Enabling Github Copilot Chat causes VS code freeze

Type: Bug

Use VSCode on WSL Ubuntu. Create a workspace from existing source code of around 1000-2000 files.
Enable Github Copilot Chat extension by clicking on "Enable AI features".
It happens that the VSCode randomly starts showing issues with Window not responding with options to reopen , keep waiting .
This starts happening randomly while browsing the source code.

VS Code version: Code 1.134.0 (110a328ea54b42367b803ec53ee0bf52ef26b419, 2026-08-18T18:24:44Z)
OS version: Windows_NT x64 10.0.26200
Modes:
Remote OS version: Linux x64 6.6.114.1-microsoft-standard-WSL2

System Info

|Item|Value|
|---|---|
|CPUs|Intel(R) Core(TM) Ultra 5 135U (14 x 2688)|
|GPU Status|2d_canvas: enabled
GPU0: VENDOR= 0x8086, DEVICE=0x7d45 [Intel(R) Graphics], DRIVER_VENDOR=Intel, DRIVER_VERSION=32.0.101.8724 *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)|undefined|
|Memory (System)|31.46GB (5.75GB free)|
|Process Argv|--trace --trace-category-filter=renderer,blink,v8,disabled-by-default-v8.cpu_profiler
--remote=wsl+Ubuntu --crash-reporter-id 464cc838-8650-4ab7-bada-5af7b3249982|
|Screen Reader|no|
|VM|0%|

|Item|Value|
|---|---|
|Remote|WSL: Ubuntu|
|OS|Linux x64 6.6.114.1-microsoft-standard-WSL2|
|CPUs|Intel(R) Core(TM) Ultra 5 135U (14 x 0)|
|Memory (System)|15.35GB (13.28GB free)|
|VM|0%|
Extensions (15)

Name|Identifier|Author|Version
---|---|---|---
Dev Containers|ms-vscode-remote.remote-containers|ms-vscode-remote|0.466.0
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 Explorer|ms-vscode.remote-explorer|ms-vscode|0.5.0
GitLens — Git supercharged|eamodio.gitlens|eamodio|19.0.1
GitHub Pull Requests|github.vscode-pull-request-github|GitHub|0.162.0
Git Graph|mhutchie.git-graph|mhutchie|1.30.0
Python Debugger|ms-python.debugpy|ms-python|2026.6.0
Python|ms-python.python|ms-python|2026.4.0
Python Environments|ms-python.vscode-python-envs|ms-python|1.36.0
CMake Tools|ms-vscode.cmake-tools|ms-vscode|1.23.52
C/C++ DevTools|ms-vscode.cpp-devtools|ms-vscode|0.5.14
C/C++|ms-vscode.cpptools|ms-vscode|1.33.8
C/C++ Extension Pack|ms-vscode.cpptools-extension-pack|ms-vscode|1.5.1

A/B Experiments

```
vsliv368:30146709
vswsl492cf:30256860
binariesv615:30325510
nativeloc1:31344060
dwcopilot:31170013
dwoutputs:31242946
copilot_t_ci:31333650
e5gg6876:31282496
pythonrdcb7:31342333
6518g693:31463988
aj953862:31281341
envsactivate1:31551504
cloudbuttont:31379625
3efgi100_wstrepl:31403338
ec5jj548:31422691
cp_cls_t_966_ss:31526232
4je02754:31466945
8hhj4413:31478653
ge8j1254_inline_auto_hint_haiku:31490510
cp_cls_c_1081:31454833
conptydll_true:31498968
e9c30283:31461165
test_treatment2:31471001
c9b86496:31447327
capico_a_098a3278:31555650
ei9d7968:31496641
nes-extended-on:31455476
chat:31457767
8hig5102:31480529
ah:31461780
89g7j272:31518289
i2gc6536:31499202
52612955:31516516
ghj88844:31499326
ec1eg703:31520046
ddid_t:31478206
hmra_i5g22:31518061
7df3h592:31512476
cp_cls_t_1082:31535311
logging_enabled_new:31498466
db5d2638:31499441
jb_cp_cls_t_632:31543129
56dj4588:31512888
32d76977:31512328
ha629193:31508444
jh5f2457_c:31540921
jbcp_cls_pctr_t:31531130
61138546:31518536
cp_intellij_t_nes:31548657
gf14b233:31526830
ahp-both-windows:31556933
sessions_5:31532894
ihg5j128:31534457
f412h606:31551416
7g2b5551:31542111
enable_editor_pane_layout:31569726
allow-none:31555437
6i51c363:31551401
36h42362:31564511
c7c27ce7:31554789
1h923230:31564177
1532g621_copy:31554320
treatment-23-1:31555779
unuse_dynamic_mcp:31555281
0d8dfbc3:31570291
a1hcc538:31559322
0c1h4866:31566224
vrbsty_fls:31561059
session-archive:31558132
5b8j3302:31564601
mangle-name-control:31570927
permission_prompt_treatment:1332566
ccr_pr_nudge_control:1319470
vsc_wsm_t:1340632

```