrib/terminalContrib/chatAgentTools/browser/runInTerminalHelpers.ts
@@ -7,7 +7,7 @@ import { Separator } from '../../../../../base/common/actions.js';
 import { coalesce } from '../../../../../base/common/arrays.js';
 import { posix as pathPosix, win32 as pathWin32 } from '../../../../../base/common/path.js';
 import { OperatingSystem } from '../../../../../base/common/platform.js';
-import { escapeRegExpCharacters, removeAnsiEscapeCodes } from '../../../../../base/common/strings.js';
+import { escapeRegExpCharacters } from '../../../../../base/common/strings.js';
 import { localize } from '../../../../../nls.js';
 import type { TerminalNewAutoApproveButtonData } from '../../../chat/browser/widget/chatContentParts/toolInvocationParts/chatTerminalToolConfirmationSubPart.js';
 import type { ToolConfirmationAction } from '../../../chat/common/tools/languageModelToolsService.js';
@@ -47,8 +47,6 @@ export function isFish(envShell: string, os: OperatingSystem): boolean {
 	return /^fish$/.test(pathPosix.basename(envShell));
 }
 
-// Maximum output length to prevent context overflow
-const MAX_OUTPUT_LENGTH = 60000; // ~60KB limit to keep context manageable
 export const TRUNCATION_MESSAGE = '\n\n[... PREVIOUS OUTPUT TRUNCATED ...]\n\n';
 
 export function truncateOutputKeepingTail(output: string, maxLength: number): string {
@@ -64,19 +62,6 @@ export function truncateOutputKeepingTail(output: string, maxLength: number): st
 	return TRUNCATION_MESSAGE + endPortion;
 }
 
-export function sanitizeTerminalOutput(output: string): string {
-	let sanitized = removeAnsiEscapeCodes(output)
-		// Trim trailing \r\n characters
-		.trimEnd();
-
-	// Truncate if output is too long to prevent context overflow
-	if (sanitized.length > MAX_OUTPUT_LENGTH) {
-		sanitized = truncateOutputKeepingTail(sanitized, MAX_OUTPUT_LENGTH);
-	}
-
-	return sanitized;
-}
-
 /**
  * Normalizes command text for UI display by removing unnecessary quote and forward slash
  * escaping artifacts (for example: \" \' \/) commonly produced in streamed tool-call JSON.
diff --git a/src/vs/workbench/contrib/terminalContrib/chatAgentTools/test/browser/outputHelpers.test.ts b/src/vs/workbench/contrib/terminalContrib/chatAgentTools/test/browser/outputHelpers.test.ts
index 4dc62b623c6..d372a5c3936 100644
--- a/src/vs/workbench/contrib/terminalContrib/chatAgentTools/test/browser/outputHelpers.test.ts
+++ b/src/vs/workbench/contrib/terminalContrib/chatAgentTools/test/browser/outputHelpers.test.ts
@@ -3,10 +3,11 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import { strictEqual } from 'assert';
+import { ok, strictEqual } from 'assert';
 import type { IMarker as IXtermMarker } from '@xterm/xterm';
 import type { ITerminalInstance } from '../../../../terminal/browser/terminal.js';
 import { getOutput } from '../../browser/outputHelpers.js';
+import { TRUNCATION_MESSAGE } from '../../browser/runInTerminalHelpers.js';
 import { ensureNoDisposablesAreLeakedInTestSuite } from '../../../../../../base/test/common/utils.js';
 
