builtin_grep_search fails for remote repos

[avneeshs1]

Before submitting your bug report

• [x] I believe this is a bug. I'll try to join the Continue Discord for questions
• [x] I'm not able to find an open issue that reports the same bug
• [x] I've seen the troubleshooting guide on the Continue Docs

Relevant environment info

- OS: Linux (remote), macOS (local running VSCode client)
- Continue version: 1.1.47 (Extension forced to run on remote host)
- IDE version: VSCode Insiders 1.102.0-insider
- Model: openai/o3
- config:
  
%YAML 1.1
---
# define keys
openai_model: &openai_model
  with:
    OPENAI_API_KEY: ${{ secrets.OPENAI_API_KEY }}

anthropic_model: &anthropic_model
    with:
      ANTHROPIC_API_KEY: ${{ secrets.ANTHROPIC_API_KEY }}

# main config
name: Copilot
version: 1.0.0
schema: v1

models:
  - uses: anthropic/claude-4-sonnet
    <<: *anthropic_model

  - uses: anthropic/claude-3-5-haiku
    <<: *anthropic_model
    override:
      roles:
        - apply

  - uses: openai/o3
    <<: *openai_model
    override:
      defaultCompletionOptions:
        contextLength: 200000
        maxTokens: 100000
        stream: false
      capabilities:
          - tool_use
          - image_input
        
    
  - uses: openai/gpt-4.1
    <<: *openai_model

  - uses: openai/o4-mini
    <<: *openai_model

  - uses: ollama/qwen2.5-coder-1.5b
    override:
      title: "Ollama autocomplete (Remote)"
      roles:
        - autocomplete

  - uses: ollama/nomic-embed-text-latest
    override:
      title: "Ollama embedding (Remote)"


docs:
  - name: Continue
    startUrl: https://docs.continue.dev
  - name: Pandas
    startUrl: https://pandas.pydata.org/docs/
  - name: NumPy
    startUrl: https://numpy.org/doc/stable/
  - name: PyMC
    startUrl: https://www.pymc.io/welcome.html


context:
  - provider: file
  - provider: code
  - provider: diff
  - provider: currentFile
  - provider: terminal
  - provider: docs
  - provider: open
  - provider: web
  - provider: codebase
  - provider: folder
  - provider: search
  - provider: url
  - provider: clipboard
  - provider: tree
  - provider: problems
  - provider: repo-map
    params:
      includeSignatures: false
  - provider: os
  - provider: problems

Description

Continue.dev extension is running on remote host. And, everything works but when the LLM tries to use builtin_grep_search tool in agent mode, the call fails with this message:

builtin_grep_search failed with the message: Ripgrep not supported, this workspace is remote

Please try something else or request further instructions.

I believe the culprit is this: https://github.com/continuedev/continue/blob/a5f8b8a6dad6628e5b6765c8a4a57de68240b2cc/extensions/vscode/src/VsCodeIde.ts#L529

Maybe change this check to use the running location of the extension is a better way to handle to determine if files are local or remote?

To reproduce

No response

Log output