fix indents when multicursor

eval: Do not create run files for skipped examples (#28800 )
Release Notes: - N/A
2025-04-16 05:09:34 +05:30 · 2025-04-15 18:00:04 +00:00 · 2025-04-15 23:27:32 +05:30 · 2025-04-15 13:48:03 -04:00 · 2025-04-15 23:17:04 +05:30 · 2025-04-15 19:45:47 +02:00
446 changed files with 17132 additions and 12995 deletions
--- a/.github/ISSUE_TEMPLATE/99_other.yml
+++ b/.github/ISSUE_TEMPLATE/99_other.yml
@@ -0,0 +1,19 @@
+name: Other [Staff Only]
+description: Zed Staff Only
+body:
+  - type: textarea
+    attributes:
+      label: Summary
+      value: |
+        <!-- Please insert a one line summary of the issue below -->
+        SUMMARY_SENTENCE_HERE
+
+        ### Description
+
+        IF YOU DO NOT WORK FOR ZED INDUSTRIES DO NOT CREATE ISSUES WITH THIS TEMPLATE.
+        THEY WILL BE AUTO-CLOSED AND MAY RESULT IN YOU BEING BANNED FROM THE ZED ISSUE TRACKER.
+
+        FEATURE REQUESTS / SUPPORT REQUESTS SHOULD BE OPENED AS DISCUSSIONS:
+          https://github.com/zed-industries/zed/discussions/new/choose
+    validations:
+      required: true
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -594,7 +594,7 @@ jobs:
    timeout-minutes: 60
    name: Linux x86_x64 release bundle
    runs-on:
-      - buildjet-16vcpu-ubuntu-2004
+      - buildjet-16vcpu-ubuntu-2004 # ubuntu 20.04 for minimal glibc
    if: |
      startsWith(github.ref, 'refs/tags/v')
      || contains(github.event.pull_request.labels.*.name, 'run-bundling')
@@ -622,26 +622,23 @@ jobs:
      - name: Create Linux .tar.gz bundle
        run: script/bundle-linux

-      - name: Upload Linux bundle to workflow run if main branch or specific label
+      - name: Upload Artifact to Workflow - zed (run-bundling)
        uses: actions/upload-artifact@ea165f8d65b6e75b540449e92b4886f43607fa02 # v4
-        if: |
-          github.ref == 'refs/heads/main'
-          || contains(github.event.pull_request.labels.*.name, 'run-bundling')
+        if: contains(github.event.pull_request.labels.*.name, 'run-bundling')
        with:
          name: zed-${{ github.event.pull_request.head.sha || github.sha }}-x86_64-unknown-linux-gnu.tar.gz
          path: target/release/zed-*.tar.gz

-      - name: Upload Linux remote server to workflow run if main branch or specific label
+      - name: Upload Artifact to Workflow - zed-remote-server (run-bundling)
        uses: actions/upload-artifact@ea165f8d65b6e75b540449e92b4886f43607fa02 # v4
-        if: |
-          github.ref == 'refs/heads/main'
-          || contains(github.event.pull_request.labels.*.name, 'run-bundling')
+        if: contains(github.event.pull_request.labels.*.name, 'run-bundling')
        with:
          name: zed-remote-server-${{ github.event.pull_request.head.sha || github.sha }}-x86_64-unknown-linux-gnu.gz
          path: target/zed-remote-server-linux-x86_64.gz

-      - name: Upload app bundle to release
+      - name: Upload Artifacts to release
        uses: softprops/action-gh-release@de2c0eb89ae2a093876385947365aca7b0e5f844 # v1
+        if: ${{ !(contains(github.event.pull_request.labels.*.name, 'run-bundling')) }}
        with:
          draft: true
          prerelease: ${{ env.RELEASE_CHANNEL == 'preview' }}
@@ -680,29 +677,26 @@ jobs:
          # This exports RELEASE_CHANNEL into env (GITHUB_ENV)
          script/determine-release-channel

-      - name: Create and upload Linux .tar.gz bundle
+      - name: Create and upload Linux .tar.gz bundles
        run: script/bundle-linux

-      - name: Upload Linux bundle to workflow run if main branch or specific label
+      - name: Upload Artifact to Workflow - zed (run-bundling)
        uses: actions/upload-artifact@ea165f8d65b6e75b540449e92b4886f43607fa02 # v4
-        if: |
-          github.ref == 'refs/heads/main'
-          || contains(github.event.pull_request.labels.*.name, 'run-bundling')
+        if: contains(github.event.pull_request.labels.*.name, 'run-bundling')
        with:
          name: zed-${{ github.event.pull_request.head.sha || github.sha }}-aarch64-unknown-linux-gnu.tar.gz
          path: target/release/zed-*.tar.gz

-      - name: Upload Linux remote server to workflow run if main branch or specific label
+      - name: Upload Artifact to Workflow - zed-remote-server (run-bundling)
        uses: actions/upload-artifact@ea165f8d65b6e75b540449e92b4886f43607fa02 # v4
-        if: |
-          github.ref == 'refs/heads/main'
-          || contains(github.event.pull_request.labels.*.name, 'run-bundling')
+        if: contains(github.event.pull_request.labels.*.name, 'run-bundling')
        with:
          name: zed-remote-server-${{ github.event.pull_request.head.sha || github.sha }}-aarch64-unknown-linux-gnu.gz
          path: target/zed-remote-server-linux-aarch64.gz

-      - name: Upload app bundle to release
+      - name: Upload Artifacts to release
        uses: softprops/action-gh-release@de2c0eb89ae2a093876385947365aca7b0e5f844 # v1
+        if: ${{ !(contains(github.event.pull_request.labels.*.name, 'run-bundling')) }}
        with:
          draft: true
          prerelease: ${{ env.RELEASE_CHANNEL == 'preview' }}
--- a/.github/workflows/deploy_collab.yml
+++ b/.github/workflows/deploy_collab.yml
@@ -117,12 +117,10 @@ jobs:
            export ZED_KUBE_NAMESPACE=production
            export ZED_COLLAB_LOAD_BALANCER_SIZE_UNIT=10
            export ZED_API_LOAD_BALANCER_SIZE_UNIT=2
-            export ZED_LLM_LOAD_BALANCER_SIZE_UNIT=2
          elif [[ $GITHUB_REF_NAME = "collab-staging" ]]; then
            export ZED_KUBE_NAMESPACE=staging
            export ZED_COLLAB_LOAD_BALANCER_SIZE_UNIT=1
            export ZED_API_LOAD_BALANCER_SIZE_UNIT=1
-            export ZED_LLM_LOAD_BALANCER_SIZE_UNIT=1
          else
            echo "cowardly refusing to deploy from an unknown branch"
            exit 1
@@ -147,9 +145,3 @@ jobs:
          envsubst < crates/collab/k8s/collab.template.yml | kubectl apply -f -
          kubectl -n "$ZED_KUBE_NAMESPACE" rollout status deployment/$ZED_SERVICE_NAME --watch
          echo "deployed ${ZED_SERVICE_NAME} to ${ZED_KUBE_NAMESPACE}"
-
-          export ZED_SERVICE_NAME=llm
-          export ZED_LOAD_BALANCER_SIZE_UNIT=$ZED_LLM_LOAD_BALANCER_SIZE_UNIT
-          envsubst < crates/collab/k8s/collab.template.yml | kubectl apply -f -
-          kubectl -n "$ZED_KUBE_NAMESPACE" rollout status deployment/$ZED_SERVICE_NAME --watch
-          echo "deployed ${ZED_SERVICE_NAME} to ${ZED_KUBE_NAMESPACE}"
--- a/.zed/debug.json
+++ b/.zed/debug.json
@@ -1,13 +1,13 @@
 [
  {
-    "label": "Debug Zed with LLDB",
-    "adapter": "LLDB",
+    "label": "Debug Zed (CodeLLDB)",
+    "adapter": "CodeLLDB",
    "program": "$ZED_WORKTREE_ROOT/target/debug/zed",
    "request": "launch",
    "cwd": "$ZED_WORKTREE_ROOT"
  },
  {
-    "label": "Debug Zed with GDB",
+    "label": "Debug Zed (GDB)",
    "adapter": "GDB",
    "program": "$ZED_WORKTREE_ROOT/target/debug/zed",
    "request": "launch",
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -52,7 +52,6 @@ dependencies = [
 name = "agent"
 version = "0.1.0"
 dependencies = [
- "agent_rules",
 "anyhow",
 "assistant_context_editor",
 "assistant_settings",
@@ -116,6 +115,7 @@ dependencies = [
 "terminal_view",
 "text",
 "theme",
+ "thiserror 2.0.12",
 "time",
 "time_format",
 "ui",
@@ -127,57 +127,6 @@ dependencies = [
 "zed_actions",
 ]

-[[package]]
-name = "agent_eval"
-version = "0.1.0"
-dependencies = [
- "agent",
- "anyhow",
- "assistant_tool",
- "assistant_tools",
- "clap",
- "client",
- "collections",
- "context_server",
- "dap",
- "env_logger 0.11.8",
- "fs",
- "futures 0.3.31",
- "gpui",
- "gpui_tokio",
- "language",
- "language_model",
- "language_models",
- "node_runtime",
- "project",
- "prompt_store",
- "release_channel",
- "reqwest_client",
- "serde",
- "serde_json",
- "serde_json_lenient",
- "settings",
- "smol",
- "tempfile",
- "util",
- "walkdir",
- "workspace-hack",
-]
-
-[[package]]
-name = "agent_rules"
-version = "0.1.0"
-dependencies = [
- "anyhow",
- "fs",
- "gpui",
- "indoc",
- "prompt_store",
- "util",
- "workspace-hack",
- "worktree",
-]
-
 [[package]]
 name = "ahash"
 version = "0.7.8"
@@ -377,7 +326,6 @@ dependencies = [
 "serde_json",
 "strum",
 "thiserror 2.0.12",
- "util",
 "workspace-hack",
 ]

@@ -1233,6 +1181,18 @@ dependencies = [
 "workspace-hack",
 ]

+[[package]]
+name = "auto_update_helper"
+version = "0.1.0"
+dependencies = [
+ "anyhow",
+ "log",
+ "simplelog",
+ "windows 0.61.1",
+ "winresource",
+ "workspace-hack",
+]
+
 [[package]]
 name = "auto_update_ui"
 version = "0.1.0"
@@ -2982,7 +2942,6 @@ dependencies = [
 name = "collab"
 version = "0.44.0"
 dependencies = [
- "anthropic",
 "anyhow",
 "assistant",
 "assistant_context_editor",
@@ -3226,14 +3185,18 @@ dependencies = [
 name = "component_preview"
 version = "0.1.0"
 dependencies = [
+ "anyhow",
 "client",
 "collections",
 "component",
+ "db",
 "gpui",
 "languages",
 "notifications",
 "project",
+ "serde",
 "ui",
+ "ui_input",
 "workspace",
 "workspace-hack",
 ]
@@ -4038,7 +4001,6 @@ dependencies = [
 "node_runtime",
 "parking_lot",
 "paths",
- "regex",
 "schemars",
 "serde",
 "serde_json",
@@ -4070,7 +4032,6 @@ dependencies = [
 "gpui",
 "language",
 "paths",
- "regex",
 "serde",
 "serde_json",
 "task",
@@ -4214,6 +4175,7 @@ dependencies = [
 "collections",
 "command_palette_hooks",
 "dap",
+ "db",
 "editor",
 "env_logger 0.11.8",
 "feature_flags",
@@ -4232,6 +4194,7 @@ dependencies = [
 "settings",
 "sysinfo",
 "task",
+ "tasks_ui",
 "terminal_view",
 "theme",
 "ui",
@@ -4352,19 +4315,24 @@ dependencies = [
 "anyhow",
 "client",
 "collections",
+ "component",
 "ctor",
 "editor",
 "env_logger 0.11.8",
 "gpui",
+ "indoc",
 "language",
+ "linkme",
 "log",
 "lsp",
+ "markdown",
 "pretty_assertions",
 "project",
 "rand 0.8.5",
 "serde",
 "serde_json",
 "settings",
+ "text",
 "theme",
 "ui",
 "unindent",
@@ -4911,26 +4879,37 @@ dependencies = [
 "anyhow",
 "assistant_tool",
 "assistant_tools",
+ "async-watch",
+ "chrono",
+ "clap",
 "client",
 "collections",
 "context_server",
 "dap",
 "env_logger 0.11.8",
+ "extension",
 "fs",
+ "futures 0.3.31",
 "gpui",
 "gpui_tokio",
+ "handlebars 4.5.0",
 "language",
+ "language_extension",
 "language_model",
 "language_models",
+ "languages",
 "node_runtime",
+ "paths",
 "project",
 "prompt_store",
 "release_channel",
 "reqwest_client",
 "serde",
 "settings",
- "smol",
+ "shellexpand 2.1.2",
 "toml 0.8.20",
+ "unindent",
+ "util",
 "workspace-hack",
 ]

@@ -5025,10 +5004,10 @@ dependencies = [
 "async-tar",
 "async-trait",
 "collections",
- "convert_case 0.8.0",
 "fs",
 "futures 0.3.31",
 "gpui",
+ "heck 0.5.0",
 "http_client",
 "language",
 "log",
@@ -7703,6 +7682,7 @@ dependencies = [
 name = "language_model_selector"
 version = "0.1.0"
 dependencies = [
+ "collections",
 "feature_flags",
 "gpui",
 "language_model",
@@ -7753,6 +7733,7 @@ dependencies = [
 "smol",
 "strum",
 "theme",
+ "thiserror 2.0.12",
 "tiktoken-rs",
 "tokio",
 "ui",
@@ -14240,9 +14221,7 @@ version = "0.1.0"
 dependencies = [
 "anyhow",
 "collections",
- "debugger_ui",
 "editor",
- "feature_flags",
 "file_icons",
 "fuzzy",
 "gpui",
@@ -17650,6 +17629,7 @@ dependencies = [
 "ui",
 "util",
 "uuid",
+ "windows 0.61.1",
 "workspace-hack",
 "zed_actions",
 ]
@@ -17812,6 +17792,8 @@ dependencies = [
 "wasmtime-cranelift",
 "wasmtime-environ",
 "winapi",
+ "windows-core 0.61.0",
+ "windows-numerics",
 "windows-sys 0.48.0",
 "windows-sys 0.52.0",
 "windows-sys 0.59.0",
@@ -18156,7 +18138,7 @@ dependencies = [

 [[package]]
 name = "zed"
-version = "0.182.0"
+version = "0.183.0"
 dependencies = [
 "activity_indicator",
 "agent",
@@ -18252,7 +18234,6 @@ dependencies = [
 "settings",
 "settings_ui",
 "shellexpand 2.1.2",
- "simplelog",
 "smol",
 "snippet_provider",
 "snippets_ui",
@@ -18287,6 +18268,7 @@ dependencies = [
 "workspace-hack",
 "zed_actions",
 "zeta",
+ "zlog",
 "zlog_settings",
 ]

@@ -18336,7 +18318,7 @@ dependencies = [

 [[package]]
 name = "zed_html"
-version = "0.2.0"
+version = "0.2.1"
 dependencies = [
 "zed_extension_api 0.1.0",
 ]
@@ -18599,7 +18581,10 @@ dependencies = [
 name = "zlog"
 version = "0.1.0"
 dependencies = [
+ "anyhow",
+ "chrono",
 "log",
+ "tempfile",
 "workspace-hack",
 ]

--- a/Cargo.toml
+++ b/Cargo.toml
@@ -3,13 +3,11 @@ resolver = "2"
 members = [
    "crates/activity_indicator",
    "crates/agent",
-    "crates/agent_rules",
    "crates/anthropic",
    "crates/askpass",
    "crates/assets",
    "crates/assistant",
    "crates/assistant_context_editor",
-    "crates/agent_eval",
    "crates/assistant_settings",
    "crates/assistant_slash_command",
    "crates/assistant_slash_commands",
@@ -17,6 +15,7 @@ members = [
    "crates/assistant_tools",
    "crates/audio",
    "crates/auto_update",
+    "crates/auto_update_helper",
    "crates/auto_update_ui",
    "crates/aws_http_client",
    "crates/bedrock",
@@ -211,14 +210,12 @@ edition = "2024"

 activity_indicator = { path = "crates/activity_indicator" }
 agent = { path = "crates/agent" }
-agent_rules = { path = "crates/agent_rules" }
 ai = { path = "crates/ai" }
 anthropic = { path = "crates/anthropic" }
 askpass = { path = "crates/askpass" }
 assets = { path = "crates/assets" }
 assistant = { path = "crates/assistant" }
 assistant_context_editor = { path = "crates/assistant_context_editor" }
-assistant_eval = { path = "crates/agent_eval" }
 assistant_settings = { path = "crates/assistant_settings" }
 assistant_slash_command = { path = "crates/assistant_slash_command" }
 assistant_slash_commands = { path = "crates/assistant_slash_commands" }
@@ -226,6 +223,7 @@ assistant_tool = { path = "crates/assistant_tool" }
 assistant_tools = { path = "crates/assistant_tools" }
 audio = { path = "crates/audio" }
 auto_update = { path = "crates/auto_update" }
+auto_update_helper = { path = "crates/auto_update_helper" }
 auto_update_ui = { path = "crates/auto_update_ui" }
 aws_http_client = { path = "crates/aws_http_client" }
 bedrock = { path = "crates/bedrock" }
@@ -403,8 +401,12 @@ async-tungstenite = "0.29.1"
 async-watch = "0.3.1"
 async_zip = { version = "0.0.17", features = ["deflate", "deflate64"] }
 aws-config = { version = "1.6.1", features = ["behavior-version-latest"] }
-aws-credential-types = { version = "1.2.2", features = ["hardcoded-credentials"] }
-aws-sdk-bedrockruntime = { version = "1.80.0", features = ["behavior-version-latest"] }
+aws-credential-types = { version = "1.2.2", features = [
+    "hardcoded-credentials",
+] }
+aws-sdk-bedrockruntime = { version = "1.80.0", features = [
+    "behavior-version-latest",
+] }
 aws-smithy-runtime-api = { version = "1.7.4", features = ["http-1x", "client"] }
 aws-smithy-types = { version = "1.3.0", features = ["http-body-1-x"] }
 base64 = "0.22"
@@ -443,6 +445,7 @@ futures-lite = "1.13"
 git2 = { version = "0.20.1", default-features = false }
 globset = "0.4"
 handlebars = "4.3"
+heck = "0.5"
 heed = { version = "0.21.0", features = ["read-txn-no-tls"] }
 hex = "0.4.3"
 html5ever = "0.27.0"
@@ -619,12 +622,10 @@ features = [
 [workspace.dependencies.windows]
 version = "0.61"
 features = [
-    "Foundation_Collections",
    "Foundation_Numerics",
    "Storage_Search",
    "Storage_Streams",
    "System_Threading",
-    "UI_StartScreen",
    "UI_ViewManagement",
    "Wdk_System_SystemServices",
    "Win32_Globalization",
@@ -651,6 +652,7 @@ features = [
    "Win32_System_SystemInformation",
    "Win32_System_SystemServices",
    "Win32_System_Threading",
+    "Win32_System_Variant",
    "Win32_System_WinRT",
    "Win32_UI_Controls",
    "Win32_UI_HiDpi",
@@ -658,6 +660,7 @@ features = [
    "Win32_UI_Input_KeyboardAndMouse",
    "Win32_UI_Shell",
    "Win32_UI_Shell_Common",
+    "Win32_UI_Shell_PropertiesSystem",
    "Win32_UI_WindowsAndMessaging",
 ]

@@ -781,4 +784,12 @@ let_underscore_future = "allow"
 too_many_arguments = "allow"

 [workspace.metadata.cargo-machete]
-ignored = ["bindgen", "cbindgen", "prost_build", "serde", "component", "linkme", "workspace-hack"]
+ignored = [
+    "bindgen",
+    "cbindgen",
+    "prost_build",
+    "serde",
+    "component",
+    "linkme",
+    "workspace-hack",
+]
--- a/assets/icons/ai_anthropic_hosted.svg
+++ b/assets/icons/ai_anthropic_hosted.svg
@@ -1,12 +0,0 @@
-<svg width="16" height="16" viewBox="0 0 16 16" fill="none" xmlns="http://www.w3.org/2000/svg">
-<rect width="16" height="16" rx="2" fill="black" fill-opacity="0.2"/>
-<g clip-path="url(#clip0_1916_18)">
-<path d="M10.652 3.79999H8.816L12.164 12.2H14L10.652 3.79999Z" fill="#1F1F1E"/>
-<path d="M5.348 3.79999L2 12.2H3.872L4.55672 10.436H8.05927L8.744 12.2H10.616L7.268 3.79999H5.348ZM5.16224 8.87599L6.308 5.92399L7.45374 8.87599H5.16224Z" fill="#1F1F1E"/>
-</g>
-<defs>
-<clipPath id="clip0_1916_18">
-<rect width="12" height="8.4" fill="white" transform="translate(2 3.79999)"/>
-</clipPath>
-</defs>
-</svg>
--- a/assets/icons/layout.svg
+++ b/assets/icons/layout.svg
@@ -0,0 +1,5 @@
+<svg width="24" height="24" viewBox="0 0 24 24" fill="none" xmlns="http://www.w3.org/2000/svg">
+<path d="M20 14H4C3.44772 14 3 14.4477 3 15V20C3 20.5523 3.44772 21 4 21H20C20.5523 21 21 20.5523 21 20V15C21 14.4477 20.5523 14 20 14Z" stroke="black" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/>
+<path d="M11 3H4C3.44772 3 3 3.44772 3 4V9C3 9.55228 3.44772 10 4 10H11C11.5523 10 12 9.55228 12 9V4C12 3.44772 11.5523 3 11 3Z" stroke="black" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/>
+<path d="M20 3H17C16.4477 3 16 3.44772 16 4V9C16 9.55228 16.4477 10 17 10H20C20.5523 10 21 9.55228 21 9V4C21 3.44772 20.5523 3 20 3Z" stroke="black" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/>
+</svg>
--- a/assets/keymaps/default-linux.json
+++ b/assets/keymaps/default-linux.json
@@ -150,7 +150,9 @@
    "context": "AgentDiff",
    "bindings": {
      "ctrl-y": "agent::Keep",
-      "ctrl-n": "agent::Reject"
+      "ctrl-n": "agent::Reject",
+      "ctrl-shift-y": "agent::KeepAll",
+      "ctrl-shift-n": "agent::RejectAll"
    }
  },
  {
@@ -352,11 +354,11 @@
      "alt-shift-left": "editor::SelectSmallerSyntaxNode", // Shrink Selection
      "ctrl-shift-l": "editor::SelectAllMatches", // Select all occurrences of current selection
      "ctrl-f2": "editor::SelectAllMatches", // Select all occurrences of current word
-      "ctrl-d": ["editor::SelectNext", { "replace_newest": false }],
-      "ctrl-shift-down": ["editor::SelectNext", { "replace_newest": false }], // Add selection to Next Find Match
-      "ctrl-shift-up": ["editor::SelectPrevious", { "replace_newest": false }],
-      "ctrl-k ctrl-d": ["editor::SelectNext", { "replace_newest": true }],
-      "ctrl-k ctrl-shift-d": ["editor::SelectPrevious", { "replace_newest": true }],
+      "ctrl-d": ["editor::SelectNext", { "replace_newest": false }], // editor.action.addSelectionToNextFindMatch  / find_under_expand
+      "ctrl-shift-down": ["editor::SelectNext", { "replace_newest": false }], // editor.action.addSelectionToNextFindMatch
+      "ctrl-shift-up": ["editor::SelectPrevious", { "replace_newest": false }], // editor.action.addSelectionToPreviousFindMatch
+      "ctrl-k ctrl-d": ["editor::SelectNext", { "replace_newest": true }], // editor.action.moveSelectionToNextFindMatch  / find_under_expand_skip
+      "ctrl-k ctrl-shift-d": ["editor::SelectPrevious", { "replace_newest": true }], // editor.action.moveSelectionToPreviousFindMatch
      "ctrl-k ctrl-i": "editor::Hover",
      "ctrl-/": ["editor::ToggleComments", { "advance_downwards": false }],
      "ctrl-u": "editor::UndoSelection",
@@ -625,12 +627,13 @@
    "context": "AgentPanel",
    "bindings": {
      "ctrl-n": "agent::NewThread",
-      "ctrl-alt-n": "agent::NewPromptEditor",
+      "ctrl-alt-n": "agent::NewTextThread",
      "ctrl-shift-h": "agent::OpenHistory",
      "ctrl-alt-c": "agent::OpenConfiguration",
      "ctrl-i": "agent::ToggleProfileSelector",
      "ctrl-alt-/": "assistant::ToggleModelSelector",
      "ctrl-shift-a": "agent::ToggleContextPicker",
+      "shift-escape": "agent::ExpandMessageEditor",
      "ctrl-e": "agent::ChatMode",
      "ctrl-alt-e": "agent::RemoveAllContext"
    }
@@ -645,7 +648,7 @@
  {
    "context": "AgentPanel && prompt_editor",
    "bindings": {
-      "cmd-n": "agent::NewPromptEditor",
+      "cmd-n": "agent::NewTextThread",
      "cmd-alt-t": "agent::NewThread"
    }
  },
@@ -779,6 +782,7 @@
      "shift-tab": "git_panel::FocusEditor",
      "escape": "git_panel::ToggleFocus",
      "ctrl-enter": "git::Commit",
+      "ctrl-shift-enter": "git::Amend",
      "alt-enter": "menu::SecondaryConfirm",
      "delete": ["git::RestoreFile", { "skip_prompt": false }],
      "backspace": ["git::RestoreFile", { "skip_prompt": false }],
@@ -787,12 +791,20 @@
      "ctrl-delete": ["git::RestoreFile", { "skip_prompt": false }]
    }
  },
+  {
+    "context": "GitPanel && CommitEditor",
+    "use_key_equivalents": true,
+    "bindings": {
+      "escape": "git::Cancel"
+    }
+  },
  {
    "context": "GitCommit > Editor",
    "bindings": {
      "escape": "menu::Cancel",
      "enter": "editor::Newline",
      "ctrl-enter": "git::Commit",
+      "ctrl-shift-enter": "git::Amend",
      "alt-l": "git::GenerateCommitMessage"
    }
  },
@@ -814,6 +826,7 @@
    "context": "GitDiff > Editor",
    "bindings": {
      "ctrl-enter": "git::Commit",
+      "ctrl-shift-enter": "git::Amend",
      "ctrl-space": "git::StageAll",
      "ctrl-shift-space": "git::UnstageAll"
    }
@@ -832,6 +845,7 @@
      "shift-tab": "git_panel::FocusChanges",
      "enter": "editor::Newline",
      "ctrl-enter": "git::Commit",
+      "ctrl-shift-enter": "git::Amend",
      "alt-up": "git_panel::FocusChanges",
      "alt-l": "git::GenerateCommitMessage"
    }
--- a/assets/keymaps/default-macos.json
+++ b/assets/keymaps/default-macos.json
@@ -242,7 +242,9 @@
    "use_key_equivalents": true,
    "bindings": {
      "cmd-y": "agent::Keep",
-      "cmd-n": "agent::Reject"
+      "cmd-n": "agent::Reject",
+      "cmd-shift-y": "agent::KeepAll",
+      "cmd-shift-n": "agent::RejectAll"
    }
  },
  {
@@ -281,12 +283,13 @@
    "use_key_equivalents": true,
    "bindings": {
      "cmd-n": "agent::NewThread",
-      "cmd-alt-n": "agent::NewPromptEditor",
+      "cmd-alt-n": "agent::NewTextThread",
      "cmd-shift-h": "agent::OpenHistory",
      "cmd-alt-c": "agent::OpenConfiguration",
      "cmd-i": "agent::ToggleProfileSelector",
      "cmd-alt-/": "assistant::ToggleModelSelector",
      "cmd-shift-a": "agent::ToggleContextPicker",
+      "shift-escape": "agent::ExpandMessageEditor",
      "cmd-e": "agent::ChatMode",
      "cmd-alt-e": "agent::RemoveAllContext"
    }
@@ -302,7 +305,7 @@
    "context": "AgentPanel && prompt_editor",
    "use_key_equivalents": true,
    "bindings": {
-      "cmd-n": "agent::NewPromptEditor",
+      "cmd-n": "agent::NewTextThread",
      "cmd-alt-t": "agent::NewThread"
    }
  },
@@ -488,12 +491,15 @@
      "alt-shift-down": "editor::DuplicateLineDown",
      "ctrl-shift-right": "editor::SelectLargerSyntaxNode", // Expand Selection
      "ctrl-shift-left": "editor::SelectSmallerSyntaxNode", // Shrink Selection
-      "cmd-d": ["editor::SelectNext", { "replace_newest": false }], // Add selection to Next Find Match
+      "cmd-d": ["editor::SelectNext", { "replace_newest": false }], // editor.action.addSelectionToNextFindMatch / find_under_expand
      "cmd-shift-l": "editor::SelectAllMatches", // Select all occurrences of current selection
      "cmd-f2": "editor::SelectAllMatches", // Select all occurrences of current word
-      "ctrl-cmd-d": ["editor::SelectPrevious", { "replace_newest": false }],
-      "cmd-k cmd-d": ["editor::SelectNext", { "replace_newest": true }],
-      "cmd-k ctrl-cmd-d": ["editor::SelectPrevious", { "replace_newest": true }],
+      "cmd-k cmd-d": ["editor::SelectNext", { "replace_newest": true }], // editor.action.moveSelectionToNextFindMatch / find_under_expand_skip
+      // macOS binds `ctrl-cmd-d` to Show Dictionary which breaks these two binds
+      // To use `ctrl-cmd-d` or `ctrl-k ctrl-cmd-d` in Zed you must execute this command and then restart:
+      //   defaults write com.apple.symbolichotkeys AppleSymbolicHotKeys -dict-add 70 '<dict><key>enabled</key><false/></dict>'
+      "ctrl-cmd-d": ["editor::SelectPrevious", { "replace_newest": false }], // editor.action.addSelectionToPreviousFindMatch
+      "cmd-k ctrl-cmd-d": ["editor::SelectPrevious", { "replace_newest": true }], // editor.action.moveSelectionToPreviousFindMatch
      "cmd-k cmd-i": "editor::Hover",
      "cmd-/": ["editor::ToggleComments", { "advance_downwards": false }],
      "cmd-u": "editor::UndoSelection",
@@ -849,17 +855,26 @@
      "shift-tab": "git_panel::FocusEditor",
      "escape": "git_panel::ToggleFocus",
      "cmd-enter": "git::Commit",
+      "cmd-shift-enter": "git::Amend",
      "backspace": ["git::RestoreFile", { "skip_prompt": false }],
      "delete": ["git::RestoreFile", { "skip_prompt": false }],
      "cmd-backspace": ["git::RestoreFile", { "skip_prompt": true }],
      "cmd-delete": ["git::RestoreFile", { "skip_prompt": true }]
    }
  },
+  {
+    "context": "GitPanel && CommitEditor",
+    "use_key_equivalents": true,
+    "bindings": {
+      "escape": "git::Cancel"
+    }
+  },
  {
    "context": "GitDiff > Editor",
    "use_key_equivalents": true,
    "bindings": {
      "cmd-enter": "git::Commit",
+      "cmd-shift-enter": "git::Amend",
      "cmd-ctrl-y": "git::StageAll",
      "cmd-ctrl-shift-y": "git::UnstageAll"
    }
@@ -870,6 +885,7 @@
    "bindings": {
      "enter": "editor::Newline",
      "cmd-enter": "git::Commit",
+      "cmd-shift-enter": "git::Amend",
      "tab": "git_panel::FocusChanges",
      "shift-tab": "git_panel::FocusChanges",
      "alt-up": "git_panel::FocusChanges",
@@ -899,6 +915,7 @@
      "enter": "editor::Newline",
      "escape": "menu::Cancel",
      "cmd-enter": "git::Commit",
+      "cmd-shift-enter": "git::Amend",
      "alt-tab": "git::GenerateCommitMessage"
    }
  },
--- a/assets/keymaps/linux/sublime_text.json
+++ b/assets/keymaps/linux/sublime_text.json
@@ -37,6 +37,8 @@
      "ctrl-shift-a": "editor::SelectLargerSyntaxNode",
      "ctrl-shift-d": "editor::DuplicateSelection",
      "alt-f3": "editor::SelectAllMatches", // find_all_under
+      // "ctrl-f3": "", // find_under (cancels any selections)
+      // "cmd-alt-shift-g": "" // find_under_prev (cancels any selections)
      "f9": "editor::SortLinesCaseSensitive",
      "ctrl-f9": "editor::SortLinesCaseInsensitive",
      "f12": "editor::GoToDefinition",
@@ -49,7 +51,9 @@
      "ctrl-k ctrl-l": "editor::ConvertToLowerCase",
      "shift-alt-m": "markdown::OpenPreviewToTheSide",
      "ctrl-backspace": "editor::DeleteToPreviousWordStart",
-      "ctrl-delete": "editor::DeleteToNextWordEnd"
+      "ctrl-delete": "editor::DeleteToNextWordEnd",
+      "f3": "editor::FindNextMatch",
+      "shift-f3": "editor::FindPreviousMatch"
    }
  },
  {
--- a/assets/keymaps/macos/sublime_text.json
+++ b/assets/keymaps/macos/sublime_text.json
@@ -38,6 +38,8 @@
      "cmd-shift-a": "editor::SelectLargerSyntaxNode",
      "cmd-shift-d": "editor::DuplicateSelection",
      "ctrl-cmd-g": "editor::SelectAllMatches", // find_all_under
+      // "cmd-alt-g": "", // find_under (cancels any selections)
+      // "cmd-alt-shift-g": "" // find_under_prev (cancels any selections)
      "f5": "editor::SortLinesCaseSensitive",
      "ctrl-f5": "editor::SortLinesCaseInsensitive",
      "shift-f12": "editor::FindAllReferences",
@@ -51,7 +53,9 @@
      "cmd-shift-j": "editor::JoinLines",
      "shift-alt-m": "markdown::OpenPreviewToTheSide",
      "ctrl-backspace": "editor::DeleteToPreviousWordStart",
-      "ctrl-delete": "editor::DeleteToNextWordEnd"
+      "ctrl-delete": "editor::DeleteToNextWordEnd",
+      "cmd-g": "editor::FindNextMatch",
+      "cmd-shift-g": "editor::FindPreviousMatch"
    }
  },
  {
--- a/assets/keymaps/vim.json
+++ b/assets/keymaps/vim.json
@@ -203,6 +203,7 @@
      "c": "vim::PushChange",
      "shift-c": "vim::ChangeToEndOfLine",
      "d": "vim::PushDelete",
+      "delete": "vim::DeleteRight",
      "shift-d": "vim::DeleteToEndOfLine",
      "shift-j": "vim::JoinLines",
      "g shift-j": "vim::JoinLinesNoWhitespace",
@@ -538,6 +539,7 @@
    "bindings": {
      "d": "vim::CurrentLine",
      "s": "vim::PushDeleteSurrounds",
+      "v": "vim::PushForcedMotion", // "d v"
      "o": "editor::ToggleSelectedDiffHunks", // "d o"
      "shift-o": "git::ToggleStaged",
      "p": "git::Restore", // "d p"
@@ -586,6 +588,7 @@
    "context": "vim_operator == y",
    "bindings": {
      "y": "vim::CurrentLine",
+      "v": "vim::PushForcedMotion",
      "s": ["vim::PushAddSurrounds", {}]
    }
  },
--- a/assets/settings/default.json
+++ b/assets/settings/default.json
@@ -80,6 +80,8 @@
    // Values are clamped to the [0.0, 1.0] range.
    "inactive_opacity": 1.0
  },
+  // Layout mode of the bottom dock. Defaults to "contained"
+  "bottom_dock_layout": "contained",
  // The direction that you want to split panes horizontally. Defaults to "up"
  "pane_split_direction_horizontal": "up",
  // The direction that you want to split panes horizontally. Defaults to "left"
@@ -624,14 +626,14 @@
      // The provider to use.
      "provider": "zed.dev",
      // The model to use.
-      "model": "claude-3-5-sonnet-latest"
+      "model": "claude-3-7-sonnet-latest"
    },
    // The model to use when applying edits from the assistant.
    "editor_model": {
      // The provider to use.
      "provider": "zed.dev",
      // The model to use.
-      "model": "claude-3-5-sonnet-latest"
+      "model": "claude-3-7-sonnet-latest"
    },
    // When enabled, the agent can run potentially destructive actions without asking for your confirmation.
    "always_allow_tool_actions": false,
@@ -642,6 +644,7 @@
        // We don't know which of the context server tools are safe for the "Ask" profile, so we don't enable them by default.
        // "enable_all_context_servers": true,
        "tools": {
+          "contents": true,
          "diagnostics": true,
          "fetch": true,
          "list_directory": false,
@@ -660,6 +663,7 @@
          "batch_tool": true,
          "code_actions": true,
          "code_symbols": true,
+          "contents": true,
          "copy_path": false,
          "create_file": true,
          "delete_path": false,
--- a/crates/agent/Cargo.toml
+++ b/crates/agent/Cargo.toml
@@ -19,7 +19,6 @@ test-support = [
 ]

