Activation fails if the YAML extension is not present.

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

- OS:15.7.7
- Continue version:2.0.0
- IDE version:VSCode 1.127.0
- Model:ANY
- config:
  
{
  "models": [
    {
      "title": "Gemma4:e4b (Ollama)",
      "provider": "ollama",
	"model": "gemma4:e4b",
      "apiBase": "http://localhost:11434"
    }
  ]
}
  
  OR link to agent in Continue hub:

Description

After overcoming the error I report in Issue #12947, Continue would still not start up.
Duck.ai helpfully interpreted the console log output and said "Continue is trying to register/update a config.yaml schema in VS Code settings, but the YAML extension isn’t installed, so it can’t write yaml.schemas."

After I installed the Red Hat YAML extension, Continue started up.

To reproduce

See description above.

Log output

INFO [Continue.continue]: Command `continue.focusContinueInput` already registered by Continue - open-source AI code agent (Continue.continue)
log.ts:117   ERR [Extension Host] Failed to register Continue config.yaml schema, most likely, YAML extension is not installed CodeExpectedError: Unable to write to User Settings because yaml.schemas is not a registered configuration.
    at f5e.toConfigurationEditingError (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:5117:7060)
    at f5e.validate (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:5117:9830)
    at f5e.doWriteConfiguration (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:5117:3453)
    at Object.factory (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:5117:3309)
    at vg.consume (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:434:77543)
    at vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:434:77362
    at new Promise (<anonymous>)
    at vg.queue (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:434:77286)
    at f5e.writeConfiguration (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:5117:3278)
    at Lni.writeConfigurationValue (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:5117:60043)
    at async Promise.all (index 0)
    at async Object.a [as settled] (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:434:84663)
    at async Lni.updateValue (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:5117:43135)
logToConsole @ log.ts:117
error @ log.ts:564
error @ log.ts:669
error @ logService.ts:51
(anonymous) @ remoteConsoleUtil.ts:58
$logExtensionHostMessage @ mainThreadConsole.ts:44
_doInvokeHandler @ rpcProtocol.ts:458
_invokeHandler @ rpcProtocol.ts:443
_receiveRequest @ rpcProtocol.ts:373
_receiveOneMessage @ rpcProtocol.ts:299
(anonymous) @ rpcProtocol.ts:161
_deliver @ event.ts:1364
fire @ event.ts:1395
fire @ ipc.net.ts:658
(anonymous) @ localProcessExtensionHost.ts:436
console.ts:139 [Extension Host] Failed to register Continue config.yaml schema, most likely, YAML extension is not installed CodeExpectedError: Unable to write to User Settings because yaml.schemas is not a registered configuration.
    at f5e.toConfigurationEditingError (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:5117:7060)
    at f5e.validate (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:5117:9830)
    at f5e.doWriteConfiguration (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:5117:3453)
    at Object.factory (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:5117:3309)
    at vg.consume (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:434:77543)
    at vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:434:77362
    at new Promise (<anonymous>)
    at vg.queue (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:434:77286)
    at f5e.writeConfiguration (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:5117:3278)
    at Lni.writeConfigurationValue (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:5117:60043)
    at async Promise.all (index 0)
    at async Object.a [as settled] (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:434:84663)
    at async Lni.updateValue (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:5117:43135)
log @ console.ts:139
$logExtensionHostMessage @ mainThreadConsole.ts:45
_doInvokeHandler @ rpcProtocol.ts:458
_invokeHandler @ rpcProtocol.ts:443
_receiveRequest @ rpcProtocol.ts:373
_receiveOneMessage @ rpcProtocol.ts:299
(anonymous) @ rpcProtocol.ts:161
_deliver @ event.ts:1364
fire @ event.ts:1395
fire @ ipc.net.ts:658
(anonymous) @ localProcessExtensionHost.ts:436

Start with the Continue activation path that registers the config.yaml schema in VS Code, using the reported extension-host error as the starting point. Reproduce activation without the Red Hat YAML extension, then verify that Continue starts successfully and handles schema registration when yaml.schemas is unavailable.