### Title

### Title

**Regression: Local workspace session shows an active terminal but exposes no shell or file-editing tools**

### Description

In a local Git repository session, the terminal panel is open and active, but the agent cannot interact with it or access workspace files. The available toolset does not include shell execution, file reading/writing, patching, canvas actions, or session renaming.

### Steps to reproduce

1. Open a local Git repository in Copilot.
2. Start a branch workspace session.
3. Open and activate the terminal panel.
4. Ask the agent to inspect files, create an application, and run it.
5. Retry after the agent reports missing tools.

### Actual behavior

- The terminal is visible and marked active, but the agent cannot send commands to it.
- Tools such as `shell`, `view`, `apply_patch`, and canvas actions are unavailable.
- The UI requests that the agent rename the session, but `rename_session` is also unavailable.
- Retrying does not restore the tools.
- The agent is limited to skills and session SQLite, making repository work impossible.

### Expected behavior

A local workspace session should automatically expose shell and file-system tools. An active terminal canvas should also be controllable by the agent.

### Environment

- GitHub Copilot CLI/App version: `1.0.69 - 1.0.last`
- OS: macOS (Darwin)
- Workspace type: local branch workspace
- Branch: `main`
- Terminal panel: open and active
- Project session ID: `0d327c01-25e8-42f2-9bb4-9999cc64a643`

### Impact

This completely blocks coding tasks because the agent cannot inspect, modify, run, or validate repository files.

---
| Field | Value |
| --- | --- |
| App version | 1.0.18 |
| OS | macOS 26.5.2 |
| Theme | Aurora |
| Path | /chat |
| Tenure | Week 5 |

Reproduce the failure in a local branch workspace on macOS using the reported Copilot App version, with the terminal panel open and active. Trace why shell, file-system, patching, canvas, and session-renaming tools are absent; done means the active workspace exposes the expected tools and repository work can be inspected, modified, run, and validated.

Written by the indexing model from the issue text.