 [dependencies]
-agent_rules.workspace = true
 anyhow.workspace = true
 assistant_context_editor.workspace = true
 assistant_settings.workspace = true
@@ -81,6 +80,7 @@ terminal.workspace = true
 terminal_view.workspace = true
 text.workspace = true
 theme.workspace = true
+thiserror.workspace = true
 time.workspace = true
 time_format.workspace = true
 ui.workspace = true
--- a/crates/agent/src/active_thread.rs
+++ b/crates/agent/src/active_thread.rs
@@ -4,7 +4,7 @@ use crate::thread::{
    LastRestoreCheckpoint, MessageId, MessageSegment, RequestKind, Thread, ThreadError,
    ThreadEvent, ThreadFeedback,
 };
-use crate::thread_store::ThreadStore;
+use crate::thread_store::{RulesLoadingError, ThreadStore};
 use crate::tool_use::{PendingToolUseStatus, ToolUse, ToolUseStatus};
 use crate::ui::{AddedContext, AgentNotification, AgentNotificationEvent, ContextPill};
 use crate::{AssistantPanel, OpenActiveThreadAsMarkdown};
@@ -12,29 +12,30 @@ use anyhow::Context as _;
 use assistant_settings::{AssistantSettings, NotifyWhenAgentWaiting};
 use collections::{HashMap, HashSet};
 use editor::scroll::Autoscroll;
-use editor::{Editor, MultiBuffer};
+use editor::{Editor, EditorElement, EditorStyle, MultiBuffer};
 use gpui::{
    AbsoluteLength, Animation, AnimationExt, AnyElement, App, ClickEvent, ClipboardItem,
    DefiniteLength, EdgesRefinement, Empty, Entity, Focusable, Hsla, ListAlignment, ListState,
    MouseButton, PlatformDisplay, ScrollHandle, Stateful, StyleRefinement, Subscription, Task,
-    TextStyleRefinement, Transformation, UnderlineStyle, WeakEntity, WindowHandle,
+    TextStyle, TextStyleRefinement, Transformation, UnderlineStyle, WeakEntity, WindowHandle,
    linear_color_stop, linear_gradient, list, percentage, pulsating_between,
 };
 use language::{Buffer, LanguageRegistry};
-use language_model::{LanguageModelRegistry, LanguageModelToolUseId, Role};
-use markdown::parser::CodeBlockKind;
-use markdown::{Markdown, MarkdownElement, MarkdownStyle, ParsedMarkdown, without_fences};
+use language_model::{LanguageModelRegistry, LanguageModelToolUseId, Role, StopReason};
+use markdown::parser::{CodeBlockKind, CodeBlockMetadata};
+use markdown::{HeadingLevelStyles, Markdown, MarkdownElement, MarkdownStyle, ParsedMarkdown};
 use project::ProjectItem as _;
 use rope::Point;
 use settings::{Settings as _, update_settings_file};
-use std::ops::Range;
 use std::path::Path;
 use std::rc::Rc;
 use std::sync::Arc;
 use std::time::Duration;
 use text::ToPoint;
 use theme::ThemeSettings;
-use ui::{Disclosure, IconButton, KeyBinding, Scrollbar, ScrollbarState, Tooltip, prelude::*};
+use ui::{
+    Disclosure, IconButton, KeyBinding, Scrollbar, ScrollbarState, TextSize, Tooltip, prelude::*,
+};
 use util::ResultExt as _;
 use workspace::{OpenOptions, Workspace};

@@ -174,11 +175,37 @@ fn default_markdown_style(window: &Window, cx: &App) -> MarkdownStyle {
    });

    MarkdownStyle {
-        base_text_style: text_style,
+        base_text_style: text_style.clone(),
        syntax: cx.theme().syntax().clone(),
        selection_background_color: cx.theme().players().local().selection,
        code_block_overflow_x_scroll: true,
        table_overflow_x_scroll: true,
+        heading_level_styles: Some(HeadingLevelStyles {
+            h1: Some(TextStyleRefinement {
+                font_size: Some(rems(1.15).into()),
+                ..Default::default()
+            }),
+            h2: Some(TextStyleRefinement {
+                font_size: Some(rems(1.1).into()),
+                ..Default::default()
+            }),
+            h3: Some(TextStyleRefinement {
+                font_size: Some(rems(1.05).into()),
+                ..Default::default()
+            }),
+            h4: Some(TextStyleRefinement {
+                font_size: Some(rems(1.).into()),
+                ..Default::default()
+            }),
+            h5: Some(TextStyleRefinement {
+                font_size: Some(rems(0.95).into()),
+                ..Default::default()
+            }),
+            h6: Some(TextStyleRefinement {
+                font_size: Some(rems(0.875).into()),
+                ..Default::default()
+            }),
+        }),
        code_block: StyleRefinement {
            padding: EdgesRefinement {
                top: Some(DefiniteLength::Absolute(AbsoluteLength::Pixels(Pixels(8.)))),
@@ -290,12 +317,14 @@ fn tool_use_markdown_style(window: &Window, cx: &mut App) -> MarkdownStyle {
    }
 }

+const MAX_UNCOLLAPSED_LINES_IN_CODE_BLOCK: usize = 10;
+
 fn render_markdown_code_block(
    message_id: MessageId,
    ix: usize,
    kind: &CodeBlockKind,
    parsed_markdown: &ParsedMarkdown,
-    codeblock_range: Range<usize>,
+    metadata: CodeBlockMetadata,
    active_thread: Entity<ActiveThread>,
    workspace: WeakEntity<Workspace>,
    _window: &Window,
@@ -467,15 +496,6 @@ fn render_markdown_code_block(
        .element_background
        .blend(cx.theme().colors().editor_foreground.opacity(0.01));

-    const CODE_FENCES_LINE_COUNT: usize = 2;
-    const MAX_COLLAPSED_LINES: usize = 5;
-
-    let line_count = parsed_markdown.source()[codeblock_range.clone()]
-        .bytes()
-        .filter(|c| *c == b'\n')
-        .count()
-        .saturating_sub(CODE_FENCES_LINE_COUNT - 1);
-
    let codeblock_header = h_flex()
        .group("codeblock_header")
        .p_1()
@@ -505,16 +525,14 @@ fn render_markdown_code_block(
                        .on_click({
                            let active_thread = active_thread.clone();
                            let parsed_markdown = parsed_markdown.clone();
+                            let code_block_range = metadata.content_range.clone();
                            move |_event, _window, cx| {
                                active_thread.update(cx, |this, cx| {
                                    this.copied_code_block_ids.insert((message_id, ix));

-                                    let code = without_fences(
-                                        &parsed_markdown.source()[codeblock_range.clone()],
-                                    )
-                                    .to_string();
-
-                                    cx.write_to_clipboard(ClipboardItem::new_string(code.clone()));
+                                    let code = parsed_markdown.source()[code_block_range.clone()]
+                                        .to_string();
+                                    cx.write_to_clipboard(ClipboardItem::new_string(code));

                                    cx.spawn(async move |this, cx| {
                                        cx.background_executor()
@@ -536,38 +554,41 @@ fn render_markdown_code_block(
                        }),
                    ),
                )
-                .when(line_count > MAX_COLLAPSED_LINES, |header| {
-                    header.child(
-                        IconButton::new(
-                            ("expand-collapse-code", ix),
-                            if is_expanded {
-                                IconName::ChevronUp
+                .when(
+                    metadata.line_count > MAX_UNCOLLAPSED_LINES_IN_CODE_BLOCK,
+                    |header| {
+                        header.child(
+                            IconButton::new(
+                                ("expand-collapse-code", ix),
+                                if is_expanded {
+                                    IconName::ChevronUp
+                                } else {
+                                    IconName::ChevronDown
+                                },
+                            )
+                            .icon_color(Color::Muted)
+                            .shape(ui::IconButtonShape::Square)
+                            .tooltip(Tooltip::text(if is_expanded {
+                                "Collapse Code"
                            } else {
-                                IconName::ChevronDown
-                            },
+                                "Expand Code"
+                            }))
+                            .on_click({
+                                let active_thread = active_thread.clone();
+                                move |_event, _window, cx| {
+                                    active_thread.update(cx, |this, cx| {
+                                        let is_expanded = this
+                                            .expanded_code_blocks
+                                            .entry((message_id, ix))
+                                            .or_insert(false);
+                                        *is_expanded = !*is_expanded;
+                                        cx.notify();
+                                    });
+                                }
+                            }),
                        )
-                        .icon_color(Color::Muted)
-                        .shape(ui::IconButtonShape::Square)
-                        .tooltip(Tooltip::text(if is_expanded {
-                            "Collapse Code"
-                        } else {
-                            "Expand Code"
-                        }))
-                        .on_click({
-                            let active_thread = active_thread.clone();
-                            move |_event, _window, cx| {
-                                active_thread.update(cx, |this, cx| {
-                                    let is_expanded = this
-                                        .expanded_code_blocks
-                                        .entry((message_id, ix))
-                                        .or_insert(false);
-                                    *is_expanded = !*is_expanded;
-                                    cx.notify();
-                                });
-                            }
-                        }),
-                    )
-                }),
+                    },
+                ),
        );

    v_flex()
@@ -578,13 +599,16 @@ fn render_markdown_code_block(
        .border_color(cx.theme().colors().border_variant)
        .bg(cx.theme().colors().editor_background)
        .child(codeblock_header)
-        .when(line_count > MAX_COLLAPSED_LINES, |this| {
-            if is_expanded {
-                this.h_full()
-            } else {
-                this.max_h_40()
-            }
-        })
+        .when(
+            metadata.line_count > MAX_UNCOLLAPSED_LINES_IN_CODE_BLOCK,
+            |this| {
+                if is_expanded {
+                    this.h_full()
+                } else {
+                    this.max_h_80()
+                }
+            },
+        )
 }

 fn open_markdown_link(
@@ -672,6 +696,7 @@ impl ActiveThread {
        let subscriptions = vec![
            cx.observe(&thread, |_, _, cx| cx.notify()),
            cx.subscribe_in(&thread, window, Self::handle_thread_event),
+            cx.subscribe(&thread_store, Self::handle_rules_loading_error),
        ];

        let list_state = ListState::new(0, ListAlignment::Bottom, px(2048.), {
@@ -837,10 +862,9 @@ impl ActiveThread {
            | ThreadEvent::SummaryChanged => {
                self.save_thread(cx);
            }
-            ThreadEvent::DoneStreaming => {
-                let thread = self.thread.read(cx);
-
-                if !thread.is_generating() {
+            ThreadEvent::Stopped(reason) => match reason {
+                Ok(StopReason::EndTurn | StopReason::MaxTokens) => {
+                    let thread = self.thread.read(cx);
                    self.show_notification(
                        if thread.used_tools_since_last_user_message() {
                            "Finished running tools"
@@ -852,7 +876,8 @@ impl ActiveThread {
                        cx,
                    );
                }
-            }
+                _ => {}
+            },
            ThreadEvent::ToolConfirmationNeeded => {
                self.show_notification("Waiting for tool confirmation", IconName::Info, window, cx);
            }
@@ -929,6 +954,19 @@ impl ActiveThread {
        }
    }

+    fn handle_rules_loading_error(
+        &mut self,
+        _thread_store: Entity<ThreadStore>,
+        error: &RulesLoadingError,
+        cx: &mut Context<Self>,
+    ) {
+        self.last_error = Some(ThreadError::Message {
+            header: "Error loading rules file".into(),
+            message: error.message.clone(),
+        });
+        cx.notify();
+    }
+
    fn show_notification(
        &mut self,
        caption: impl Into<SharedString>,
@@ -1486,12 +1524,36 @@ impl ActiveThread {
                    .when(!message_is_empty, |parent| {
                        parent.child(
                            if let Some(edit_message_editor) = edit_message_editor.clone() {
+                                let settings = ThemeSettings::get_global(cx);
+                                let font_size = TextSize::Small.rems(cx);
+                                let line_height = font_size.to_pixels(window.rem_size()) * 1.5;
+
+                                let text_style = TextStyle {
+                                    color: cx.theme().colors().text,
+                                    font_family: settings.buffer_font.family.clone(),
+                                    font_fallbacks: settings.buffer_font.fallbacks.clone(),
+                                    font_features: settings.buffer_font.features.clone(),
+                                    font_size: font_size.into(),
+                                    line_height: line_height.into(),
+                                    ..Default::default()
+                                };
+
                                div()
                                    .key_context("EditMessageEditor")
                                    .on_action(cx.listener(Self::cancel_editing_message))
                                    .on_action(cx.listener(Self::confirm_editing_message))
                                    .min_h_6()
-                                    .child(edit_message_editor)
+                                    .pt_1()
+                                    .child(EditorElement::new(
+                                        &edit_message_editor,
+                                        EditorStyle {
+                                            background: colors.editor_background,
+                                            local_player: cx.theme().players().local(),
+                                            text: text_style,
+                                            syntax: cx.theme().syntax().clone(),
+                                            ..Default::default()
+                                        },
+                                    ))
                                    .into_any()
                            } else {
                                div()
@@ -1656,11 +1718,9 @@ impl ActiveThread {
                ),
            Role::Assistant => v_flex()
                .id(("message-container", ix))
-                .ml_2()
+                .ml_2p5()
                .pl_2()
                .pr_4()
-                .border_l_1()
-                .border_color(cx.theme().colors().border_variant)
                .children(message_content)
                .when(has_tool_uses, |parent| {
                    parent.children(
@@ -1896,13 +1956,13 @@ impl ActiveThread {
                                    render: Arc::new({
                                        let workspace = workspace.clone();
                                        let active_thread = cx.entity();
-                                        move |kind, parsed_markdown, range, window, cx| {
+                                        move |kind, parsed_markdown, range, metadata, window, cx| {
                                            render_markdown_code_block(
                                                message_id,
                                                range.start,
                                                kind,
                                                parsed_markdown,
-                                                range,
+                                                metadata,
                                                active_thread.clone(),
                                                workspace.clone(),
                                                window,
@@ -1912,7 +1972,7 @@ impl ActiveThread {
                                    }),
                                    transform: Some(Arc::new({
                                        let active_thread = cx.entity();
-                                        move |el, range, _, cx| {
+                                        move |el, range, metadata, _, cx| {
                                            let is_expanded = active_thread
                                                .read(cx)
                                                .expanded_code_blocks
@@ -1920,7 +1980,10 @@ impl ActiveThread {
                                                .copied()
                                                .unwrap_or(false);

-                                            if is_expanded {
+                                            if is_expanded
+                                                || metadata.line_count
+                                                    <= MAX_UNCOLLAPSED_LINES_IN_CODE_BLOCK
+                                            {
                                                return el;
                                            }
                                            el.child(
@@ -2702,12 +2765,13 @@ impl ActiveThread {
    }

    fn render_rules_item(&self, cx: &Context<Self>) -> AnyElement {
-        let Some(system_prompt_context) = self.thread.read(cx).system_prompt_context().as_ref()
-        else {
+        let project_context = self.thread.read(cx).project_context();
+        let project_context = project_context.borrow();
+        let Some(project_context) = project_context.as_ref() else {
            return div().into_any();
        };

-        let rules_files = system_prompt_context
+        let rules_files = project_context
            .worktrees
            .iter()
            .filter_map(|worktree| worktree.rules_file.as_ref())
@@ -2797,12 +2861,13 @@ impl ActiveThread {
    }

    fn handle_open_rules(&mut self, _: &ClickEvent, window: &mut Window, cx: &mut Context<Self>) {
-        let Some(system_prompt_context) = self.thread.read(cx).system_prompt_context().as_ref()
-        else {
+        let project_context = self.thread.read(cx).project_context();
+        let project_context = project_context.borrow();
+        let Some(project_context) = project_context.as_ref() else {
            return;
        };

-        let abs_paths = system_prompt_context
+        let abs_paths = project_context
            .worktrees
            .iter()
            .flat_map(|worktree| worktree.rules_file.as_ref())
--- a/crates/agent/src/agent_diff.rs
+++ b/crates/agent/src/agent_diff.rs
@@ -1,4 +1,4 @@
-use crate::{Keep, Reject, Thread, ThreadEvent};
+use crate::{Keep, KeepAll, Reject, RejectAll, Thread, ThreadEvent};
 use anyhow::Result;
 use buffer_diff::DiffHunkStatus;
 use collections::HashSet;
@@ -843,7 +843,7 @@ impl ToolbarItemView for AgentDiffToolbar {
 }

 impl Render for AgentDiffToolbar {
-    fn render(&mut self, _: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
+    fn render(&mut self, window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
        let agent_diff = match self.agent_diff(cx) {
            Some(ad) => ad,
            None => return div(),
@@ -855,6 +855,8 @@ impl Render for AgentDiffToolbar {
            return div();
        }

+        let focus_handle = agent_diff.focus_handle(cx);
+
        h_group_xl()
            .my_neg_1()
            .items_center()
@@ -864,15 +866,25 @@ impl Render for AgentDiffToolbar {
            .child(
                h_group_sm()
                    .child(
-                        Button::new("reject-all", "Reject All").on_click(cx.listener(
-                            |this, _, window, cx| {
-                                this.dispatch_action(&crate::RejectAll, window, cx)
-                            },
-                        )),
+                        Button::new("reject-all", "Reject All")
+                            .key_binding({
+                                KeyBinding::for_action_in(&RejectAll, &focus_handle, window, cx)
+                                    .map(|kb| kb.size(rems_from_px(12.)))
+                            })
+                            .on_click(cx.listener(|this, _, window, cx| {
+                                this.dispatch_action(&RejectAll, window, cx)
+                            })),
                    )
-                    .child(Button::new("keep-all", "Keep All").on_click(cx.listener(
-                        |this, _, window, cx| this.dispatch_action(&crate::KeepAll, window, cx),
-                    ))),
+                    .child(
+                        Button::new("keep-all", "Keep All")
+                            .key_binding({
+                                KeyBinding::for_action_in(&KeepAll, &focus_handle, window, cx)
+                                    .map(|kb| kb.size(rems_from_px(12.)))
+                            })
+                            .on_click(cx.listener(|this, _, window, cx| {
+                                this.dispatch_action(&KeepAll, window, cx)
+                            })),
+                    ),
            )
    }
 }
@@ -882,6 +894,7 @@ mod tests {
    use super::*;
    use crate::{ThreadStore, thread_store};
    use assistant_settings::AssistantSettings;
+    use assistant_tool::ToolWorkingSet;
    use context_server::ContextServerSettings;
    use editor::EditorSettings;
    use gpui::TestAppContext;
@@ -921,15 +934,16 @@ mod tests {
            })
            .unwrap();

-        let thread_store = cx.update(|cx| {
-            ThreadStore::new(
-                project.clone(),
-                Arc::default(),
-                Arc::new(PromptBuilder::new(None).unwrap()),
-                cx,
-            )
-            .unwrap()
-        });
+        let thread_store = cx
+            .update(|cx| {
+                ThreadStore::load(
+                    project.clone(),
+                    cx.new(|_| ToolWorkingSet::default()),
+                    Arc::new(PromptBuilder::new(None).unwrap()),
+                    cx,
+                )
+            })
+            .await;
        let thread = thread_store.update(cx, |store, cx| store.create_thread(cx));
        let action_log = thread.read_with(cx, |thread, _| thread.action_log().clone());

--- a/crates/agent/src/assistant.rs
+++ b/crates/agent/src/assistant.rs
@@ -18,6 +18,7 @@ mod terminal_inline_assistant;
 mod thread;
 mod thread_history;
 mod thread_store;
+mod tool_compatibility;
 mod tool_use;
 mod ui;

@@ -46,10 +47,11 @@ pub use agent_diff::{AgentDiff, AgentDiffToolbar};
 actions!(
    agent,
    [
-        NewPromptEditor,
+        NewTextThread,
        ToggleContextPicker,
        ToggleProfileSelector,
        RemoveAllContext,
+        ExpandMessageEditor,
        OpenHistory,
        AddContextServer,
        RemoveSelectedThread,
--- a/crates/agent/src/assistant_configuration.rs
+++ b/crates/agent/src/assistant_configuration.rs
@@ -12,7 +12,9 @@ use fs::Fs;
 use gpui::{Action, AnyView, App, Entity, EventEmitter, FocusHandle, Focusable, Subscription};
 use language_model::{LanguageModelProvider, LanguageModelProviderId, LanguageModelRegistry};
 use settings::{Settings, update_settings_file};
-use ui::{Disclosure, Divider, DividerColor, ElevationIndex, Indicator, Switch, prelude::*};
+use ui::{
+    Disclosure, Divider, DividerColor, ElevationIndex, Indicator, Switch, Tooltip, prelude::*,
+};
 use util::ResultExt as _;
 use zed_actions::ExtensionCategoryFilter;

@@ -27,7 +29,7 @@ pub struct AssistantConfiguration {
    configuration_views_by_provider: HashMap<LanguageModelProviderId, AnyView>,
    context_server_manager: Entity<ContextServerManager>,
    expanded_context_server_tools: HashMap<Arc<str>, bool>,
-    tools: Arc<ToolWorkingSet>,
+    tools: Entity<ToolWorkingSet>,
    _registry_subscription: Subscription,
 }

@@ -35,7 +37,7 @@ impl AssistantConfiguration {
    pub fn new(
        fs: Arc<dyn Fs>,
        context_server_manager: Entity<ContextServerManager>,
-        tools: Arc<ToolWorkingSet>,
+        tools: Entity<ToolWorkingSet>,
        window: &mut Window,
        cx: &mut Context<Self>,
    ) -> Self {
@@ -224,7 +226,7 @@ impl AssistantConfiguration {

    fn render_context_servers_section(&mut self, cx: &mut Context<Self>) -> impl IntoElement {
        let context_servers = self.context_server_manager.read(cx).all_servers().clone();
-        let tools_by_source = self.tools.tools_by_source(cx);
+        let tools_by_source = self.tools.read(cx).tools_by_source(cx);
        let empty = Vec::new();

        const SUBHEADING: &str = "Connect to context servers via the Model Context Protocol either via Zed extensions or directly.";
@@ -236,7 +238,10 @@ impl AssistantConfiguration {
            .child(
                v_flex()
                    .gap_0p5()
-                    .child(Headline::new("Context Servers (MCP)").size(HeadlineSize::Small))
+                    .child(
+                        Headline::new("Model Context Protocol (MCP) Servers")
+                            .size(HeadlineSize::Small),
+                    )
                    .child(Label::new(SUBHEADING).color(Color::Muted)),
            )
            .children(context_servers.into_iter().map(|context_server| {
@@ -262,10 +267,9 @@ impl AssistantConfiguration {
                    .bg(cx.theme().colors().editor_background)
                    .child(
                        h_flex()
+                            .p_1()
                            .justify_between()
-                            .px_2()
-                            .py_1()
-                            .when(are_tools_expanded, |element| {
+                            .when(are_tools_expanded && tool_count > 1, |element| {
                                element
                                    .border_b_1()
                                    .border_color(cx.theme().colors().border)
@@ -275,6 +279,7 @@ impl AssistantConfiguration {
                                    .gap_2()
                                    .child(
                                        Disclosure::new("tool-list-disclosure", are_tools_expanded)
+                                            .disabled(tool_count == 0)
                                            .on_click(cx.listener({
                                                let context_server_id = context_server.id();
                                                move |this, _event, _window, _cx| {
@@ -295,10 +300,11 @@ impl AssistantConfiguration {
                                    .child(Label::new(context_server.id()))
                                    .child(
                                        Label::new(format!("{tool_count} tools"))
-                                            .color(Color::Muted),
+                                            .color(Color::Muted)
+                                            .size(LabelSize::Small),
                                    ),
                            )
-                            .child(h_flex().child(
+                            .child(
                                Switch::new("context-server-switch", is_running.into()).on_click({
                                    let context_server_manager =
                                        self.context_server_manager.clone();
@@ -334,7 +340,7 @@ impl AssistantConfiguration {
                                        }
                                    }
                                }),
-                            )),
+                            ),
                    )
                    .map(|parent| {
                        if !are_tools_expanded {
@@ -344,14 +350,29 @@ impl AssistantConfiguration {
                        parent.child(v_flex().children(tools.into_iter().enumerate().map(
                            |(ix, tool)| {
                                h_flex()
-                                    .px_2()
+                                    .id("tool-item")
+                                    .pl_2()
+                                    .pr_1()
                                    .py_1()
+                                    .gap_2()
+                                    .justify_between()
                                    .when(ix < tool_count - 1, |element| {
                                        element
                                            .border_b_1()
-                                            .border_color(cx.theme().colors().border)
+                                            .border_color(cx.theme().colors().border_variant)
                                    })
-                                    .child(Label::new(tool.name()))
+                                    .child(
+                                        Label::new(tool.name())
+                                            .buffer_font(cx)
+                                            .size(LabelSize::Small),
+                                    )
+                                    .child(
+                                        IconButton::new(("tool-description", ix), IconName::Info)
+                                            .shape(ui::IconButtonShape::Square)
+                                            .icon_size(IconSize::Small)
+                                            .icon_color(Color::Ignored)
+                                            .tooltip(Tooltip::text(tool.description())),
+                                    )
                            },
                        )))
                    })
@@ -362,7 +383,7 @@ impl AssistantConfiguration {
                    .gap_2()
                    .child(
                        h_flex().w_full().child(
-                            Button::new("add-context-server", "Add Context Server")
+                            Button::new("add-context-server", "Add MCPs Directly")
                                .style(ButtonStyle::Filled)
                                .layer(ElevationIndex::ModalSurface)
                                .full_width()
@@ -378,7 +399,7 @@ impl AssistantConfiguration {
                        h_flex().w_full().child(
                            Button::new(
                                "install-context-server-extensions",
-                                "Install Context Server Extensions",
+                                "Install MCP Extensions",
                            )
                            .style(ButtonStyle::Filled)
                            .layer(ElevationIndex::ModalSurface)
--- a/crates/agent/src/assistant_configuration/manage_profiles_modal.rs
+++ b/crates/agent/src/assistant_configuration/manage_profiles_modal.rs
@@ -84,7 +84,7 @@ pub struct NewProfileMode {

 pub struct ManageProfilesModal {
    fs: Arc<dyn Fs>,
-    tools: Arc<ToolWorkingSet>,
+    tools: Entity<ToolWorkingSet>,
    thread_store: WeakEntity<ThreadStore>,
    focus_handle: FocusHandle,
    mode: Mode,
@@ -117,7 +117,7 @@ impl ManageProfilesModal {

    pub fn new(
        fs: Arc<dyn Fs>,
-        tools: Arc<ToolWorkingSet>,
+        tools: Entity<ToolWorkingSet>,
        thread_store: WeakEntity<ThreadStore>,
        window: &mut Window,
        cx: &mut Context<Self>,
--- a/crates/agent/src/assistant_configuration/tool_picker.rs
+++ b/crates/agent/src/assistant_configuration/tool_picker.rs
@@ -60,7 +60,7 @@ pub struct ToolPickerDelegate {
 impl ToolPickerDelegate {
    pub fn new(
        fs: Arc<dyn Fs>,
-        tool_set: Arc<ToolWorkingSet>,
+        tool_set: Entity<ToolWorkingSet>,
        thread_store: WeakEntity<ThreadStore>,
        profile_id: AgentProfileId,
        profile: AgentProfile,
@@ -68,7 +68,7 @@ impl ToolPickerDelegate {
    ) -> Self {
        let mut tool_entries = Vec::new();

-        for (source, tools) in tool_set.tools_by_source(cx) {
+        for (source, tools) in tool_set.read(cx).tools_by_source(cx) {
            tool_entries.extend(tools.into_iter().map(|tool| ToolEntry {
                name: tool.name().into(),
                source: source.clone(),
@@ -192,7 +192,7 @@ impl PickerDelegate for ToolPickerDelegate {
        if active_profile_id == &self.profile_id {
            self.thread_store
                .update(cx, |this, cx| {
-                    this.load_profile(&self.profile, cx);
+                    this.load_profile(self.profile.clone(), cx);
                })
                .log_err();
        }
--- a/crates/agent/src/assistant_model_selector.rs
+++ b/crates/agent/src/assistant_model_selector.rs
@@ -80,17 +80,16 @@ impl AssistantModelSelector {

 impl Render for AssistantModelSelector {
    fn render(&mut self, _window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
-        let model_registry = LanguageModelRegistry::read_global(cx);
+        let focus_handle = self.focus_handle.clone();

+        let model_registry = LanguageModelRegistry::read_global(cx);
        let model = match self.model_type {
            ModelType::Default => model_registry.default_model(),
            ModelType::InlineAssistant => model_registry.inline_assistant_model(),
        };
-
-        let focus_handle = self.focus_handle.clone();
-        let model_name = match model {
-            Some(model) => model.model.name().0,
-            _ => SharedString::from("No model selected"),
+        let (model_name, model_icon) = match model {
+            Some(model) => (model.model.name().0, Some(model.provider.icon())),
+            _ => (SharedString::from("No model selected"), None),
        };

