VSCode silently switches to Microsoft models, ignoring BYO agent configuration

A GitHub issue filed against Visual Studio Code version 1.142.0-insider (commit d2a9268) reports that the editor resets a user's agent selection back to Copilot every time a new chat is started, overriding bring-your-own-model configurations. The reporter states that setting the agent to Local and choosing a model, then clicking new chat, causes VSCode to automatically switch the agent configuration back to Copilot, resulting in unintentional use of the free-tier `mai-code-flash` model, which the reporter says collects data. The issue, tracked as #340651, was filed with the @github/copilot extension at version 1.0.94-3 and @github/copilot-sdk 1.0.18-preview.3 on Windows_NT x64 10.0.19044, and reproduces with all extensions disabled.

Repository navigation Agent switches back to Copilot from Local when a new chat is created 340651 Copy link Copy link Open Agent suggestions Public preview https://github.com/orgs/community/discussions/202617 More actions Description Does this issue occur when all extensions are disabled?: Yes What is the issue I bring my own models when developing using VSCode. This includes locally hosted models and cost effective API models depending on the context. VSCode overrides my agent selection every time I start a new chat. This makes me unintentionally use mai-code-flash free tier, which collects data unacceptable in commercial and private contexts . System Version: 1.142.0-insider user setup Commit: d2a9268 Date: 2026-10-08T09:31:50-07:00 Electron: 43.7.7 ElectronBuildId: 15553055 Chromium: 150.0.7871.250 Node.js: 24.21.0 V8: 15.0.245.31-electron.0 @github/copilot: 1.0.94-3 @github/copilot-sdk: 1.0.18-preview.3 OS: Windows NT x64 10.0.19044 Steps to Reproduce: 1. Set your agent to Local and pick your model 1. Click on new chat 1. VSCode automatically changes agent configuration back to Copilot Reactions are currently unavailable Activity Metadata Metadata Assignees Labels No labels