Copilot reports tools are disabled by user even though I have them enabled in "Configure Tools"

- Copilot Chat Extension Version: 0.44.2
- VS Code Version: 1.116.0
- OS Version: Windows 11 23H2
- Feature (e.g. agent/edit/ask mode): agent
- Selected model (e.g. GPT 4.1, Claude 3.7 Sonnet): Claude opus 4.8
- Logs:
```
2026-07-23 13:13:03.462 [error] Error from tool mcp_azure-mcp_kusto with args {"intent": "Run Kusto query to check health trace count distribution", "command": "kusto_query", "parameters": }: Tool mcp_azure-mcp_kusto is currently disabled by the user, and cannot be called.: Error: Tool mcp_azure-mcp_kusto is currently disabled by the user, and cannot be called.
at m (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:1668:905)
at DBi (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:1668:2457)
at t.invokeFunction (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:29:944)
at el.renderOneToolCallRound (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:1667:1666)
at c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:1667:588
at Array.flatMap ()
at el.render (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:1667:568)
at c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:174:28361
at jCn (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:176:4083)
at c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:174:28349
at Array.map ()
at rn._processPromptPieces (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:174:28274)
at async rn._processPromptRenderPiece (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:174:28848)
at async rn._processPromptPieces (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:174:28498)
at async rn._processPromptRenderPiece (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:174:28848)
at async rn._processPromptPieces (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:174:28498)
at async rn._processPromptRenderPiece (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:174:28848)
at async rn._processPromptPieces (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:174:28498)
at async rn._processPromptRenderPiece (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:174:28848)
at async rn._processPromptPieces (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:174:28498)
at async rn.renderRaw (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:174:29289)
at async rn.render (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:174:29173)
at async rn.render (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:1664:16548)
at async AM.buildPrompt (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:2291:10520)
at async VEe.buildPrompt (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:2285:6547)
at async VEe.buildPrompt2 (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:1781:18349)
at async VEe.runOne (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:1781:11255)
at async VEe._runLoop (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:1781:5625)
at async c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:1781:3894
at async c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:5953:2555
at async z_.runWithToolCalling (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:2285:11)
at async z_.getResult (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:2284:1740)
at async tIe.getResult (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:2289:10084)
at async hM.getResult (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:2301:9117)
at async GE._requestHandler (c:\Users\eddylynch\.vscode\extensions\github.copilot-chat-0.44.2\dist\extension.js:6662:1738)
at async i.$invokeAgent (file:///c:/Users/eddylynch/AppData/Local/Programs/Microsoft%20VS%

```
I couldn't run the telemetry because the Kusto MCP tool still returns "disabled by the user" at runtime under both names available to me, despite the context flag showing it enabled — I verified both and stopped rather than retrying blindly.
```

Steps to Reproduce:

1. Start an agent session in a vscode window with azure mcp installed as extension and also configured in mcp.json (or configured in $HOME\.copilot\mcp-config.json):
"azure-mcp": {
"command": "cmd",
"type": "stdio",
"args": [
"/c",
"npx",
"-y",
"@azure/mcp@latest",
"server",
"start"
]
}
Not sure if this is the reason it thinks its disabled or not
2. In your session, ask it to run a query using kusto mcp
3. It will run successfully
4. Prompt to run another query. For me it happened in the second prompt after the first successful one)
5. Confirm in configured tools both azure mcp is enabled