        LanguageModelSelectorPopoverMenu::new(
@@ -100,10 +99,16 @@ impl Render for AssistantModelSelector {
                .child(
                    h_flex()
                        .gap_0p5()
+                        .children(
+                            model_icon.map(|icon| {
+                                Icon::new(icon).color(Color::Muted).size(IconSize::Small)
+                            }),
+                        )
                        .child(
                            Label::new(model_name)
                                .size(LabelSize::Small)
-                                .color(Color::Muted),
+                                .color(Color::Muted)
+                                .ml_1(),
                        )
                        .child(
                            Icon::new(IconName::ChevronDown)
--- a/crates/agent/src/assistant_panel.rs
+++ b/crates/agent/src/assistant_panel.rs
@@ -44,8 +44,8 @@ use crate::thread::{Thread, ThreadError, ThreadId, TokenUsageRatio};
 use crate::thread_history::{PastContext, PastThread, ThreadHistory};
 use crate::thread_store::ThreadStore;
 use crate::{
-    AgentDiff, InlineAssistant, NewPromptEditor, NewThread, OpenActiveThreadAsMarkdown,
-    OpenAgentDiff, OpenHistory, ThreadEvent, ToggleContextPicker,
+    AgentDiff, ExpandMessageEditor, InlineAssistant, NewTextThread, NewThread,
+    OpenActiveThreadAsMarkdown, OpenAgentDiff, OpenHistory, ThreadEvent, ToggleContextPicker,
 };

 pub fn init(cx: &mut App) {
@@ -70,7 +70,7 @@ pub fn init(cx: &mut App) {
                        panel.update(cx, |panel, cx| panel.open_configuration(window, cx));
                    }
                })
-                .register_action(|workspace, _: &NewPromptEditor, window, cx| {
+                .register_action(|workspace, _: &NewTextThread, window, cx| {
                    if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
                        workspace.focus_panel::<AssistantPanel>(window, cx);
                        panel.update(cx, |panel, cx| panel.new_prompt_editor(window, cx));
@@ -90,6 +90,16 @@ pub fn init(cx: &mut App) {
                        let thread = panel.read(cx).thread.read(cx).thread().clone();
                        AgentDiff::deploy_in_workspace(thread, workspace, window, cx);
                    }
+                })
+                .register_action(|workspace, _: &ExpandMessageEditor, window, cx| {
+                    if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
+                        workspace.focus_panel::<AssistantPanel>(window, cx);
+                        panel.update(cx, |panel, cx| {
+                            panel.message_editor.update(cx, |editor, cx| {
+                                editor.expand_message_editor(&ExpandMessageEditor, window, cx);
+                            });
+                        });
+                    }
                });
        },
    )
@@ -193,11 +203,13 @@ impl AssistantPanel {
        cx: AsyncWindowContext,
    ) -> Task<Result<Entity<Self>>> {
        cx.spawn(async move |cx| {
-            let tools = Arc::new(ToolWorkingSet::default());
-            let thread_store = workspace.update(cx, |workspace, cx| {
-                let project = workspace.project().clone();
-                ThreadStore::new(project, tools.clone(), prompt_builder.clone(), cx)
-            })??;
+            let tools = cx.new(|_| ToolWorkingSet::default())?;
+            let thread_store = workspace
+                .update(cx, |workspace, cx| {
+                    let project = workspace.project().clone();
+                    ThreadStore::load(project, tools.clone(), prompt_builder.clone(), cx)
+                })?
+                .await;

            let slash_commands = Arc::new(SlashCommandWorkingSet::default());
            let context_store = workspace
@@ -557,6 +569,7 @@ impl AssistantPanel {
            ActiveView::Configuration | ActiveView::History => {
                self.active_view =
                    ActiveView::thread(self.thread.read(cx).thread().clone(), window, cx);
+                self.message_editor.focus_handle(cx).focus(window);
                cx.notify();
            }
            _ => {}
@@ -1086,20 +1099,30 @@ impl AssistantPanel {
                                            window,
                                            cx,
                                            |menu, _window, _cx| {
-                                                menu.action(
+                                                menu
+                                                    .when(!is_empty, |menu| {
+                                                        menu.action(
+                                                            "Start New From Summary",
+                                                            Box::new(NewThread {
+                                                                from_thread_id: Some(thread_id.clone()),
+                                                            }),
+                                                        ).separator()
+                                                    })
+                                                    .action(
                                                    "New Text Thread",
-                                                    NewPromptEditor.boxed_clone(),
+                                                    NewTextThread.boxed_clone(),
                                                )
-                                                .when(!is_empty, |menu| {
-                                                    menu.action(
-                                                        "Continue in New Thread",
-                                                        Box::new(NewThread {
-                                                            from_thread_id: Some(thread_id.clone()),
-                                                        }),
-                                                    )
-                                                })
-                                                .separator()
                                                .action("Settings", OpenConfiguration.boxed_clone())
+                                                .separator()
+                                                .action(
+                                                    "Install MCPs",
+                                                    zed_actions::Extensions {
+                                                        category_filter: Some(
+                                                            zed_actions::ExtensionCategoryFilter::ContextServers,
+                                                        ),
+                                                    }
+                                                    .boxed_clone(),
+                                                )
                                            },
                                        ))
                                    }),
@@ -1296,6 +1319,7 @@ impl AssistantPanel {
                let configuration_error_ref = &configuration_error;

                parent
+                    .overflow_hidden()
                    .p_1p5()
                    .justify_end()
                    .gap_1()
--- a/crates/agent/src/context_picker.rs
+++ b/crates/agent/src/context_picker.rs
@@ -34,12 +34,6 @@ use crate::context_store::ContextStore;
 use crate::thread::ThreadId;
 use crate::thread_store::ThreadStore;

-#[derive(Debug, Clone, Copy)]
-pub enum ConfirmBehavior {
-    KeepOpen,
-    Close,
-}
-
 #[derive(Debug, Clone, Copy, PartialEq, Eq)]
 enum ContextPickerMode {
    File,
@@ -105,7 +99,6 @@ pub(super) struct ContextPicker {
    workspace: WeakEntity<Workspace>,
    context_store: WeakEntity<ContextStore>,
    thread_store: Option<WeakEntity<ThreadStore>>,
-    confirm_behavior: ConfirmBehavior,
    _subscriptions: Vec<Subscription>,
 }

@@ -114,7 +107,6 @@ impl ContextPicker {
        workspace: WeakEntity<Workspace>,
        thread_store: Option<WeakEntity<ThreadStore>>,
        context_store: WeakEntity<ContextStore>,
-        confirm_behavior: ConfirmBehavior,
        window: &mut Window,
        cx: &mut Context<Self>,
    ) -> Self {
@@ -143,7 +135,6 @@ impl ContextPicker {
            workspace,
            context_store,
            thread_store,
-            confirm_behavior,
            _subscriptions: subscriptions,
        }
    }
@@ -166,37 +157,32 @@ impl ContextPicker {

            let modes = supported_context_picker_modes(&self.thread_store);

-            let menu = menu
-                .when(has_recent, |menu| {
-                    menu.custom_row(|_, _| {
-                        div()
-                            .mb_1()
-                            .child(
-                                Label::new("Recent")
-                                    .color(Color::Muted)
-                                    .size(LabelSize::Small),
-                            )
-                            .into_any_element()
-                    })
+            menu.when(has_recent, |menu| {
+                menu.custom_row(|_, _| {
+                    div()
+                        .mb_1()
+                        .child(
+                            Label::new("Recent")
+                                .color(Color::Muted)
+                                .size(LabelSize::Small),
+                        )
+                        .into_any_element()
                })
-                .extend(recent_entries)
-                .when(has_recent, |menu| menu.separator())
-                .extend(modes.into_iter().map(|mode| {
-                    let context_picker = context_picker.clone();
+            })
+            .extend(recent_entries)
+            .when(has_recent, |menu| menu.separator())
+            .extend(modes.into_iter().map(|mode| {
+                let context_picker = context_picker.clone();

-                    ContextMenuEntry::new(mode.label())
-                        .icon(mode.icon())
-                        .icon_size(IconSize::XSmall)
-                        .icon_color(Color::Muted)
-                        .handler(move |window, cx| {
-                            context_picker.update(cx, |this, cx| this.select_mode(mode, window, cx))
-                        })
-                }));
-
-            match self.confirm_behavior {
-                ConfirmBehavior::KeepOpen => menu.keep_open_on_confirm(),
-                ConfirmBehavior::Close => menu,
-            }
+                ContextMenuEntry::new(mode.label())
+                    .icon(mode.icon())
+                    .icon_size(IconSize::XSmall)
+                    .icon_color(Color::Muted)
+                    .handler(move |window, cx| {
+                        context_picker.update(cx, |this, cx| this.select_mode(mode, window, cx))
+                    })
+            }))
+            .keep_open_on_confirm()
        });

        cx.subscribe(&menu, move |_, _, _: &DismissEvent, cx| {
@@ -227,7 +213,6 @@ impl ContextPicker {
                        context_picker.clone(),
                        self.workspace.clone(),
                        self.context_store.clone(),
-                        self.confirm_behavior,
                        window,
                        cx,
                    )
@@ -239,7 +224,6 @@ impl ContextPicker {
                        context_picker.clone(),
                        self.workspace.clone(),
                        self.context_store.clone(),
-                        self.confirm_behavior,
                        window,
                        cx,
                    )
@@ -251,7 +235,6 @@ impl ContextPicker {
                        context_picker.clone(),
                        self.workspace.clone(),
                        self.context_store.clone(),
-                        self.confirm_behavior,
                        window,
                        cx,
                    )
@@ -264,7 +247,6 @@ impl ContextPicker {
                            thread_store.clone(),
                            context_picker.clone(),
                            self.context_store.clone(),
-                            self.confirm_behavior,
                            window,
                            cx,
                        )
@@ -509,14 +491,13 @@ fn recent_context_picker_entries(
    recent
 }

-pub(crate) fn insert_crease_for_mention(
+pub(crate) fn insert_fold_for_mention(
    excerpt_id: ExcerptId,
    crease_start: text::Anchor,
    content_len: usize,
    crease_label: SharedString,
    crease_icon_path: SharedString,
    editor_entity: Entity<Editor>,
-    window: &mut Window,
    cx: &mut App,
 ) {
    editor_entity.update(cx, |editor, cx| {
@@ -535,6 +516,7 @@ pub(crate) fn insert_crease_for_mention(
                crease_label,
                editor_entity.downgrade(),
            ),
+            merge_adjacent: false,
            ..Default::default()
        };

@@ -548,8 +530,9 @@ pub(crate) fn insert_crease_for_mention(
            render_trailer,
        );

-        editor.insert_creases(vec![crease.clone()], cx);
-        editor.fold_creases(vec![crease], false, window, cx);
+        editor.display_map.update(cx, |display_map, cx| {
+            display_map.fold(vec![crease], cx);
+        });
    });
 }

@@ -606,12 +589,13 @@ fn render_fold_icon_button(
                        .gap_1()
                        .child(
                            Icon::from_path(icon_path.clone())
-                                .size(IconSize::Small)
+                                .size(IconSize::XSmall)
                                .color(Color::Muted),
                        )
                        .child(
                            Label::new(label.clone())
                                .size(LabelSize::Small)
+                                .buffer_font(cx)
                                .single_line(),
                        ),
                )
--- a/crates/agent/src/context_picker/completion_provider.rs
+++ b/crates/agent/src/context_picker/completion_provider.rs
@@ -610,21 +610,20 @@ fn confirm_completion_callback(
    editor: Entity<Editor>,
    add_context_fn: impl Fn(&mut App) -> () + Send + Sync + 'static,
 ) -> Arc<dyn Fn(CompletionIntent, &mut Window, &mut App) -> bool + Send + Sync> {
-    Arc::new(move |_, window, cx| {
+    Arc::new(move |_, _, cx| {
        add_context_fn(cx);

        let crease_text = crease_text.clone();
        let crease_icon_path = crease_icon_path.clone();
        let editor = editor.clone();
-        window.defer(cx, move |window, cx| {
-            crate::context_picker::insert_crease_for_mention(
+        cx.defer(move |cx| {
+            crate::context_picker::insert_fold_for_mention(
                excerpt_id,
                start,
                content_len,
                crease_text,
                crease_icon_path,
                editor,
-                window,
                cx,
            );
        });
@@ -694,6 +693,7 @@ impl MentionCompletion {
 #[cfg(test)]
 mod tests {
    use super::*;
+    use editor::AnchorRangeExt;
    use gpui::{EventEmitter, FocusHandle, Focusable, TestAppContext, VisualTestContext};
    use project::{Project, ProjectPath};
    use serde_json::json;
@@ -874,7 +874,7 @@ mod tests {
        let editor = workspace.update_in(&mut cx, |workspace, window, cx| {
            let editor = cx.new(|cx| {
                Editor::new(
-                    editor::EditorMode::Full,
+                    editor::EditorMode::full(),
                    multi_buffer::MultiBuffer::build_simple("", cx),
                    None,
                    window,
@@ -967,7 +967,7 @@ mod tests {
            assert_eq!(editor.text(cx), "Lorem [@one.txt](@file:dir/a/one.txt)",);
            assert!(!editor.has_visible_completions_menu());
            assert_eq!(
-                crease_ranges(editor, cx),
+                fold_ranges(editor, cx),
                vec![Point::new(0, 6)..Point::new(0, 37)]
            );
        });
@@ -978,7 +978,7 @@ mod tests {
            assert_eq!(editor.text(cx), "Lorem [@one.txt](@file:dir/a/one.txt) ",);
            assert!(!editor.has_visible_completions_menu());
            assert_eq!(
-                crease_ranges(editor, cx),
+                fold_ranges(editor, cx),
                vec![Point::new(0, 6)..Point::new(0, 37)]
            );
        });
@@ -992,7 +992,7 @@ mod tests {
            );
            assert!(!editor.has_visible_completions_menu());
            assert_eq!(
-                crease_ranges(editor, cx),
+                fold_ranges(editor, cx),
                vec![Point::new(0, 6)..Point::new(0, 37)]
            );
        });
@@ -1006,7 +1006,7 @@ mod tests {
            );
            assert!(editor.has_visible_completions_menu());
            assert_eq!(
-                crease_ranges(editor, cx),
+                fold_ranges(editor, cx),
                vec![Point::new(0, 6)..Point::new(0, 37)]
            );
        });
@@ -1024,7 +1024,7 @@ mod tests {
            );
            assert!(!editor.has_visible_completions_menu());
            assert_eq!(
-                crease_ranges(editor, cx),
+                fold_ranges(editor, cx),
                vec![
                    Point::new(0, 6)..Point::new(0, 37),
                    Point::new(0, 44)..Point::new(0, 79)
@@ -1041,7 +1041,7 @@ mod tests {
            );
            assert!(editor.has_visible_completions_menu());
            assert_eq!(
-                crease_ranges(editor, cx),
+                fold_ranges(editor, cx),
                vec![
                    Point::new(0, 6)..Point::new(0, 37),
                    Point::new(0, 44)..Point::new(0, 79)
@@ -1062,7 +1062,7 @@ mod tests {
            );
            assert!(!editor.has_visible_completions_menu());
            assert_eq!(
-                crease_ranges(editor, cx),
+                fold_ranges(editor, cx),
                vec![
                    Point::new(0, 6)..Point::new(0, 37),
                    Point::new(0, 44)..Point::new(0, 79),
@@ -1072,15 +1072,13 @@ mod tests {
        });
    }

-    fn crease_ranges(editor: &Editor, cx: &mut App) -> Vec<Range<Point>> {
+    fn fold_ranges(editor: &Editor, cx: &mut App) -> Vec<Range<Point>> {
        let snapshot = editor.buffer().read(cx).snapshot(cx);
        editor.display_map.update(cx, |display_map, cx| {
            display_map
                .snapshot(cx)
-                .crease_snapshot
-                .crease_items_with_offsets(&snapshot)
-                .into_iter()
-                .map(|(_, range)| range)
+                .folds_in_range(0..snapshot.len())
+                .map(|fold| fold.range.to_point(&snapshot))
                .collect()
        })
    }
--- a/crates/agent/src/context_picker/fetch_context_picker.rs
+++ b/crates/agent/src/context_picker/fetch_context_picker.rs
@@ -11,7 +11,7 @@ use picker::{Picker, PickerDelegate};
 use ui::{Context, ListItem, Window, prelude::*};
 use workspace::Workspace;

-use crate::context_picker::{ConfirmBehavior, ContextPicker};
+use crate::context_picker::ContextPicker;
 use crate::context_store::ContextStore;

 pub struct FetchContextPicker {
@@ -23,16 +23,10 @@ impl FetchContextPicker {
        context_picker: WeakEntity<ContextPicker>,
        workspace: WeakEntity<Workspace>,
        context_store: WeakEntity<ContextStore>,
-        confirm_behavior: ConfirmBehavior,
        window: &mut Window,
        cx: &mut Context<Self>,
    ) -> Self {
-        let delegate = FetchContextPickerDelegate::new(
-            context_picker,
-            workspace,
-            context_store,
-            confirm_behavior,
-        );
+        let delegate = FetchContextPickerDelegate::new(context_picker, workspace, context_store);
        let picker = cx.new(|cx| Picker::uniform_list(delegate, window, cx));

        Self { picker }
@@ -62,7 +56,6 @@ pub struct FetchContextPickerDelegate {
    context_picker: WeakEntity<ContextPicker>,
    workspace: WeakEntity<Workspace>,
    context_store: WeakEntity<ContextStore>,
-    confirm_behavior: ConfirmBehavior,
    url: String,
 }

@@ -71,13 +64,11 @@ impl FetchContextPickerDelegate {
        context_picker: WeakEntity<ContextPicker>,
        workspace: WeakEntity<Workspace>,
        context_store: WeakEntity<ContextStore>,
-        confirm_behavior: ConfirmBehavior,
    ) -> Self {
        FetchContextPickerDelegate {
            context_picker,
            workspace,
            context_store,
-            confirm_behavior,
            url: String::new(),
        }
    }
@@ -204,25 +195,15 @@ impl PickerDelegate for FetchContextPickerDelegate {

        let http_client = workspace.read(cx).client().http_client().clone();
        let url = self.url.clone();
-        let confirm_behavior = self.confirm_behavior;
        cx.spawn_in(window, async move |this, cx| {
            let text = cx
                .background_spawn(fetch_url_content(http_client, url.clone()))
                .await?;

-            this.update_in(cx, |this, window, cx| {
-                this.delegate
-                    .context_store
-                    .update(cx, |context_store, cx| {
-                        context_store.add_fetched_url(url, text, cx)
-                    })?;
-
-                match confirm_behavior {
-                    ConfirmBehavior::KeepOpen => {}
-                    ConfirmBehavior::Close => this.delegate.dismissed(window, cx),
-                }
-
-                anyhow::Ok(())
+            this.update(cx, |this, cx| {
+                this.delegate.context_store.update(cx, |context_store, cx| {
+                    context_store.add_fetched_url(url, text, cx)
+                })
            })??;

            anyhow::Ok(())
--- a/crates/agent/src/context_picker/file_context_picker.rs
+++ b/crates/agent/src/context_picker/file_context_picker.rs
@@ -11,9 +11,9 @@ use picker::{Picker, PickerDelegate};
 use project::{PathMatchCandidateSet, ProjectPath, WorktreeId};
 use ui::{ListItem, Tooltip, prelude::*};
 use util::ResultExt as _;
-use workspace::{Workspace, notifications::NotifyResultExt};
+use workspace::Workspace;

-use crate::context_picker::{ConfirmBehavior, ContextPicker};
+use crate::context_picker::ContextPicker;
 use crate::context_store::{ContextStore, FileInclusion};

 pub struct FileContextPicker {
@@ -25,16 +25,10 @@ impl FileContextPicker {
        context_picker: WeakEntity<ContextPicker>,
        workspace: WeakEntity<Workspace>,
        context_store: WeakEntity<ContextStore>,
-        confirm_behavior: ConfirmBehavior,
        window: &mut Window,
        cx: &mut Context<Self>,
    ) -> Self {
-        let delegate = FileContextPickerDelegate::new(
-            context_picker,
-            workspace,
-            context_store,
-            confirm_behavior,
-        );
+        let delegate = FileContextPickerDelegate::new(context_picker, workspace, context_store);
        let picker = cx.new(|cx| Picker::uniform_list(delegate, window, cx));

        Self { picker }
@@ -57,7 +51,6 @@ pub struct FileContextPickerDelegate {
    context_picker: WeakEntity<ContextPicker>,
    workspace: WeakEntity<Workspace>,
    context_store: WeakEntity<ContextStore>,
-    confirm_behavior: ConfirmBehavior,
    matches: Vec<FileMatch>,
    selected_index: usize,
 }
@@ -67,13 +60,11 @@ impl FileContextPickerDelegate {
        context_picker: WeakEntity<ContextPicker>,
        workspace: WeakEntity<Workspace>,
        context_store: WeakEntity<ContextStore>,
-        confirm_behavior: ConfirmBehavior,
    ) -> Self {
        Self {
            context_picker,
            workspace,
            context_store,
-            confirm_behavior,
            matches: Vec::new(),
            selected_index: 0,
        }
@@ -127,7 +118,7 @@ impl PickerDelegate for FileContextPickerDelegate {
        })
    }

-    fn confirm(&mut self, _secondary: bool, window: &mut Window, cx: &mut Context<Picker<Self>>) {
+    fn confirm(&mut self, _secondary: bool, _window: &mut Window, cx: &mut Context<Picker<Self>>) {
        let Some(FileMatch { mat, .. }) = self.matches.get(self.selected_index) else {
            return;
        };
@@ -153,17 +144,7 @@ impl PickerDelegate for FileContextPickerDelegate {
            return;
        };

-        let confirm_behavior = self.confirm_behavior;
-        cx.spawn_in(window, async move |this, cx| {
-            match task.await.notify_async_err(cx) {
-                None => anyhow::Ok(()),
-                Some(()) => this.update_in(cx, |this, window, cx| match confirm_behavior {
-                    ConfirmBehavior::KeepOpen => {}
-                    ConfirmBehavior::Close => this.delegate.dismissed(window, cx),
-                }),
-            }
-        })
-        .detach_and_log_err(cx);
+        task.detach_and_log_err(cx);
    }

    fn dismissed(&mut self, _: &mut Window, cx: &mut Context<Picker<Self>>) {
--- a/crates/agent/src/context_picker/symbol_context_picker.rs
+++ b/crates/agent/src/context_picker/symbol_context_picker.rs
@@ -15,7 +15,7 @@ use ui::{ListItem, prelude::*};
 use util::ResultExt as _;
 use workspace::Workspace;

-use crate::context_picker::{ConfirmBehavior, ContextPicker};
+use crate::context_picker::ContextPicker;
 use crate::context_store::ContextStore;

 pub struct SymbolContextPicker {
@@ -27,16 +27,10 @@ impl SymbolContextPicker {
        context_picker: WeakEntity<ContextPicker>,
        workspace: WeakEntity<Workspace>,
        context_store: WeakEntity<ContextStore>,
-        confirm_behavior: ConfirmBehavior,
        window: &mut Window,
        cx: &mut Context<Self>,
    ) -> Self {
-        let delegate = SymbolContextPickerDelegate::new(
-            context_picker,
-            workspace,
-            context_store,
-            confirm_behavior,
-        );
+        let delegate = SymbolContextPickerDelegate::new(context_picker, workspace, context_store);
        let picker = cx.new(|cx| Picker::uniform_list(delegate, window, cx));

        Self { picker }
@@ -59,7 +53,6 @@ pub struct SymbolContextPickerDelegate {
    context_picker: WeakEntity<ContextPicker>,
    workspace: WeakEntity<Workspace>,
    context_store: WeakEntity<ContextStore>,
-    confirm_behavior: ConfirmBehavior,
    matches: Vec<SymbolEntry>,
    selected_index: usize,
 }
@@ -69,13 +62,11 @@ impl SymbolContextPickerDelegate {
        context_picker: WeakEntity<ContextPicker>,
        workspace: WeakEntity<Workspace>,
        context_store: WeakEntity<ContextStore>,
-        confirm_behavior: ConfirmBehavior,
    ) -> Self {
        Self {
            context_picker,
            workspace,
            context_store,
-            confirm_behavior,
            matches: Vec::new(),
            selected_index: 0,
        }
@@ -135,7 +126,7 @@ impl PickerDelegate for SymbolContextPickerDelegate {
        })
    }

-    fn confirm(&mut self, _secondary: bool, window: &mut Window, cx: &mut Context<Picker<Self>>) {
+    fn confirm(&mut self, _secondary: bool, _window: &mut Window, cx: &mut Context<Picker<Self>>) {
        let Some(mat) = self.matches.get(self.selected_index) else {
            return;
        };
@@ -143,7 +134,6 @@ impl PickerDelegate for SymbolContextPickerDelegate {
            return;
        };

-        let confirm_behavior = self.confirm_behavior;
        let add_symbol_task = add_symbol(
            mat.symbol.clone(),
            true,
@@ -153,16 +143,12 @@ impl PickerDelegate for SymbolContextPickerDelegate {
        );

        let selected_index = self.selected_index;
-        cx.spawn_in(window, async move |this, cx| {
+        cx.spawn(async move |this, cx| {
            let included = add_symbol_task.await?;
-            this.update_in(cx, |this, window, cx| {
+            this.update(cx, |this, _| {
                if let Some(mat) = this.delegate.matches.get_mut(selected_index) {
                    mat.is_included = included;
                }
-                match confirm_behavior {
-                    ConfirmBehavior::KeepOpen => {}
-                    ConfirmBehavior::Close => this.delegate.dismissed(window, cx),
-                }
            })
        })
        .detach_and_log_err(cx);
--- a/crates/agent/src/context_picker/thread_context_picker.rs
+++ b/crates/agent/src/context_picker/thread_context_picker.rs
@@ -6,7 +6,7 @@ use gpui::{App, DismissEvent, Entity, FocusHandle, Focusable, Task, WeakEntity};
 use picker::{Picker, PickerDelegate};
 use ui::{ListItem, prelude::*};

-use crate::context_picker::{ConfirmBehavior, ContextPicker};
+use crate::context_picker::ContextPicker;
 use crate::context_store::{self, ContextStore};
 use crate::thread::ThreadId;
 use crate::thread_store::ThreadStore;
@@ -20,16 +20,11 @@ impl ThreadContextPicker {
        thread_store: WeakEntity<ThreadStore>,
        context_picker: WeakEntity<ContextPicker>,
        context_store: WeakEntity<context_store::ContextStore>,
-        confirm_behavior: ConfirmBehavior,
        window: &mut Window,
        cx: &mut Context<Self>,
    ) -> Self {
-        let delegate = ThreadContextPickerDelegate::new(
-            thread_store,
-            context_picker,
-            context_store,
-            confirm_behavior,
-        );
+        let delegate =
+            ThreadContextPickerDelegate::new(thread_store, context_picker, context_store);
        let picker = cx.new(|cx| Picker::uniform_list(delegate, window, cx));

        ThreadContextPicker { picker }
@@ -58,7 +53,6 @@ pub struct ThreadContextPickerDelegate {
    thread_store: WeakEntity<ThreadStore>,
    context_picker: WeakEntity<ContextPicker>,
    context_store: WeakEntity<context_store::ContextStore>,
-    confirm_behavior: ConfirmBehavior,
    matches: Vec<ThreadContextEntry>,
    selected_index: usize,
 }
@@ -68,13 +62,11 @@ impl ThreadContextPickerDelegate {
        thread_store: WeakEntity<ThreadStore>,
        context_picker: WeakEntity<ContextPicker>,
        context_store: WeakEntity<context_store::ContextStore>,
-        confirm_behavior: ConfirmBehavior,
    ) -> Self {
        ThreadContextPickerDelegate {
            thread_store,
            context_picker,
            context_store,
-            confirm_behavior,
            matches: Vec::new(),
            selected_index: 0,
        }
@@ -127,7 +119,7 @@ impl PickerDelegate for ThreadContextPickerDelegate {
        })
    }

-    fn confirm(&mut self, _secondary: bool, window: &mut Window, cx: &mut Context<Picker<Self>>) {
+    fn confirm(&mut self, _secondary: bool, _window: &mut Window, cx: &mut Context<Picker<Self>>) {
        let Some(entry) = self.matches.get(self.selected_index) else {
            return;
        };
@@ -138,20 +130,15 @@ impl PickerDelegate for ThreadContextPickerDelegate {

        let open_thread_task = thread_store.update(cx, |this, cx| this.open_thread(&entry.id, cx));

-        cx.spawn_in(window, async move |this, cx| {
+        cx.spawn(async move |this, cx| {
            let thread = open_thread_task.await?;
-            this.update_in(cx, |this, window, cx| {
+            this.update(cx, |this, cx| {
                this.delegate
                    .context_store
                    .update(cx, |context_store, cx| {
                        context_store.add_thread(thread, true, cx)
                    })
                    .ok();
-
-                match this.delegate.confirm_behavior {
-                    ConfirmBehavior::KeepOpen => {}
-                    ConfirmBehavior::Close => this.delegate.dismissed(window, cx),
-                }
            })
        })
        .detach_and_log_err(cx);
--- a/crates/agent/src/context_strip.rs
+++ b/crates/agent/src/context_strip.rs
@@ -15,7 +15,7 @@ use ui::{KeyBinding, PopoverMenu, PopoverMenuHandle, Tooltip, prelude::*};
 use workspace::{Workspace, notifications::NotifyResultExt};

 use crate::context::{ContextId, ContextKind};
-use crate::context_picker::{ConfirmBehavior, ContextPicker};
+use crate::context_picker::ContextPicker;
 use crate::context_store::ContextStore;
 use crate::thread::Thread;
 use crate::thread_store::ThreadStore;
@@ -52,7 +52,6 @@ impl ContextStrip {
                workspace.clone(),
                thread_store.clone(),
                context_store.downgrade(),
-                ConfirmBehavior::KeepOpen,
                window,
                cx,
            )
--- a/crates/agent/src/message_editor.rs
+++ b/crates/agent/src/message_editor.rs
--- a/crates/agent/src/profile_selector.rs
+++ b/crates/agent/src/profile_selector.rs
@@ -86,7 +86,7 @@ impl ProfileSelector {

                            thread_store
                                .update(cx, |this, cx| {
-                                    this.load_profile_by_id(&profile_id, cx);
+                                    this.load_profile_by_id(profile_id.clone(), cx);
                                })
                                .log_err();
                        }
--- a/crates/agent/src/thread.rs
+++ b/crates/agent/src/thread.rs
@@ -2,38 +2,39 @@ use std::fmt::Write as _;
 use std::io::Write;
 use std::ops::Range;
 use std::sync::Arc;
+use std::time::Instant;

-use agent_rules::load_worktree_rules_file;
 use anyhow::{Context as _, Result, anyhow};
 use assistant_settings::AssistantSettings;
 use assistant_tool::{ActionLog, Tool, ToolWorkingSet};
 use chrono::{DateTime, Utc};
 use collections::{BTreeMap, HashMap};
 use feature_flags::{self, FeatureFlagAppExt};
-use fs::Fs;
 use futures::future::Shared;
 use futures::{FutureExt, StreamExt as _};
 use git::repository::DiffType;
 use gpui::{App, AppContext, Context, Entity, EventEmitter, SharedString, Task, WeakEntity};
 use language_model::{
-    ConfiguredModel, LanguageModel, LanguageModelCompletionEvent, LanguageModelRegistry,
-    LanguageModelRequest, LanguageModelRequestMessage, LanguageModelRequestTool,
-    LanguageModelToolResult, LanguageModelToolUseId, MaxMonthlySpendReachedError, MessageContent,
-    PaymentRequiredError, Role, StopReason, TokenUsage,
+    ConfiguredModel, LanguageModel, LanguageModelCompletionEvent, LanguageModelId,
+    LanguageModelKnownError, LanguageModelRegistry, LanguageModelRequest,
+    LanguageModelRequestMessage, LanguageModelRequestTool, LanguageModelToolResult,
+    LanguageModelToolUseId, MaxMonthlySpendReachedError, MessageContent, PaymentRequiredError,
+    Role, StopReason, TokenUsage,
 };
+use project::Project;
 use project::git_store::{GitStore, GitStoreCheckpoint, RepositoryState};
-use project::{Project, Worktree};
-use prompt_store::{AssistantSystemPromptContext, PromptBuilder, WorktreeInfoForSystemPrompt};
+use prompt_store::PromptBuilder;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
 use settings::Settings;
+use thiserror::Error;
 use util::{ResultExt as _, TryFutureExt as _, post_inc};
 use uuid::Uuid;

 use crate::context::{AssistantContext, ContextId, format_context_as_string};
 use crate::thread_store::{
    SerializedMessage, SerializedMessageSegment, SerializedThread, SerializedToolResult,
-    SerializedToolUse,
+    SerializedToolUse, SharedProjectContext,
 };
 use crate::tool_use::{PendingToolUse, ToolUse, ToolUseState, USING_TOOL_MARKER};

@@ -228,7 +229,7 @@ pub struct TotalTokenUsage {
    pub ratio: TokenUsageRatio,
 }

-#[derive(Default, PartialEq, Eq)]
+#[derive(Debug, Default, PartialEq, Eq)]
 pub enum TokenUsageRatio {
    #[default]
    Normal,
@@ -247,28 +248,39 @@ pub struct Thread {
    next_message_id: MessageId,
    context: BTreeMap<ContextId, AssistantContext>,
    context_by_message: HashMap<MessageId, Vec<ContextId>>,
-    system_prompt_context: Option<AssistantSystemPromptContext>,
+    project_context: SharedProjectContext,
    checkpoints_by_message: HashMap<MessageId, ThreadCheckpoint>,
    completion_count: usize,
    pending_completions: Vec<PendingCompletion>,
    project: Entity<Project>,
    prompt_builder: Arc<PromptBuilder>,
-    tools: Arc<ToolWorkingSet>,
+    tools: Entity<ToolWorkingSet>,
    tool_use: ToolUseState,
    action_log: Entity<ActionLog>,
    last_restore_checkpoint: Option<LastRestoreCheckpoint>,
    pending_checkpoint: Option<ThreadCheckpoint>,
    initial_project_snapshot: Shared<Task<Option<Arc<ProjectSnapshot>>>>,
    cumulative_token_usage: TokenUsage,
+    exceeded_window_error: Option<ExceededWindowError>,
    feedback: Option<ThreadFeedback>,
    message_feedback: HashMap<MessageId, ThreadFeedback>,
+    last_auto_capture_at: Option<Instant>,
+}
+
+#[derive(Debug, Clone, Serialize, Deserialize)]
+pub struct ExceededWindowError {
+    /// Model used when last message exceeded context window
+    model_id: LanguageModelId,
+    /// Token count including last message
+    token_count: usize,
 }

 impl Thread {
    pub fn new(
        project: Entity<Project>,
-        tools: Arc<ToolWorkingSet>,
+        tools: Entity<ToolWorkingSet>,
        prompt_builder: Arc<PromptBuilder>,
+        system_prompt: SharedProjectContext,
        cx: &mut Context<Self>,
    ) -> Self {
        Self {
@@ -281,7 +293,7 @@ impl Thread {
            next_message_id: MessageId(0),
            context: BTreeMap::default(),
            context_by_message: HashMap::default(),
-            system_prompt_context: None,
+            project_context: system_prompt,
            checkpoints_by_message: HashMap::default(),
            completion_count: 0,
            pending_completions: Vec::new(),
@@ -299,8 +311,10 @@ impl Thread {
                    .shared()
            },
            cumulative_token_usage: TokenUsage::default(),
+            exceeded_window_error: None,
            feedback: None,
            message_feedback: HashMap::default(),
+            last_auto_capture_at: None,
        }
    }

