Indentation issues

Type: Performance Issue

I am using the Claude Sonnet 4 model to generate code in C# and it is running into indentation issues with the code it generates. It generated a code which has indentation issues and then goes to iteratively fix the indentation which takes up more time. It iss only recently this is happening, Another issue is that the changes made in a file are not immediately affected. For example, it manages to fix the code in a file but the file still shows the error that is not existing. For eg. an error of assembly refeernce missing is shown even though that has been fixed. Only after closing the IDE and opening it again does it resolves the error. FYI: I am using VS Code Insiders

Extension version: 1.326.0 VS Code version: Code - Insiders 1.101.0-insider (1b4b2f807c36c2347167790756941d3058a3e8ae, 2025-05-30T05:03:59.165Z) OS version: Windows_NT x64 10.0.19045 Modes:

Lots of indentation issues and similiar behaviour with python too.

GPT-5 also makes a lot of indentation issues. With python this leads to syntax error, and agent is wasting resources to fix them immediately. Sometimes a simple change causes 10-min iteration loops when it constantly correcting himself about a very simple problem that is a correct identation. Cursor don't have this problem

The models have improved a lot recently, and we've made lots of changes. If you still see this issue we're happy to re-open. Please see https://github.com/microsoft/vscode/wiki/Copilot-Issues for how to provide an actionable Copilot issue.