 suite('outputHelpers', () => {
@@ -60,4 +61,16 @@ suite('outputHelpers', () => {
 		const output = getOutput(instance, marker);
 		strictEqual(output, `${line80}X\nafter`);
 	});
+
+	test('caps output at 60KB and prefixes the truncation marker', () => {
+		const line = 'a'.repeat(1000);
+		const instance = createMockInstance(
+			Array.from({ length: 100 }, () => ({ text: line }))
+		);
+
+		const output = getOutput(instance);
+		strictEqual(output.length, 60000);
+		ok(output.startsWith(TRUNCATION_MESSAGE));
+		ok(output.endsWith(line));
+	});
 });
diff --git a/src/vs/workbench/contrib/terminalContrib/chatAgentTools/test/browser/runInTerminalHelpers.test.ts b/src/vs/workbench/contrib/terminalContrib/chatAgentTools/test/browser/runInTerminalHelpers.test.ts
index 49735c06797..244b5efeae7 100644
--- a/src/vs/workbench/contrib/terminalContrib/chatAgentTools/test/browser/runInTerminalHelpers.test.ts
+++ b/src/vs/workbench/contrib/terminalContrib/chatAgentTools/test/browser/runInTerminalHelpers.test.ts
@@ -4,7 +4,7 @@
  *--------------------------------------------------------------------------------------------*/
 
 import { ok, strictEqual } from 'assert';
-import { generateAutoApproveActions, TRUNCATION_MESSAGE, dedupeRules, isPowerShell, sanitizeTerminalOutput, truncateOutputKeepingTail, extractCdPrefix, normalizeTerminalCommandForDisplay } from '../../browser/runInTerminalHelpers.js';
+import { generateAutoApproveActions, TRUNCATION_MESSAGE, dedupeRules, isPowerShell, truncateOutputKeepingTail, extractCdPrefix, normalizeTerminalCommandForDisplay } from '../../browser/runInTerminalHelpers.js';
 import { OperatingSystem } from '../../../../../../base/common/platform.js';
 import { ensureNoDisposablesAreLeakedInTestSuite } from '../../../../../../base/test/common/utils.js';
 import { ConfigurationTarget } from '../../../../../../platform/configuration/common/configuration.js';
@@ -283,16 +283,6 @@ suite('truncateOutputKeepingTail', () => {
 	});
 });
 
-suite('sanitizeTerminalOutput', () => {
-	ensureNoDisposablesAreLeakedInTestSuite();
-	test('adds truncation notice when exceeding max length', () => {
-		const longOutput = 'line\n'.repeat(20000);
-		const result = sanitizeTerminalOutput(longOutput);
-		ok(result.startsWith(TRUNCATION_MESSAGE));
-		ok(result.endsWith('line'));
-	});
-});
-
 suite('normalizeTerminalCommandForDisplay', () => {
 	ensureNoDisposablesAreLeakedInTestSuite();
 
diff --git a/src/vs/workbench/contrib/welcomeOnboarding/browser/media/variationA.css b/src/vs/workbench/contrib/welcomeOnboarding/browser/media/variationA.css
index 8945687a86c..cacd6a0acc6 100644
--- a/src/vs/workbench/contrib/welcomeOnboarding/browser/media/variationA.css
+++ b/src/vs/workbench/contrib/welcomeOnboarding/browser/media/variationA.css
@@ -42,6 +42,7 @@
 	display: flex;
 	flex-direction: column;
 	overflow: hidden;
+	position: relative;
 	transform: scale(0.96) translateY(8px);
 	transition: transform 0.3s cubic-bezier(0.16, 1, 0.3, 1);
 }
@@ -61,6 +62,36 @@
 	padding: 20px 28px 0;
 }
 
