The recent change in Visual Studio Code's file creation process has negatively impacted my workflow, particularly when testing. Previously, I could create a new file and select the format without needing to save it first. Now, the process forces me to save the file before assigning a format, which disrupts efficiency, especially when working on quick tests and temporary files.

The recent change in Visual Studio Code's file creation process has negatively impacted my workflow, particularly when testing. Previously, I could create a new file and select the format without needing to save it first. Now, the process forces me to save the file before assigning a format, which disrupts efficiency, especially when working on quick tests and temporary files.

Expected Behavior:
Allow users to select a file format upon creating a new file without requiring them to save it first.

Restore previous behavior that enabled flexible, unsaved file handling.

Actual Behavior:
Users must save a new file before they can specify its format.

The new process is cumbersome and makes temporary testing in VS Code inconvenient.

While I can still change the file type manually using Ctrl + K, M, I did not have to do this extra step before, which slows down my workflow.

Suggested Fix:
Reintroduce the ability to set a file format at the time of file creation without requiring an immediate save.

Provide an option in settings to toggle between the new and old behavior.

Additional Notes:
Many users rely on quick, unsaved files for testing and prototyping. This change makes it frustrating to work efficiently in VS Code. If this feature removal was intentional, could the development team provide insight into why it was done and whether a setting could be introduced to restore the previous behavior?

Originally posted by @jdonaldson-Lamar in https://github.com/microsoft/vscode/issues/250633

Start with the linked original issue #250633 and review the reported change in VS Code's new-file workflow, including the current Ctrl+K, M workaround. Determine the intended behavior and whether a setting is required; the work is done when the expected unsaved-file format selection is clearly specified and validated against the actual workflow.