Language model unavailable even with copilot subscription

[larasmdev]

• Copilot Chat Extension Version:
• VS Code Version:
• OS Version:
• Feature (e.g. agent/edit/ask mode):
• Selected model (e.g. GPT 4.1, Claude 3.7 Sonnet):
• Logs:

Steps to Reproduce:

[vs-code-engineering]

This issue is a duplicate of #253137. Please refer to that issue for updates and discussions. Feel free to open a new issue if you think this is a different problem.