Kimi K3 gets stuck in infinite loops

- Copilot Chat Extension Version: 0.41
- VS Code Version: 1.130.0
- OS Version: Debian 6.12.96-1 (2026-07-20) x86_64 GNU/Linux
- Feature (e.g. agent/edit/ask mode): agent
- Selected model (e.g. GPT 4.1, Claude 3.7 Sonnet): Kimi K3

I have tried the recently added Kimi K3 (high and max) across a handful of different input types: Code generation, text generation, literature search. More often than not, it seems to get stuck in an infinite text-generation or tool-calling loop, a la GPT-2. Moreover, it seems that you are in fact billed for these infinite loops.