disable copilot chat extension by default and adopt accordingly

src/vs/workbench/browser/parts/editor/editorGroupWatermark.ts

@@ -26,7 +26,7 @@ interface WatermarkEntry {
 	};
 }
 
-const showChatContextKey = ContextKeyExpr.and(ContextKeyExpr.equals('chatSetupHidden', false), ContextKeyExpr.equals('chatSetupDisabled', false));
+const showChatContextKey = ContextKeyExpr.and(ContextKeyExpr.equals('chatSetupHidden', false));
 
 const openChat: WatermarkEntry = { text: localize('watermark.openChat', "Open Chat"), id: 'workbench.action.chat.open', when: { native: showChatContextKey, web: showChatContextKey } };
 const showCommands: WatermarkEntry = { text: localize('watermark.showCommands', "Show All Commands"), id: 'workbench.action.showCommands' };

src/vs/workbench/contrib/chat/browser/actions/chatActions.ts

@@ -205,7 +205,6 @@ abstract class OpenChatGlobalAction extends Action2 {
 			category: CHAT_CATEGORY,
 			precondition: ContextKeyExpr.and(
 				ChatContextKeys.Setup.hidden.negate(),
-				ChatContextKeys.Setup.disabled.negate()
 			)
 		});
 	}
@@ -1728,7 +1727,6 @@ MenuRegistry.appendMenuItem(MenuId.EditorContext, {
 	title: localize('generateCode', "Generate Code"),
 	when: ContextKeyExpr.and(
 		ChatContextKeys.Setup.hidden.negate(),
-		ChatContextKeys.Setup.disabled.negate()
 	)
 });
 

src/vs/workbench/contrib/chat/browser/agentSessions/experiments/agentSessionsExperiments.contribution.ts

@@ -266,7 +266,6 @@ MenuRegistry.appendMenuItem(MenuId.TitleBar, {
 		ChatContextKeys.supported,
 		ContextKeyExpr.and(
 			ChatContextKeys.Setup.hidden.negate(),
-			ChatContextKeys.Setup.disabled.negate()
 		),
 		ContextKeyExpr.has('config.window.commandCenter').negate(),
 	),

src/vs/workbench/contrib/chat/browser/chatParticipant.contribution.ts

@@ -71,7 +71,6 @@ const chatViewDescriptor: IViewDescriptor = {
 	when: ContextKeyExpr.or(
 		ContextKeyExpr.or(
 			ChatContextKeys.Setup.hidden,
-			ChatContextKeys.Setup.disabled
 		)?.negate(),
 		ChatContextKeys.panelParticipantRegistered,
 		ChatContextKeys.extensionInvalid

src/vs/workbench/contrib/chat/browser/chatSetup/chatSetupContributions.ts

@@ -113,7 +113,7 @@ export class ChatSetupContribution extends Disposable implements IWorkbenchContr
 
 			// Agent + Tools
 			{
-				if (!context.state.hidden && !context.state.disabled) {
+				if (!context.state.hidden) {
 
 					// Default Agents (always, even if installed to allow for speedy requests right on startup)
 					if (!defaultAgentDisposables.value) {
@@ -154,14 +154,14 @@ export class ChatSetupContribution extends Disposable implements IWorkbenchContr
 					vscodeAgentDisposables.clear();
 				}
 
-				if (context.state.completed && !context.state.disabled) {
+				if (context.state.completed) {
 					vscodeAgentDisposables.clear(); // we need to do this to prevent showing duplicate agent/tool entries in the list
 				}
 			}
 
 			// Rename Provider
 			{
-				if (!context.state.completed && !context.state.hidden && !context.state.disabled) {
+				if (!context.state.completed && !context.state.hidden) {
 					if (!renameProviderDisposables.value) {
 						renameProviderDisposables.value = AINewSymbolNamesProvider.registerProvider(this.instantiationService, context, controller);
 					}
@@ -172,7 +172,7 @@ export class ChatSetupContribution extends Disposable implements IWorkbenchContr
 
