Autocomplete uppercases the first letter of completed word

Describe the Bug

if xxxx autocompleted to xxxxyyyy the word becomes Xxxxyyyy instead of expected xxxxyyyy

Steps to Reproduce

  1. Just autocomplete something in the middle of sentence

Expected Behavior

the first letter should not be uppercased

Operating System

MacOS

Version Information

Version: 3.6.33
VS Code Extension API: 1.105.1
Commit: 453f0b5a181a2308f4194369774059e533143529
Date: 2026-06-01T01:38:32.281Z
Layout: editor
Build Type: Nightly
Release Track: Nightly
Electron: 39.8.1
Chromium: 142.0.7444.265
Node.js: 22.22.1
V8: 14.2.231.22-electron.0
xterm.js: 6.1.0-beta.220
OS: Darwin arm64 25.3.0

Does this stop you from using Cursor

No - Cursor works, but with this issue

To help narrow this down, could you share:

  1. Which autocomplete - Cursor Tab ghost text (gray suggestion) or the VS Code dropdown suggest widget?

  2. File type - what language/file were you editing?

  3. A specific example - what you typed, what was suggested, and what got inserted. A short screen recording would be ideal.

Also worth checking: System Settings > Keyboard > Text Input > Text Replacements on macOS — a similar report turned out to be caused by a text replacement rule there.

This at least happens in the (Ctrl+L) agent chat, user message input.
It’s utterly infuriating, total productivity drain.

So here if it suggest “autosuggest”, and I accept it by pressing TAB, then the result will be: Autosuggest

I’ve passed it to the team to fix. As a quick workaround for now, typing the word out fully (or just lowercasing the first letter after accepting) avoids it.