Visual Studio Code keep downloading Nemotron 3.5 ASR locally on every time I start VS Code.

Does this issue occur when all extensions are disabled?: Yes/No

- VS Code Version:
Version: 1.138.0 (user setup)
Commit: 7debcd0e2acdea1c52de81bf9ee1620444407dda
Date: 2026-09-15T07:24:32Z
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: 1.0.84-4
@github/copilot-sdk: 1.0.13
OS: Windows_NT x64 10.0.26200
- OS Version: Windows 11 Latest update

Steps to Reproduce:

1. It's happening in latest stable version
2. Try to download use it and close it, later click on mic button and you will see it's downloading again.

I am using latest update of Vscode and I see whenever I am using nemotron dictation and restart or open my VS again it's gone. For clearify I am running only one instance.

This happen to me couple of times, I click on mic and it's download the local model. It was working fine but I close the VS and open again, it's again downloading. The model is not persist and keep downloading if I close VS and start fresh VS code.

Start by reproducing the issue with the mic button in VS Code 1.138.0 on Windows 11: download the Nemotron dictation model, restart VS Code, and trigger dictation again. Trace the Nemotron model download and local persistence path; done means the model remains available after restarting a single VS Code instance and does not download again.

Written by the indexing model from the issue text.