Agent Host file tools do not support extension-registered filesystems
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Description
### Description
Agent Host file operation tools such as reading and editing require native operating-system paths and cannot access resources provided by extension-registered filesystem providers.
These resources work normally through VS Code’s filesystem and editing APIs. Extensions can provide custom tools as a workaround, but this requires each filesystem extension to reimplement standard reading and editing operations.
**Expected**
Agent Host providers should use VS Code’s filesystem and editing abstractions for non-native workspace URIs, while continuing to use native tools for local files.
**Actual**
Agent Host file tools cannot read or edit extension-backed workspace resources, even though VS Code can access them.
This affects Codex Agent Host and could affect other Agent Host providers that assume every workspace resource has a native path.
Related startup failure: #335034.
### Issue Details
Item|Value
---|---
Issue Category|Bug
Target|Visual Studio Code - Insiders
VS Code Version|Code - Insiders 1.137.0-insider (773da685a20213ce5755a80f523101669b145702, 2026-09-07T22:35:28Z)
OS Version|Windows_NT x64 10.0.26200
### Additional Issue Data
[issue-data.md](https://github.com/user-attachments/files/31952108/issue-data.md)
### Attachments
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