Copilot harness doesn't work with remote repositories

### Description

When using remote repositories, the Local harness works but not Copilot. See this example where I am simply asking to update the numbered list to be bullets. In this example it is showing an error but other times I have just watched it struggle to try to find where the open file is located.

### Issue Details

Item|Value
---|---
Issue Category|Bug
Target|Visual Studio Code - Insiders
VS Code Version|Code - Insiders 1.131.0-insider (29215ba85809234979befc6b0d1fb4b0ab884383, 2026-07-24T03:46:02Z)
OS Version|Windows_NT arm64 10.0.26200

System Info

Item|Value
---|---
VS Code Version|Code - Insiders 1.131.0-insider (29215ba85809234979befc6b0d1fb4b0ab884383, 2026-07-24T03:46:02Z)
OS Version|Windows_NT arm64 10.0.26200
CPUs|Snapdragon(R) X 12-core X1E80100 @ 3.40 GHz (12 x 2976)
GPU Status|2d_canvas: enabled
GPU0: VENDOR= 0x4d4f4351, DEVICE=0x36334330 [Qualcomm(R) Adreno(TM) X1-85 GPU], DRIVER_VENDOR=Qualcomm, DRIVER_VERSION=31.0.133.1 *ACTIVE*
GPU1: VENDOR= 0x1414, DEVICE=0x008c [Microsoft Basic Render Driver], DRIVER_VERSION=10.0.26100.8875
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)|
Memory (System)|63.49GB (26.97GB free)
Process Argv|--open-url --crash-reporter-id 35277784-872c-491b-a13b-b8cb689ddfb3 -- vscode-insiders://file/C:/github/copilot-worktrees/ContentMentor/dmartens-microsoft-shiny-enigma?session=copilotcli%3A%2F196f75e9-392f-4dbf-9b97-a72994373ec4
Screen Reader|no
VM|0%
User Agent|Mozilla/5.0 (Windows NT 10.0) AppleWebKit/537.36 (KHTML, like Gecko) Code-Insiders/1.131.0-insider Chrome/148.0.7778.280 Electron/42.7.0 Safari/537.36
Installation pure|true

Extensions (18)

Name|Identifier|Author|Version
---|---|---|---
Power BI Modeling MCP Server|analysis-services.powerbi-modeling-mcp|analysis-services|0.5.11
markdownlint|davidanson.vscode-markdownlint|DavidAnson|0.61.2
learn-article-templates|docsmsft.docs-article-templates|docsmsft|1.0.8
Learn Authoring Pack|docsmsft.docs-authoring-pack|docsmsft|1.0.3
learn-images|docsmsft.docs-images|docsmsft|1.0.5
learn-markdown|docsmsft.docs-markdown|docsmsft|1.0.18
learn-preview|docsmsft.docs-preview|docsmsft|2.0.11
learn-scaffolding|docsmsft.docs-scaffolding|docsmsft|1.0.9
learn-yaml|docsmsft.docs-yaml|docsmsft|1.0.6
Microsoft Learn Authoring Assistant|docsmsft.learn-authoring-assistant|docsmsft|1.1.6
GitHub Repositories|github.remotehub|GitHub|0.64.0
.NET Install Tool|ms-dotnettools.vscode-dotnet-runtime|ms-dotnettools|3.1.0
Remote Repositories|ms-vscode.remote-repositories|ms-vscode|0.42.0
Chat Customizations Evaluations|ms-vscode.vscode-chat-customizations-evaluations|ms-vscode|1.0.8
VS Code Speech|ms-vscode.vscode-speech|ms-vscode|0.16.0
Content Mentor|msft-content.content-mentor|msft-content|1.20.29
YAML|redhat.vscode-yaml|redhat|1.25.2026072308
Adobe Extension Development Tools|yutengjing.adobe-extension-devtools|YuTengjing|0.2.9

Theme extensions: 9

A/B Experiments

```
vsliv368:30146709
pythonvspyt551cf:31249598
nativeloc1:31118317
dwcopilot:31158714
dwoutputs:31242946
copilot_t_ci:31333650
g012b348:31231168
pythonrdcb7:31268811
pythonpcpt1:31399616
6518g693:31302842
b6b4d950:31327385
envsactivate1:31349248
editstats-enabled:31346256
cloudbuttont:31366566
3efgi100_wstrepl:31403338
metis_rerank_treatment1:31411021
cp_cls_t_966_ss:31526232
4je02754:31455664
c3h7c220:31478652
ge8j1254_inline_auto_hint_haiku:31490507
cp_cls_c_1081:31454833
conptydll_true:31485575
e9c30283:31453065
test_treatment2:31471001
46204921:31447328
capico_a_098a3278:31555650
idci7584:31454084
e3e4d672:31454087
ei9d7968:31462942
nes-extended-on:31455475
f860i809:31458078
89g7j272:31506658
7e884298:31462391
7e187181:31482583
i2gc6536:31472020
52612955:31508042
h08i8180_copy:31475366
23c7c724:31520045
ddid_t:31478204
hmra_i5g22:-9
ja75b849_copy:31554847
bjc72774_agent_sandbox:31538428
7df3h592:31491241
cp_cls_t_1082:31535311
logging_enabled_new:31490725
jb_cp_cls_t_632:31543129
b1g4i769:31503653
ha629193:31508444
cdk-lw-on:31524445
f9bf7985:31541111
a1ije391_t:31533808
g4a0e106:31510899
8hfba999:31537718
jbcp_cls_pctr_t:31531130
3f904173:31522231
cp_intellij_t_nes:31548657
d7b18187:31526828
hide-eh-duplicates:31543293
h561g132:31534507
replace-eh-with-ah:31545853
ihg5j128:31534457
f412h606:31543414
enable_editor_pane_layout:31551200
52258b4d:31547953
fbihi617_lg_t:31548132
ac562147:31553899
c7c27ce7:31551212
voicemodeon:31556058
a81hg326:31551415
1532g621_copy:31554310
he843164:31555062
d4c76da2:31554780
treatment-23-1:31555779
unuse_dynamic_mcp:31555281
```

### Attachments