+.onboarding-a-close-btn {
+	position: absolute;
+	top: 16px;
+	right: 16px;
+	z-index: 1;
+	display: flex;
+	align-items: center;
+	justify-content: center;
+	width: 28px;
+	height: 28px;
+	border: none;
+	border-radius: 6px;
+	background: transparent;
+	color: var(--vscode-descriptionForeground);
+	cursor: pointer;
+	padding: 0;
+	flex-shrink: 0;
+	transition: background 0.15s ease, color 0.15s ease;
+}
+
+.onboarding-a-close-btn:hover {
+	background: var(--vscode-toolbar-hoverBackground, rgba(255, 255, 255, 0.1));
+	color: var(--vscode-editor-foreground);
+}
+
+.onboarding-a-close-btn:focus-visible {
+	outline: 2px solid var(--vscode-focusBorder);
+	outline-offset: 2px;
+}
+
 .onboarding-a-progress {
 	display: flex;
 	align-items: center;
diff --git a/src/vs/workbench/contrib/welcomeOnboarding/browser/onboardingVariationA.ts b/src/vs/workbench/contrib/welcomeOnboarding/browser/onboardingVariationA.ts
index e1486cb5c58..7bea08f1ad0 100644
--- a/src/vs/workbench/contrib/welcomeOnboarding/browser/onboardingVariationA.ts
+++ b/src/vs/workbench/contrib/welcomeOnboarding/browser/onboardingVariationA.ts
@@ -105,7 +105,7 @@ export class OnboardingVariationA extends Disposable implements IOnboardingServi
 	private contentEl: HTMLElement | undefined;
 	private backButton: HTMLButtonElement | undefined;
 	private nextButton: HTMLButtonElement | undefined;
-	private skipButton: HTMLButtonElement | undefined;
+	private closeButton: HTMLButtonElement | undefined;
 	private footerLeft: HTMLElement | undefined;
 	private _footerSignInBtn: HTMLButtonElement | undefined;
 
@@ -176,6 +176,12 @@ export class OnboardingVariationA extends Disposable implements IOnboardingServi
 		// Card
 		this.card = append(this.overlay, $('.onboarding-a-card'));
 
+		// Close button (upper-right corner of card)
+		this.closeButton = append(this.card, $<HTMLButtonElement>('button.onboarding-a-close-btn'));
+		this.closeButton.type = 'button';
+		this.closeButton.setAttribute('aria-label', localize('onboarding.close', "Close"));
+		this.closeButton.appendChild(renderIcon(Codicon.close));
+
 		// Header with progress
 		const header = append(this.card, $('.onboarding-a-header'));
 		this.progressContainer = append(header, $('.onboarding-a-progress'));
@@ -194,10 +200,6 @@ export class OnboardingVariationA extends Disposable implements IOnboardingServi
 		const footer = append(this.card, $('.onboarding-a-footer'));
 
 		this.footerLeft = append(footer, $('.onboarding-a-footer-left'));
-		this.skipButton = append(this.footerLeft, $<HTMLButtonElement>('button.onboarding-a-btn.onboarding-a-btn-ghost'));
-		this.skipButton.textContent = localize('onboarding.skip', "Skip");
-		this.skipButton.type = 'button';
-		this.footerFocusableElements.push(this.skipButton);
 
 		const footerRight = append(footer, $('.onboarding-a-footer-right'));
 
@@ -212,7 +214,7 @@ export class OnboardingVariationA extends Disposable implements IOnboardingServi
 		this._updateButtonStates();
 
 		// Event handlers
-		this.disposables.add(addDisposableListener(this.skipButton, EventType.CLICK, () => {
+		this.disposables.add(addDisposableListener(this.closeButton, EventType.CLICK, () => {
 			this._logAction('skip');
 			this._dismiss('skip');
 		}));
@@ -412,15 +414,8 @@ export class OnboardingVariationA extends Disposable implements IOnboardingServi
 				this.nextButton.textContent = localize('onboarding.next', "Continue");
 			}
 		}
-		if (this.skipButton && this.footerLeft) {
-			if (this.currentStepIndex === 0) {
-				// Sign-in step: ghost Skip button
-				this.skipButton.className = 'onboarding-a-btn onboarding-a-btn-ghost';
-			} else {
-				this.skipButton.className = 'onboarding-a-btn onboarding-a-btn-ghost';
-			}
+		if (this.footerLeft) {
 			if (this._isLastStep()) {
-				this.skipButton.style.display = 'none';
 				// Show sign-in nudge in footer
 				if (!this._footerSignInBtn && !this._userSignedIn) {
 					this._footerSignInBtn = append(this.footerLeft, $<HTMLButtonElement>('button.onboarding-a-signin-nudge-btn'));
@@ -435,7 +430,6 @@ export class OnboardingVariationA extends Disposable implements IOnboardingServi
 					}));
 				}
 			} else {
-				this.skipButton.style.display = '';
 				if (this._footerSignInBtn) {
 					this._footerSignInBtn.remove();
 					this._footerSignInBtn = undefined;
@@ -1149,12 +1143,12 @@ export class OnboardingVariationA extends Disposable implements IOnboardingServi
 	}
 
