Code Actions Do Not Work for API/Site Projects

Type: Bug

I have a workspace with a root .net8 api project (or site) which has project references to several other .net8 repositories (not found in path of api/site). I get code suggestions across all files/projects, but when I try to do an action in the api/site it doesn't give me option to perform the suggestion, while inside the same workspace, all suggestions are actionable in referenced 'library projects'.

VS Code version: Code 1.106.0 (ac4cbdf48759c7d8c3eb91ffe6bb04316e263c57, 2025-11-11T16:02:25.943Z)
OS version: Windows_NT x64 10.0.26100
Modes:

System Info

|Item|Value|
|---|---|
|CPUs|Intel(R) Core(TM) i9-9900K CPU @ 3.60GHz (16 x 3600)|
|GPU Status|2d_canvas: enabled
direct_rendering_display_compositor: disabled_off_ok
gpu_compositing: enabled
multiple_raster_threads: enabled_on
opengl: enabled_on
rasterization: enabled
raw_draw: disabled_off_ok
skia_graphite: disabled_off
trees_in_viz: disabled_off
video_decode: enabled
video_encode: enabled
vulkan: disabled_off
webgl: enabled
webgl2: enabled
webgpu: enabled
webnn: disabled_off|
|Load (avg)|undefined|
|Memory (System)|63.94GB (14.90GB free)|
|Process Argv|--log info --crash-reporter-id 324c4641-8e15-4efb-9bdc-b30d565fb957|
|Screen Reader|no|
|VM|0%|
Extensions (20)

Extension|Author (truncated)|Version
---|---|---
vs-code-intellisense-katapp|con|1.0.7
xml|Dot|2.5.1
gitlens|eam|17.7.1
dotnet-test-explorer|for|0.7.8
copilot|Git|1.388.0
copilot-chat|Git|0.33.1
rest-client|hum|0.25.1
rainbow-csv|mec|3.23.0
theme-monokai-pro-vscode|mon|2.0.10
csharp|ms-|2.100.5
vscode-dotnet-runtime|ms-|2.3.7
vscode-nuget-gallery|pat|1.2.4
vscode-xml|red|0.29.0
command-variable|rio|1.68.0
LiveServer|rit|5.7.9
vscode-coverage-gutters|rya|2.14.0
vscode-autohotkey2-lsp|thq|2.7.6
vscode-icons|vsc|12.15.0
volar|Vue|3.1.4
t4-support|zbe|0.7.0

A/B Experiments

```
vsliv368cf:30146710
binariesv615:30325510
nativeloc1:31344060
dwcopilot:31170013
dwoutputs:31242946
copilot_t_ci:31333650
e5gg6876:31282496
pythonrdcb7:31342333
aj953862:31281341
nes-set-on:31340697
onetestforazureexp:31335613
6abeh943:31336334
t123456:31413567
gaj49834:31404438
f1c06875:31397863
cloudbuttont:31379625
todos-1:31405332
v66_all_req:31402695
treatment_gpt5applypatchexclusively:31412086
42190218_ostrepl:31403339
trigger-command-fix:31379601
auto_model_enabled:31385282
use-responses-api:31390855
defaultusage:31403421
sonnet_45_3e700918:31419541
je187915:31401257
v2prompt_9f72f763:31415580
3i15c187:31419927
control_aa407747:31408711
673df989:31418077
nes-cd-200-0:31410879
copilot-nes-oct-t:31418199
ff8f5884:31411053
haab2303:31418916
expandedtokens:31420720
c0683394:31419495

```

My .workspace file looks like this:
```
{
"folders": [
{
"path": "../../Api/WebService.Proxy",
"name": "Api.WebService.Proxy"
},
{ "path": "../../Core" },
{ "path": "../../Abstractions" },
{ "path": "../../../GlobalConfiguration" },
{ "path": "../../../Extensibility/JsonSchemas" }
],
"settings": {
"dotnet-test-explorer.testProjectPath": "**/tests/*"
},
"launch": {
"version": "0.2.0",
"configurations": [],
"compounds": []
}
}
```

You can see below, when I click on problem from api/site, nothing is available:

But when I click on a referenced project, it is actionable:

Let me know if there is anything else I could provide to help diagnose.