I just had the AI create files in root C:\ folder rather than in the actual workspace folder. There was an ⓘ icon saying to approve file change outside the workspace, so I realized that’s what was going on.
Did the prompt again in new chat, worked fine this time.
Request ID: 184859c3-0bfc-4434-a5bd-3add9155f5aa
Version: 0.48.7 (user setup)
VSCode Version: 1.96.2
Commit: 1d623c4cc1d3bb6e0fe4f1d5434b47b958b05870
Date: 2025-04-02T05:04:28.547Z
Electron: 34.3.4
Chromium: 132.0.6834.210
Node.js: 20.18.3
V8: 13.2.152.41-electron.0
OS: Windows_NT x64 10.0.26100