 			// Code Actions Provider
 			{
-				if (!context.state.completed && !context.state.hidden && !context.state.disabled) {
+				if (!context.state.completed && !context.state.hidden) {
 					if (!codeActionsProviderDisposables.value) {
 						codeActionsProviderDisposables.value = ChatCodeActionsProvider.registerProvider(this.instantiationService);
 					}
@@ -232,7 +232,6 @@ export class ChatSetupContribution extends Disposable implements IWorkbenchContr
 					f1: true,
 					precondition: ContextKeyExpr.or(
 						ChatContextKeys.Setup.hidden,
-						ChatContextKeys.Setup.disabled,
 						ChatContextKeys.Setup.untrusted,
 						ChatContextKeys.Setup.completed.negate(),
 						ChatContextKeys.Entitlement.canSignUp
@@ -559,7 +558,6 @@ export class ChatSetupContribution extends Disposable implements IWorkbenchContr
 
 		const internalGenerateCodeContext = ContextKeyExpr.and(
 			ChatContextKeys.Setup.hidden.negate(),
-			ChatContextKeys.Setup.disabled.negate(),
 			ChatContextKeys.Setup.completed.negate(),
 		);
 

src/vs/workbench/contrib/scm/browser/scm.contribution.ts

@@ -702,7 +702,6 @@ registerAction2(class extends Action2 {
 				id: MenuId.EditorContent,
 				when: ContextKeyExpr.and(
 					ChatContextKeys.Setup.hidden.negate(),
-					ChatContextKeys.Setup.disabled.negate(),
 					ChatContextKeys.Setup.completed.negate(),
 					ContextKeyExpr.in(ResourceContextKey.Resource.key, 'git.mergeChanges'),
 					ContextKeyExpr.equals('git.activeResourceHasMergeConflicts', true)

src/vs/workbench/contrib/scm/browser/scmInput.ts

@@ -847,7 +847,6 @@ registerAction2(class extends Action2 {
 				id: MenuId.SCMInputBox,
 				when: ContextKeyExpr.and(
 					ChatContextKeys.Setup.hidden.negate(),
-					ChatContextKeys.Setup.disabled.negate(),
 					ChatContextKeys.Setup.completed.negate(),
 					ContextKeyExpr.equals('scmProvider', 'git')
 				)

src/vs/workbench/services/chat/common/chatEntitlementService.ts

@@ -241,7 +241,7 @@ function isAnonymous(configurationService: IConfigurationService, entitlement: C
 		return false; // only consider signed out users
 	}
 
-	if (sentiment.hidden || sentiment.disabled) {
+	if (sentiment.hidden) {
 		return false; // only consider enabled scenarios
 	}
 

src/vs/workbench/services/extensionManagement/browser/extensionEnablementService.ts

@@ -33,6 +33,7 @@ import { isString } from '../../../../base/common/types.js';
 import { Delayer } from '../../../../base/common/async.js';
 import { IProductService } from '../../../../platform/product/common/productService.js';
 import { isWeb } from '../../../../base/common/platform.js';
+import { ChatEntitlementService, IChatEntitlementService } from '../../chat/common/chatEntitlementService.js';
 
 const SOURCE = 'IWorkbenchExtensionEnablementService';
 