@@ -308,8 +322,9 @@ impl Thread {
        id: ThreadId,
        serialized: SerializedThread,
        project: Entity<Project>,
-        tools: Arc<ToolWorkingSet>,
+        tools: Entity<ToolWorkingSet>,
        prompt_builder: Arc<PromptBuilder>,
+        project_context: SharedProjectContext,
        cx: &mut Context<Self>,
    ) -> Self {
        let next_message_id = MessageId(
@@ -350,7 +365,7 @@ impl Thread {
            next_message_id,
            context: BTreeMap::default(),
            context_by_message: HashMap::default(),
-            system_prompt_context: None,
+            project_context,
            checkpoints_by_message: HashMap::default(),
            completion_count: 0,
            pending_completions: Vec::new(),
@@ -363,8 +378,10 @@ impl Thread {
            action_log: cx.new(|_| ActionLog::new(project)),
            initial_project_snapshot: Task::ready(serialized.initial_project_snapshot).shared(),
            cumulative_token_usage: serialized.cumulative_token_usage,
+            exceeded_window_error: None,
            feedback: None,
            message_feedback: HashMap::default(),
+            last_auto_capture_at: None,
        }
    }

@@ -388,6 +405,10 @@ impl Thread {
        self.summary.clone()
    }

+    pub fn project_context(&self) -> SharedProjectContext {
+        self.project_context.clone()
+    }
+
    pub const DEFAULT_SUMMARY: SharedString = SharedString::new_static("New Thread");

    pub fn summary_or_default(&self) -> SharedString {
@@ -437,7 +458,7 @@ impl Thread {
        !self.pending_completions.is_empty() || !self.all_tools_finished()
    }

-    pub fn tools(&self) -> &Arc<ToolWorkingSet> {
+    pub fn tools(&self) -> &Entity<ToolWorkingSet> {
        &self.tools
    }

@@ -806,92 +827,13 @@ impl Thread {
                    })
                    .collect(),
                initial_project_snapshot,
-                cumulative_token_usage: this.cumulative_token_usage.clone(),
+                cumulative_token_usage: this.cumulative_token_usage,
                detailed_summary_state: this.detailed_summary_state.clone(),
+                exceeded_window_error: this.exceeded_window_error.clone(),
            })
        })
    }

-    pub fn set_system_prompt_context(&mut self, context: AssistantSystemPromptContext) {
-        self.system_prompt_context = Some(context);
-    }
-
-    pub fn system_prompt_context(&self) -> &Option<AssistantSystemPromptContext> {
-        &self.system_prompt_context
-    }
-
-    pub fn load_system_prompt_context(
-        &self,
-        cx: &App,
-    ) -> Task<(AssistantSystemPromptContext, Option<ThreadError>)> {
-        let project = self.project.read(cx);
-        let tasks = project
-            .visible_worktrees(cx)
-            .map(|worktree| {
-                Self::load_worktree_info_for_system_prompt(
-                    project.fs().clone(),
-                    worktree.read(cx),
-                    cx,
-                )
-            })
-            .collect::<Vec<_>>();
-
-        cx.spawn(async |_cx| {
-            let results = futures::future::join_all(tasks).await;
-            let mut first_err = None;
-            let worktrees = results
-                .into_iter()
-                .map(|(worktree, err)| {
-                    if first_err.is_none() && err.is_some() {
-                        first_err = err;
-                    }
-                    worktree
-                })
-                .collect::<Vec<_>>();
-            (AssistantSystemPromptContext::new(worktrees), first_err)
-        })
-    }
-
-    fn load_worktree_info_for_system_prompt(
-        fs: Arc<dyn Fs>,
-        worktree: &Worktree,
-        cx: &App,
-    ) -> Task<(WorktreeInfoForSystemPrompt, Option<ThreadError>)> {
-        let root_name = worktree.root_name().into();
-        let abs_path = worktree.abs_path();
-
-        let rules_task = load_worktree_rules_file(fs, worktree, cx);
-        let Some(rules_task) = rules_task else {
-            return Task::ready((
-                WorktreeInfoForSystemPrompt {
-                    root_name,
-                    abs_path,
-                    rules_file: None,
-                },
-                None,
-            ));
-        };
-
-        cx.spawn(async move |_| {
-            let (rules_file, rules_file_error) = match rules_task.await {
-                Ok(rules_file) => (Some(rules_file), None),
-                Err(err) => (
-                    None,
-                    Some(ThreadError::Message {
-                        header: "Error loading rules file".into(),
-                        message: format!("{err}").into(),
-                    }),
-                ),
-            };
-            let worktree_info = WorktreeInfoForSystemPrompt {
-                root_name,
-                abs_path,
-                rules_file,
-            };
-            (worktree_info, rules_file_error)
-        })
-    }
-
    pub fn send_to_model(
        &mut self,
        model: Arc<dyn LanguageModel>,
@@ -902,13 +844,21 @@ impl Thread {
        if model.supports_tools() {
            request.tools = {
                let mut tools = Vec::new();
-                tools.extend(self.tools().enabled_tools(cx).into_iter().map(|tool| {
-                    LanguageModelRequestTool {
-                        name: tool.name(),
-                        description: tool.description(),
-                        input_schema: tool.input_schema(model.tool_input_format()),
-                    }
-                }));
+                tools.extend(
+                    self.tools()
+                        .read(cx)
+                        .enabled_tools(cx)
+                        .into_iter()
+                        .filter_map(|tool| {
+                            // Skip tools that cannot be supported
+                            let input_schema = tool.input_schema(model.tool_input_format()).ok()?;
+                            Some(LanguageModelRequestTool {
+                                name: tool.name(),
+                                description: tool.description(),
+                                input_schema,
+                            })
+                        }),
+                );

                tools
            };
@@ -941,10 +891,10 @@ impl Thread {
            temperature: None,
        };

-        if let Some(system_prompt_context) = self.system_prompt_context.as_ref() {
+        if let Some(project_context) = self.project_context.borrow().as_ref() {
            if let Some(system_prompt) = self
                .prompt_builder
-                .generate_assistant_system_prompt(system_prompt_context)
+                .generate_assistant_system_prompt(project_context)
                .context("failed to generate assistant system prompt")
                .log_err()
            {
@@ -955,7 +905,7 @@ impl Thread {
                });
            }
        } else {
-            log::error!("system_prompt_context not set.")
+            log::error!("project_context not set.")
        }

        for message in &self.messages {
@@ -1067,7 +1017,7 @@ impl Thread {
        let task = cx.spawn(async move |thread, cx| {
            let stream = model.stream_completion(request, &cx);
            let initial_token_usage =
-                thread.read_with(cx, |thread, _cx| thread.cumulative_token_usage.clone());
+                thread.read_with(cx, |thread, _cx| thread.cumulative_token_usage);
            let stream_completion = async {
                let mut events = stream.await?;
                let mut stop_reason = StopReason::EndTurn;
@@ -1089,9 +1039,9 @@ impl Thread {
                                stop_reason = reason;
                            }
                            LanguageModelCompletionEvent::UsageUpdate(token_usage) => {
-                                thread.cumulative_token_usage =
-                                    thread.cumulative_token_usage.clone() + token_usage.clone()
-                                        - current_token_usage.clone();
+                                thread.cumulative_token_usage = thread.cumulative_token_usage
+                                    + token_usage
+                                    - current_token_usage;
                                current_token_usage = token_usage;
                            }
                            LanguageModelCompletionEvent::Text(chunk) => {
@@ -1200,6 +1150,20 @@ impl Thread {
                                cx.emit(ThreadEvent::ShowError(
                                    ThreadError::MaxMonthlySpendReached,
                                ));
+                            } else if let Some(known_error) =
+                                error.downcast_ref::<LanguageModelKnownError>()
+                            {
+                                match known_error {
+                                    LanguageModelKnownError::ContextWindowLimitExceeded {
+                                        tokens,
+                                    } => {
+                                        thread.exceeded_window_error = Some(ExceededWindowError {
+                                            model_id: model.id(),
+                                            token_count: *tokens,
+                                        });
+                                        cx.notify();
+                                    }
+                                }
                            } else {
                                let error_message = error
                                    .chain()
@@ -1215,12 +1179,12 @@ impl Thread {
                            thread.cancel_last_completion(cx);
                        }
                    }
-                    cx.emit(ThreadEvent::DoneStreaming);
+                    cx.emit(ThreadEvent::Stopped(result.map_err(Arc::new)));

                    thread.auto_capture_telemetry(cx);

                    if let Ok(initial_usage) = initial_token_usage {
-                        let usage = thread.cumulative_token_usage.clone() - initial_usage;
+                        let usage = thread.cumulative_token_usage - initial_usage;

                        telemetry::event!(
                            "Assistant Thread Completion",
@@ -1391,7 +1355,7 @@ impl Thread {
            .collect::<Vec<_>>();

        for tool_use in pending_tool_uses.iter() {
-            if let Some(tool) = self.tools.tool(&tool_use.name, cx) {
+            if let Some(tool) = self.tools.read(cx).tool(&tool_use.name, cx) {
                if tool.needs_confirmation(&tool_use.input, cx)
                    && !AssistantSettings::get_global(cx).always_allow_tool_actions
                {
@@ -1443,8 +1407,8 @@ impl Thread {
    ) -> Task<()> {
        let tool_name: Arc<str> = tool.name().into();

-        let run_tool = if self.tools.is_disabled(&tool.source(), &tool_name) {
-            Task::ready(Err(anyhow!("tool is disabled: {tool_name}")))
+        let tool_result = if self.tools.read(cx).is_disabled(&tool.source(), &tool_name) {
+            Task::ready(Err(anyhow!("tool is disabled: {tool_name}"))).into()
        } else {
            tool.run(
                input,
@@ -1457,7 +1421,7 @@ impl Thread {

        cx.spawn({
            async move |thread: WeakEntity<Thread>, cx| {
-                let output = run_tool.await;
+                let output = tool_result.output.await;

                thread
                    .update(cx, |thread, cx| {
@@ -1558,6 +1522,7 @@ impl Thread {

        let enabled_tool_names: Vec<String> = self
            .tools()
+            .read(cx)
            .enabled_tools(cx)
            .iter()
            .map(|tool| tool.name().to_string())
@@ -1855,69 +1820,54 @@ impl Thread {
        &self.project
    }

-    pub fn cumulative_token_usage(&self) -> TokenUsage {
-        self.cumulative_token_usage.clone()
-    }
-
-    pub fn auto_capture_telemetry(&self, cx: &mut Context<Self>) {
-        static mut LAST_CAPTURE: Option<std::time::Instant> = None;
-        let now = std::time::Instant::now();
-        let should_check = unsafe {
-            if let Some(last) = LAST_CAPTURE {
-                if now.duration_since(last).as_secs() < 10 {
-                    return;
-                }
-            }
-            LAST_CAPTURE = Some(now);
-            true
-        };
-
-        if !should_check {
+    pub fn auto_capture_telemetry(&mut self, cx: &mut Context<Self>) {
+        if !cx.has_flag::<feature_flags::ThreadAutoCapture>() {
            return;
        }

-        let feature_flag_enabled = cx.has_flag::<feature_flags::ThreadAutoCapture>();
-
-        if cfg!(debug_assertions) {
-            if !feature_flag_enabled {
+        let now = Instant::now();
+        if let Some(last) = self.last_auto_capture_at {
+            if now.duration_since(last).as_secs() < 10 {
                return;
            }
        }

-        let thread_id = self.id().clone();
+        self.last_auto_capture_at = Some(now);

-        let github_handle = self
+        let thread_id = self.id().clone();
+        let github_login = self
            .project
            .read(cx)
            .user_store()
            .read(cx)
            .current_user()
            .map(|user| user.github_login.clone());
-
        let client = self.project.read(cx).client().clone();
+        let serialize_task = self.serialize(cx);

-        let serialized_thread = self.serialize(cx);
-
-        cx.foreground_executor()
+        cx.background_executor()
            .spawn(async move {
-                if let Ok(serialized_thread) = serialized_thread.await {
-                    let thread_data = serde_json::to_value(serialized_thread)
-                        .unwrap_or_else(|_| serde_json::Value::Null);
+                if let Ok(serialized_thread) = serialize_task.await {
+                    if let Ok(thread_data) = serde_json::to_value(serialized_thread) {
+                        telemetry::event!(
+                            "Agent Thread Auto-Captured",
+                            thread_id = thread_id.to_string(),
+                            thread_data = thread_data,
+                            auto_capture_reason = "tracked_user",
+                            github_login = github_login
+                        );

-                    telemetry::event!(
-                        "Agent Thread AutoCaptured",
-                        thread_id = thread_id.to_string(),
-                        thread_data = thread_data,
-                        auto_capture_reason = "tracked_user",
-                        github_handle = github_handle
-                    );
-
-                    client.telemetry().flush_events();
+                        client.telemetry().flush_events();
+                    }
                }
            })
            .detach();
    }

+    pub fn cumulative_token_usage(&self) -> TokenUsage {
+        self.cumulative_token_usage
+    }
+
    pub fn total_token_usage(&self, cx: &App) -> TotalTokenUsage {
        let model_registry = LanguageModelRegistry::read_global(cx);
        let Some(model) = model_registry.default_model() else {
@@ -1926,6 +1876,16 @@ impl Thread {

        let max = model.model.max_token_count();

+        if let Some(exceeded_error) = &self.exceeded_window_error {
+            if model.model.id() == exceeded_error.model_id {
+                return TotalTokenUsage {
+                    total: exceeded_error.token_count,
+                    max,
+                    ratio: TokenUsageRatio::Exceeded,
+                };
+            }
+        }
+
        #[cfg(debug_assertions)]
        let warning_threshold: f32 = std::env::var("ZED_THREAD_WARNING_THRESHOLD")
            .unwrap_or("0.8".to_string())
@@ -1963,10 +1923,13 @@ impl Thread {
    }
 }

-#[derive(Debug, Clone)]
+#[derive(Debug, Clone, Error)]
 pub enum ThreadError {
+    #[error("Payment required")]
    PaymentRequired,
+    #[error("Max monthly spend reached")]
    MaxMonthlySpendReached,
+    #[error("Message {header}: {message}")]
    Message {
        header: SharedString,
        message: SharedString,
@@ -1979,7 +1942,7 @@ pub enum ThreadEvent {
    StreamedCompletion,
    StreamedAssistantText(MessageId, String),
    StreamedAssistantThinking(MessageId, String),
-    DoneStreaming,
+    Stopped(Result<StopReason, Arc<anyhow::Error>>),
    MessageAdded(MessageId),
    MessageEdited(MessageId),
    MessageDeleted(MessageId),
@@ -2085,9 +2048,9 @@ fn main() {{
            thread.to_completion_request(RequestKind::Chat, cx)
        });

-        assert_eq!(request.messages.len(), 1);
+        assert_eq!(request.messages.len(), 2);
        let expected_full_message = format!("{}Please explain this code", expected_context);
-        assert_eq!(request.messages[0].string_contents(), expected_full_message);
+        assert_eq!(request.messages[1].string_contents(), expected_full_message);
    }

    #[gpui::test]
@@ -2178,20 +2141,20 @@ fn main() {{
        });

        // The request should contain all 3 messages
-        assert_eq!(request.messages.len(), 3);
+        assert_eq!(request.messages.len(), 4);

        // Check that the contexts are properly formatted in each message
-        assert!(request.messages[0].string_contents().contains("file1.rs"));
-        assert!(!request.messages[0].string_contents().contains("file2.rs"));
-        assert!(!request.messages[0].string_contents().contains("file3.rs"));
-
-        assert!(!request.messages[1].string_contents().contains("file1.rs"));
-        assert!(request.messages[1].string_contents().contains("file2.rs"));
+        assert!(request.messages[1].string_contents().contains("file1.rs"));
+        assert!(!request.messages[1].string_contents().contains("file2.rs"));
        assert!(!request.messages[1].string_contents().contains("file3.rs"));

        assert!(!request.messages[2].string_contents().contains("file1.rs"));
-        assert!(!request.messages[2].string_contents().contains("file2.rs"));
-        assert!(request.messages[2].string_contents().contains("file3.rs"));
+        assert!(request.messages[2].string_contents().contains("file2.rs"));
+        assert!(!request.messages[2].string_contents().contains("file3.rs"));
+
+        assert!(!request.messages[3].string_contents().contains("file1.rs"));
+        assert!(!request.messages[3].string_contents().contains("file2.rs"));
+        assert!(request.messages[3].string_contents().contains("file3.rs"));
    }

    #[gpui::test]
@@ -2229,9 +2192,9 @@ fn main() {{
            thread.to_completion_request(RequestKind::Chat, cx)
        });

-        assert_eq!(request.messages.len(), 1);
+        assert_eq!(request.messages.len(), 2);
        assert_eq!(
-            request.messages[0].string_contents(),
+            request.messages[1].string_contents(),
            "What is the best way to learn Rust?"
        );

@@ -2249,13 +2212,13 @@ fn main() {{
            thread.to_completion_request(RequestKind::Chat, cx)
        });

-        assert_eq!(request.messages.len(), 2);
+        assert_eq!(request.messages.len(), 3);
        assert_eq!(
-            request.messages[0].string_contents(),
+            request.messages[1].string_contents(),
            "What is the best way to learn Rust?"
        );
        assert_eq!(
-            request.messages[1].string_contents(),
+            request.messages[2].string_contents(),
            "Are there any good books?"
        );
    }
@@ -2376,15 +2339,16 @@ fn main() {{
        let (workspace, cx) =
            cx.add_window_view(|window, cx| Workspace::test_new(project.clone(), window, cx));

-        let thread_store = cx.update(|_, cx| {
-            ThreadStore::new(
-                project.clone(),
-                Arc::default(),
-                Arc::new(PromptBuilder::new(None).unwrap()),
-                cx,
-            )
-            .unwrap()
-        });
+        let thread_store = cx
+            .update(|_, cx| {
+                ThreadStore::load(
+                    project.clone(),
+                    cx.new(|_| ToolWorkingSet::default()),
+                    Arc::new(PromptBuilder::new(None).unwrap()),
+                    cx,
+                )
+            })
+            .await;

        let thread = thread_store.update(cx, |store, cx| store.create_thread(cx));
        let context_store = cx.new(|_cx| ContextStore::new(project.downgrade(), None));
--- a/crates/agent/src/thread_history.rs
+++ b/crates/agent/src/thread_history.rs
@@ -4,11 +4,14 @@ use assistant_context_editor::SavedContextMetadata;
 use editor::{Editor, EditorEvent};
 use fuzzy::{StringMatch, StringMatchCandidate};
 use gpui::{
-    App, Entity, FocusHandle, Focusable, ScrollStrategy, Task, UniformListScrollHandle, WeakEntity,
-    Window, uniform_list,
+    App, Entity, FocusHandle, Focusable, ScrollStrategy, Stateful, Task, UniformListScrollHandle,
+    WeakEntity, Window, uniform_list,
 };
 use time::{OffsetDateTime, UtcOffset};
-use ui::{HighlightedLabel, IconButtonShape, ListItem, ListItemSpacing, Tooltip, prelude::*};
+use ui::{
+    HighlightedLabel, IconButtonShape, ListItem, ListItemSpacing, Scrollbar, ScrollbarState,
+    Tooltip, prelude::*,
+};
 use util::ResultExt;

 use crate::history_store::{HistoryEntry, HistoryStore};
@@ -26,6 +29,8 @@ pub struct ThreadHistory {
    matches: Vec<StringMatch>,
    _subscriptions: Vec<gpui::Subscription>,
    _search_task: Option<Task<()>>,
+    scrollbar_visibility: bool,
+    scrollbar_state: ScrollbarState,
 }

 impl ThreadHistory {
@@ -58,10 +63,13 @@ impl ThreadHistory {
            this.update_all_entries(cx);
        });

+        let scroll_handle = UniformListScrollHandle::default();
+        let scrollbar_state = ScrollbarState::new(scroll_handle.clone());
+
        Self {
            assistant_panel,
            history_store,
-            scroll_handle: UniformListScrollHandle::default(),
+            scroll_handle,
            selected_index: 0,
            search_query: SharedString::new_static(""),
            all_entries: entries,
@@ -69,6 +77,8 @@ impl ThreadHistory {
            search_editor,
            _subscriptions: vec![search_editor_subscription, history_store_subscription],
            _search_task: None,
+            scrollbar_visibility: true,
+            scrollbar_state,
        }
    }

@@ -220,6 +230,43 @@ impl ThreadHistory {
        cx.notify();
    }

+    fn render_scrollbar(&self, cx: &mut Context<Self>) -> Option<Stateful<Div>> {
+        if !(self.scrollbar_visibility || self.scrollbar_state.is_dragging()) {
+            return None;
+        }
+
+        Some(
+            div()
+                .occlude()
+                .id("thread-history-scroll")
+                .h_full()
+                .bg(cx.theme().colors().panel_background.opacity(0.8))
+                .border_l_1()
+                .border_color(cx.theme().colors().border_variant)
+                .absolute()
+                .right_1()
+                .top_0()
+                .bottom_0()
+                .w_4()
+                .pl_1()
+                .cursor_default()
+                .on_mouse_move(cx.listener(|_, _, _window, cx| {
+                    cx.notify();
+                    cx.stop_propagation()
+                }))
+                .on_hover(|_, _window, cx| {
+                    cx.stop_propagation();
+                })
+                .on_any_mouse_down(|_, _window, cx| {
+                    cx.stop_propagation();
+                })
+                .on_scroll_wheel(cx.listener(|_, _, _window, cx| {
+                    cx.notify();
+                }))
+                .children(Scrollbar::vertical(self.scrollbar_state.clone())),
+        )
+    }
+
    fn confirm(&mut self, _: &menu::Confirm, window: &mut Window, cx: &mut Context<Self>) {
        if let Some(entry) = self.get_match(self.selected_index) {
            let task_result = match entry {
@@ -305,7 +352,11 @@ impl Render for ThreadHistory {
                )
            })
            .child({
-                let view = v_flex().overflow_hidden().flex_grow();
+                let view = v_flex()
+                    .id("list-container")
+                    .relative()
+                    .overflow_hidden()
+                    .flex_grow();

                if self.all_entries.is_empty() {
                    view.justify_center()
@@ -322,59 +373,70 @@ impl Render for ThreadHistory {
                        ),
                    )
                } else {
-                    view.p_1().child(
-                        uniform_list(
-                            cx.entity().clone(),
-                            "thread-history",
-                            self.matched_count(),
-                            move |history, range, _window, _cx| {
-                                let range_start = range.start;
-                                let assistant_panel = history.assistant_panel.clone();
+                    view.pr_5()
+                        .child(
+                            uniform_list(
+                                cx.entity().clone(),
+                                "thread-history",
+                                self.matched_count(),
+                                move |history, range, _window, _cx| {
+                                    let range_start = range.start;
+                                    let assistant_panel = history.assistant_panel.clone();

-                                let render_item = |index: usize,
-                                                   entry: &HistoryEntry,
-                                                   highlight_positions: Vec<usize>|
-                                 -> Div {
-                                    h_flex().w_full().pb_1().child(match entry {
-                                        HistoryEntry::Thread(thread) => PastThread::new(
-                                            thread.clone(),
-                                            assistant_panel.clone(),
-                                            selected_index == index + range_start,
-                                            highlight_positions,
-                                        )
-                                        .into_any_element(),
-                                        HistoryEntry::Context(context) => PastContext::new(
-                                            context.clone(),
-                                            assistant_panel.clone(),
-                                            selected_index == index + range_start,
-                                            highlight_positions,
-                                        )
-                                        .into_any_element(),
-                                    })
-                                };
-
-                                if history.has_search_query() {
-                                    history.matches[range]
-                                        .iter()
-                                        .enumerate()
-                                        .filter_map(|(index, m)| {
-                                            history.all_entries.get(m.candidate_id).map(|entry| {
-                                                render_item(index, entry, m.positions.clone())
-                                            })
+                                    let render_item = |index: usize,
+                                                       entry: &HistoryEntry,
+                                                       highlight_positions: Vec<usize>|
+                                     -> Div {
+                                        h_flex().w_full().pb_1().child(match entry {
+                                            HistoryEntry::Thread(thread) => PastThread::new(
+                                                thread.clone(),
+                                                assistant_panel.clone(),
+                                                selected_index == index + range_start,
+                                                highlight_positions,
+                                            )
+                                            .into_any_element(),
+                                            HistoryEntry::Context(context) => PastContext::new(
+                                                context.clone(),
+                                                assistant_panel.clone(),
+                                                selected_index == index + range_start,
+                                                highlight_positions,
+                                            )
+                                            .into_any_element(),
                                        })
-                                        .collect()
-                                } else {
-                                    history.all_entries[range]
-                                        .iter()
-                                        .enumerate()
-                                        .map(|(index, entry)| render_item(index, entry, vec![]))
-                                        .collect()
-                                }
-                            },
+                                    };
+
+                                    if history.has_search_query() {
+                                        history.matches[range]
+                                            .iter()
+                                            .enumerate()
+                                            .filter_map(|(index, m)| {
+                                                history.all_entries.get(m.candidate_id).map(
+                                                    |entry| {
+                                                        render_item(
+                                                            index,
+                                                            entry,
+                                                            m.positions.clone(),
+                                                        )
+                                                    },
+                                                )
+                                            })
+                                            .collect()
+                                    } else {
+                                        history.all_entries[range]
+                                            .iter()
+                                            .enumerate()
+                                            .map(|(index, entry)| render_item(index, entry, vec![]))
+                                            .collect()
+                                    }
+                                },
+                            )
+                            .p_1()
+                            .track_scroll(self.scroll_handle.clone())
+                            .flex_grow(),
                        )
-                        .track_scroll(self.scroll_handle.clone())
-                        .flex_grow(),
-                    )
+                        .when_some(self.render_scrollbar(cx), |div, scrollbar| {
+                            div.child(scrollbar)
+                        })
                }
            })
    }
@@ -440,6 +502,7 @@ impl RenderOnce for PastThread {
                        IconButton::new("delete", IconName::TrashAlt)
                            .shape(IconButtonShape::Square)
                            .icon_size(IconSize::XSmall)
+                            .icon_color(Color::Muted)
                            .tooltip(move |window, cx| {
                                Tooltip::for_action("Delete", &RemoveSelectedThread, window, cx)
                            })
@@ -531,6 +594,7 @@ impl RenderOnce for PastContext {
                    IconButton::new("delete", IconName::TrashAlt)
                        .shape(IconButtonShape::Square)
                        .icon_size(IconSize::XSmall)
+                        .icon_color(Color::Muted)
                        .tooltip(move |window, cx| {
                            Tooltip::for_action("Delete", &RemoveSelectedThread, window, cx)
                        })
--- a/crates/agent/src/thread_store.rs
+++ b/crates/agent/src/thread_store.rs
@@ -1,88 +1,254 @@
 use std::borrow::Cow;
-use std::path::PathBuf;
+use std::cell::{Ref, RefCell};
+use std::path::{Path, PathBuf};
+use std::rc::Rc;
 use std::sync::Arc;

-use anyhow::{Result, anyhow};
+use anyhow::{Context as _, Result, anyhow};
 use assistant_settings::{AgentProfile, AgentProfileId, AssistantSettings};
 use assistant_tool::{ToolId, ToolSource, ToolWorkingSet};
 use chrono::{DateTime, Utc};
 use collections::HashMap;
 use context_server::manager::ContextServerManager;
 use context_server::{ContextServerFactoryRegistry, ContextServerTool};
+use fs::Fs;
 use futures::FutureExt as _;
 use futures::future::{self, BoxFuture, Shared};
 use gpui::{
-    App, BackgroundExecutor, Context, Entity, Global, ReadGlobal, SharedString, Subscription, Task,
-    prelude::*,
+    App, BackgroundExecutor, Context, Entity, EventEmitter, Global, ReadGlobal, SharedString,
+    Subscription, Task, prelude::*,
 };
 use heed::Database;
 use heed::types::SerdeBincode;
 use language_model::{LanguageModelToolUseId, Role, TokenUsage};
-use project::Project;
-use prompt_store::PromptBuilder;
+use project::{Project, Worktree};
+use prompt_store::{ProjectContext, PromptBuilder, RulesFileContext, WorktreeContext};
 use serde::{Deserialize, Serialize};
 use settings::{Settings as _, SettingsStore};
 use util::ResultExt as _;

 use crate::thread::{
-    DetailedSummaryState, MessageId, ProjectSnapshot, Thread, ThreadEvent, ThreadId,
+    DetailedSummaryState, ExceededWindowError, MessageId, ProjectSnapshot, Thread, ThreadId,
 };

+const RULES_FILE_NAMES: [&'static str; 6] = [
+    ".rules",
+    ".cursorrules",
+    ".windsurfrules",
+    ".clinerules",
+    ".github/copilot-instructions.md",
+    "CLAUDE.md",
+];
+
 pub fn init(cx: &mut App) {
    ThreadsDatabase::init(cx);
 }

+/// A system prompt shared by all threads created by this ThreadStore
+#[derive(Clone, Default)]
+pub struct SharedProjectContext(Rc<RefCell<Option<ProjectContext>>>);
+
+impl SharedProjectContext {
+    pub fn borrow(&self) -> Ref<Option<ProjectContext>> {
+        self.0.borrow()
+    }
+}
+
 pub struct ThreadStore {
    project: Entity<Project>,
-    tools: Arc<ToolWorkingSet>,
+    tools: Entity<ToolWorkingSet>,
    prompt_builder: Arc<PromptBuilder>,
    context_server_manager: Entity<ContextServerManager>,
    context_server_tool_ids: HashMap<Arc<str>, Vec<ToolId>>,
    threads: Vec<SerializedThreadMetadata>,
+    project_context: SharedProjectContext,
    _subscriptions: Vec<Subscription>,
 }

+pub struct RulesLoadingError {
+    pub message: SharedString,
+}
+
+impl EventEmitter<RulesLoadingError> for ThreadStore {}
+
 impl ThreadStore {
-    pub fn new(
+    pub fn load(
        project: Entity<Project>,
-        tools: Arc<ToolWorkingSet>,
+        tools: Entity<ToolWorkingSet>,
        prompt_builder: Arc<PromptBuilder>,
        cx: &mut App,
-    ) -> Result<Entity<Self>> {
-        let this = cx.new(|cx| {
-            let context_server_factory_registry = ContextServerFactoryRegistry::default_global(cx);
-            let context_server_manager = cx.new(|cx| {
-                ContextServerManager::new(context_server_factory_registry, project.clone(), cx)
-            });
-            let settings_subscription =
-                cx.observe_global::<SettingsStore>(move |this: &mut Self, cx| {
-                    this.load_default_profile(cx);
-                });
+    ) -> Task<Entity<Self>> {
+        let thread_store = cx.new(|cx| Self::new(project, tools, prompt_builder, cx));
+        let reload = thread_store.update(cx, |store, cx| store.reload_system_prompt(cx));
+        cx.foreground_executor().spawn(async move {
+            reload.await;
+            thread_store
+        })
+    }

-            let this = Self {
-                project,
-                tools,
-                prompt_builder,
-                context_server_manager,
-                context_server_tool_ids: HashMap::default(),
-                threads: Vec::new(),
-                _subscriptions: vec![settings_subscription],
-            };
-            this.load_default_profile(cx);
-            this.register_context_server_handlers(cx);
-            this.reload(cx).detach_and_log_err(cx);
-
-            this
+    fn new(
+        project: Entity<Project>,
+        tools: Entity<ToolWorkingSet>,
+        prompt_builder: Arc<PromptBuilder>,
+        cx: &mut Context<Self>,
+    ) -> Self {
+        let context_server_factory_registry = ContextServerFactoryRegistry::default_global(cx);
+        let context_server_manager = cx.new(|cx| {
+            ContextServerManager::new(context_server_factory_registry, project.clone(), cx)
        });
+        let settings_subscription =
+            cx.observe_global::<SettingsStore>(move |this: &mut Self, cx| {
+                this.load_default_profile(cx);
+            });
+        let project_subscription = cx.subscribe(&project, Self::handle_project_event);