 	private _getFocusableElements(): HTMLElement[] {
-		return [...this.stepFocusableElements, ...this.footerFocusableElements].filter(element => this._isTabbable(element));
+		return [...(this.closeButton ? [this.closeButton] : []), ...this.stepFocusableElements, ...this.footerFocusableElements].filter(element => this._isTabbable(element));
 	}
 
 	private _focusCurrentStepElement(): void {
 		const stepFocusable = this.stepFocusableElements.find(element => this._isTabbable(element));
-		(stepFocusable ?? this.nextButton ?? this.skipButton)?.focus();
+		(stepFocusable ?? this.nextButton ?? this.closeButton)?.focus();
 	}
 
 	private _registerStepFocusable<T extends HTMLElement>(element: T): T {
@@ -1210,7 +1204,7 @@ export class OnboardingVariationA extends Disposable implements IOnboardingServi
 		this.contentEl = undefined;
 		this.backButton = undefined;
 		this.nextButton = undefined;
-		this.skipButton = undefined;
+		this.closeButton = undefined;
 		this.footerLeft = undefined;
 		this._footerSignInBtn = undefined;
 		this.footerFocusableElements.length = 0;
diff --git a/src/vs/workbench/services/accounts/browser/defaultAccount.ts b/src/vs/workbench/services/accounts/browser/defaultAccount.ts
index 20eb5b46b5c..a7a98102097 100644
--- a/src/vs/workbench/services/accounts/browser/defaultAccount.ts
+++ b/src/vs/workbench/services/accounts/browser/defaultAccount.ts
@@ -318,7 +318,10 @@ class DefaultAccountProvider extends Disposable implements IDefaultAccountProvid
 	}
 
 	private async init(): Promise<void> {
-		if (isWeb && !this.environmentService.remoteAuthority) {
+		// Skip initialization for classic web-no-remote (vscode.dev editor), but
+		// still initialize for the agents web workbench (vscode.dev/agents) where
+		// account state drives the title bar and the welcome walkthrough.
+		if (isWeb && !this.environmentService.remoteAuthority && !this.environmentService.isSessionsWindow) {
 			this.logService.debug('[DefaultAccount] Running in web without remote, skipping initialization');
 			return;
 		}
diff --git a/src/vs/workbench/services/chat/common/chatEntitlementService.ts b/src/vs/workbench/services/chat/common/chatEntitlementService.ts
index 54a061cec5a..f3fa03bbf62 100644
--- a/src/vs/workbench/services/chat/common/chatEntitlementService.ts
+++ b/src/vs/workbench/services/chat/common/chatEntitlementService.ts
@@ -343,7 +343,7 @@ export class ChatEntitlementService extends Disposable implements IChatEntitleme
 		);
 		this.sentimentObs = observableFromEvent(this.onDidChangeSentiment, () => this.sentiment);
 
-		if ((isWeb && !environmentService.remoteAuthority)) {
+		if ((isWeb && !environmentService.remoteAuthority && !environmentService.isSessionsWindow)) {
 			ChatEntitlementContextKeys.Setup.hidden.bindTo(this.contextKeyService).set(true); // hide copilot UI on web if unsupported
 			return;
 		}
diff --git a/src/vs/workbench/services/dialogs/browser/simpleFileDialog.ts b/src/vs/workbench/services/dialogs/browser/simpleFileDialog.ts
index 3a269eae761..1a4bcc43b36 100644
--- a/src/vs/workbench/services/dialogs/browser/simpleFileDialog.ts
+++ b/src/vs/workbench/services/dialogs/browser/simpleFileDialog.ts
@@ -531,9 +531,6 @@ export class SimpleFileDialog extends Disposable implements ISimpleFileDialog {
 		});
 	}
 
-	public override dispose(): void {
-		super.dispose();
-	}
 
 	private async handleValueChange(value: string) {
 		try {