VSCode 1.137.0-insider: Chats in Agents Window not working/not doing anything

Version: 1.137.0-insider (user setup)
Commit: a3c780be1ff7381b665d0592052fb1c7c9e93ab6
Date: 2026-09-02T21:38:05Z
Electron: 42.10.0
ElectronBuildId: 15109253
Chromium: 148.0.7778.280
Node.js: 24.18.1
V8: 14.8.178.38-electron.0
@github/copilot: 1.0.83-2
@github/copilot-sdk: 1.0.13-preview.4
OS: Windows_NT x64 10.0.26200

- Feature (e.g. agent/edit/ask mode): Agents Window, new or existing chat
- Selected model (e.g. GPT 4.1, Claude 3.7 Sonnet): Any
- Logs: Nothing is logged in chat debug logs

Steps to Reproduce:

1. Open Agents Window
2. Continue an existing chat or create a new chat in an existing repo
3. Chat gets stuck in Considering, Working, whatever

Regular Editor chat works fine.

Problem doesn't appear when reverting back to commit 1f625adb84abf41cdff31f40f66e58a222f033f6