Continue Agent filesystem tools resolve `C:\workspace` instead of Remote-SSH workspace

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

* Windows 11
* VS Code
* Continue 2.1.0 pre-release (also tried with 2.0.0 release version)
* Remote-SSH
* Debian (remote)
* Workspace opened at `/opt`
* Repository located at `/opt/billing`
* Ollama remote backend

**Expected**

Filesystem tool reports:


/opt


or


/opt/billing


depending on the active workspace.

**Actual**

Filesystem tool attempts to access:


C:\workspace


and returns:


The directory c:\workspace does not exist.


**Comparison**

OpenAI Codex extension, in the same VS Code window and same Remote-SSH session, correctly reports:


/opt


This strongly suggests the issue is isolated to Continue's workspace resolution for Agent filesystem tools.

Description

No response

To reproduce

No response

Log output

No source files or tests are named. Start by reproducing the issue in a VS Code Remote-SSH session with the workspace opened at /opt, then investigate Continue's Agent filesystem workspace resolution; done means the filesystem tool uses the remote /opt or /opt/billing path instead of C:\workspace.