Tool call hangs with error: Could not find file

[ferenci84]

Before submitting your bug report

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

Relevant environment info

- OS: MacOS
- Continue version: 1.2
- IDE version: VS code

To reproduce

In continue repository, PR 4426 commit id a15d116,

Model:

{
      "cacheBehavior": {
        "cacheConversation": true,
        "cacheSystemMessage": true
      },
      "title": "Anthropic - Claude 3.7 Sonnet (no tags, thinking 1024)",
      "model": "claude-3-7-sonnet-latest",
      "provider": "anthropic",
      "apiKey": "",
      "systemMessage": "You are intelligent, helpful and an expert developer, who always gives the correct answer and follow instructions.",
      "replaceSystemMessage": true,
      "completionOptions": {
        "temperature": 1,
        "topP": 0.999,
        "maxTokens": 32000,
        "reasoning": true,
        "reasoningBudgetTokens": 16000
      }
    },

Send the following prompt with attached files:
Attached files:
gui/src/redux/slices/sessionSlice.ts
gui/src/pages/gui/Chat.tsx

Prompt:

streamUpdate adds messages with role="thinking". These blocks are visible right now. contextItems of messages are not visible by default, but it drops down when clicked. I want thinking blocks to work the same way, hidden by default, showing only a title, and the user can click and it will drop down.

What happens

It hangs when it reads gui/src/components/StepContainer.tsx but will not find because it's under subdirectory and the correct path is: gui/src/components/StepContainer/StepContainer.tsx.

It results in error, but visible only in developer tools:

Error handling webview message: {
  "msg": {
    "messageId": "5f6e76d1-86ef-423f-8ad4-49e60daac02f",
    "messageType": "tools/call",
    "data": {
      "toolCall": {
        "id": "toolu_019nC8B8r9eYh7KmPQiEXdRt",
        "type": "function",
        "function": {
          "name": "builtin_read_file",
          "arguments": "{\"filepath\": \"gui/src/components/StepContainer.tsx\"}"
        }
      },
      "selectedModelTitle": "Anthropic - Claude 3.7 Sonnet (no tags, thinking 1024)"
    }
  }
}

Error: Could not find file gui/src/components/StepContainer.tsx

Correct behaviour

Automatically decline reading the file, as if the user has declined, with a reason if possible.

Log output

[oxmb]

I have the exact same Problem:

Failed to call tool builtin_read_file: Could not find file src/app.py

And it's over. This error should be handled more gracefully.