-        Ok(this)
+        let this = Self {
+            project,
+            tools,
+            prompt_builder,
+            context_server_manager,
+            context_server_tool_ids: HashMap::default(),
+            threads: Vec::new(),
+            project_context: SharedProjectContext::default(),
+            _subscriptions: vec![settings_subscription, project_subscription],
+        };
+        this.load_default_profile(cx);
+        this.register_context_server_handlers(cx);
+        this.reload(cx).detach_and_log_err(cx);
+        this
+    }
+
+    fn handle_project_event(
+        &mut self,
+        _project: Entity<Project>,
+        event: &project::Event,
+        cx: &mut Context<Self>,
+    ) {
+        match event {
+            project::Event::WorktreeAdded(_) | project::Event::WorktreeRemoved(_) => {
+                self.reload_system_prompt(cx).detach();
+            }
+            project::Event::WorktreeUpdatedEntries(_, items) => {
+                if items.iter().any(|(path, _, _)| {
+                    RULES_FILE_NAMES
+                        .iter()
+                        .any(|name| path.as_ref() == Path::new(name))
+                }) {
+                    self.reload_system_prompt(cx).detach();
+                }
+            }
+            _ => {}
+        }
+    }
+
+    pub fn reload_system_prompt(&self, cx: &mut Context<Self>) -> Task<()> {
+        let project = self.project.read(cx);
+        let tasks = project
+            .visible_worktrees(cx)
+            .map(|worktree| {
+                Self::load_worktree_info_for_system_prompt(
+                    project.fs().clone(),
+                    worktree.read(cx),
+                    cx,
+                )
+            })
+            .collect::<Vec<_>>();
+
+        cx.spawn(async move |this, cx| {
+            let results = futures::future::join_all(tasks).await;
+            let worktrees = results
+                .into_iter()
+                .map(|(worktree, rules_error)| {
+                    if let Some(rules_error) = rules_error {
+                        this.update(cx, |_, cx| cx.emit(rules_error)).ok();
+                    }
+                    worktree
+                })
+                .collect::<Vec<_>>();
+            this.update(cx, |this, _cx| {
+                *this.project_context.0.borrow_mut() = Some(ProjectContext::new(worktrees));
+            })
+            .ok();
+        })
+    }
+
+    fn load_worktree_info_for_system_prompt(
+        fs: Arc<dyn Fs>,
+        worktree: &Worktree,
+        cx: &App,
+    ) -> Task<(WorktreeContext, Option<RulesLoadingError>)> {
+        let root_name = worktree.root_name().into();
+        let abs_path = worktree.abs_path();
+
+        let rules_task = Self::load_worktree_rules_file(fs, worktree, cx);
+        let Some(rules_task) = rules_task else {
+            return Task::ready((
+                WorktreeContext {
+                    root_name,
+                    abs_path,
+                    rules_file: None,
+                },
+                None,
+            ));
+        };
+
+        cx.spawn(async move |_| {
+            let (rules_file, rules_file_error) = match rules_task.await {
+                Ok(rules_file) => (Some(rules_file), None),
+                Err(err) => (
+                    None,
+                    Some(RulesLoadingError {
+                        message: format!("{err}").into(),
+                    }),
+                ),
+            };
+            let worktree_info = WorktreeContext {
+                root_name,
+                abs_path,
+                rules_file,
+            };
+            (worktree_info, rules_file_error)
+        })
+    }
+
+    fn load_worktree_rules_file(
+        fs: Arc<dyn Fs>,
+        worktree: &Worktree,
+        cx: &App,
+    ) -> Option<Task<Result<RulesFileContext>>> {
+        let selected_rules_file = RULES_FILE_NAMES
+            .into_iter()
+            .filter_map(|name| {
+                worktree
+                    .entry_for_path(name)
+                    .filter(|entry| entry.is_file())
+                    .map(|entry| (entry.path.clone(), worktree.absolutize(&entry.path)))
+            })
+            .next();
+
+        // Note that Cline supports `.clinerules` being a directory, but that is not currently
+        // supported. This doesn't seem to occur often in GitHub repositories.
+        selected_rules_file.map(|(path_in_worktree, abs_path)| {
+            let fs = fs.clone();
+            cx.background_spawn(async move {
+                let abs_path = abs_path?;
+                let text = fs.load(&abs_path).await.with_context(|| {
+                    format!("Failed to load assistant rules file {:?}", abs_path)
+                })?;
+                anyhow::Ok(RulesFileContext {
+                    path_in_worktree,
+                    abs_path: abs_path.into(),
+                    text: text.trim().to_string(),
+                })
+            })
+        })
    }

    pub fn context_server_manager(&self) -> Entity<ContextServerManager> {
        self.context_server_manager.clone()
    }

-    pub fn tools(&self) -> Arc<ToolWorkingSet> {
+    pub fn tools(&self) -> Entity<ToolWorkingSet> {
        self.tools.clone()
    }

@@ -107,6 +273,7 @@ impl ThreadStore {
                self.project.clone(),
                self.tools.clone(),
                self.prompt_builder.clone(),
+                self.project_context.clone(),
                cx,
            )
        })
@@ -134,21 +301,12 @@ impl ThreadStore {
                        this.project.clone(),
                        this.tools.clone(),
                        this.prompt_builder.clone(),
+                        this.project_context.clone(),
                        cx,
                    )
                })
            })?;

-            let (system_prompt_context, load_error) = thread
-                .update(cx, |thread, cx| thread.load_system_prompt_context(cx))?
-                .await;
-            thread.update(cx, |thread, cx| {
-                thread.set_system_prompt_context(system_prompt_context);
-                if let Some(load_error) = load_error {
-                    cx.emit(ThreadEvent::ShowError(load_error));
-                }
-            })?;
-
            Ok(thread)
        })
    }
@@ -197,52 +355,60 @@ impl ThreadStore {
        })
    }

-    fn load_default_profile(&self, cx: &Context<Self>) {
+    fn load_default_profile(&self, cx: &mut Context<Self>) {
        let assistant_settings = AssistantSettings::get_global(cx);

-        self.load_profile_by_id(&assistant_settings.default_profile, cx);
+        self.load_profile_by_id(assistant_settings.default_profile.clone(), cx);
    }

-    pub fn load_profile_by_id(&self, profile_id: &AgentProfileId, cx: &Context<Self>) {
+    pub fn load_profile_by_id(&self, profile_id: AgentProfileId, cx: &mut Context<Self>) {
        let assistant_settings = AssistantSettings::get_global(cx);

-        if let Some(profile) = assistant_settings.profiles.get(profile_id) {
-            self.load_profile(profile, cx);
+        if let Some(profile) = assistant_settings.profiles.get(&profile_id) {
+            self.load_profile(profile.clone(), cx);
        }
    }

-    pub fn load_profile(&self, profile: &AgentProfile, cx: &Context<Self>) {
-        self.tools.disable_all_tools();
-        self.tools.enable(
-            ToolSource::Native,
-            &profile
-                .tools
-                .iter()
-                .filter_map(|(tool, enabled)| enabled.then(|| tool.clone()))
-                .collect::<Vec<_>>(),
-        );
+    pub fn load_profile(&self, profile: AgentProfile, cx: &mut Context<Self>) {
+        self.tools.update(cx, |tools, cx| {
+            tools.disable_all_tools(cx);
+            tools.enable(
+                ToolSource::Native,
+                &profile
+                    .tools
+                    .iter()
+                    .filter_map(|(tool, enabled)| enabled.then(|| tool.clone()))
+                    .collect::<Vec<_>>(),
+                cx,
+            );
+        });

        if profile.enable_all_context_servers {
            for context_server in self.context_server_manager.read(cx).all_servers() {
-                self.tools.enable_source(
-                    ToolSource::ContextServer {
-                        id: context_server.id().into(),
-                    },
-                    cx,
-                );
+                self.tools.update(cx, |tools, cx| {
+                    tools.enable_source(
+                        ToolSource::ContextServer {
+                            id: context_server.id().into(),
+                        },
+                        cx,
+                    );
+                });
            }
        } else {
            for (context_server_id, preset) in &profile.context_servers {
-                self.tools.enable(
-                    ToolSource::ContextServer {
-                        id: context_server_id.clone().into(),
-                    },
-                    &preset
-                        .tools
-                        .iter()
-                        .filter_map(|(tool, enabled)| enabled.then(|| tool.clone()))
-                        .collect::<Vec<_>>(),
-                )
+                self.tools.update(cx, |tools, cx| {
+                    tools.enable(
+                        ToolSource::ContextServer {
+                            id: context_server_id.clone().into(),
+                        },
+                        &preset
+                            .tools
+                            .iter()
+                            .filter_map(|(tool, enabled)| enabled.then(|| tool.clone()))
+                            .collect::<Vec<_>>(),
+                        cx,
+                    )
+                })
            }
        }
    }
@@ -276,29 +442,36 @@ impl ThreadStore {

                            if protocol.capable(context_server::protocol::ServerCapability::Tools) {
                                if let Some(tools) = protocol.list_tools().await.log_err() {
-                                    let tool_ids = tools
-                                        .tools
-                                        .into_iter()
-                                        .map(|tool| {
-                                            log::info!(
-                                                "registering context server tool: {:?}",
-                                                tool.name
-                                            );
-                                            tool_working_set.insert(Arc::new(
-                                                ContextServerTool::new(
-                                                    context_server_manager.clone(),
-                                                    server.id(),
-                                                    tool,
-                                                ),
-                                            ))
+                                    let tool_ids = tool_working_set
+                                        .update(cx, |tool_working_set, _| {
+                                            tools
+                                                .tools
+                                                .into_iter()
+                                                .map(|tool| {
+                                                    log::info!(
+                                                        "registering context server tool: {:?}",
+                                                        tool.name
+                                                    );
+                                                    tool_working_set.insert(Arc::new(
+                                                        ContextServerTool::new(
+                                                            context_server_manager.clone(),
+                                                            server.id(),
+                                                            tool,
+                                                        ),
+                                                    ))
+                                                })
+                                                .collect::<Vec<_>>()
                                        })
-                                        .collect::<Vec<_>>();
+                                        .log_err();

-                                    this.update(cx, |this, cx| {
-                                        this.context_server_tool_ids.insert(server_id, tool_ids);
-                                        this.load_default_profile(cx);
-                                    })
-                                    .log_err();
+                                    if let Some(tool_ids) = tool_ids {
+                                        this.update(cx, |this, cx| {
+                                            this.context_server_tool_ids
+                                                .insert(server_id, tool_ids);
+                                            this.load_default_profile(cx);
+                                        })
+                                        .log_err();
+                                    }
                                }
                            }
                        }
@@ -308,7 +481,9 @@ impl ThreadStore {
            }
            context_server::manager::Event::ServerStopped { server_id } => {
                if let Some(tool_ids) = self.context_server_tool_ids.remove(server_id) {
-                    tool_working_set.remove(&tool_ids);
+                    tool_working_set.update(cx, |tool_working_set, _| {
+                        tool_working_set.remove(&tool_ids);
+                    });
                    self.load_default_profile(cx);
                }
            }
@@ -335,6 +510,8 @@ pub struct SerializedThread {
    pub cumulative_token_usage: TokenUsage,
    #[serde(default)]
    pub detailed_summary_state: DetailedSummaryState,
+    #[serde(default)]
+    pub exceeded_window_error: Option<ExceededWindowError>,
 }

 impl SerializedThread {
@@ -421,6 +598,7 @@ impl LegacySerializedThread {
            initial_project_snapshot: self.initial_project_snapshot,
            cumulative_token_usage: TokenUsage::default(),
            detailed_summary_state: DetailedSummaryState::default(),
+            exceeded_window_error: None,
        }
    }
 }
@@ -491,7 +669,7 @@ impl ThreadsDatabase {
        let database_future = executor
            .spawn({
                let executor = executor.clone();
-                let database_path = paths::support_dir().join("threads/threads-db.1.mdb");
+                let database_path = paths::data_dir().join("threads/threads-db.1.mdb");
                async move { ThreadsDatabase::new(database_path, executor) }
            })
            .then(|result| future::ready(result.map(Arc::new).map_err(Arc::new)))
--- a/crates/agent/src/tool_compatibility.rs
+++ b/crates/agent/src/tool_compatibility.rs
@@ -0,0 +1,89 @@
+use std::sync::Arc;
+
+use assistant_tool::{Tool, ToolWorkingSet, ToolWorkingSetEvent};
+use collections::HashMap;
+use gpui::{App, Context, Entity, IntoElement, Render, Subscription, Window};
+use language_model::{LanguageModel, LanguageModelToolSchemaFormat};
+use ui::prelude::*;
+
+pub struct IncompatibleToolsState {
+    cache: HashMap<LanguageModelToolSchemaFormat, Vec<Arc<dyn Tool>>>,
+    tool_working_set: Entity<ToolWorkingSet>,
+    _tool_working_set_subscription: Subscription,
+}
+
+impl IncompatibleToolsState {
+    pub fn new(tool_working_set: Entity<ToolWorkingSet>, cx: &mut Context<Self>) -> Self {
+        let _tool_working_set_subscription =
+            cx.subscribe(&tool_working_set, |this, _, event, _| match event {
+                ToolWorkingSetEvent::EnabledToolsChanged => {
+                    this.cache.clear();
+                }
+            });
+
+        Self {
+            cache: HashMap::default(),
+            tool_working_set,
+            _tool_working_set_subscription,
+        }
+    }
+
+    pub fn incompatible_tools(
+        &mut self,
+        model: &Arc<dyn LanguageModel>,
+        cx: &App,
+    ) -> &[Arc<dyn Tool>] {
+        self.cache
+            .entry(model.tool_input_format())
+            .or_insert_with(|| {
+                self.tool_working_set
+                    .read(cx)
+                    .enabled_tools(cx)
+                    .iter()
+                    .filter(|tool| tool.input_schema(model.tool_input_format()).is_err())
+                    .cloned()
+                    .collect()
+            })
+    }
+}
+
+pub struct IncompatibleToolsTooltip {
+    pub incompatible_tools: Vec<Arc<dyn Tool>>,
+}
+
+impl Render for IncompatibleToolsTooltip {
+    fn render(&mut self, window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
+        ui::tooltip_container(window, cx, |container, _, cx| {
+            container
+                .w_72()
+                .child(Label::new("Incompatible Tools").size(LabelSize::Small))
+                .child(
+                    Label::new(
+                        "This model is incompatible with the following tools from your MCPs:",
+                    )
+                    .size(LabelSize::Small)
+                    .color(Color::Muted),
+                )
+                .child(
+                    v_flex()
+                        .my_1p5()
+                        .py_0p5()
+                        .border_b_1()
+                        .border_color(cx.theme().colors().border_variant)
+                        .children(
+                            self.incompatible_tools
+                                .iter()
+                                .map(|tool| Label::new(tool.name()).size(LabelSize::Small).buffer_font(cx)),
+                        ),
+                )
+                .child(Label::new("What To Do Instead").size(LabelSize::Small))
+                .child(
+                    Label::new(
+                        "Every other tool continues to work with this model, but to specifically use those, switch to another model.",
+                    )
+                    .size(LabelSize::Small)
+                    .color(Color::Muted),
+                )
+        })
+    }
+}
--- a/crates/agent/src/tool_use.rs
+++ b/crates/agent/src/tool_use.rs
@@ -5,7 +5,7 @@ use assistant_tool::{Tool, ToolWorkingSet};
 use collections::HashMap;
 use futures::FutureExt as _;
 use futures::future::Shared;
-use gpui::{App, SharedString, Task};
+use gpui::{App, Entity, SharedString, Task};
 use language_model::{
    LanguageModelRegistry, LanguageModelRequestMessage, LanguageModelToolResult,
    LanguageModelToolUse, LanguageModelToolUseId, MessageContent, Role,
@@ -49,7 +49,7 @@ impl ToolUseStatus {
 }

 pub struct ToolUseState {
-    tools: Arc<ToolWorkingSet>,
+    tools: Entity<ToolWorkingSet>,
    tool_uses_by_assistant_message: HashMap<MessageId, Vec<LanguageModelToolUse>>,
    tool_uses_by_user_message: HashMap<MessageId, Vec<LanguageModelToolUseId>>,
    tool_results: HashMap<LanguageModelToolUseId, LanguageModelToolResult>,
@@ -59,7 +59,7 @@ pub struct ToolUseState {
 pub const USING_TOOL_MARKER: &str = "<using_tool>";

 impl ToolUseState {
-    pub fn new(tools: Arc<ToolWorkingSet>) -> Self {
+    pub fn new(tools: Entity<ToolWorkingSet>) -> Self {
        Self {
            tools,
            tool_uses_by_assistant_message: HashMap::default(),
@@ -73,7 +73,7 @@ impl ToolUseState {
    ///
    /// Accepts a function to filter the tools that should be used to populate the state.
    pub fn from_serialized_messages(
-        tools: Arc<ToolWorkingSet>,
+        tools: Entity<ToolWorkingSet>,
        messages: &[SerializedMessage],
        mut filter_by_tool_name: impl FnMut(&str) -> bool,
    ) -> Self {
@@ -199,12 +199,12 @@ impl ToolUseState {
                }
            })();

-            let (icon, needs_confirmation) = if let Some(tool) = self.tools.tool(&tool_use.name, cx)
-            {
-                (tool.icon(), tool.needs_confirmation(&tool_use.input, cx))
-            } else {
-                (IconName::Cog, false)
-            };
+            let (icon, needs_confirmation) =
+                if let Some(tool) = self.tools.read(cx).tool(&tool_use.name, cx) {
+                    (tool.icon(), tool.needs_confirmation(&tool_use.input, cx))
+                } else {
+                    (IconName::Cog, false)
+                };

