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Code blocked out when generated by co-pilot #257233

@Metahemeralism

Description

@Metahemeralism

Type: Bug

When Co-pilot generates or edits any code in my file it remains blocked out almost as if a black highlighter was painted over it. Does not go away with refresh

Extension version: 1.346.0
VS Code version: Code 1.102.0 (cb0c47c, 2025-07-09T22:10:34.600Z)
OS version: Windows_NT x64 10.0.26100
Modes:

System Info
Item Value
CPUs Intel(R) Core(TM) i7-8665U CPU @ 1.90GHz (8 x 2112)
GPU Status 2d_canvas: enabled
canvas_oop_rasterization: enabled_on
direct_rendering_display_compositor: disabled_off_ok
gpu_compositing: enabled
multiple_raster_threads: enabled_on
opengl: enabled_on
rasterization: enabled
raw_draw: disabled_off_ok
skia_graphite: disabled_off
video_decode: enabled
video_encode: enabled
vulkan: disabled_off
webgl: enabled
webgl2: enabled
webgpu: enabled
webnn: disabled_off
Load (avg) undefined
Memory (System) 15.82GB (3.15GB free)
Process Argv --crash-reporter-id 3fb8ac51-9546-4f65-8079-f802e2775e20
Screen Reader no
VM 0%
A/B Experiments
vsliv368:30146709
vswsl492cf:30256860
pythonvspyt551cf:31249601
binariesv615:30325510
0bi6i642:31351871
h48ei257:31000450
nativeloc1:31344060
dwcopilot:31170013
6074i472:31201624
dwoutputs:31242946
hdaa2157:31222309
copilot_t_ci:31333650
e5gg6876:31282496
pythoneinst12:31285622
c7cif404:31314491
pythonpulldiag:31343502
996jf627:31283433
pythonrdcb7:31342333
usemplatestapi:31297334
0aa6g176:31307128
747dc170:31275177
aj953862:31281341
generatesymbolt:31295002
convertfstringf:31295003
pylancequickfixt:31350061
9d2cg352:31346308
convertlamdat:31350063
usemarketplace:31343026
nesew2to5:31336538
agentclaude:31350858
4f60g487:31327383
nes-diff-11:31337487
replacestringexc:31350595
nes-set-on:31351930
6abeh943:31336334
envsactivate1:31352070
yijiwantestdri0626-t:31336930
0927b901:31350571
4gdec884:31348710
a02b4192-color:31352028

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