[Bug] Cannot hide inline edit menu by setting `showInlineEditMenu` to false

Reproducible in vscode.dev or in VS Code Desktop?

• Not reproducible in vscode.dev or VS Code Desktop

Reproducible in the monaco editor playground?

• Not reproducible in the monaco editor playground

Monaco Editor Playground Link

Repro link

Monaco Editor Playground Code

const value = /* set from `myEditor.getModel()`: */ `// This is  some existing text`;

// Hover on each property to see its docs!
const myEditor = monaco.editor.create(document.getElementById("container"), {
	value,
	language: "javascript",
	automaticLayout: true,
});

monaco.languages.registerInlineCompletionsProvider("javascript", {
	provideInlineCompletions: async (model, position, context, token) => {
		return Promise.resolve({
			items: [
				{
					insertText: "insertion text",
					range: {
						startLineNumber: position.lineNumber,
						endLineNumber: position.lineNumber,
						startColumn: position.column,
						endColumn: position.column
					},
					isInlineEdit:true,
					showInlineEditMenu: false
				}
			]
		})
	},
	disposeInlineCompletions: (args) => {}
});

myEditor.updateOptions({
	inlineSuggest: {
		enabled: true,
		mode: "subwordSmart",
		showToolbar: "never"
	},
});

Reproduction Steps

Type any word to trigger inline edit, hover on the line number and the menu will show up

Actual (Problematic) Behavior

The menu still showed up even I disabled showInlineEditMenu

Expected Behavior

The menu should hide if I disable showInlineEditMenu

Additional Context

The collapse/snooze/setting buttons doesn't work in the standalone editor but seems a vscode feature

Run the linked Monaco Editor Playground reproduction with the provided TypeScript snippet, then focus on the inline edit menu triggered by hovering the line number. Done means setting showInlineEditMenu to false prevents the menu from appearing while preserving the expected inline edit behavior.