Agentic AI ruins folding / collapsing

Type: Bug

Hi,

When an Agent makes change to the code, the folding / collapsing locations are all ruined. The folding locations are then at weird places and not where they used to be. No restart/reload/open/close fixes it ever. Only way to reset is to selectAll+Delete+Undo the code.

VS Code version: Code 1.127.0 (4fe60c8b1cdac1c4c174f2fb180d0d758272d713, 2026-06-30T10:52:33+02:00)
OS version: Windows_NT x64 10.0.26200
Modes:
Remote OS version: Linux x64 6.18.33.2-microsoft-standard-WSL2

System Info

|Item|Value|
|---|---|
|CPUs|13th Gen Intel(R) Core(TM) i7-13700H (20 x 2918)|
|GPU Status|2d_canvas: enabled
GPU0: VENDOR= 0x8086, DEVICE=0xa7a0 [Intel(R) Iris(R) Xe Graphics], DRIVER_VENDOR=Intel, DRIVER_VERSION=32.0.101.7084 *ACTIVE*
GPU1: VENDOR= 0x10de, DEVICE=0x28a1 [NVIDIA GeForce RTX 4050 Laptop GPU], DRIVER_VERSION=32.0.15.9608
GPU2: VENDOR= 0x1414, DEVICE=0x008c [Microsoft Basic Render Driver], DRIVER_VERSION=10.0.26100.8521
Machine model name:
Machine model version:
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
webgl: enabled
webgpu: enabled
webnn: disabled_off|
|Load (avg)|undefined|
|Memory (System)|31.68GB (3.59GB free)|
|Process Argv|--crash-reporter-id 1c985e90-273a-4431-b774-3ddc27730bba|
|Screen Reader|no|
|VM|0%|

|Item|Value|
|---|---|
|Remote|WSL: Ubuntu|
|OS|Linux x64 6.18.33.2-microsoft-standard-WSL2|
|CPUs|13th Gen Intel(R) Core(TM) i7-13700H (20 x 0)|
|Memory (System)|15.62GB (6.78GB free)|
|VM|0%|
Extensions (51)

Name|Identifier|Author|Version
---|---|---|---
Better Comments|aaron-bond.better-comments|aaron-bond|3.0.2
NGINX Configuration Language Support|ahmadalli.vscode-nginx-conf|ahmadalli|0.3.5
Numbered Bookmarks|alefragnani.numbered-bookmarks|alefragnani|9.0.0
Auto Close Tag|formulahendry.auto-close-tag|formulahendry|0.5.15
GitHub Repositories|github.remotehub|GitHub|0.64.0
DotENV|mikestead.dotenv|mikestead|1.0.1
Apache Conf|mrmlnc.vscode-apache|mrmlnc|1.2.0
Dev Containers|ms-vscode-remote.remote-containers|ms-vscode-remote|0.463.0
Remote - SSH|ms-vscode-remote.remote-ssh|ms-vscode-remote|0.124.0
Remote - SSH: Editing Configuration Files|ms-vscode-remote.remote-ssh-edit|ms-vscode-remote|0.87.0
WSL|ms-vscode-remote.remote-wsl|ms-vscode-remote|0.104.3
Remote Development|ms-vscode-remote.vscode-remote-extensionpack|ms-vscode-remote|0.26.0
Remote Explorer|ms-vscode.remote-explorer|ms-vscode|0.5.0
Remote Repositories|ms-vscode.remote-repositories|ms-vscode|0.42.0
Remote - Tunnels|ms-vscode.remote-server|ms-vscode|1.5.3
VS Code Speech|ms-vscode.vscode-speech|ms-vscode|0.16.0
Svg Preview|simonsiefke.svg-preview|SimonSiefke|2.8.3
Remove empty lines|usernamehw.remove-empty-lines|usernamehw|1.0.1
Better Comments|aaron-bond.better-comments|aaron-bond|3.0.2
NGINX Configuration Language Support|ahmadalli.vscode-nginx-conf|ahmadalli|0.3.5
Numbered Bookmarks|alefragnani.numbered-bookmarks|alefragnani|9.0.0
Docker DX|docker.docker|docker|0.18.0
Git History|donjayamanne.githistory|donjayamanne|0.6.20
GitLens — Git supercharged|eamodio.gitlens|eamodio|18.2.0
Search - Open All Results|fabiospampinato.vscode-search-open-all-results|fabiospampinato|2.0.2
Auto Close Tag|formulahendry.auto-close-tag|formulahendry|0.5.15
Code Runner|formulahendry.code-runner|formulahendry|0.12.2
GitHub Repositories|github.remotehub|GitHub|0.64.0
GitHub Pull Requests|github.vscode-pull-request-github|GitHub|0.154.0
Selected Lines Count|gurumukhi.selected-lines-count|gurumukhi|1.4.0
favorites|howardzuo.vscode-favorites|howardzuo|1.15.1
Caddyfile Support|matthewpi.caddyfile-support|matthewpi|0.4.0
DotENV|mikestead.dotenv|mikestead|1.0.1
Escape-quotes|milovidov.escape-quotes|milovidov|1.10.0
Prettify JSON|mohsen1.prettify-json|mohsen1|0.0.3
Compare Folders|moshfeu.compare-folders|moshfeu|0.30.0
Easy LESS|mrcrowl.easy-less|mrcrowl|2.0.5
Apache Conf|mrmlnc.vscode-apache|mrmlnc|1.2.0
Container Tools|ms-azuretools.vscode-containers|ms-azuretools|2.4.5
Docker|ms-azuretools.vscode-docker|ms-azuretools|2.0.0
Remote Repositories|ms-vscode.remote-repositories|ms-vscode|0.42.0
Copy file name|nemesv.copy-file-name|nemesv|1.2.0
Prisma|prisma.prisma|Prisma|31.11.0
XML|redhat.vscode-xml|redhat|0.29.3
SQL Formatter VSCode|renesaarsoo.sql-formatter-vsc|ReneSaarsoo|4.2.6
Goto Manual|rhasan.gotomanual|rhasan|1.0.0
Svg Preview|simonsiefke.svg-preview|SimonSiefke|2.8.3
SonarQube for IDE|sonarsource.sonarlint-vscode|SonarSource|5.4.0
Remove empty lines|usernamehw.remove-empty-lines|usernamehw|1.0.1
CSS Variable Autocomplete|vunguyentuan.vscode-css-variables|vunguyentuan|2.8.3
PostCSS Intellisense and Highlighting|vunguyentuan.vscode-postcss|vunguyentuan|2.0.2