Copilot inline suggestion doesn't work when parent folder has space

Type: Bug

When the parent folder has a space in it, the copiplot inline suggestion stops working.
This has been reported by another user in reddit. https://www.reddit.com/r/GithubCopilot/comments/1w06juw/github_copilot_inline_suggestions_stop_working/?rdt=35774

VS Code version: Code 1.135.0 (08d4889f9ec4a1685d257b9b95de036c8e1ce1e5, 2026-08-25T14:26:52Z)
OS version: Windows_NT x64 10.0.26200
Modes:

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=32.0.101.8508 *ACTIVE*
GPU1: VENDOR= 0x8086, DEVICE=0x7d45 [Intel(R) Graphics], DRIVER_VERSION=32.0.101.8508
GPU2: VENDOR= 0x1414, DEVICE=0x008c [Microsoft Basic Render Driver], DRIVER_VERSION=10.0.26100.8972
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)|15.43GB (3.92GB free)|
|Process Argv|--crash-reporter-id 8845bb6d-39f4-40b1-8a83-28f30a93cfcf|
|Screen Reader|no|
|VM|0%|
Extensions (11)

Name|Identifier|Author|Version
---|---|---|---
Claude Code for VS Code|anthropic.claude-code|Anthropic|2.1.251
Copilot MCP + Agent Skills Manager|automatalabs.copilot-mcp|AutomataLabs|0.0.97
GitLens — Git supercharged|eamodio.gitlens|eamodio|19.0.1
GitHub Repositories|github.remotehub|GitHub|0.64.0
GitHub Pull Requests|github.vscode-pull-request-github|GitHub|0.162.0
Azure Repos|ms-vscode.azure-repos|ms-vscode|0.40.0
Remote Repositories|ms-vscode.remote-repositories|ms-vscode|0.42.0
indent-rainbow|oderwat.indent-rainbow|oderwat|8.3.1
Codex – OpenAI’s coding agent|openai.chatgpt|openai|26.825.41651
SuiteCloud Extension for Visual Studio Code|oracle.suitecloud-vscode-extension|Oracle|4.0.0
GitHub Copilot modernization|vscjava.migrate-java-to-azure|vscjava|1.23.0

A/B Experiments

```
vsliv368:30146709
vswsl492:30256859
binariesv615:30325510
9b8hh234:30694863
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
56b7f661:31457055
ec5jj548:31422691
diffpatch-lysithea-24-production:31574143
cp_cls_t_966_ss:31526232
4je02754:31466945
c3h7c220:31478652
ge8j1254_inline_auto_hint_haiku:31490510
cp_cls_c_1081:31454833
conptydll_true:31498968
core-renderer-profiling-on:31440367
e9c30283:31461165
46204921:31447328
capico_a_098a3278:31555650
ei9d7968:31496641
nes-extended-on:31455476
chat:31457767
8hig5102:31480529
89g7j272:31518289
i2gc6536:31499202
52612955:31516516
githubstableflight:31469463
ddid_t:31478206
hmra_i5g22:31518061
7df3h592:31512476
cp_cls_t_1082:31535311
logging_enabled_new:31498466
j0d79568:31499440
jb_cp_cls_t_632:31543129
56dj4588:31512888
32d76977:31512328
ha629193:31508444
a1ije391_t:31540920
jbcp_cls_pctr_t:31531130
61138546:31518536
cp_intellij_t_nes:31548657
d7b18187:31526828
ahp-both-windows:31556933
sessions_5:31532894
ihg5j128:31534457
f412h606:31551416
7g2b5551:31542111
enable_editor_pane_layout:31569726
allow-none:31555437
ac562147:31564510
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-mark-done:31558131
5b8j3302:31564601
mangle-name-treatment:31572634
lunaclean:31573760
39a5d156:31574986

```