Unable to select Copilot CLI/Claude in OSS or when debugging Chat extension in Insiders

[DonJayamanne]

[vs-code-engineering]

Hi @DonJayamanne. As a member of the team, you can help us triage this issue by referring to https://github.com/microsoft/vscode-copilot/wiki/Copilot-Inbox-Tracker and assigning an owner directly.

[DonJayamanne]

Using git bisect didn't yield anything useful.
Event last commit for insiders build yields the same issue in OSS.

However found these in the logs

log.ts:460   ERR Unable to create workbench contribution 'workbench.contrib.agentHostTerminal'. Error: [createInstance] AgentHostTerminalContribution depends on UNKNOWN service remoteAgentHostService.
    at InstantiationService._throwIfStrict (instantiationService.ts:392:10)
    at InstantiationService._createInstance (instantiationService.ts:142:10)
    at InstantiationService.createInstance (instantiationService.ts:128:18)
    at WorkbenchContributionsRegistry.safeCreateContribution (contributions.ts:381:42)
    at instantiateSome (contributions.ts:349:10)