File changes happen on host and not in devcontainer

Before submitting your bug report

• I believe this is a bug. I'll try to join the Continue Discord for questions
• 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: Arch Linux
- Continue version: 0.8.66
- IDE version: VSCode 1.96.2 fabdb6a30b49f79a7aba0f2ad9df9b399473380f x64
- config.json: {
  "models": [
    {
      "title": "Nous Hermes Llama 3.1 405B (Free)",
      "provider": "openai",
      "model": "nousresearch/hermes-3-llama-3.1-405b:free",
      "apiBase": "https://openrouter.ai/api/v1",
      "apiKey": "redacted"
    },
    {
      "title": "Claude 3.5 Sonnet",
      "provider": "openai",
      "model": "anthropic/claude-3.5-sonnet:beta",
      "apiBase": "https://openrouter.ai/api/v1",
      "apiKey": "redacted"
    },

    {
      "title": "Codestral Mamba",
      "provider": "openai",
      "model": "mistralai/codestral-mamba",
      "apiBase": "https://openrouter.ai/api/v1",
      "apiKey": "redacted"
    }
  ],
  "customCommands": [
    {
      "name": "test",
      "prompt": "{{{ input }}}\n\nWrite a comprehensive set of unit tests for the selected code. It should setup, run tests that check for correctness including important edge cases, and teardown. Ensure that the tests are complete and sophisticated. Give the tests just as chat output, don't edit any file.",
      "description": "Write unit tests for highlighted code"
    }
  ],
  "tabAutocompleteModel": {
    "title": "Codestral",
    "provider": "openai",
    "model": "mistralai/codestral-mamba",
    "apiBase": "https://openrouter.ai/api/v1",
    "apiKey": "redacted"
  },
  "tabAutocompleteOptions": {
    "disable": true
  },
  "contextProviders": [
    {
      "name": "code",
      "params": {}
    },
    {
      "name": "docs",
      "params": {}
    },
    {
      "name": "diff",
      "params": {}
    },
    {
      "name": "terminal",
      "params": {}
    },
    {
      "name": "problems",
      "params": {}
    },
    {
      "name": "folder",
      "params": {}
    },
    {
      "name": "codebase",
      "params": {}
    }
  ],
  "slashCommands": [
    {
      "name": "edit",
      "description": "Edit selected code"
    },
    {
      "name": "comment",
      "description": "Write comments for the selected code"
    },
    {
      "name": "share",
      "description": "Export the current chat session to markdown"
    },
    {
      "name": "cmd",
      "description": "Generate a shell command"
    },
    {
      "name": "commit",
      "description": "Generate a git commit message"
    }
  ]
}

Description

Continue tries to apply file changes proposed by the model from the host when coding in a dev container. This means that, for example, it tries to make changes to /workspaces/myproject/blah.ts on the host which is a path that only exists inside the container.

To reproduce

1. Open a devcontainer
2. Ask your Continue model to make changes
3. It fails to apply changes

Log output

ERR cannot open file:///workspaces/REDACTED/next/app/page.tsx. Detail: Unable to read file '/workspaces/REDACTED/next/app/page.tsx' (Error: Unable to resolve nonexistent file '/workspaces/REDACTED/next/app/page.tsx'): CodeExpectedError: cannot open file:///workspaces/REDACTED/next/app/page.tsx. Detail: Unable to read file '/workspaces/REDACTED/next/app/page.tsx' (Error: Unable to resolve nonexistent file '/workspaces/REDACTED/next/app/page.tsx')
    at hVe.$tryOpenDocument (vscode-file://vscode-app/opt/visual-studio-code/resources/app/out/vs/workbench/workbench.desktop.main.js:748:8481)