            tool_uses.push(ToolUse {
                id: tool_use.id.clone(),
@@ -226,7 +226,7 @@ impl ToolUseState {
        input: &serde_json::Value,
        cx: &App,
    ) -> SharedString {
-        if let Some(tool) = self.tools.tool(tool_name, cx) {
+        if let Some(tool) = self.tools.read(cx).tool(tool_name, cx) {
            tool.ui_text(input).into()
        } else {
            format!("Unknown tool {tool_name:?}").into()
--- a/crates/agent_eval/Cargo.toml
+++ b/crates/agent_eval/Cargo.toml
@@ -1,46 +0,0 @@
-[package]
-name = "agent_eval"
-version = "0.1.0"
-edition.workspace = true
-publish.workspace = true
-license = "GPL-3.0-or-later"
-
-[lints]
-workspace = true
-
-[[bin]]
-name = "agent_eval"
-path = "src/main.rs"
-
-[dependencies]
-agent.workspace = true
-anyhow.workspace = true
-assistant_tool.workspace = true
-assistant_tools.workspace = true
-clap.workspace = true
-client.workspace = true
-collections.workspace = true
-context_server.workspace = true
-dap.workspace = true
-env_logger.workspace = true
-fs.workspace = true
-futures.workspace = true
-gpui.workspace = true
-gpui_tokio.workspace = true
-language.workspace = true
-language_model.workspace = true
-language_models.workspace = true
-node_runtime.workspace = true
-project.workspace = true
-prompt_store.workspace = true
-release_channel.workspace = true
-reqwest_client.workspace = true
-serde.workspace = true
-serde_json.workspace = true
-serde_json_lenient.workspace = true
-settings.workspace = true
-smol.workspace = true
-tempfile.workspace = true
-util.workspace = true
-walkdir.workspace = true
-workspace-hack.workspace = true
--- a/crates/agent_eval/build.rs
+++ b/crates/agent_eval/build.rs
@@ -1,52 +0,0 @@
-// Copied from `crates/zed/build.rs`, with removal of code for including the zed icon on windows.
-
-use std::process::Command;
-
-fn main() {
-    if cfg!(target_os = "macos") {
-        println!("cargo:rustc-env=MACOSX_DEPLOYMENT_TARGET=10.15.7");
-
-        // Weakly link ReplayKit to ensure Zed can be used on macOS 10.15+.
-        println!("cargo:rustc-link-arg=-Wl,-weak_framework,ReplayKit");
-
-        // Seems to be required to enable Swift concurrency
-        println!("cargo:rustc-link-arg=-Wl,-rpath,/usr/lib/swift");
-
-        // Register exported Objective-C selectors, protocols, etc
-        println!("cargo:rustc-link-arg=-Wl,-ObjC");
-    }
-
-    // Populate git sha environment variable if git is available
-    println!("cargo:rerun-if-changed=../../.git/logs/HEAD");
-    println!(
-        "cargo:rustc-env=TARGET={}",
-        std::env::var("TARGET").unwrap()
-    );
-    if let Ok(output) = Command::new("git").args(["rev-parse", "HEAD"]).output() {
-        if output.status.success() {
-            let git_sha = String::from_utf8_lossy(&output.stdout);
-            let git_sha = git_sha.trim();
-
-            println!("cargo:rustc-env=ZED_COMMIT_SHA={git_sha}");
-
-            if let Ok(build_profile) = std::env::var("PROFILE") {
-                if build_profile == "release" {
-                    // This is currently the best way to make `cargo build ...`'s build script
-                    // to print something to stdout without extra verbosity.
-                    println!(
-                        "cargo:warning=Info: using '{git_sha}' hash for ZED_COMMIT_SHA env var"
-                    );
-                }
-            }
-        }
-    }
-
-    #[cfg(target_os = "windows")]
-    {
-        #[cfg(target_env = "msvc")]
-        {
-            // todo(windows): This is to avoid stack overflow. Remove it when solved.
-            println!("cargo:rustc-link-arg=/stack:{}", 8 * 1024 * 1024);
-        }
-    }
-}
--- a/crates/agent_eval/src/eval.rs
+++ b/crates/agent_eval/src/eval.rs
@@ -1,384 +0,0 @@
-use crate::git_commands::{run_git, setup_temp_repo};
-use crate::headless_assistant::{HeadlessAppState, HeadlessAssistant};
-use crate::{get_exercise_language, get_exercise_name};
-use agent::RequestKind;
-use anyhow::{Result, anyhow};
-use collections::HashMap;
-use gpui::{App, Task};
-use language_model::{LanguageModel, TokenUsage};
-use serde::{Deserialize, Serialize};
-use std::{
-    fs,
-    io::Write,
-    path::{Path, PathBuf},
-    sync::Arc,
-    time::{Duration, SystemTime},
-};
-
-#[derive(Debug, Serialize, Deserialize, Clone)]
-pub struct EvalResult {
-    pub exercise_name: String,
-    pub diff: String,
-    pub assistant_response: String,
-    pub elapsed_time_ms: u128,
-    pub timestamp: u128,
-    // Token usage fields
-    pub input_tokens: usize,
-    pub output_tokens: usize,
-    pub total_tokens: usize,
-    pub tool_use_counts: usize,
-}
-
-pub struct EvalOutput {
-    pub diff: String,
-    pub last_message: String,
-    pub elapsed_time: Duration,
-    pub assistant_response_count: usize,
-    pub tool_use_counts: HashMap<Arc<str>, u32>,
-    pub token_usage: TokenUsage,
-}
-
-#[derive(Deserialize)]
-pub struct EvalSetup {
-    pub url: String,
-    pub base_sha: String,
-}
-
-pub struct Eval {
-    pub repo_path: PathBuf,
-    pub eval_setup: EvalSetup,
-    pub user_prompt: String,
-}
-
-impl Eval {
-    // Keep this method for potential future use, but mark it as intentionally unused
-    #[allow(dead_code)]
-    pub async fn load(_name: String, path: PathBuf, repos_dir: &Path) -> Result<Self> {
-        let prompt_path = path.join("prompt.txt");
-        let user_prompt = smol::unblock(|| std::fs::read_to_string(prompt_path)).await?;
-        let setup_path = path.join("setup.json");
-        let setup_contents = smol::unblock(|| std::fs::read_to_string(setup_path)).await?;
-        let eval_setup = serde_json_lenient::from_str_lenient::<EvalSetup>(&setup_contents)?;
-
-        // Move this internal function inside the load method since it's only used here
-        fn repo_dir_name(url: &str) -> String {
-            url.trim_start_matches("https://")
-                .replace(|c: char| !c.is_alphanumeric(), "_")
-        }
-
-        let repo_path = repos_dir.join(repo_dir_name(&eval_setup.url));
-
-        Ok(Eval {
-            repo_path,
-            eval_setup,
-            user_prompt,
-        })
-    }
-
-    pub fn run(
-        self,
-        app_state: Arc<HeadlessAppState>,
-        model: Arc<dyn LanguageModel>,
-        cx: &mut App,
-    ) -> Task<Result<EvalOutput>> {
-        cx.spawn(async move |cx| {
-            run_git(&self.repo_path, &["checkout", &self.eval_setup.base_sha]).await?;
-
-            let (assistant, done_rx) =
-                cx.update(|cx| HeadlessAssistant::new(app_state.clone(), cx))??;
-
-            let _worktree = assistant
-                .update(cx, |assistant, cx| {
-                    assistant.project.update(cx, |project, cx| {
-                        project.create_worktree(&self.repo_path, true, cx)
-                    })
-                })?
-                .await?;
-
-            let start_time = std::time::SystemTime::now();
-
-            let (system_prompt_context, load_error) = cx
-                .update(|cx| {
-                    assistant
-                        .read(cx)
-                        .thread
-                        .read(cx)
-                        .load_system_prompt_context(cx)
-                })?
-                .await;
-
-            if let Some(load_error) = load_error {
-                return Err(anyhow!("{:?}", load_error));
-            };
-
-            assistant.update(cx, |assistant, cx| {
-                assistant.thread.update(cx, |thread, cx| {
-                    let context = vec![];
-                    thread.insert_user_message(self.user_prompt.clone(), context, None, cx);
-                    thread.set_system_prompt_context(system_prompt_context);
-                    thread.send_to_model(model, RequestKind::Chat, cx);
-                });
-            })?;
-
-            done_rx.recv().await??;
-
-            // Add this section to check untracked files
-            println!("Checking for untracked files:");
-            let untracked = run_git(
-                &self.repo_path,
-                &["ls-files", "--others", "--exclude-standard"],
-            )
-            .await?;
-            if untracked.is_empty() {
-                println!("No untracked files found");
-            } else {
-                // Add all files to git so they appear in the diff
-                println!("Adding untracked files to git");
-                run_git(&self.repo_path, &["add", "."]).await?;
-            }
-
-            // get git status
-            let _status = run_git(&self.repo_path, &["status", "--short"]).await?;
-
-            let elapsed_time = start_time.elapsed()?;
-
-            // Get diff of staged changes (the files we just added)
-            let staged_diff = run_git(&self.repo_path, &["diff", "--staged"]).await?;
-
-            // Get diff of unstaged changes
-            let unstaged_diff = run_git(&self.repo_path, &["diff"]).await?;
-
-            // Combine both diffs
-            let diff = if unstaged_diff.is_empty() {
-                staged_diff
-            } else if staged_diff.is_empty() {
-                unstaged_diff
-            } else {
-                format!(
-                    "# Staged changes\n{}\n\n# Unstaged changes\n{}",
-                    staged_diff, unstaged_diff
-                )
-            };
-
-            assistant.update(cx, |assistant, cx| {
-                let thread = assistant.thread.read(cx);
-                let last_message = thread.messages().last().unwrap();
-                if last_message.role != language_model::Role::Assistant {
-                    return Err(anyhow!("Last message is not from assistant"));
-                }
-                let assistant_response_count = thread
-                    .messages()
-                    .filter(|message| message.role == language_model::Role::Assistant)
-                    .count();
-                Ok(EvalOutput {
-                    diff,
-                    last_message: last_message.to_string(),
-                    elapsed_time,
-                    assistant_response_count,
-                    tool_use_counts: assistant.tool_use_counts.clone(),
-                    token_usage: thread.cumulative_token_usage(),
-                })
-            })?
-        })
-    }
-}
-
-impl EvalOutput {
-    // Keep this method for potential future use, but mark it as intentionally unused
-    #[allow(dead_code)]
-    pub fn save_to_directory(&self, output_dir: &Path, eval_output_value: String) -> Result<()> {
-        // Create the output directory if it doesn't exist
-        fs::create_dir_all(&output_dir)?;
-
-        // Save the diff to a file
-        let diff_path = output_dir.join("diff.patch");
-        let mut diff_file = fs::File::create(&diff_path)?;
-        diff_file.write_all(self.diff.as_bytes())?;
-
-        // Save the last message to a file
-        let message_path = output_dir.join("assistant_response.txt");
-        let mut message_file = fs::File::create(&message_path)?;
-        message_file.write_all(self.last_message.as_bytes())?;
-
-        // Current metrics for this run
-        let current_metrics = serde_json::json!({
-            "elapsed_time_ms": self.elapsed_time.as_millis(),
-            "assistant_response_count": self.assistant_response_count,
-            "tool_use_counts": self.tool_use_counts,
-            "token_usage": self.token_usage,
-            "eval_output_value": eval_output_value,
-        });
-
-        // Get current timestamp in milliseconds
-        let timestamp = std::time::SystemTime::now()
-            .duration_since(std::time::UNIX_EPOCH)?
-            .as_millis()
-            .to_string();
-
-        // Path to metrics file
-        let metrics_path = output_dir.join("metrics.json");
-
-        // Load existing metrics if the file exists, or create a new object
-        let mut historical_metrics = if metrics_path.exists() {
-            let metrics_content = fs::read_to_string(&metrics_path)?;
-            serde_json::from_str::<serde_json::Value>(&metrics_content)
-                .unwrap_or_else(|_| serde_json::json!({}))
-        } else {
-            serde_json::json!({})
-        };
-
-        // Add new run with timestamp as key
-        if let serde_json::Value::Object(ref mut map) = historical_metrics {
-            map.insert(timestamp, current_metrics);
-        }
-
-        // Write updated metrics back to file
-        let metrics_json = serde_json::to_string_pretty(&historical_metrics)?;
-        let mut metrics_file = fs::File::create(&metrics_path)?;
-        metrics_file.write_all(metrics_json.as_bytes())?;
-
-        Ok(())
-    }
-}
-
-pub async fn read_instructions(exercise_path: &Path) -> Result<String> {
-    let instructions_path = exercise_path.join(".docs").join("instructions.md");
-    println!("Reading instructions from: {}", instructions_path.display());
-    let instructions = smol::unblock(move || std::fs::read_to_string(&instructions_path)).await?;
-    Ok(instructions)
-}
-
-pub async fn save_eval_results(exercise_path: &Path, results: Vec<EvalResult>) -> Result<()> {
-    let eval_dir = exercise_path.join("evaluation");
-    fs::create_dir_all(&eval_dir)?;
-
-    let eval_file = eval_dir.join("evals.json");
-
-    println!("Saving evaluation results to: {}", eval_file.display());
-    println!(
-        "Results to save: {} evaluations for exercise path: {}",
-        results.len(),
-        exercise_path.display()
-    );
-
-    // Check file existence before reading/writing
-    if eval_file.exists() {
-        println!("Existing evals.json file found, will update it");
-    } else {
-        println!("No existing evals.json file found, will create new one");
-    }
-
-    // Structure to organize evaluations by test name and timestamp
-    let mut eval_data: serde_json::Value = if eval_file.exists() {
-        let content = fs::read_to_string(&eval_file)?;
-        serde_json::from_str(&content).unwrap_or_else(|_| serde_json::json!({}))
-    } else {
-        serde_json::json!({})
-    };
-
-    // Get current timestamp for this batch of results
-    let timestamp = SystemTime::now()
-        .duration_since(SystemTime::UNIX_EPOCH)?
-        .as_millis()
-        .to_string();
-
-    // Group the new results by test name (exercise name)
-    for result in results {
-        let exercise_name = &result.exercise_name;
-
-        println!("Adding result: exercise={}", exercise_name);
-
-        // Ensure the exercise entry exists
-        if eval_data.get(exercise_name).is_none() {
-            eval_data[exercise_name] = serde_json::json!({});
-        }
-
-        // Ensure the timestamp entry exists as an object
-        if eval_data[exercise_name].get(&timestamp).is_none() {
-            eval_data[exercise_name][&timestamp] = serde_json::json!({});
-        }
-
-        // Add this result under the timestamp with template name as key
-        eval_data[exercise_name][&timestamp] = serde_json::to_value(&result)?;
-    }
-
-    // Write back to file with pretty formatting
-    let json_content = serde_json::to_string_pretty(&eval_data)?;
-    match fs::write(&eval_file, json_content) {
-        Ok(_) => println!("✓ Successfully saved results to {}", eval_file.display()),
-        Err(e) => println!("✗ Failed to write results file: {}", e),
-    }
-
-    Ok(())
-}
-
-pub async fn run_exercise_eval(
-    exercise_path: PathBuf,
-    model: Arc<dyn LanguageModel>,
-    app_state: Arc<HeadlessAppState>,
-    base_sha: String,
-    _framework_path: PathBuf,
-    cx: gpui::AsyncApp,
-) -> Result<EvalResult> {
-    let exercise_name = get_exercise_name(&exercise_path);
-    let language = get_exercise_language(&exercise_path)?;
-    let mut instructions = read_instructions(&exercise_path).await?;
-    instructions.push_str(&format!(
-        "\n\nWhen writing the code for this prompt, use {} to achieve the goal.",
-        language
-    ));
-
-    println!("Running evaluation for exercise: {}", exercise_name);
-
-    // Create temporary directory with exercise files
-    let temp_dir = setup_temp_repo(&exercise_path, &base_sha).await?;
-    let temp_path = temp_dir.path().to_path_buf();
-
-    let local_commit_sha = run_git(&temp_path, &["rev-parse", "HEAD"]).await?;
-
-    let start_time = SystemTime::now();
-
-    // Create a basic eval struct to work with the existing system
-    let eval = Eval {
-        repo_path: temp_path.clone(),
-        eval_setup: EvalSetup {
-            url: format!("file://{}", temp_path.display()),
-            base_sha: local_commit_sha, // Use the local commit SHA instead of the framework base SHA
-        },
-        user_prompt: instructions.clone(),
-    };
-
-    // Run the evaluation
-    let eval_output = cx
-        .update(|cx| eval.run(app_state.clone(), model.clone(), cx))?
-        .await?;
-
-    // Get diff from git
-    let diff = eval_output.diff.clone();
-
-    let elapsed_time = start_time.elapsed()?;
-
-    // Calculate total tokens as the sum of input and output tokens
-    let input_tokens = eval_output.token_usage.input_tokens;
-    let output_tokens = eval_output.token_usage.output_tokens;
-    let tool_use_counts = eval_output.tool_use_counts.values().sum::<u32>();
-    let total_tokens = input_tokens + output_tokens;
-
-    // Save results to evaluation directory
-    let result = EvalResult {
-        exercise_name: exercise_name.clone(),
-        diff,
-        assistant_response: eval_output.last_message.clone(),
-        elapsed_time_ms: elapsed_time.as_millis(),
-        timestamp: SystemTime::now()
-            .duration_since(SystemTime::UNIX_EPOCH)?
-            .as_millis(),
-        // Convert u32 token counts to usize
-        input_tokens: input_tokens.try_into().unwrap(),
-        output_tokens: output_tokens.try_into().unwrap(),
-        total_tokens: total_tokens.try_into().unwrap(),
-        tool_use_counts: tool_use_counts.try_into().unwrap(),
-    };
-
-    Ok(result)
-}
--- a/crates/agent_eval/src/get_exercise.rs
+++ b/crates/agent_eval/src/get_exercise.rs
@@ -1,149 +0,0 @@
-use anyhow::{Result, anyhow};
-use std::{
-    fs,
-    path::{Path, PathBuf},
-};
-
-pub fn get_exercise_name(exercise_path: &Path) -> String {
-    exercise_path
-        .file_name()
-        .unwrap_or_default()
-        .to_string_lossy()
-        .to_string()
-}
-
-pub fn get_exercise_language(exercise_path: &Path) -> Result<String> {
-    // Extract the language from path (data/python/exercises/... => python)
-    let parts: Vec<_> = exercise_path.components().collect();
-
-    for (i, part) in parts.iter().enumerate() {
-        if i > 0 && part.as_os_str() == "eval_code" {
-            if i + 1 < parts.len() {
-                let language = parts[i + 1].as_os_str().to_string_lossy().to_string();
-                return Ok(language);
-            }
-        }
-    }
-
-    Err(anyhow!(
-        "Could not determine language from path: {:?}",
-        exercise_path
-    ))
-}
-
-pub fn find_exercises(
-    framework_path: &Path,
-    languages: &[&str],
-    max_per_language: Option<usize>,
-) -> Result<Vec<PathBuf>> {
-    let mut all_exercises = Vec::new();
-
-    println!("Searching for exercises in languages: {:?}", languages);
-
-    for language in languages {
-        let language_dir = framework_path
-            .join("eval_code")
-            .join(language)
-            .join("exercises")
-            .join("practice");
-
-        println!("Checking language directory: {:?}", language_dir);
-        if !language_dir.exists() {
-            println!("Warning: Language directory not found: {:?}", language_dir);
-            continue;
-        }
-
-        let mut exercises = Vec::new();
-        match fs::read_dir(&language_dir) {
-            Ok(entries) => {
-                for entry_result in entries {
-                    match entry_result {
-                        Ok(entry) => {
-                            let path = entry.path();
-
-                            if path.is_dir() {
-                                // Special handling for "internal" directory
-                                if *language == "internal" {
-                                    // Check for repo_info.json to validate it's an internal exercise
-                                    let repo_info_path = path.join(".meta").join("repo_info.json");
-                                    let instructions_path =
-                                        path.join(".docs").join("instructions.md");
-
-                                    if repo_info_path.exists() && instructions_path.exists() {
-                                        exercises.push(path);
-                                    }
-                                } else {
-                                    // Map the language to the file extension - original code
-                                    let language_extension = match *language {
-                                        "python" => "py",
-                                        "go" => "go",
-                                        "rust" => "rs",
-                                        "typescript" => "ts",
-                                        "javascript" => "js",
-                                        "ruby" => "rb",
-                                        "php" => "php",
-                                        "bash" => "sh",
-                                        "multi" => "diff",
-                                        _ => continue, // Skip unsupported languages
-                                    };
-
-                                    // Check if this is a valid exercise with instructions and example
-                                    let instructions_path =
-                                        path.join(".docs").join("instructions.md");
-                                    let has_instructions = instructions_path.exists();
-                                    let example_path = path
-                                        .join(".meta")
-                                        .join(format!("example.{}", language_extension));
-                                    let has_example = example_path.exists();
-
-                                    if has_instructions && has_example {
-                                        exercises.push(path);
-                                    }
-                                }
-                            }
-                        }
-                        Err(err) => println!("Error reading directory entry: {}", err),
-                    }
-                }
-            }
-            Err(err) => println!(
-                "Error reading directory {}: {}",
-                language_dir.display(),
-                err
-            ),
-        }
-
-        // Sort exercises by name for consistent selection
-        exercises.sort_by(|a, b| {
-            let a_name = a.file_name().unwrap_or_default().to_string_lossy();
-            let b_name = b.file_name().unwrap_or_default().to_string_lossy();
-            a_name.cmp(&b_name)
-        });
-
-        // Apply the limit if specified
-        if let Some(limit) = max_per_language {
-            if exercises.len() > limit {
-                println!(
-                    "Limiting {} exercises to {} for language {}",
-                    exercises.len(),
-                    limit,
-                    language
-                );
-                exercises.truncate(limit);
-            }
-        }
-
-        println!(
-            "Found {} exercises for language {}: {:?}",
-            exercises.len(),
-            language,
-            exercises
-                .iter()
-                .map(|p| p.file_name().unwrap_or_default().to_string_lossy())
-                .collect::<Vec<_>>()
-        );
-        all_exercises.extend(exercises);
-    }
-
-    Ok(all_exercises)
-}
--- a/crates/agent_eval/src/git_commands.rs
+++ b/crates/agent_eval/src/git_commands.rs
@@ -1,125 +0,0 @@
-use anyhow::{Result, anyhow};
-use serde::Deserialize;
-use std::{fs, path::Path};
-use tempfile::TempDir;
-use util::command::new_smol_command;
-use walkdir::WalkDir;
-
-#[derive(Debug, Deserialize)]
-pub struct SetupConfig {
-    #[serde(rename = "base.sha")]
-    pub base_sha: String,
-}
-
-#[derive(Debug, Deserialize)]
-pub struct RepoInfo {
-    pub remote_url: String,
-    pub head_sha: String,
-}
-
-pub async fn run_git(repo_path: &Path, args: &[&str]) -> Result<String> {
-    let output = new_smol_command("git")
-        .current_dir(repo_path)
-        .args(args)
-        .output()
-        .await?;
-
-    if output.status.success() {
-        Ok(String::from_utf8(output.stdout)?.trim().to_string())
-    } else {
-        Err(anyhow!(
-            "Git command failed: {} with status: {}",
-            args.join(" "),
-            output.status
-        ))
-    }
-}
-
-pub async fn read_base_sha(framework_path: &Path) -> Result<String> {
-    let setup_path = framework_path.join("setup.json");
-    let setup_content = smol::unblock(move || std::fs::read_to_string(&setup_path)).await?;
-    let setup_config: SetupConfig = serde_json_lenient::from_str_lenient(&setup_content)?;
-    Ok(setup_config.base_sha)
-}
-
-pub async fn read_repo_info(exercise_path: &Path) -> Result<RepoInfo> {
-    let repo_info_path = exercise_path.join(".meta").join("repo_info.json");
-    println!("Reading repo info from: {}", repo_info_path.display());
-    let repo_info_content = smol::unblock(move || std::fs::read_to_string(&repo_info_path)).await?;
-    let repo_info: RepoInfo = serde_json_lenient::from_str_lenient(&repo_info_content)?;
-
-    // Remove any quotes from the strings
-    let remote_url = repo_info.remote_url.trim_matches('"').to_string();
-    let head_sha = repo_info.head_sha.trim_matches('"').to_string();
-
-    Ok(RepoInfo {
-        remote_url,
-        head_sha,
-    })
-}
-
-pub async fn setup_temp_repo(exercise_path: &Path, _base_sha: &str) -> Result<TempDir> {
-    let temp_dir = TempDir::new()?;
-
-    // Check if this is an internal exercise by looking for repo_info.json
-    let repo_info_path = exercise_path.join(".meta").join("repo_info.json");
-    if repo_info_path.exists() {
-        // This is an internal exercise, handle it differently
-        let repo_info = read_repo_info(exercise_path).await?;
-
-        // Clone the repository to the temp directory
-        let url = repo_info.remote_url;
-        let clone_path = temp_dir.path();
-        println!(
-            "Cloning repository from {} to {}",
-            url,
-            clone_path.display()
-        );
-        run_git(
-            &std::env::current_dir()?,
-            &["clone", &url, &clone_path.to_string_lossy()],
-        )
-        .await?;
-
-        // Checkout the specified commit
-        println!("Checking out commit: {}", repo_info.head_sha);
-        run_git(temp_dir.path(), &["checkout", &repo_info.head_sha]).await?;
-
-        println!("Successfully set up internal repository");
-    } else {
-        // Original code for regular exercises
-        // Copy the exercise files to the temp directory, excluding .docs and .meta
-        for entry in WalkDir::new(exercise_path).min_depth(0).max_depth(10) {
-            let entry = entry?;
-            let source_path = entry.path();
-
-            // Skip .docs and .meta directories completely
-            if source_path.starts_with(exercise_path.join(".docs"))
-                || source_path.starts_with(exercise_path.join(".meta"))
-            {
-                continue;
-            }
-
-            if source_path.is_file() {
-                let relative_path = source_path.strip_prefix(exercise_path)?;
-                let dest_path = temp_dir.path().join(relative_path);
-
-                // Make sure parent directories exist
-                if let Some(parent) = dest_path.parent() {
-                    fs::create_dir_all(parent)?;
-                }
-
-                fs::copy(source_path, dest_path)?;
-            }
-        }
-
-        // Initialize git repo in the temp directory
-        run_git(temp_dir.path(), &["init"]).await?;
-        run_git(temp_dir.path(), &["add", "."]).await?;
-        run_git(temp_dir.path(), &["commit", "-m", "Initial commit"]).await?;
-
-        println!("Created temp repo without .docs and .meta directories");
-    }
-
-    Ok(temp_dir)
-}
--- a/crates/agent_eval/src/headless_assistant.rs
+++ b/crates/agent_eval/src/headless_assistant.rs
@@ -1,229 +0,0 @@
-use agent::{RequestKind, Thread, ThreadEvent, ThreadStore};
-use anyhow::anyhow;
-use assistant_tool::ToolWorkingSet;
-use client::{Client, UserStore};
-use collections::HashMap;
-use dap::DapRegistry;
-use gpui::{App, Entity, SemanticVersion, Subscription, Task, prelude::*};
-use language::LanguageRegistry;
-use language_model::{
-    AuthenticateError, LanguageModel, LanguageModelProviderId, LanguageModelRegistry,
-};
-use node_runtime::NodeRuntime;
-use project::{Project, RealFs};
-use prompt_store::PromptBuilder;
-use settings::SettingsStore;
-use smol::channel;
-use std::sync::Arc;
-
-/// Subset of `workspace::AppState` needed by `HeadlessAssistant`, with additional fields.
-pub struct HeadlessAppState {
-    pub languages: Arc<LanguageRegistry>,
-    pub client: Arc<Client>,
-    pub user_store: Entity<UserStore>,
-    pub fs: Arc<dyn fs::Fs>,
-    pub node_runtime: NodeRuntime,
-
-    // Additional fields not present in `workspace::AppState`.
-    pub prompt_builder: Arc<PromptBuilder>,
-}
-
-pub struct HeadlessAssistant {
-    pub thread: Entity<Thread>,
-    pub project: Entity<Project>,
-    #[allow(dead_code)]
-    pub thread_store: Entity<ThreadStore>,
-    pub tool_use_counts: HashMap<Arc<str>, u32>,
-    pub done_tx: channel::Sender<anyhow::Result<()>>,
-    _subscription: Subscription,
-}
-
-impl HeadlessAssistant {
-    pub fn new(
-        app_state: Arc<HeadlessAppState>,
-        cx: &mut App,
-    ) -> anyhow::Result<(Entity<Self>, channel::Receiver<anyhow::Result<()>>)> {
-        let env = None;
-        let project = Project::local(
-            app_state.client.clone(),
-            app_state.node_runtime.clone(),
-            app_state.user_store.clone(),
-            app_state.languages.clone(),
-            Arc::new(DapRegistry::default()),
-            app_state.fs.clone(),
-            env,
-            cx,
-        );
-
-        let tools = Arc::new(ToolWorkingSet::default());
-        let thread_store =
-            ThreadStore::new(project.clone(), tools, app_state.prompt_builder.clone(), cx)?;
-
-        let thread = thread_store.update(cx, |thread_store, cx| thread_store.create_thread(cx));
-
-        let (done_tx, done_rx) = channel::unbounded::<anyhow::Result<()>>();
-
-        let headless_thread = cx.new(move |cx| Self {
-            _subscription: cx.subscribe(&thread, Self::handle_thread_event),
-            thread,
-            project,
-            thread_store,
-            tool_use_counts: HashMap::default(),
-            done_tx,
-        });
-
-        Ok((headless_thread, done_rx))
-    }
-
-    fn handle_thread_event(
-        &mut self,
-        thread: Entity<Thread>,
-        event: &ThreadEvent,
-        cx: &mut Context<Self>,
-    ) {
-        match event {
-            ThreadEvent::ShowError(err) => self
-                .done_tx
-                .send_blocking(Err(anyhow!("{:?}", err)))
-                .unwrap(),
-            ThreadEvent::DoneStreaming => {
-                let thread = thread.read(cx);
-                if let Some(message) = thread.messages().last() {
-                    println!("Message: {}", message.to_string());
-                }
-                if thread.all_tools_finished() {
-                    self.done_tx.send_blocking(Ok(())).unwrap()
-                }
-            }
-            ThreadEvent::UsePendingTools { .. } => {}
-            ThreadEvent::ToolConfirmationNeeded => {
-                // Automatically approve all tools that need confirmation in headless mode
-                println!("Tool confirmation needed - automatically approving in headless mode");
-
-                // Get the tools needing confirmation
-                let tools_needing_confirmation: Vec<_> = thread
-                    .read(cx)
-                    .tools_needing_confirmation()
-                    .cloned()
-                    .collect();
-
-                // Run each tool that needs confirmation
-                for tool_use in tools_needing_confirmation {
-                    if let Some(tool) = thread.read(cx).tools().tool(&tool_use.name, cx) {
-                        thread.update(cx, |thread, cx| {
-                            println!("Auto-approving tool: {}", tool_use.name);
-
-                            // Create a request to send to the tool
-                            let request = thread.to_completion_request(RequestKind::Chat, cx);
-                            let messages = Arc::new(request.messages);
-
-                            // Run the tool
-                            thread.run_tool(
-                                tool_use.id.clone(),
-                                tool_use.ui_text.clone(),
-                                tool_use.input.clone(),
-                                &messages,
-                                tool,
-                                cx,
-                            );
-                        });
-                    }
-                }
-            }
-            ThreadEvent::ToolFinished {
-                tool_use_id,
-                pending_tool_use,
-                ..
-            } => {
-                if let Some(pending_tool_use) = pending_tool_use {
-                    println!(
-                        "Used tool {} with input: {}",
-                        pending_tool_use.name, pending_tool_use.input
-                    );
-                    *self
-                        .tool_use_counts
-                        .entry(pending_tool_use.name.clone())
-                        .or_insert(0) += 1;
-                }
-                if let Some(tool_result) = thread.read(cx).tool_result(tool_use_id) {
-                    println!("Tool result: {:?}", tool_result);
-                }
-            }
-            _ => {}
-        }
-    }
-}
-
-pub fn init(cx: &mut App) -> Arc<HeadlessAppState> {
-    release_channel::init(SemanticVersion::default(), cx);
-    gpui_tokio::init(cx);
-
-    let mut settings_store = SettingsStore::new(cx);
-    settings_store
-        .set_default_settings(settings::default_settings().as_ref(), cx)
-        .unwrap();
-    cx.set_global(settings_store);
-    client::init_settings(cx);
-    Project::init_settings(cx);
-
-    let client = Client::production(cx);
-    cx.set_http_client(client.http_client().clone());
-
-    let git_binary_path = None;
-    let fs = Arc::new(RealFs::new(
-        git_binary_path,
-        cx.background_executor().clone(),
-    ));
-
-    let languages = Arc::new(LanguageRegistry::new(cx.background_executor().clone()));
-
-    let user_store = cx.new(|cx| UserStore::new(client.clone(), cx));
-
-    language::init(cx);
-    language_model::init(client.clone(), cx);
-    language_models::init(user_store.clone(), client.clone(), fs.clone(), cx);
-    assistant_tools::init(client.http_client().clone(), cx);
-    context_server::init(cx);
-    let stdout_is_a_pty = false;
-    let prompt_builder = PromptBuilder::load(fs.clone(), stdout_is_a_pty, cx);
-    agent::init(fs.clone(), client.clone(), prompt_builder.clone(), cx);
-
-    Arc::new(HeadlessAppState {
-        languages,
-        client,
-        user_store,
-        fs,
-        node_runtime: NodeRuntime::unavailable(),
-        prompt_builder,
-    })
-}
-
-pub fn find_model(model_name: &str, cx: &App) -> anyhow::Result<Arc<dyn LanguageModel>> {
-    let model_registry = LanguageModelRegistry::read_global(cx);
-    let model = model_registry
-        .available_models(cx)
-        .find(|model| model.id().0 == model_name);
-
-    let Some(model) = model else {
-        return Err(anyhow!(
-            "No language model named {} was available. Available models: {}",
-            model_name,
-            model_registry
-                .available_models(cx)
-                .map(|model| model.id().0.clone())
-                .collect::<Vec<_>>()
-                .join(", ")
-        ));
-    };
-
-    Ok(model)
-}
-
-pub fn authenticate_model_provider(
-    provider_id: LanguageModelProviderId,
-    cx: &mut App,
-) -> Task<std::result::Result<(), AuthenticateError>> {
-    let model_registry = LanguageModelRegistry::read_global(cx);
-    let model_provider = model_registry.provider(&provider_id).unwrap();
-    model_provider.authenticate(cx)
-}
--- a/crates/agent_eval/src/main.rs
+++ b/crates/agent_eval/src/main.rs
@@ -1,205 +0,0 @@
-mod eval;
-mod get_exercise;
-mod git_commands;
-mod headless_assistant;
-
-use clap::Parser;
-use eval::{run_exercise_eval, save_eval_results};
-use futures::stream::{self, StreamExt};
-use get_exercise::{find_exercises, get_exercise_language, get_exercise_name};
-use git_commands::read_base_sha;
-use gpui::Application;
-use headless_assistant::{authenticate_model_provider, find_model};
-use language_model::LanguageModelRegistry;
-use reqwest_client::ReqwestClient;
-use std::{path::PathBuf, sync::Arc};
-
-#[derive(Parser, Debug)]
-#[command(
-    name = "agent_eval",
-    disable_version_flag = true,
-    before_help = "Tool eval runner"
-)]
-struct Args {
-    /// Match the names of evals to run.
-    #[arg(long)]
-    exercise_names: Vec<String>,
-    /// Runs all exercises, causes the exercise_names to be ignored.
-    #[arg(long)]
-    all: bool,
-    /// Supported language types to evaluate (default: internal).
-    /// Internal is data generated from the agent panel
-    #[arg(long, default_value = "internal")]
-    languages: String,
-    /// Name of the model (default: "claude-3-7-sonnet-latest")
-    #[arg(long, default_value = "claude-3-7-sonnet-latest")]
-    model_name: String,
-    /// Name of the editor model (default: value of `--model_name`).
-    #[arg(long)]
-    editor_model_name: Option<String>,
-    /// Number of evaluations to run concurrently (default: 3)
-    #[arg(short, long, default_value = "5")]
-    concurrency: usize,
-    /// Maximum number of exercises to evaluate per language
-    #[arg(long)]
-    max_exercises_per_language: Option<usize>,
-}
-
-fn main() {
-    env_logger::init();
-    let args = Args::parse();
-    let http_client = Arc::new(ReqwestClient::new());
-    let app = Application::headless().with_http_client(http_client.clone());
-
-    // Path to the zed-ace-framework repo
-    let framework_path = PathBuf::from("../zed-ace-framework")
-        .canonicalize()
-        .unwrap();
-
-    // Fix the 'languages' lifetime issue by creating owned Strings instead of slices
-    let languages: Vec<String> = args.languages.split(',').map(|s| s.to_string()).collect();
-
-    println!("Using zed-ace-framework at: {:?}", framework_path);
-    println!("Evaluating languages: {:?}", languages);
-
-    app.run(move |cx| {
-        let app_state = headless_assistant::init(cx);
-
-        let model = find_model(&args.model_name, cx).unwrap();
-        let editor_model = if let Some(model_name) = &args.editor_model_name {
-            find_model(model_name, cx).unwrap()
-        } else {
-            model.clone()
-        };
-
-        LanguageModelRegistry::global(cx).update(cx, |registry, cx| {
-            registry.set_default_model(Some(model.clone()), cx);
-        });
-
-        let model_provider_id = model.provider_id();
-        let editor_model_provider_id = editor_model.provider_id();
-
-        let framework_path_clone = framework_path.clone();
-        let languages_clone = languages.clone();
-        let exercise_names = args.exercise_names.clone();
-        let all_flag = args.all;
-
-        cx.spawn(async move |cx| {
-            // Authenticate all model providers first
-            cx.update(|cx| authenticate_model_provider(model_provider_id.clone(), cx))
-                .unwrap()
-                .await
-                .unwrap();
-            cx.update(|cx| authenticate_model_provider(editor_model_provider_id.clone(), cx))
-                .unwrap()
-                .await
-                .unwrap();
-
-            println!("framework path: {}", framework_path_clone.display());
-
-            let base_sha = read_base_sha(&framework_path_clone).await.unwrap();
-
-            println!("base sha: {}", base_sha);
-
-            let all_exercises = find_exercises(
-                &framework_path_clone,
-                &languages_clone
-                    .iter()
-                    .map(|s| s.as_str())
-                    .collect::<Vec<_>>(),
-                args.max_exercises_per_language,
-            )
-            .unwrap();
-            println!("Found {} exercises total", all_exercises.len());
-
-            // Filter exercises if specific ones were requested
-            let exercises_to_run = if !exercise_names.is_empty() {
-                // If exercise names are specified, filter by them regardless of --all flag
-                all_exercises
-                    .into_iter()
-                    .filter(|path| {
-                        let name = get_exercise_name(path);
-                        exercise_names.iter().any(|filter| name.contains(filter))
-                    })
-                    .collect()
-            } else if all_flag {
-                // Only use all_flag if no exercise names are specified
-                all_exercises
-            } else {
-                // Default behavior (no filters)
-                all_exercises
-            };
-
-            println!("Will run {} exercises", exercises_to_run.len());
-
-            // Create exercise eval tasks - each exercise is a single task that will run templates sequentially
-            let exercise_tasks: Vec<_> = exercises_to_run
-                .into_iter()
-                .map(|exercise_path| {
-                    let exercise_name = get_exercise_name(&exercise_path);
-                    let model_clone = model.clone();
-                    let app_state_clone = app_state.clone();
-                    let base_sha_clone = base_sha.clone();
-                    let framework_path_clone = framework_path_clone.clone();
-                    let cx_clone = cx.clone();
-
-                    async move {
-                        println!("Processing exercise: {}", exercise_name);
-                        let mut exercise_results = Vec::new();
-
-                        match run_exercise_eval(
-                            exercise_path.clone(),
-                            model_clone.clone(),
-                            app_state_clone.clone(),
-                            base_sha_clone.clone(),
-                            framework_path_clone.clone(),
-                            cx_clone.clone(),
-                        )
-                        .await
-                        {
-                            Ok(result) => {
-                                println!("Completed {}", exercise_name);
-                                exercise_results.push(result);
-                            }
-                            Err(err) => {
-                                println!("Error running {}: {}", exercise_name, err);
-                            }
-                        }
-
-                        // Save results for this exercise
-                        if !exercise_results.is_empty() {
-                            if let Err(err) =
-                                save_eval_results(&exercise_path, exercise_results.clone()).await
-                            {
-                                println!("Error saving results for {}: {}", exercise_name, err);
-                            } else {
-                                println!("Saved results for {}", exercise_name);
-                            }
-                        }
-
-                        exercise_results
-                    }
-                })
-                .collect();
-
-            println!(
-                "Running {} exercises with concurrency: {}",
-                exercise_tasks.len(),
-                args.concurrency
-            );
-
-            // Run exercises concurrently, with each exercise running its templates sequentially
-            let all_results = stream::iter(exercise_tasks)
-                .buffer_unordered(args.concurrency)
-                .flat_map(stream::iter)
-                .collect::<Vec<_>>()
-                .await;
-
-            println!("Completed {} evaluation runs", all_results.len());
-            cx.update(|cx| cx.quit()).unwrap();
-        })
-        .detach();
-    });
-
-    println!("Done running evals");
-}
--- a/crates/agent_rules/Cargo.toml
+++ b/crates/agent_rules/Cargo.toml
@@ -1,25 +0,0 @@
-[package]
-name = "agent_rules"
-version = "0.1.0"
-edition.workspace = true
-publish.workspace = true
-license = "GPL-3.0-or-later"
-
-[lints]
-workspace = true
-
-[lib]
-path = "src/agent_rules.rs"
-doctest = false
-
-[dependencies]
-anyhow.workspace = true
-fs.workspace = true
-gpui.workspace = true
-prompt_store.workspace = true
-util.workspace = true
-worktree.workspace = true
-workspace-hack = { version = "0.1", path = "../../tooling/workspace-hack" }
-
-[dev-dependencies]
-indoc.workspace = true
--- a/crates/agent_rules/LICENSE-GPL
+++ b/crates/agent_rules/LICENSE-GPL
@@ -1 +0,0 @@
-../../LICENSE-GPL
--- a/crates/agent_rules/src/agent_rules.rs
+++ b/crates/agent_rules/src/agent_rules.rs
@@ -1,51 +0,0 @@
-use std::sync::Arc;
-
-use anyhow::{Context as _, Result};
-use fs::Fs;
-use gpui::{App, AppContext, Task};
-use prompt_store::SystemPromptRulesFile;
-use util::maybe;
-use worktree::Worktree;
-
-const RULES_FILE_NAMES: [&'static str; 6] = [
-    ".rules",
-    ".cursorrules",
-    ".windsurfrules",
-    ".clinerules",
-    ".github/copilot-instructions.md",
-    "CLAUDE.md",
-];
-
-pub fn load_worktree_rules_file(
-    fs: Arc<dyn Fs>,
-    worktree: &Worktree,
-    cx: &App,
-) -> Option<Task<Result<SystemPromptRulesFile>>> {
-    let selected_rules_file = RULES_FILE_NAMES
-        .into_iter()
-        .filter_map(|name| {
-            worktree
-                .entry_for_path(name)
-                .filter(|entry| entry.is_file())
-                .map(|entry| (entry.path.clone(), worktree.absolutize(&entry.path)))
-        })
-        .next();
-
-    // Note that Cline supports `.clinerules` being a directory, but that is not currently
-    // supported. This doesn't seem to occur often in GitHub repositories.
-    selected_rules_file.map(|(path_in_worktree, abs_path)| {
-        let fs = fs.clone();
-        cx.background_spawn(maybe!(async move {
-            let abs_path = abs_path?;
-            let text = fs
-                .load(&abs_path)
-                .await
-                .with_context(|| format!("Failed to load assistant rules file {:?}", abs_path))?;
-            anyhow::Ok(SystemPromptRulesFile {
-                path_in_worktree,
-                abs_path: abs_path.into(),
-                text: text.trim().to_string(),
-            })
-        }))
-    })
-}
--- a/crates/anthropic/Cargo.toml
+++ b/crates/anthropic/Cargo.toml
@@ -25,5 +25,4 @@ serde.workspace = true
 serde_json.workspace = true
 strum.workspace = true
 thiserror.workspace = true
-util.workspace = true
 workspace-hack.workspace = true
--- a/crates/anthropic/src/anthropic.rs
+++ b/crates/anthropic/src/anthropic.rs
@@ -10,7 +10,6 @@ use http_client::{AsyncBody, HttpClient, Method, Request as HttpRequest};
 use serde::{Deserialize, Serialize};
 use strum::{EnumIter, EnumString};
 use thiserror::Error;
-use util::ResultExt as _;

 pub use supported_countries::*;

@@ -37,9 +36,9 @@ pub enum AnthropicModelMode {
 #[cfg_attr(feature = "schemars", derive(schemars::JsonSchema))]
 #[derive(Clone, Debug, Default, Serialize, Deserialize, PartialEq, EnumIter)]
 pub enum Model {
-    #[default]
    #[serde(rename = "claude-3-5-sonnet", alias = "claude-3-5-sonnet-latest")]
    Claude3_5Sonnet,
+    #[default]
    #[serde(rename = "claude-3-7-sonnet", alias = "claude-3-7-sonnet-latest")]
    Claude3_7Sonnet,
    #[serde(
@@ -363,11 +362,25 @@ pub struct RateLimitInfo {

 impl RateLimitInfo {
    fn from_headers(headers: &HeaderMap<HeaderValue>) -> Self {
+        // Check if any rate limit headers exist
+        let has_rate_limit_headers = headers
+            .keys()
+            .any(|k| k.as_str().starts_with("anthropic-ratelimit-"));
+
+        if !has_rate_limit_headers {
+            return Self {
+                requests: None,
+                tokens: None,
+                input_tokens: None,
+                output_tokens: None,
+            };
+        }
+
        Self {
-            requests: RateLimit::from_headers("requests", headers).log_err(),
-            tokens: RateLimit::from_headers("tokens", headers).log_err(),
-            input_tokens: RateLimit::from_headers("input-tokens", headers).log_err(),
-            output_tokens: RateLimit::from_headers("output-tokens", headers).log_err(),
+            requests: RateLimit::from_headers("requests", headers).ok(),
+            tokens: RateLimit::from_headers("tokens", headers).ok(),
+            input_tokens: RateLimit::from_headers("input-tokens", headers).ok(),
+            output_tokens: RateLimit::from_headers("output-tokens", headers).ok(),
        }
    }
 }
@@ -724,4 +737,54 @@ impl ApiError {
    pub fn is_rate_limit_error(&self) -> bool {
        matches!(self.error_type.as_str(), "rate_limit_error")
    }
+
+    pub fn match_window_exceeded(&self) -> Option<usize> {
+        let Some(ApiErrorCode::InvalidRequestError) = self.code() else {
+            return None;
+        };
+
+        parse_prompt_too_long(&self.message)
+    }
+}
+
+pub fn parse_prompt_too_long(message: &str) -> Option<usize> {
+    message
+        .strip_prefix("prompt is too long: ")?
+        .split_once(" tokens")?
+        .0
+        .parse::<usize>()
+        .ok()
+}
+
+#[test]
+fn test_match_window_exceeded() {
+    let error = ApiError {
+        error_type: "invalid_request_error".to_string(),
+        message: "prompt is too long: 220000 tokens > 200000".to_string(),
+    };
+    assert_eq!(error.match_window_exceeded(), Some(220_000));
+
+    let error = ApiError {
+        error_type: "invalid_request_error".to_string(),
+        message: "prompt is too long: 1234953 tokens".to_string(),
+    };
+    assert_eq!(error.match_window_exceeded(), Some(1234953));
+
+    let error = ApiError {
+        error_type: "invalid_request_error".to_string(),
+        message: "not a prompt length error".to_string(),
+    };
+    assert_eq!(error.match_window_exceeded(), None);
+
+    let error = ApiError {
+        error_type: "rate_limit_error".to_string(),
+        message: "prompt is too long: 12345 tokens".to_string(),
+    };
+    assert_eq!(error.match_window_exceeded(), None);
+
+    let error = ApiError {
+        error_type: "invalid_request_error".to_string(),
+        message: "prompt is too long: invalid tokens".to_string(),
+    };
+    assert_eq!(error.match_window_exceeded(), None);
 }
--- a/crates/assistant_settings/src/assistant_settings.rs
+++ b/crates/assistant_settings/src/assistant_settings.rs
@@ -69,7 +69,7 @@ pub enum AssistantProviderContentV1 {
    },
 }

