File search in command palette hangs if AI features are enabled

Type: Performance Issue

1. Open VS Code
2. Make sure the GitHub Copilot Chat extension is enabled
3. Press Ctrl+P
4. Type the name of a file that isn't already listed in the dropdown. An indeterminate progress bar appears and it never finds the file.

This issue happens only occasionally on Windows or Linux with a local workspace, and reloading the window usually fixes it. I also do not think I have seen it ever start failing after some time. That is, either file search is broken right after opening VS Code and stays that way until I reload the window, or it works right away.

However, when I am using a remote SSH connection from Linux to Windows, this issue happens 100% of the time. I found that if I go to the GitHub Copilot Chat extension, click "Disable AI Features", reload the window, and try again, it finds the file in about one second. If I re-enable AI features and reload the window, it breaks again.

I think this points to one of two possibilities:
1. This is the same issue in Copilot on both local and remote workspaces, and using a remote workspace makes it much more likely to occur.
2. There are two separate issues which have the same symptoms, and one happens occasionally while the other happens all the time but only when using a remote workspace.

VS Code version: Code 1.136.2 (88e44fa0e00b08f7758b4f6d05632e4fd5e4df6f, 2026-09-04T21:40:42Z)
OS version: Linux x64 6.8.0-138-generic snap
Modes:
Remote OS version: Windows_NT x64 10.0.26200

System Info

|Item|Value|
|---|---|
|CPUs|Intel(R) Core(TM) i9-10980XE CPU @ 3.00GHz (36 x 1200)|
|GPU Status|2d_canvas: disabled_software
GPU0: VENDOR= 0x0000, DEVICE=0x0000
Machine model name:
Machine model version:
direct_rendering_display_compositor: disabled_off_ok
gpu_compositing: disabled_software
multiple_raster_threads: disabled_off
opengl: disabled_off
rasterization: disabled_software
raw_draw: disabled_off_ok
skia_graphite: disabled_off
trees_in_viz: disabled_off
video_decode: disabled_software
video_encode: disabled_software
vulkan: disabled_off
webgl: disabled_off
webgpu: disabled_off
webgpu_on_vk_via_gl_interop: disabled_off
webnn: disabled_off|
|Load (avg)|6, 9, 6|
|Memory (System)|62.50GB (49.04GB free)|
|Process Argv|--no-sandbox --force-user-env --ozone-platform=x11 --crash-reporter-id e1b27daf-c153-4fb2-a7a1-9a50b6b7c40d|
|Screen Reader|no|
|VM|0%|
|DESKTOP_SESSION|ubuntu|
|XDG_CURRENT_DESKTOP|ubuntu:GNOME|
|XDG_SESSION_DESKTOP|ubuntu|
|XDG_SESSION_TYPE|wayland|

|Item|Value|
|---|---|
|Remote|SSH: OLA-B9Q3H03|
|OS|Windows_NT x64 10.0.26200|
|CPUs|Intel(R) Core(TM) i9-9980XE CPU @ 3.00GHz (36 x 3000)|
|Memory (System)|63.71GB (26.90GB free)|
|VM|0%|

Workspace Info

```

| Remote: SSH: OLA-B9Q3H03| Folder (mfd): more than 20000 files| File types: bmp(9616) cpp(5233) hpp(4243) h(432) b2c(191) xml(172)
| json(13) txt(8) bat(7) vsidx(6) other(79)
| Conf files: launch.json(1) settings.json(1) tasks.json(1)
| Launch Configs: cppvsdbg(4) cppdbg(2) debugpy;
```

Extensions (24)

Name|Identifier|Author|Version
---|---|---|---
TypeScript + Webpack Problem Matchers|amodio.tsl-problem-matcher|amodio|0.6.2
Private Extension Manager: Remote Helper|garmin.private-extension-manager-remote-helper|garmin|1.8.0
Jupyter Keymap|ms-toolsai.jupyter-keymap|ms-toolsai|1.1.2
Dev Containers|ms-vscode-remote.remote-containers|ms-vscode-remote|0.469.0
Remote - SSH|ms-vscode-remote.remote-ssh|ms-vscode-remote|0.128.0
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 Development|ms-vscode-remote.vscode-remote-extensionpack|ms-vscode-remote|0.26.0
Remote Explorer|ms-vscode.remote-explorer|ms-vscode|0.5.0
Remote - Tunnels|ms-vscode.remote-server|ms-vscode|1.5.3
vscode-icons|vscode-icons-team.vscode-icons|vscode-icons-team|12.19.0
Disable Copilot Completions in Scopes|disable-copilot-comment-completions.disable-copilot-comment-completions|disable-copilot-comment-completions|2.0.3
HyperScopes|draivin.hscopes|draivin|0.0.9
GitLens — Git supercharged|eamodio.gitlens|eamodio|19.1.0
EditorConfig|editorconfig.editorconfig|EditorConfig|0.18.2
Prettier - Code formatter|esbenp.prettier-vscode|esbenp|12.4.0
Private Extension Manager|garmin.private-extension-manager|garmin|1.8.0
Python Debugger|ms-python.debugpy|ms-python|2026.6.0
Python|ms-python.python|ms-python|2026.4.0
Pylance|ms-python.vscode-pylance|ms-python|2026.3.1
Python Environments|ms-python.vscode-python-envs|ms-python|1.36.0
C/C++|ms-vscode.cpptools|ms-vscode|1.34.4
Config Defaults|spadin.config-defaults|spadin|1.3.0
Clang-Format|xaver.clang-format|xaver|1.9.0

A/B Experiments

```
vsliv368:30146709
binariesv615:30325510
nativeloc1:31344060
dwcopilot:31170013
dwoutputs:31242946
copilot_t_ci:31333650
e5gg6876:31282496
pythonrdcb7:31342333
6518g693:31463988
aj953862:31281341
envsactivate1:31551504
478i5457:31544283
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
c9b86496:31447327
ei9d7968:31496641
chat:31457767
8hig5102:31480529
89g7j272:31518289
i2gc6536:31499202
52612955:31516516
ddid_c:31478207
hmra_i5g22:31518061
m11_d0di3990:31580636
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
a1ije391_t:31540920
jbcp_cls_pctr_t:31531130
cp_intellij_t_nes:31548657
jf4hg949:31526829
ahp-both-windows:31556933
ihg5j128:31534457
9gg7f176:31542112
sandbox-ui-on-2:31543161
enable_editor_pane_layout:31569726
allow-none:31555437
ac562147:31564510
c7c27ce7:31554789
1h923230:31564177
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:31572633
intellij_nes_preview_t:31580086
multiv2:31574985
2bfb8b39:31576696
permission_prompt_treatment:1332566
ccr_pr_nudge_auto_review:1319472
vsc_wsm_c:1340633
jidc7660:1370295
h5e14506_copy:1348995
g03gg798:1394297
1g5a5742:1379227
3aced641:1389836

```