search_web tool fails in Agent mode with local Ollama model on Continue 2.0.0

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: macOS, Apple Silicon (M3, arm64)
- Continue version: 2.0.0
- IDE version: VS Code 1.137.0
- Ollama version: 0.34.0
- Model: qwen3-coder:30b
- Provider: Ollama (local)
- Mode: Agent
- search_web permission: Automatic
- fetch_url_content permission: Ask First
- config:
  
  name: Main Config
  version: 1.0.0
  schema: v1

  models:
    - name: Qwen3 Coder 30B
      provider: ollama
      model: qwen3-coder:30b

Description

Expected behavior

The search_web tool should return current web search results to the local model so it can answer using up-to-date information.

Actual behavior

Continue indicates that it attempted to use search_web, but no usable search results are returned. The model then reports that it cannot perform the web search.

To reproduce

Steps to reproduce

1. Configure a local Ollama model in Continue:

models:
  - name: Qwen3 Coder 30B
    provider: ollama
    model: qwen3-coder:30b

2. Open Continue in VS Code.

3. Switch to Agent mode.

4. Confirm that search_web is enabled and set to Automatic.

5. Enter the following prompt:

Search the web for the latest stable version of Python and tell me the version number and release date. Use web search rather than relying on your existing knowledge.

6. Continue attempts to invoke search_web, but the search fails to return usable results.

Screenshot

Continue attempted to search the web for "latest stable Python version number release date":

Log output

N/A — Continue 2.0.0 does not expose a "Continue: View Logs" command in my VS Code installation, and no dedicated Continue output channel appears under View → Output.

Reproduce the failure in Continue's Agent mode using VS Code, the listed Ollama model, and the provided configuration, with search_web set to Automatic. Compare the attempted search with the expected current Python version and release date; done means usable web-search results are returned to the local model. No source file or test is named, and the report provides no logs.