-#[derive(Debug, Default)]
+#[derive(Clone, Debug, Default)]
 pub struct AssistantSettings {
    pub enabled: bool,
    pub button: bool,
@@ -742,7 +742,7 @@ mod tests {
                AssistantSettings::get_global(cx).default_model,
                LanguageModelSelection {
                    provider: "zed.dev".into(),
-                    model: "claude-3-5-sonnet-latest".into(),
+                    model: "claude-3-7-sonnet-latest".into(),
                }
            );
        });
--- a/crates/assistant_tool/src/action_log.rs
+++ b/crates/assistant_tool/src/action_log.rs
@@ -4,7 +4,7 @@ use collections::BTreeMap;
 use futures::{StreamExt, channel::mpsc};
 use gpui::{App, AppContext, AsyncApp, Context, Entity, Subscription, Task, WeakEntity};
 use language::{Anchor, Buffer, BufferEvent, DiskState, Point};
-use project::{Project, ProjectItem};
+use project::{Project, ProjectItem, lsp_store::OpenLspBufferHandle};
 use std::{cmp, ops::Range, sync::Arc};
 use text::{Edit, Patch, Rope};
 use util::RangeExt;
@@ -49,6 +49,10 @@ impl ActionLog {
            .tracked_buffers
            .entry(buffer.clone())
            .or_insert_with(|| {
+                let open_lsp_handle = self.project.update(cx, |project, cx| {
+                    project.register_buffer_with_language_servers(&buffer, cx)
+                });
+
                let text_snapshot = buffer.read(cx).text_snapshot();
                let diff = cx.new(|cx| BufferDiff::new(&text_snapshot, cx));
                let (diff_update_tx, diff_update_rx) = mpsc::unbounded();
@@ -76,6 +80,7 @@ impl ActionLog {
                    version: buffer.read(cx).version(),
                    diff,
                    diff_update: diff_update_tx,
+                    _open_lsp_handle: open_lsp_handle,
                    _maintain_diff: cx.spawn({
                        let buffer = buffer.clone();
                        async move |this, cx| {
@@ -235,7 +240,7 @@ impl ActionLog {
                    .await;

                diff.update(cx, |diff, cx| {
-                    diff.set_snapshot(diff_snapshot, &buffer_snapshot, None, cx)
+                    diff.set_snapshot(diff_snapshot, &buffer_snapshot, cx)
                })?;
            }
            this.update(cx, |this, cx| {
@@ -615,6 +620,7 @@ struct TrackedBuffer {
    diff: Entity<BufferDiff>,
    snapshot: text::BufferSnapshot,
    diff_update: mpsc::UnboundedSender<(ChangeAuthor, text::BufferSnapshot)>,
+    _open_lsp_handle: OpenLspBufferHandle,
    _maintain_diff: Task<()>,
    _subscription: Subscription,
 }
--- a/crates/assistant_tool/src/assistant_tool.rs
+++ b/crates/assistant_tool/src/assistant_tool.rs
@@ -1,5 +1,6 @@
 mod action_log;
 mod tool_registry;
+mod tool_schema;
 mod tool_working_set;

 use std::fmt;
@@ -16,12 +17,26 @@ use project::Project;

 pub use crate::action_log::*;
 pub use crate::tool_registry::*;
+pub use crate::tool_schema::*;
 pub use crate::tool_working_set::*;

 pub fn init(cx: &mut App) {
    ToolRegistry::default_global(cx);
 }

+/// The result of running a tool
+pub struct ToolResult {
+    /// The asynchronous task that will eventually resolve to the tool's output
+    pub output: Task<Result<String>>,
+}
+
+impl From<Task<Result<String>>> for ToolResult {
+    /// Convert from a task to a ToolResult
+    fn from(output: Task<Result<String>>) -> Self {
+        Self { output }
+    }
+}
+
 #[derive(Debug, PartialEq, Eq, PartialOrd, Ord, Hash, Clone)]
 pub enum ToolSource {
    /// A native tool built-in to Zed.
@@ -51,8 +66,8 @@ pub trait Tool: 'static + Send + Sync {
    fn needs_confirmation(&self, input: &serde_json::Value, cx: &App) -> bool;

    /// Returns the JSON schema that describes the tool's input.
-    fn input_schema(&self, _: LanguageModelToolSchemaFormat) -> serde_json::Value {
-        serde_json::Value::Object(serde_json::Map::default())
+    fn input_schema(&self, _: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
+        Ok(serde_json::Value::Object(serde_json::Map::default()))
    }

    /// Returns markdown to be displayed in the UI for this tool.
@@ -66,7 +81,7 @@ pub trait Tool: 'static + Send + Sync {
        project: Entity<Project>,
        action_log: Entity<ActionLog>,
        cx: &mut App,
-    ) -> Task<Result<String>>;
+    ) -> ToolResult;
 }

 impl Debug for dyn Tool {
--- a/crates/assistant_tool/src/tool_schema.rs
+++ b/crates/assistant_tool/src/tool_schema.rs
@@ -0,0 +1,236 @@
+use anyhow::Result;
+use serde_json::Value;
+
+use crate::LanguageModelToolSchemaFormat;
+
+/// Tries to adapt a JSON schema representation to be compatible with the specified format.
+///
+/// If the json cannot be made compatible with the specified format, an error is returned.
+pub fn adapt_schema_to_format(
+    json: &mut Value,
+    format: LanguageModelToolSchemaFormat,
+) -> Result<()> {
+    match format {
+        LanguageModelToolSchemaFormat::JsonSchema => Ok(()),
+        LanguageModelToolSchemaFormat::JsonSchemaSubset => adapt_to_json_schema_subset(json),
+    }
+}
+
+/// Tries to adapt the json schema so that it is compatible with https://ai.google.dev/api/caching#Schema
+fn adapt_to_json_schema_subset(json: &mut Value) -> Result<()> {
+    if let Value::Object(obj) = json {
+        const UNSUPPORTED_KEYS: [&str; 4] = ["if", "then", "else", "$ref"];
+
+        for key in UNSUPPORTED_KEYS {
+            if obj.contains_key(key) {
+                return Err(anyhow::anyhow!(
+                    "Schema cannot be made compatible because it contains \"{}\" ",
+                    key
+                ));
+            }
+        }
+
+        const KEYS_TO_REMOVE: [&str; 2] = ["format", "$schema"];
+        for key in KEYS_TO_REMOVE {
+            obj.remove(key);
+        }
+
+        if let Some(default) = obj.get("default") {
+            let is_null = default.is_null();
+            // Default is not supported, so we need to remove it
+            obj.remove("default");
+            if is_null {
+                obj.insert("nullable".to_string(), Value::Bool(true));
+            }
+        }
+
+        // If a type is not specified for an input parameter, add a default type
+        if obj.contains_key("description")
+            && !obj.contains_key("type")
+            && !(obj.contains_key("anyOf")
+                || obj.contains_key("oneOf")
+                || obj.contains_key("allOf"))
+        {
+            obj.insert("type".to_string(), Value::String("string".to_string()));
+        }
+
+        // Handle oneOf -> anyOf conversion
+        if let Some(subschemas) = obj.get_mut("oneOf") {
+            if subschemas.is_array() {
+                let subschemas_clone = subschemas.clone();
+                obj.remove("oneOf");
+                obj.insert("anyOf".to_string(), subschemas_clone);
+            }
+        }
+
+        // Recursively process all nested objects and arrays
+        for (_, value) in obj.iter_mut() {
+            if let Value::Object(_) | Value::Array(_) = value {
+                adapt_to_json_schema_subset(value)?;
+            }
+        }
+    } else if let Value::Array(arr) = json {
+        for item in arr.iter_mut() {
+            adapt_to_json_schema_subset(item)?;
+        }
+    }
+    Ok(())
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+    use serde_json::json;
+
+    #[test]
+    fn test_transform_default_null_to_nullable() {
+        let mut json = json!({
+            "description": "A test field",
+            "type": "string",
+            "default": null
+        });
+
+        adapt_to_json_schema_subset(&mut json).unwrap();
+
+        assert_eq!(
+            json,
+            json!({
+                "description": "A test field",
+                "type": "string",
+                "nullable": true
+            })
+        );
+    }
+
+    #[test]
+    fn test_transform_adds_type_when_missing() {
+        let mut json = json!({
+            "description": "A test field without type"
+        });
+
+        adapt_to_json_schema_subset(&mut json).unwrap();
+
+        assert_eq!(
+            json,
+            json!({
+                "description": "A test field without type",
+                "type": "string"
+            })
+        );
+    }
+
+    #[test]
+    fn test_transform_removes_format() {
+        let mut json = json!({
+            "description": "A test field",
+            "type": "integer",
+            "format": "uint32"
+        });
+
+        adapt_to_json_schema_subset(&mut json).unwrap();
+
+        assert_eq!(
+            json,
+            json!({
+                "description": "A test field",
+                "type": "integer"
+            })
+        );
+    }
+
+    #[test]
+    fn test_transform_one_of_to_any_of() {
+        let mut json = json!({
+            "description": "A test field",
+            "oneOf": [
+                { "type": "string" },
+                { "type": "integer" }
+            ]
+        });
+
+        adapt_to_json_schema_subset(&mut json).unwrap();
+
+        assert_eq!(
+            json,
+            json!({
+                "description": "A test field",
+                "anyOf": [
+                    { "type": "string" },
+                    { "type": "integer" }
+                ]
+            })
+        );
+    }
+
+    #[test]
+    fn test_transform_nested_objects() {
+        let mut json = json!({
+            "type": "object",
+            "properties": {
+                "nested": {
+                    "oneOf": [
+                        { "type": "string" },
+                        { "type": "null" }
+                    ],
+                    "format": "email"
+                }
+            }
+        });
+
+        adapt_to_json_schema_subset(&mut json).unwrap();
+
+        assert_eq!(
+            json,
+            json!({
+                "type": "object",
+                "properties": {
+                    "nested": {
+                        "anyOf": [
+                            { "type": "string" },
+                            { "type": "null" }
+                        ]
+                    }
+                }
+            })
+        );
+    }
+
+    #[test]
+    fn test_transform_fails_if_unsupported_keys_exist() {
+        let mut json = json!({
+            "type": "object",
+            "properties": {
+                "$ref": "#/definitions/User",
+            }
+        });
+
+        assert!(adapt_to_json_schema_subset(&mut json).is_err());
+
+        let mut json = json!({
+            "type": "object",
+            "properties": {
+                "if": "...",
+            }
+        });
+
+        assert!(adapt_to_json_schema_subset(&mut json).is_err());
+
+        let mut json = json!({
+            "type": "object",
+            "properties": {
+                "then": "...",
+            }
+        });
+
+        assert!(adapt_to_json_schema_subset(&mut json).is_err());
+
+        let mut json = json!({
+            "type": "object",
+            "properties": {
+                "else": "...",
+            }
+        });
+
+        assert!(adapt_to_json_schema_subset(&mut json).is_err());
+    }
+}
--- a/crates/assistant_tool/src/tool_working_set.rs
+++ b/crates/assistant_tool/src/tool_working_set.rs
@@ -1,8 +1,7 @@
 use std::sync::Arc;

 use collections::{HashMap, HashSet, IndexMap};
-use gpui::App;
-use parking_lot::Mutex;
+use gpui::{App, Context, EventEmitter};

 use crate::{Tool, ToolRegistry, ToolSource};

@@ -12,11 +11,6 @@ pub struct ToolId(usize);
 /// A working set of tools for use in one instance of the Assistant Panel.
 #[derive(Default)]
 pub struct ToolWorkingSet {
-    state: Mutex<WorkingSetState>,
-}
-
-#[derive(Default)]
-struct WorkingSetState {
    context_server_tools_by_id: HashMap<ToolId, Arc<dyn Tool>>,
    context_server_tools_by_name: HashMap<String, Arc<dyn Tool>>,
    enabled_sources: HashSet<ToolSource>,
@@ -24,99 +18,27 @@ struct WorkingSetState {
    next_tool_id: ToolId,
 }

+pub enum ToolWorkingSetEvent {
+    EnabledToolsChanged,
+}
+
+impl EventEmitter<ToolWorkingSetEvent> for ToolWorkingSet {}
+
 impl ToolWorkingSet {
    pub fn tool(&self, name: &str, cx: &App) -> Option<Arc<dyn Tool>> {
-        self.state
-            .lock()
-            .context_server_tools_by_name
+        self.context_server_tools_by_name
            .get(name)
            .cloned()
            .or_else(|| ToolRegistry::global(cx).tool(name))
    }

    pub fn tools(&self, cx: &App) -> Vec<Arc<dyn Tool>> {
-        self.state.lock().tools(cx)
-    }
-
-    pub fn tools_by_source(&self, cx: &App) -> IndexMap<ToolSource, Vec<Arc<dyn Tool>>> {
-        self.state.lock().tools_by_source(cx)
-    }
-
-    pub fn enabled_tools(&self, cx: &App) -> Vec<Arc<dyn Tool>> {
-        self.state.lock().enabled_tools(cx)
-    }
-
-    pub fn disable_all_tools(&self) {
-        let mut state = self.state.lock();
-        state.disable_all_tools();
-    }
-
-    pub fn enable_source(&self, source: ToolSource, cx: &App) {
-        let mut state = self.state.lock();
-        state.enable_source(source, cx);
-    }
-
-    pub fn disable_source(&self, source: &ToolSource) {
-        let mut state = self.state.lock();
-        state.disable_source(source);
-    }
-
-    pub fn insert(&self, tool: Arc<dyn Tool>) -> ToolId {
-        let mut state = self.state.lock();
-        let tool_id = state.next_tool_id;
-        state.next_tool_id.0 += 1;
-        state
-            .context_server_tools_by_id
-            .insert(tool_id, tool.clone());
-        state.tools_changed();
-        tool_id
-    }
-
-    pub fn is_enabled(&self, source: &ToolSource, name: &Arc<str>) -> bool {
-        self.state.lock().is_enabled(source, name)
-    }
-
-    pub fn is_disabled(&self, source: &ToolSource, name: &Arc<str>) -> bool {
-        self.state.lock().is_disabled(source, name)
-    }
-
-    pub fn enable(&self, source: ToolSource, tools_to_enable: &[Arc<str>]) {
-        let mut state = self.state.lock();
-        state.enable(source, tools_to_enable);
-    }
-
-    pub fn disable(&self, source: ToolSource, tools_to_disable: &[Arc<str>]) {
-        let mut state = self.state.lock();
-        state.disable(source, tools_to_disable);
-    }
-
-    pub fn remove(&self, tool_ids_to_remove: &[ToolId]) {
-        let mut state = self.state.lock();
-        state
-            .context_server_tools_by_id
-            .retain(|id, _| !tool_ids_to_remove.contains(id));
-        state.tools_changed();
-    }
-}
-
-impl WorkingSetState {
-    fn tools_changed(&mut self) {
-        self.context_server_tools_by_name.clear();
-        self.context_server_tools_by_name.extend(
-            self.context_server_tools_by_id
-                .values()
-                .map(|tool| (tool.name(), tool.clone())),
-        );
-    }
-
-    fn tools(&self, cx: &App) -> Vec<Arc<dyn Tool>> {
        let mut tools = ToolRegistry::global(cx).tools();
        tools.extend(self.context_server_tools_by_id.values().cloned());
-
        tools
    }

-    fn tools_by_source(&self, cx: &App) -> IndexMap<ToolSource, Vec<Arc<dyn Tool>>> {
+    pub fn tools_by_source(&self, cx: &App) -> IndexMap<ToolSource, Vec<Arc<dyn Tool>>> {
        let mut tools_by_source = IndexMap::default();

        for tool in self.tools(cx) {
@@ -135,7 +57,7 @@ impl WorkingSetState {
        tools_by_source
    }

-    fn enabled_tools(&self, cx: &App) -> Vec<Arc<dyn Tool>> {
+    pub fn enabled_tools(&self, cx: &App) -> Vec<Arc<dyn Tool>> {
        let all_tools = self.tools(cx);

        all_tools
@@ -144,31 +66,12 @@ impl WorkingSetState {
            .collect()
    }

-    fn is_enabled(&self, source: &ToolSource, name: &Arc<str>) -> bool {
-        self.enabled_tools_by_source
-            .get(source)
-            .map_or(false, |enabled_tools| enabled_tools.contains(name))
+    pub fn disable_all_tools(&mut self, cx: &mut Context<Self>) {
+        self.enabled_tools_by_source.clear();
+        cx.emit(ToolWorkingSetEvent::EnabledToolsChanged);
    }

-    fn is_disabled(&self, source: &ToolSource, name: &Arc<str>) -> bool {
-        !self.is_enabled(source, name)
-    }
-
-    fn enable(&mut self, source: ToolSource, tools_to_enable: &[Arc<str>]) {
-        self.enabled_tools_by_source
-            .entry(source)
-            .or_default()
-            .extend(tools_to_enable.into_iter().cloned());
-    }
-
-    fn disable(&mut self, source: ToolSource, tools_to_disable: &[Arc<str>]) {
-        self.enabled_tools_by_source
-            .entry(source)
-            .or_default()
-            .retain(|name| !tools_to_disable.contains(name));
-    }
-
-    fn enable_source(&mut self, source: ToolSource, cx: &App) {
+    pub fn enable_source(&mut self, source: ToolSource, cx: &mut Context<Self>) {
        self.enabled_sources.insert(source.clone());

        let tools_by_source = self.tools_by_source(cx);
@@ -181,14 +84,72 @@ impl WorkingSetState {
                    .collect::<HashSet<_>>(),
            );
        }
+        cx.emit(ToolWorkingSetEvent::EnabledToolsChanged);
    }

-    fn disable_source(&mut self, source: &ToolSource) {
+    pub fn disable_source(&mut self, source: &ToolSource, cx: &mut Context<Self>) {
        self.enabled_sources.remove(source);
        self.enabled_tools_by_source.remove(source);
+        cx.emit(ToolWorkingSetEvent::EnabledToolsChanged);
    }

-    fn disable_all_tools(&mut self) {
-        self.enabled_tools_by_source.clear();
+    pub fn insert(&mut self, tool: Arc<dyn Tool>) -> ToolId {
+        let tool_id = self.next_tool_id;
+        self.next_tool_id.0 += 1;
+        self.context_server_tools_by_id
+            .insert(tool_id, tool.clone());
+        self.tools_changed();
+        tool_id
+    }
+
+    pub fn is_enabled(&self, source: &ToolSource, name: &Arc<str>) -> bool {
+        self.enabled_tools_by_source
+            .get(source)
+            .map_or(false, |enabled_tools| enabled_tools.contains(name))
+    }
+
+    pub fn is_disabled(&self, source: &ToolSource, name: &Arc<str>) -> bool {
+        !self.is_enabled(source, name)
+    }
+
+    pub fn enable(
+        &mut self,
+        source: ToolSource,
+        tools_to_enable: &[Arc<str>],
+        cx: &mut Context<Self>,
+    ) {
+        self.enabled_tools_by_source
+            .entry(source)
+            .or_default()
+            .extend(tools_to_enable.into_iter().cloned());
+        cx.emit(ToolWorkingSetEvent::EnabledToolsChanged);
+    }
+
+    pub fn disable(
+        &mut self,
+        source: ToolSource,
+        tools_to_disable: &[Arc<str>],
+        cx: &mut Context<Self>,
+    ) {
+        self.enabled_tools_by_source
+            .entry(source)
+            .or_default()
+            .retain(|name| !tools_to_disable.contains(name));
+        cx.emit(ToolWorkingSetEvent::EnabledToolsChanged);
+    }
+
+    pub fn remove(&mut self, tool_ids_to_remove: &[ToolId]) {
+        self.context_server_tools_by_id
+            .retain(|id, _| !tool_ids_to_remove.contains(id));
+        self.tools_changed();
+    }
+
+    fn tools_changed(&mut self) {
+        self.context_server_tools_by_name.clear();
+        self.context_server_tools_by_name.extend(
+            self.context_server_tools_by_id
+                .values()
+                .map(|tool| (tool.name(), tool.clone())),
+        );
    }
 }
--- a/crates/assistant_tools/src/assistant_tools.rs
+++ b/crates/assistant_tools/src/assistant_tools.rs
@@ -1,6 +1,7 @@
 mod batch_tool;
 mod code_action_tool;
 mod code_symbols_tool;
+mod contents_tool;
 mod copy_path_tool;
 mod create_directory_tool;
 mod create_file_tool;
@@ -33,6 +34,7 @@ use move_path_tool::MovePathTool;
 use crate::batch_tool::BatchTool;
 use crate::code_action_tool::CodeActionTool;
 use crate::code_symbols_tool::CodeSymbolsTool;
+use crate::contents_tool::ContentsTool;
 use crate::create_directory_tool::CreateDirectoryTool;
 use crate::create_file_tool::CreateFileTool;
 use crate::delete_path_tool::DeletePathTool;
@@ -69,6 +71,7 @@ pub fn init(http_client: Arc<HttpClientWithUrl>, cx: &mut App) {
    registry.register_tool(NowTool);
    registry.register_tool(OpenTool);
    registry.register_tool(CodeSymbolsTool);
+    registry.register_tool(ContentsTool);
    registry.register_tool(PathSearchTool);
    registry.register_tool(ReadFileTool);
    registry.register_tool(RegexSearchTool);
@@ -76,3 +79,42 @@ pub fn init(http_client: Arc<HttpClientWithUrl>, cx: &mut App) {
    registry.register_tool(ThinkingTool);
    registry.register_tool(FetchTool::new(http_client));
 }
+
+#[cfg(test)]
+mod tests {
+    use http_client::FakeHttpClient;
+
+    use super::*;
+
+    #[gpui::test]
+    fn test_builtin_tool_schema_compatibility(cx: &mut App) {
+        crate::init(
+            Arc::new(http_client::HttpClientWithUrl::new(
+                FakeHttpClient::with_200_response(),
+                "https://zed.dev",
+                None,
+            )),
+            cx,
+        );
+
+        for tool in ToolRegistry::global(cx).tools() {
+            let actual_schema = tool
+                .input_schema(language_model::LanguageModelToolSchemaFormat::JsonSchemaSubset)
+                .unwrap();
+            let mut expected_schema = actual_schema.clone();
+            assistant_tool::adapt_schema_to_format(
+                &mut expected_schema,
+                language_model::LanguageModelToolSchemaFormat::JsonSchemaSubset,
+            )
+            .unwrap();
+
+            let error_message = format!(
+                "Tool schema for `{}` is not compatible with `language_model::LanguageModelToolSchemaFormat::JsonSchemaSubset` (Gemini Models).\n\
+                Are you using `schema::json_schema_for<T>(format)` to generate the schema?",
+                tool.name(),
+            );
+
+            assert_eq!(actual_schema, expected_schema, "{}", error_message)
+        }
+    }
+}
--- a/crates/assistant_tools/src/batch_tool.rs
+++ b/crates/assistant_tools/src/batch_tool.rs
@@ -1,6 +1,6 @@
 use crate::schema::json_schema_for;
 use anyhow::{Result, anyhow};
-use assistant_tool::{ActionLog, Tool, ToolWorkingSet};
+use assistant_tool::{ActionLog, Tool, ToolResult, ToolWorkingSet};
 use futures::future::join_all;
 use gpui::{App, AppContext, Entity, Task};
 use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
@@ -172,7 +172,7 @@ impl Tool for BatchTool {
        IconName::Cog
    }

-    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> serde_json::Value {
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
        json_schema_for::<BatchToolInput>(format)
    }

@@ -219,14 +219,14 @@ impl Tool for BatchTool {
        project: Entity<Project>,
        action_log: Entity<ActionLog>,
        cx: &mut App,
-    ) -> Task<Result<String>> {
+    ) -> ToolResult {
        let input = match serde_json::from_value::<BatchToolInput>(input) {
            Ok(input) => input,
-            Err(err) => return Task::ready(Err(anyhow!(err))),
+            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
        };

        if input.invocations.is_empty() {
-            return Task::ready(Err(anyhow!("No tool invocations provided")));
+            return Task::ready(Err(anyhow!("No tool invocations provided"))).into();
        }

        let run_tools_concurrently = input.run_tools_concurrently;
@@ -257,11 +257,11 @@ impl Tool for BatchTool {
                    let project = project.clone();
                    let action_log = action_log.clone();
                    let messages = messages.clone();
-                    let task = cx
+                    let tool_result = cx
                        .update(|cx| tool.run(invocation.input, &messages, project, action_log, cx))
                        .map_err(|err| anyhow!("Failed to start tool '{}': {}", tool_name, err))?;

-                    tasks.push(task);
+                    tasks.push(tool_result.output);
                }

                Ok((tasks, tool_names))
@@ -306,5 +306,6 @@ impl Tool for BatchTool {

            Ok(formatted_results.trim().to_string())
        })
+        .into()
    }
 }
--- a/crates/assistant_tools/src/code_action_tool.rs
+++ b/crates/assistant_tools/src/code_action_tool.rs
@@ -1,8 +1,8 @@
 use anyhow::{Context as _, Result, anyhow};
-use assistant_tool::{ActionLog, Tool};
+use assistant_tool::{ActionLog, Tool, ToolResult};
 use gpui::{App, Entity, Task};
 use language::{self, Anchor, Buffer, ToPointUtf16};
-use language_model::LanguageModelRequestMessage;
+use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
 use project::{self, LspAction, Project};
 use regex::Regex;
 use schemars::JsonSchema;
@@ -10,6 +10,8 @@ use serde::{Deserialize, Serialize};
 use std::{ops::Range, sync::Arc};
 use ui::IconName;

+use crate::schema::json_schema_for;
+
 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
 pub struct CodeActionToolInput {
    /// The relative path to the file containing the text range.
@@ -95,12 +97,8 @@ impl Tool for CodeActionTool {
        IconName::Wand
    }

-    fn input_schema(
-        &self,
-        _format: language_model::LanguageModelToolSchemaFormat,
-    ) -> serde_json::Value {
-        let schema = schemars::schema_for!(CodeActionToolInput);
-        serde_json::to_value(&schema).unwrap()
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
+        json_schema_for::<CodeActionToolInput>(format)
    }

    fn ui_text(&self, input: &serde_json::Value) -> String {
@@ -143,10 +141,10 @@ impl Tool for CodeActionTool {
        project: Entity<Project>,
        action_log: Entity<ActionLog>,
        cx: &mut App,
-    ) -> Task<Result<String>> {
+    ) -> ToolResult {
        let input = match serde_json::from_value::<CodeActionToolInput>(input) {
            Ok(input) => input,
-            Err(err) => return Task::ready(Err(anyhow!(err))),
+            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
        };

        cx.spawn(async move |cx| {
@@ -321,7 +319,7 @@ impl Tool for CodeActionTool {

                Ok(response)
            }
-        })
+        }).into()
    }
 }

--- a/crates/assistant_tools/src/code_symbols_tool.rs
+++ b/crates/assistant_tools/src/code_symbols_tool.rs
@@ -4,7 +4,7 @@ use std::sync::Arc;

 use crate::schema::json_schema_for;
 use anyhow::{Result, anyhow};
-use assistant_tool::{ActionLog, Tool};
+use assistant_tool::{ActionLog, Tool, ToolResult};
 use collections::IndexMap;
 use gpui::{App, AsyncApp, Entity, Task};
 use language::{OutlineItem, ParseStatus, Point};
@@ -91,7 +91,7 @@ impl Tool for CodeSymbolsTool {
        IconName::Code
    }

-    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> serde_json::Value {
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
        json_schema_for::<CodeSymbolsInput>(format)
    }

@@ -129,10 +129,10 @@ impl Tool for CodeSymbolsTool {
        project: Entity<Project>,
        action_log: Entity<ActionLog>,
        cx: &mut App,
-    ) -> Task<Result<String>> {
+    ) -> ToolResult {
        let input = match serde_json::from_value::<CodeSymbolsInput>(input) {
            Ok(input) => input,
-            Err(err) => return Task::ready(Err(anyhow!(err))),
+            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
        };

        let regex = match input.regex {
@@ -141,7 +141,7 @@ impl Tool for CodeSymbolsTool {
                .build()
            {
                Ok(regex) => Some(regex),
-                Err(err) => return Task::ready(Err(anyhow!("Invalid regex: {err}"))),
+                Err(err) => return Task::ready(Err(anyhow!("Invalid regex: {err}"))).into(),
            },
            None => None,
        };
@@ -150,6 +150,7 @@ impl Tool for CodeSymbolsTool {
            Some(path) => file_outline(project, path, action_log, regex, input.offset, cx).await,
            None => project_symbols(project, regex, input.offset, cx).await,
        })
+        .into()
    }
 }

@@ -179,11 +180,9 @@ pub async fn file_outline(

    // Wait until the buffer has been fully parsed, so that we can read its outline.
    let mut parse_status = buffer.read_with(cx, |buffer, _| buffer.parse_status())?;
-    while parse_status
-        .recv()
-        .await
-        .map_or(false, |status| status != ParseStatus::Idle)
-    {}
+    while *parse_status.borrow() != ParseStatus::Idle {
+        parse_status.changed().await?;
+    }

    let snapshot = buffer.read_with(cx, |buffer, _| buffer.snapshot())?;
    let Some(outline) = snapshot.outline(None) else {
--- a/crates/assistant_tools/src/contents_tool.rs
+++ b/crates/assistant_tools/src/contents_tool.rs
@@ -0,0 +1,239 @@
+use std::sync::Arc;
+
+use crate::{code_symbols_tool::file_outline, schema::json_schema_for};
+use anyhow::{Result, anyhow};
+use assistant_tool::{ActionLog, Tool, ToolResult};
+use gpui::{App, Entity, Task};
+use itertools::Itertools;
+use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
+use project::Project;
+use schemars::JsonSchema;
+use serde::{Deserialize, Serialize};
+use std::{fmt::Write, path::Path};
+use ui::IconName;
+use util::markdown::MarkdownString;
+
+/// If the model requests to read a file whose size exceeds this, then
+/// the tool will return the file's symbol outline instead of its contents,
+/// and suggest trying again using line ranges from the outline.
+const MAX_FILE_SIZE_TO_READ: usize = 16384;
+
+/// If the model requests to list the entries in a directory with more
+/// entries than this, then the tool will return a subset of the entries
+/// and suggest trying again.
+const MAX_DIR_ENTRIES: usize = 1024;
+
+#[derive(Debug, Serialize, Deserialize, JsonSchema)]
+pub struct ContentsToolInput {
+    /// The relative path of the file or directory to access.
+    ///
+    /// This path should never be absolute, and the first component
+    /// of the path should always be a root directory in a project.
+    ///
+    /// <example>
+    /// If the project has the following root directories:
+    ///
+    /// - directory1
+    /// - directory2
+    ///
+    /// If you want to access `file.txt` in `directory1`, you should use the path `directory1/file.txt`.
+    /// If you want to list contents in the directory `directory2/subfolder`, you should use the path `directory2/subfolder`.
+    /// </example>
+    pub path: String,
+
+    /// Optional position (1-based index) to start reading on, if you want to read a subset of the contents.
+    /// When reading a file, this refers to a line number in the file (e.g. 1 is the first line).
+    /// When reading a directory, this refers to the number of the directory entry (e.g. 1 is the first entry).
+    ///
+    /// Defaults to 1.
+    pub start: Option<u32>,
+
+    /// Optional position (1-based index) to end reading on, if you want to read a subset of the contents.
+    /// When reading a file, this refers to a line number in the file (e.g. 1 is the first line).
+    /// When reading a directory, this refers to the number of the directory entry (e.g. 1 is the first entry).
+    ///
+    /// Defaults to reading until the end of the file or directory.
+    pub end: Option<u32>,
+}
+
+pub struct ContentsTool;
+
+impl Tool for ContentsTool {
+    fn name(&self) -> String {
+        "contents".into()
+    }
+
+    fn needs_confirmation(&self, _: &serde_json::Value, _: &App) -> bool {
+        false
+    }
+
+    fn description(&self) -> String {
+        include_str!("./contents_tool/description.md").into()
+    }
+
+    fn icon(&self) -> IconName {
+        IconName::FileSearch
+    }
+
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
+        json_schema_for::<ContentsToolInput>(format)
+    }
+
+    fn ui_text(&self, input: &serde_json::Value) -> String {
+        match serde_json::from_value::<ContentsToolInput>(input.clone()) {
+            Ok(input) => {
+                let path = MarkdownString::inline_code(&input.path);
+
+                match (input.start, input.end) {
+                    (Some(start), None) => format!("Read {path} (from line {start})"),
+                    (Some(start), Some(end)) => {
+                        format!("Read {path} (lines {start}-{end})")
+                    }
+                    _ => format!("Read {path}"),
+                }
+            }
+            Err(_) => "Read file or directory".to_string(),
+        }
+    }
+
+    fn run(
+        self: Arc<Self>,
+        input: serde_json::Value,
+        _messages: &[LanguageModelRequestMessage],
+        project: Entity<Project>,
+        action_log: Entity<ActionLog>,
+        cx: &mut App,
+    ) -> ToolResult {
+        let input = match serde_json::from_value::<ContentsToolInput>(input) {
+            Ok(input) => input,
+            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
+        };
+
+        // Sometimes models will return these even though we tell it to give a path and not a glob.
+        // When this happens, just list the root worktree directories.
+        if matches!(input.path.as_str(), "." | "" | "./" | "*") {
+            let output = project
+                .read(cx)
+                .worktrees(cx)
+                .filter_map(|worktree| {
+                    worktree.read(cx).root_entry().and_then(|entry| {
+                        if entry.is_dir() {
+                            entry.path.to_str()
+                        } else {
+                            None
+                        }
+                    })
+                })
+                .collect::<Vec<_>>()
+                .join("\n");
+
+            return Task::ready(Ok(output)).into();
+        }
+
+        let Some(project_path) = project.read(cx).find_project_path(&input.path, cx) else {
+            return Task::ready(Err(anyhow!("Path {} not found in project", &input.path))).into();
+        };
+
+        let Some(worktree) = project
+            .read(cx)
+            .worktree_for_id(project_path.worktree_id, cx)
+        else {
+            return Task::ready(Err(anyhow!("Worktree not found"))).into();
+        };
+        let worktree = worktree.read(cx);
+
+        let Some(entry) = worktree.entry_for_path(&project_path.path) else {
+            return Task::ready(Err(anyhow!("Path not found: {}", input.path))).into();
+        };
+
+        // If it's a directory, list its contents
+        if entry.is_dir() {
+            let mut output = String::new();
+            let start_index = input
+                .start
+                .map(|line| (line as usize).saturating_sub(1))
+                .unwrap_or(0);
+            let end_index = input
+                .end
+                .map(|line| (line as usize).saturating_sub(1))
+                .unwrap_or(MAX_DIR_ENTRIES);
+            let mut skipped = 0;
+
+            for (index, entry) in worktree.child_entries(&project_path.path).enumerate() {
+                if index >= start_index && index <= end_index {
+                    writeln!(
+                        output,
+                        "{}",
+                        Path::new(worktree.root_name()).join(&entry.path).display(),
+                    )
+                    .unwrap();
+                } else {
+                    skipped += 1;
+                }
+            }
+
+            if output.is_empty() {
+                output.push_str(&input.path);
+                output.push_str(" is empty.");
+            }
+
+            if skipped > 0 {
+                write!(
+                    output,
+                    "\n\nNote: Skipped {skipped} entries. Adjust start and end to see other entries.",
+                ).ok();
+            }
+
+            Task::ready(Ok(output)).into()
+        } else {
+            // It's a file, so read its contents
+            let file_path = input.path.clone();
+            cx.spawn(async move |cx| {
+                let buffer = cx
+                    .update(|cx| {
+                        project.update(cx, |project, cx| project.open_buffer(project_path, cx))
+                    })?
+                    .await?;
+
+                if input.start.is_some() || input.end.is_some() {
+                    let result = buffer.read_with(cx, |buffer, _cx| {
+                        let text = buffer.text();
+                        let start = input.start.unwrap_or(1);
+                        let lines = text.split('\n').skip(start as usize - 1);
+                        if let Some(end) = input.end {
+                            let count = end.saturating_sub(start).max(1); // Ensure at least 1 line
+                            Itertools::intersperse(lines.take(count as usize), "\n").collect()
+                        } else {
+                            Itertools::intersperse(lines, "\n").collect()
+                        }
+                    })?;
+
+                    action_log.update(cx, |log, cx| {
+                        log.buffer_read(buffer, cx);
+                    })?;
+
+                    Ok(result)
+                } else {
+                    // No line ranges specified, so check file size to see if it's too big.
+                    let file_size = buffer.read_with(cx, |buffer, _cx| buffer.text().len())?;
+
+                    if file_size <= MAX_FILE_SIZE_TO_READ {
+                        let result = buffer.read_with(cx, |buffer, _cx| buffer.text())?;
+
+                        action_log.update(cx, |log, cx| {
+                            log.buffer_read(buffer, cx);
+                        })?;
+
+                        Ok(result)
+                    } else {
+                        // File is too big, so return its outline and a suggestion to
+                        // read again with a line number range specified.
+                        let outline = file_outline(project, file_path, action_log, None, 0, cx).await?;
+
+                        Ok(format!("This file was too big to read all at once. Here is an outline of its symbols:\n\n{outline}\n\nUsing the line numbers in this outline, you can call this tool again while specifying the start and end fields to see the implementations of symbols in the outline."))
+                    }
+                }
+            }).into()
+        }
+    }
+}
--- a/crates/assistant_tools/src/contents_tool/description.md
+++ b/crates/assistant_tools/src/contents_tool/description.md
@@ -0,0 +1,9 @@
+Reads the contents of a path on the filesystem.
+
+If the path is a directory, this lists all files and directories within that path.
+If the path is a file, this returns the file's contents.
+
+When reading a file, if the file is too big and no line range is specified, an outline of the file's code symbols is listed instead, which can be used to request specific line ranges in a subsequent call.
+
+Similarly, if a directory has too many entries to show at once, a subset of entries will be shown,
+and subsequent requests can use starting and ending line numbers to get other subsets.
--- a/crates/assistant_tools/src/copy_path_tool.rs
+++ b/crates/assistant_tools/src/copy_path_tool.rs
@@ -1,6 +1,6 @@
 use crate::schema::json_schema_for;
 use anyhow::{Result, anyhow};
-use assistant_tool::{ActionLog, Tool};
+use assistant_tool::{ActionLog, Tool, ToolResult};
 use gpui::{App, AppContext, Entity, Task};
 use language_model::LanguageModelRequestMessage;
 use language_model::LanguageModelToolSchemaFormat;
@@ -55,7 +55,7 @@ impl Tool for CopyPathTool {
        IconName::Clipboard
    }

