I now have 3.2 installed and can confirm that the issue is resolved for me.
Version: 3.2.10
VSCode Version: 1.105.1
Commit: 87903b25fe9074e35b9ba372ed5bf14de5835960
Date: 2026-04-24T00:45:10.396Z
Layout: editor
Build Type: Stable
Release Track: Default
Electron: 39.8.1
Chromium: 142.0.7444.265
Node.js: 22.22.1
V8: 14.2.231.22-electron.0
OS: Darwin arm64 25.4.0
I simply started a new chat and ask the agent “what rules are in your context?” and it spit everything out in a summarized form (filenames with bulleted lists of the gist).