Im seeing same issues. Before I had this problem intermittently in Chat mode, I switched to Composer ~1 week ago and was blown away that it worked perfectly.
In the last few days, something changed and it doesn’t modify the files anymore, or does only SOME of the changes. I find myself copy/pasting code 80-90% of the time now.
Restart sometimes fixes the issue, but not always, and not permanently.
Same behavior while using own API keys for OpenAI (o1-preview or mini) or Anthropic (sonnet 3.5).
Same for me. Composer is not updating files. I also noticed it is only making minor incomplete suggestions compared to how it has been working for me for the last couple weeks.