@@ -75,6 +76,7 @@ export class ExtensionEnablementService extends Disposable implements IWorkbench
 		@IWorkspaceTrustManagementService private readonly workspaceTrustManagementService: IWorkspaceTrustManagementService,
 		@IWorkspaceTrustRequestService private readonly workspaceTrustRequestService: IWorkspaceTrustRequestService,
 		@IExtensionManifestPropertiesService private readonly extensionManifestPropertiesService: IExtensionManifestPropertiesService,
+		@IChatEntitlementService chatEntitlementService: IChatEntitlementService,
 		@IInstantiationService instantiationService: IInstantiationService,
 		@ILogService private readonly logService: ILogService,
 		@IProductService productService: IProductService
@@ -133,6 +135,34 @@ export class ExtensionEnablementService extends Disposable implements IWorkbench
 				});
 			});
 		}
+
+		if (!this.environmentService.isSessionsWindow) {
+			const builtinChatExtensionEnablementMigrationKey = 'builtinChatExtensionEnablementMigration';
+			const builtinChatExtensionEnablementMigration = this.storageService.getBoolean(builtinChatExtensionEnablementMigrationKey, StorageScope.PROFILE) === true;
+			if (!builtinChatExtensionEnablementMigration) {
+				this.logService.debug('Running builtin chat extension enablement migration');
+				this.storageService.store(builtinChatExtensionEnablementMigrationKey, true, StorageScope.PROFILE, StorageTarget.MACHINE);
+				const context = (chatEntitlementService as ChatEntitlementService).context;
+				if (context) {
+					if (context.value.state.completed) {
+						if (this._isDisabledGlobally({ id: this._chatExtensionId })) {
+							if (this.configurationService.getValue('chat.disableAIFeatures') !== true) {
+								this.logService.debug('Disabling AI features because builtin chat extension is disabled');
+								this.configurationService.updateValue('chat.disableAIFeatures', true)
+									.catch(err => this.logService.error('Failed to update chat.disableAIFeatures setting during builtin chat extension enablement migration', err));
+							}
+						}
+					} else {
+						try {
+							this.logService.debug('Disabling builtin chat extension as chat set up is not completed');
+							this._disableExtension({ id: this._chatExtensionId });
+						} catch (error) {
+							this.logService.error('Failed to disable builtin chat extension during enablement migration', error);
+						}
+					}
+				}
+			}
+		}
 	}
 
 	private get hasWorkspace(): boolean {

src/vs/workbench/services/extensionManagement/test/browser/extensionEnablementService.test.ts

@@ -31,7 +31,7 @@ import { mock } from '../../../../../base/test/common/mock.js';
 import { IExtensionBisectService } from '../../browser/extensionBisect.js';
 import { IWorkspaceTrustManagementService, IWorkspaceTrustRequestService, WorkspaceTrustRequestOptions } from '../../../../../platform/workspace/common/workspaceTrust.js';
 import { ExtensionManifestPropertiesService, IExtensionManifestPropertiesService } from '../../../extensions/common/extensionManifestPropertiesService.js';
-import { TestContextService, TestProductService, TestWorkspaceTrustEnablementService, TestWorkspaceTrustManagementService } from '../../../../test/common/workbenchTestServices.js';
+import { TestChatEntitlementService, TestContextService, TestProductService, TestWorkspaceTrustEnablementService, TestWorkspaceTrustManagementService } from '../../../../test/common/workbenchTestServices.js';
 import { TestWorkspace } from '../../../../../platform/workspace/test/common/testWorkspace.js';
 import { ExtensionManagementService } from '../../common/extensionManagementService.js';
 import { ILogService, NullLogService } from '../../../../../platform/log/common/log.js';
@@ -97,6 +97,7 @@ export class TestExtensionEnablementService extends ExtensionEnablementService {
 			workspaceTrustManagementService,
 			new class extends mock<IWorkspaceTrustRequestService>() { override requestWorkspaceTrust(options?: WorkspaceTrustRequestOptions): Promise<boolean> { return Promise.resolve(true); } },
 			instantiationService.get(IExtensionManifestPropertiesService) || instantiationService.stub(IExtensionManifestPropertiesService, disposables.add(new ExtensionManifestPropertiesService(TestProductService, new TestConfigurationService(), new TestWorkspaceTrustEnablementService(), new NullLogService()))),
+			new TestChatEntitlementService(),
 			instantiationService,
 			new NullLogService(),
 			productService