Sometimes Suggested Code by AI is not properly diffed / replaced to current source code of your working files.

Before submitting your bug report

• I've tried finding an answer on the Continue docs site
• I'm not able to find an open issue that reports the same bug
• I've seen the troubleshooting guide on the Continue Docs

Relevant environment info

name: Main Config
version: 1.0.0
schema: v1
models:
  - name: Qwen2.5 Coder 32B
    provider: ollama
    model: qwen2.5-coder:32B
    apiBase: http://127.0.0.1:11434
    roles:
      - chat
      - edit
      - apply
  - name: Qwen2.5 Coder 1.5B (Autocomplete)
    provider: ollama
    model: qwen2.5-coder:7B
    apiBase: http://127.0.0.1:11434
    roles:
      - autocomplete
  - name: Qwen2.5 Coder 7B (Embeddings)
    provider: ollama
    model: qwen2.5-coder:7B
    apiBase: http://127.0.0.1:11434
    roles:
      - embed

Description

Sometimes Continue is not able to merge its suggestion to the original code.

To reproduce

I am using Qwen 2.5 32B, I am trying to work on a small C program with two C files. When I ask the LLM to do a refactoring on my code it shows the modification it needs to do and sometimes (not all the times) when I choose to "Apply" changes, his suggested code is not merged in my original C file. It says but is not able to modify the file.

Log output

No source file or test is named. Reproduce the intermittent failure with the Continue Apply action using the provided Ollama and Qwen configuration, then trace the suggestion diff and merge flow. Done means the suggested refactoring is reliably applied to the current C file, with a regression test covering the failure.