-    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> serde_json::Value {
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
        json_schema_for::<CopyPathToolInput>(format)
    }

@@ -77,10 +77,10 @@ impl Tool for CopyPathTool {
        project: Entity<Project>,
        _action_log: Entity<ActionLog>,
        cx: &mut App,
-    ) -> Task<Result<String>> {
+    ) -> ToolResult {
        let input = match serde_json::from_value::<CopyPathToolInput>(input) {
            Ok(input) => input,
-            Err(err) => return Task::ready(Err(anyhow!(err))),
+            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
        };
        let copy_task = project.update(cx, |project, cx| {
            match project
@@ -117,5 +117,6 @@ impl Tool for CopyPathTool {
                )),
            }
        })
+        .into()
    }
 }
--- a/crates/assistant_tools/src/create_directory_tool.rs
+++ b/crates/assistant_tools/src/create_directory_tool.rs
@@ -1,6 +1,6 @@
 use crate::schema::json_schema_for;
 use anyhow::{Result, anyhow};
-use assistant_tool::{ActionLog, Tool};
+use assistant_tool::{ActionLog, Tool, ToolResult};
 use gpui::{App, Entity, Task};
 use language_model::LanguageModelRequestMessage;
 use language_model::LanguageModelToolSchemaFormat;
@@ -45,7 +45,7 @@ impl Tool for CreateDirectoryTool {
        IconName::Folder
    }

-    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> serde_json::Value {
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
        json_schema_for::<CreateDirectoryToolInput>(format)
    }

@@ -68,14 +68,16 @@ impl Tool for CreateDirectoryTool {
        project: Entity<Project>,
        _action_log: Entity<ActionLog>,
        cx: &mut App,
-    ) -> Task<Result<String>> {
+    ) -> ToolResult {
        let input = match serde_json::from_value::<CreateDirectoryToolInput>(input) {
            Ok(input) => input,
-            Err(err) => return Task::ready(Err(anyhow!(err))),
+            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
        };
        let project_path = match project.read(cx).find_project_path(&input.path, cx) {
            Some(project_path) => project_path,
-            None => return Task::ready(Err(anyhow!("Path to create was outside the project"))),
+            None => {
+                return Task::ready(Err(anyhow!("Path to create was outside the project"))).into();
+            }
        };
        let destination_path: Arc<str> = input.path.as_str().into();

@@ -89,5 +91,6 @@ impl Tool for CreateDirectoryTool {

            Ok(format!("Created directory {destination_path}"))
        })
+        .into()
    }
 }
--- a/crates/assistant_tools/src/create_file_tool.rs
+++ b/crates/assistant_tools/src/create_file_tool.rs
@@ -1,6 +1,6 @@
 use crate::schema::json_schema_for;
 use anyhow::{Result, anyhow};
-use assistant_tool::{ActionLog, Tool};
+use assistant_tool::{ActionLog, Tool, ToolResult};
 use gpui::{App, Entity, Task};
 use language_model::LanguageModelRequestMessage;
 use language_model::LanguageModelToolSchemaFormat;
@@ -52,7 +52,7 @@ impl Tool for CreateFileTool {
        IconName::FileCreate
    }

-    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> serde_json::Value {
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
        json_schema_for::<CreateFileToolInput>(format)
    }

@@ -73,14 +73,16 @@ impl Tool for CreateFileTool {
        project: Entity<Project>,
        action_log: Entity<ActionLog>,
        cx: &mut App,
-    ) -> Task<Result<String>> {
+    ) -> ToolResult {
        let input = match serde_json::from_value::<CreateFileToolInput>(input) {
            Ok(input) => input,
-            Err(err) => return Task::ready(Err(anyhow!(err))),
+            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
        };
        let project_path = match project.read(cx).find_project_path(&input.path, cx) {
            Some(project_path) => project_path,
-            None => return Task::ready(Err(anyhow!("Path to create was outside the project"))),
+            None => {
+                return Task::ready(Err(anyhow!("Path to create was outside the project"))).into();
+            }
        };
        let contents: Arc<str> = input.contents.as_str().into();
        let destination_path: Arc<str> = input.path.as_str().into();
@@ -106,5 +108,6 @@ impl Tool for CreateFileTool {

            Ok(format!("Created file {destination_path}"))
        })
+        .into()
    }
 }
--- a/crates/assistant_tools/src/delete_path_tool.rs
+++ b/crates/assistant_tools/src/delete_path_tool.rs
@@ -1,6 +1,6 @@
 use crate::schema::json_schema_for;
 use anyhow::{Result, anyhow};
-use assistant_tool::{ActionLog, Tool};
+use assistant_tool::{ActionLog, Tool, ToolResult};
 use futures::{SinkExt, StreamExt, channel::mpsc};
 use gpui::{App, AppContext, Entity, Task};
 use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
@@ -45,7 +45,7 @@ impl Tool for DeletePathTool {
        IconName::FileDelete
    }

-    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> serde_json::Value {
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
        json_schema_for::<DeletePathToolInput>(format)
    }

@@ -63,15 +63,16 @@ impl Tool for DeletePathTool {
        project: Entity<Project>,
        action_log: Entity<ActionLog>,
        cx: &mut App,
-    ) -> Task<Result<String>> {
+    ) -> ToolResult {
        let path_str = match serde_json::from_value::<DeletePathToolInput>(input) {
            Ok(input) => input.path,
-            Err(err) => return Task::ready(Err(anyhow!(err))),
+            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
        };
        let Some(project_path) = project.read(cx).find_project_path(&path_str, cx) else {
            return Task::ready(Err(anyhow!(
                "Couldn't delete {path_str} because that path isn't in this project."
-            )));
+            )))
+            .into();
        };

        let Some(worktree) = project
@@ -80,7 +81,8 @@ impl Tool for DeletePathTool {
        else {
            return Task::ready(Err(anyhow!(
                "Couldn't delete {path_str} because that path isn't in this project."
-            )));
+            )))
+            .into();
        };

        let worktree_snapshot = worktree.read(cx).snapshot();
@@ -132,5 +134,6 @@ impl Tool for DeletePathTool {
                )),
            }
        })
+        .into()
    }
 }
--- a/crates/assistant_tools/src/diagnostics_tool.rs
+++ b/crates/assistant_tools/src/diagnostics_tool.rs
@@ -1,6 +1,6 @@
 use crate::schema::json_schema_for;
 use anyhow::{Result, anyhow};
-use assistant_tool::{ActionLog, Tool};
+use assistant_tool::{ActionLog, Tool, ToolResult};
 use gpui::{App, Entity, Task};
 use language::{DiagnosticSeverity, OffsetRangeExt};
 use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
@@ -58,7 +58,7 @@ impl Tool for DiagnosticsTool {
        IconName::XCircle
    }

-    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> serde_json::Value {
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
        json_schema_for::<DiagnosticsToolInput>(format)
    }

@@ -83,14 +83,15 @@ impl Tool for DiagnosticsTool {
        project: Entity<Project>,
        action_log: Entity<ActionLog>,
        cx: &mut App,
-    ) -> Task<Result<String>> {
+    ) -> ToolResult {
        match serde_json::from_value::<DiagnosticsToolInput>(input)
            .ok()
            .and_then(|input| input.path)
        {
            Some(path) if !path.is_empty() => {
                let Some(project_path) = project.read(cx).find_project_path(&path, cx) else {
-                    return Task::ready(Err(anyhow!("Could not find path {path} in project",)));
+                    return Task::ready(Err(anyhow!("Could not find path {path} in project",)))
+                        .into();
                };

                let buffer =
@@ -125,6 +126,7 @@ impl Tool for DiagnosticsTool {
                        Ok(output)
                    }
                })
+                .into()
            }
            _ => {
                let project = project.read(cx);
@@ -155,9 +157,10 @@ impl Tool for DiagnosticsTool {
                });

                if has_diagnostics {
-                    Task::ready(Ok(output))
+                    Task::ready(Ok(output)).into()
                } else {
                    Task::ready(Ok("No errors or warnings found in the project.".to_string()))
+                        .into()
                }
            }
        }
--- a/crates/assistant_tools/src/fetch_tool.rs
+++ b/crates/assistant_tools/src/fetch_tool.rs
@@ -4,7 +4,7 @@ use std::sync::Arc;

 use crate::schema::json_schema_for;
 use anyhow::{Context as _, Result, anyhow, bail};
-use assistant_tool::{ActionLog, Tool};
+use assistant_tool::{ActionLog, Tool, ToolResult};
 use futures::AsyncReadExt as _;
 use gpui::{App, AppContext as _, Entity, Task};
 use html_to_markdown::{TagHandler, convert_html_to_markdown, markdown};
@@ -128,7 +128,7 @@ impl Tool for FetchTool {
        IconName::Globe
    }

-    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> serde_json::Value {
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
        json_schema_for::<FetchToolInput>(format)
    }

@@ -146,10 +146,10 @@ impl Tool for FetchTool {
        _project: Entity<Project>,
        _action_log: Entity<ActionLog>,
        cx: &mut App,
-    ) -> Task<Result<String>> {
+    ) -> ToolResult {
        let input = match serde_json::from_value::<FetchToolInput>(input) {
            Ok(input) => input,
-            Err(err) => return Task::ready(Err(anyhow!(err))),
+            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
        };

        let text = cx.background_spawn({
@@ -158,13 +158,15 @@ impl Tool for FetchTool {
            async move { Self::build_message(http_client, &url).await }
        });

-        cx.foreground_executor().spawn(async move {
-            let text = text.await?;
-            if text.trim().is_empty() {
-                bail!("no textual content found");
-            }
+        cx.foreground_executor()
+            .spawn(async move {
+                let text = text.await?;
+                if text.trim().is_empty() {
+                    bail!("no textual content found");
+                }

-            Ok(text)
-        })
+                Ok(text)
+            })
+            .into()
    }
 }
--- a/crates/assistant_tools/src/find_replace_file_tool.rs
+++ b/crates/assistant_tools/src/find_replace_file_tool.rs
@@ -1,6 +1,6 @@
 use crate::{replace::replace_with_flexible_indent, schema::json_schema_for};
 use anyhow::{Context as _, Result, anyhow};
-use assistant_tool::{ActionLog, Tool};
+use assistant_tool::{ActionLog, Tool, ToolResult};
 use gpui::{App, AppContext, AsyncApp, Entity, Task};
 use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
 use project::Project;
@@ -151,7 +151,7 @@ impl Tool for FindReplaceFileTool {
        IconName::Pencil
    }

-    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> serde_json::Value {
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
        json_schema_for::<FindReplaceFileToolInput>(format)
    }

@@ -169,10 +169,10 @@ impl Tool for FindReplaceFileTool {
        project: Entity<Project>,
        action_log: Entity<ActionLog>,
        cx: &mut App,
-    ) -> Task<Result<String>> {
+    ) -> ToolResult {
        let input = match serde_json::from_value::<FindReplaceFileToolInput>(input) {
            Ok(input) => input,
-            Err(err) => return Task::ready(Err(anyhow!(err))),
+            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
        };

        cx.spawn(async move |cx: &mut AsyncApp| {
@@ -263,6 +263,6 @@ impl Tool for FindReplaceFileTool {

            Ok(format!("Edited {}:\n\n```diff\n{}\n```", input.path.display(), diff_str))

-        })
+        }).into()
    }
 }
--- a/crates/assistant_tools/src/list_directory_tool.rs
+++ b/crates/assistant_tools/src/list_directory_tool.rs
@@ -1,6 +1,6 @@
 use crate::schema::json_schema_for;
 use anyhow::{Result, anyhow};
-use assistant_tool::{ActionLog, Tool};
+use assistant_tool::{ActionLog, Tool, ToolResult};
 use gpui::{App, Entity, Task};
 use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
 use project::Project;
@@ -56,7 +56,7 @@ impl Tool for ListDirectoryTool {
        IconName::Folder
    }

-    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> serde_json::Value {
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
        json_schema_for::<ListDirectoryToolInput>(format)
    }

@@ -77,10 +77,10 @@ impl Tool for ListDirectoryTool {
        project: Entity<Project>,
        _action_log: Entity<ActionLog>,
        cx: &mut App,
-    ) -> Task<Result<String>> {
+    ) -> ToolResult {
        let input = match serde_json::from_value::<ListDirectoryToolInput>(input) {
            Ok(input) => input,
-            Err(err) => return Task::ready(Err(anyhow!(err))),
+            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
        };

        // Sometimes models will return these even though we tell it to give a path and not a glob.
@@ -101,26 +101,26 @@ impl Tool for ListDirectoryTool {
                .collect::<Vec<_>>()
                .join("\n");

-            return Task::ready(Ok(output));
+            return Task::ready(Ok(output)).into();
        }

        let Some(project_path) = project.read(cx).find_project_path(&input.path, cx) else {
-            return Task::ready(Err(anyhow!("Path {} not found in project", input.path)));
+            return Task::ready(Err(anyhow!("Path {} not found in project", input.path))).into();
        };
        let Some(worktree) = project
            .read(cx)
            .worktree_for_id(project_path.worktree_id, cx)
        else {
-            return Task::ready(Err(anyhow!("Worktree not found")));
+            return Task::ready(Err(anyhow!("Worktree not found"))).into();
        };
        let worktree = worktree.read(cx);

        let Some(entry) = worktree.entry_for_path(&project_path.path) else {
-            return Task::ready(Err(anyhow!("Path not found: {}", input.path)));
+            return Task::ready(Err(anyhow!("Path not found: {}", input.path))).into();
        };

        if !entry.is_dir() {
-            return Task::ready(Err(anyhow!("{} is not a directory.", input.path)));
+            return Task::ready(Err(anyhow!("{} is not a directory.", input.path))).into();
        }

        let mut output = String::new();
@@ -133,8 +133,8 @@ impl Tool for ListDirectoryTool {
            .unwrap();
        }
        if output.is_empty() {
-            return Task::ready(Ok(format!("{} is empty.", input.path)));
+            return Task::ready(Ok(format!("{} is empty.", input.path))).into();
        }
-        Task::ready(Ok(output))
+        Task::ready(Ok(output)).into()
    }
 }
--- a/crates/assistant_tools/src/move_path_tool.rs
+++ b/crates/assistant_tools/src/move_path_tool.rs
@@ -1,6 +1,6 @@
 use crate::schema::json_schema_for;
 use anyhow::{Result, anyhow};
-use assistant_tool::{ActionLog, Tool};
+use assistant_tool::{ActionLog, Tool, ToolResult};
 use gpui::{App, AppContext, Entity, Task};
 use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
 use project::Project;
@@ -54,7 +54,7 @@ impl Tool for MovePathTool {
        IconName::ArrowRightLeft
    }

-    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> serde_json::Value {
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
        json_schema_for::<MovePathToolInput>(format)
    }

@@ -90,10 +90,10 @@ impl Tool for MovePathTool {
        project: Entity<Project>,
        _action_log: Entity<ActionLog>,
        cx: &mut App,
-    ) -> Task<Result<String>> {
+    ) -> ToolResult {
        let input = match serde_json::from_value::<MovePathToolInput>(input) {
            Ok(input) => input,
-            Err(err) => return Task::ready(Err(anyhow!(err))),
+            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
        };
        let rename_task = project.update(cx, |project, cx| {
            match project
@@ -128,5 +128,6 @@ impl Tool for MovePathTool {
                )),
            }
        })
+        .into()
    }
 }
--- a/crates/assistant_tools/src/now_tool.rs
+++ b/crates/assistant_tools/src/now_tool.rs
@@ -2,7 +2,7 @@ use std::sync::Arc;

 use crate::schema::json_schema_for;
 use anyhow::{Result, anyhow};
-use assistant_tool::{ActionLog, Tool};
+use assistant_tool::{ActionLog, Tool, ToolResult};
 use chrono::{Local, Utc};
 use gpui::{App, Entity, Task};
 use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
@@ -45,7 +45,7 @@ impl Tool for NowTool {
        IconName::Info
    }

-    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> serde_json::Value {
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
        json_schema_for::<NowToolInput>(format)
    }

@@ -60,10 +60,10 @@ impl Tool for NowTool {
        _project: Entity<Project>,
        _action_log: Entity<ActionLog>,
        _cx: &mut App,
-    ) -> Task<Result<String>> {
+    ) -> ToolResult {
        let input: NowToolInput = match serde_json::from_value(input) {
            Ok(input) => input,
-            Err(err) => return Task::ready(Err(anyhow!(err))),
+            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
        };

        let now = match input.timezone {
@@ -72,6 +72,6 @@ impl Tool for NowTool {
        };
        let text = format!("The current datetime is {now}.");

-        Task::ready(Ok(text))
+        Task::ready(Ok(text)).into()
    }
 }
--- a/crates/assistant_tools/src/open_tool.rs
+++ b/crates/assistant_tools/src/open_tool.rs
@@ -1,6 +1,6 @@
 use crate::schema::json_schema_for;
 use anyhow::{Context as _, Result, anyhow};
-use assistant_tool::{ActionLog, Tool};
+use assistant_tool::{ActionLog, Tool, ToolResult};
 use gpui::{App, AppContext, Entity, Task};
 use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
 use project::Project;
@@ -35,7 +35,7 @@ impl Tool for OpenTool {
        IconName::ArrowUpRight
    }

-    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> serde_json::Value {
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
        json_schema_for::<OpenToolInput>(format)
    }

@@ -53,10 +53,10 @@ impl Tool for OpenTool {
        _project: Entity<Project>,
        _action_log: Entity<ActionLog>,
        cx: &mut App,
-    ) -> Task<Result<String>> {
+    ) -> ToolResult {
        let input: OpenToolInput = match serde_json::from_value(input) {
            Ok(input) => input,
-            Err(err) => return Task::ready(Err(anyhow!(err))),
+            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
        };

        cx.background_spawn(async move {
@@ -64,5 +64,6 @@ impl Tool for OpenTool {

            Ok(format!("Successfully opened {}", input.path_or_url))
        })
+        .into()
    }
 }
--- a/crates/assistant_tools/src/path_search_tool.rs
+++ b/crates/assistant_tools/src/path_search_tool.rs
@@ -1,6 +1,6 @@
 use crate::schema::json_schema_for;
 use anyhow::{Result, anyhow};
-use assistant_tool::{ActionLog, Tool};
+use assistant_tool::{ActionLog, Tool, ToolResult};
 use gpui::{App, AppContext, Entity, Task};
 use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
 use project::Project;
@@ -53,7 +53,7 @@ impl Tool for PathSearchTool {
        IconName::SearchCode
    }

-    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> serde_json::Value {
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
        json_schema_for::<PathSearchToolInput>(format)
    }

@@ -71,10 +71,10 @@ impl Tool for PathSearchTool {
        project: Entity<Project>,
        _action_log: Entity<ActionLog>,
        cx: &mut App,
-    ) -> Task<Result<String>> {
+    ) -> ToolResult {
        let (offset, glob) = match serde_json::from_value::<PathSearchToolInput>(input) {
            Ok(input) => (input.offset, input.glob),
-            Err(err) => return Task::ready(Err(anyhow!(err))),
+            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
        };

        let path_matcher = match PathMatcher::new([
@@ -82,7 +82,7 @@ impl Tool for PathSearchTool {
            if glob.is_empty() { "*" } else { &glob },
        ]) {
            Ok(matcher) => matcher,
-            Err(err) => return Task::ready(Err(anyhow!("Invalid glob: {err}"))),
+            Err(err) => return Task::ready(Err(anyhow!("Invalid glob: {err}"))).into(),
        };
        let snapshots: Vec<Snapshot> = project
            .read(cx)
@@ -136,6 +136,6 @@ impl Tool for PathSearchTool {

                Ok(response)
            }
-        })
+        }).into()
    }
 }
--- a/crates/assistant_tools/src/read_file_tool.rs
+++ b/crates/assistant_tools/src/read_file_tool.rs
@@ -2,7 +2,7 @@ use std::sync::Arc;

 use crate::{code_symbols_tool::file_outline, schema::json_schema_for};
 use anyhow::{Result, anyhow};
-use assistant_tool::{ActionLog, Tool};
+use assistant_tool::{ActionLog, Tool, ToolResult};
 use gpui::{App, Entity, Task};
 use itertools::Itertools;
 use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
@@ -63,7 +63,7 @@ impl Tool for ReadFileTool {
        IconName::FileSearch
    }

-    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> serde_json::Value {
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
        json_schema_for::<ReadFileToolInput>(format)
    }

@@ -88,14 +88,14 @@ impl Tool for ReadFileTool {
        project: Entity<Project>,
        action_log: Entity<ActionLog>,
        cx: &mut App,
-    ) -> Task<Result<String>> {
+    ) -> ToolResult {
        let input = match serde_json::from_value::<ReadFileToolInput>(input) {
            Ok(input) => input,
-            Err(err) => return Task::ready(Err(anyhow!(err))),
+            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
        };

        let Some(project_path) = project.read(cx).find_project_path(&input.path, cx) else {
-            return Task::ready(Err(anyhow!("Path {} not found in project", &input.path,)));
+            return Task::ready(Err(anyhow!("Path {} not found in project", &input.path,))).into();
        };

        let file_path = input.path.clone();
@@ -146,6 +146,6 @@ impl Tool for ReadFileTool {
                    Ok(format!("This file was too big to read all at once. Here is an outline of its symbols:\n\n{outline}\n\nUsing the line numbers in this outline, you can call this tool again while specifying the start_line and end_line fields to see the implementations of symbols in the outline."))
                }
            }
-        })
+        }).into()
    }
 }
--- a/crates/assistant_tools/src/regex_search_tool.rs
+++ b/crates/assistant_tools/src/regex_search_tool.rs
@@ -1,6 +1,6 @@
 use crate::schema::json_schema_for;
 use anyhow::{Result, anyhow};
-use assistant_tool::{ActionLog, Tool};
+use assistant_tool::{ActionLog, Tool, ToolResult};
 use futures::StreamExt;
 use gpui::{App, Entity, Task};
 use language::OffsetRangeExt;
@@ -60,7 +60,7 @@ impl Tool for RegexSearchTool {
        IconName::Regex
    }

-    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> serde_json::Value {
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
        json_schema_for::<RegexSearchToolInput>(format)
    }

@@ -92,13 +92,13 @@ impl Tool for RegexSearchTool {
        project: Entity<Project>,
        _action_log: Entity<ActionLog>,
        cx: &mut App,
-    ) -> Task<Result<String>> {
+    ) -> ToolResult {
        const CONTEXT_LINES: u32 = 2;

        let (offset, regex, case_sensitive) =
            match serde_json::from_value::<RegexSearchToolInput>(input) {
                Ok(input) => (input.offset, input.regex, input.case_sensitive),
-                Err(err) => return Task::ready(Err(anyhow!(err))),
+                Err(err) => return Task::ready(Err(anyhow!(err))).into(),
            };

        let query = match SearchQuery::regex(
@@ -112,7 +112,7 @@ impl Tool for RegexSearchTool {
            None,
        ) {
            Ok(query) => query,
-            Err(error) => return Task::ready(Err(error)),
+            Err(error) => return Task::ready(Err(error)).into(),
        };

        let results = project.update(cx, |project, cx| project.search(query, cx));
@@ -201,6 +201,6 @@ impl Tool for RegexSearchTool {
            } else {
                Ok(format!("Found {matches_found} matches:\n{output}"))
            }
-        })
+        }).into()
    }
 }
--- a/crates/assistant_tools/src/rename_tool.rs
+++ b/crates/assistant_tools/src/rename_tool.rs
@@ -1,14 +1,16 @@
 use anyhow::{Context as _, Result, anyhow};
-use assistant_tool::{ActionLog, Tool};
+use assistant_tool::{ActionLog, Tool, ToolResult};
 use gpui::{App, Entity, Task};
 use language::{self, Buffer, ToPointUtf16};
-use language_model::LanguageModelRequestMessage;
+use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
 use std::sync::Arc;
 use ui::IconName;

+use crate::schema::json_schema_for;
+
 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
 pub struct RenameToolInput {
    /// The relative path to the file containing the symbol to rename.
@@ -66,12 +68,8 @@ impl Tool for RenameTool {
        IconName::Pencil
    }

-    fn input_schema(
-        &self,
-        _format: language_model::LanguageModelToolSchemaFormat,
-    ) -> serde_json::Value {
-        let schema = schemars::schema_for!(RenameToolInput);
-        serde_json::to_value(&schema).unwrap()
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
+        json_schema_for::<RenameToolInput>(format)
    }

    fn ui_text(&self, input: &serde_json::Value) -> String {
@@ -90,10 +88,10 @@ impl Tool for RenameTool {
        project: Entity<Project>,
        action_log: Entity<ActionLog>,
        cx: &mut App,
-    ) -> Task<Result<String>> {
+    ) -> ToolResult {
        let input = match serde_json::from_value::<RenameToolInput>(input) {
            Ok(input) => input,
-            Err(err) => return Task::ready(Err(anyhow!(err))),
+            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
        };

        cx.spawn(async move |cx| {
@@ -140,7 +138,7 @@ impl Tool for RenameTool {
            })?;

            Ok(format!("Renamed '{}' to '{}'", input.symbol, input.new_name))
-        })
+        }).into()
    }
 }

--- a/crates/assistant_tools/src/schema.rs
+++ b/crates/assistant_tools/src/schema.rs
@@ -5,23 +5,20 @@ use schemars::{
    schema::{RootSchema, Schema, SchemaObject},
 };

-pub fn json_schema_for<T: JsonSchema>(format: LanguageModelToolSchemaFormat) -> serde_json::Value {
+pub fn json_schema_for<T: JsonSchema>(
+    format: LanguageModelToolSchemaFormat,
+) -> Result<serde_json::Value> {
    let schema = root_schema_for::<T>(format);
-    schema_to_json(&schema, format).expect("Failed to convert tool calling schema to JSON")
+    schema_to_json(&schema, format)
 }

-pub fn schema_to_json(
+fn schema_to_json(
    schema: &RootSchema,
    format: LanguageModelToolSchemaFormat,
 ) -> Result<serde_json::Value> {
    let mut value = serde_json::to_value(schema)?;
-    match format {
-        LanguageModelToolSchemaFormat::JsonSchema => Ok(value),
-        LanguageModelToolSchemaFormat::JsonSchemaSubset => {
-            transform_fields_to_json_schema_subset(&mut value);
-            Ok(value)
-        }
-    }
+    assistant_tool::adapt_schema_to_format(&mut value, format)?;
+    Ok(value)
 }

 fn root_schema_for<T: JsonSchema>(format: LanguageModelToolSchemaFormat) -> RootSchema {
@@ -79,42 +76,3 @@ impl schemars::visit::Visitor for TransformToJsonSchemaSubsetVisitor {
        schemars::visit::visit_schema_object(self, schema)
    }
 }
-
-fn transform_fields_to_json_schema_subset(json: &mut serde_json::Value) {
-    if let serde_json::Value::Object(obj) = json {
-        if let Some(default) = obj.get("default") {
-            let is_null = default.is_null();
-            //Default is not supported, so we need to remove it.
-            obj.remove("default");
-            if is_null {
-                obj.insert("nullable".to_string(), serde_json::Value::Bool(true));
-            }
-        }
-
-        // If a type is not specified for an input parameter we need to add it.
-        if obj.contains_key("description")
-            && !obj.contains_key("type")
-            && !(obj.contains_key("anyOf")
-                || obj.contains_key("oneOf")
-                || obj.contains_key("allOf"))
-        {
-            obj.insert(
-                "type".to_string(),
-                serde_json::Value::String("string".to_string()),
-            );
-        }
-
-        //Format field is only partially supported (e.g. not uint compatibility)
-        obj.remove("format");
-
-        for (_, value) in obj.iter_mut() {
-            if let serde_json::Value::Object(_) | serde_json::Value::Array(_) = value {
-                transform_fields_to_json_schema_subset(value);
-            }
-        }
-    } else if let serde_json::Value::Array(arr) = json {
-        for item in arr.iter_mut() {
-            transform_fields_to_json_schema_subset(item);
-        }
-    }
-}
--- a/crates/assistant_tools/src/symbol_info_tool.rs
+++ b/crates/assistant_tools/src/symbol_info_tool.rs
@@ -1,5 +1,5 @@
 use anyhow::{Context as _, Result, anyhow};
-use assistant_tool::{ActionLog, Tool};
+use assistant_tool::{ActionLog, Tool, ToolResult};
 use gpui::{App, AsyncApp, Entity, Task};
 use language::{self, Anchor, Buffer, BufferSnapshot, Location, Point, ToPoint, ToPointUtf16};
 use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
@@ -84,7 +84,7 @@ impl Tool for SymbolInfoTool {
        IconName::Code
    }

-    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> serde_json::Value {
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
        json_schema_for::<SymbolInfoToolInput>(format)
    }

@@ -122,10 +122,10 @@ impl Tool for SymbolInfoTool {
        project: Entity<Project>,
        action_log: Entity<ActionLog>,
        cx: &mut App,
-    ) -> Task<Result<String>> {
+    ) -> ToolResult {
        let input = match serde_json::from_value::<SymbolInfoToolInput>(input) {
            Ok(input) => input,
-            Err(err) => return Task::ready(Err(anyhow!(err))),
+            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
        };

        cx.spawn(async move |cx| {
@@ -205,7 +205,7 @@ impl Tool for SymbolInfoTool {
            } else {
                Ok(output)
            }
-        })
+        }).into()
    }
 }

--- a/crates/assistant_tools/src/terminal_tool.rs
+++ b/crates/assistant_tools/src/terminal_tool.rs
@@ -1,6 +1,6 @@
 use crate::schema::json_schema_for;
 use anyhow::{Context as _, Result, anyhow};
-use assistant_tool::{ActionLog, Tool};
+use assistant_tool::{ActionLog, Tool, ToolResult};
 use futures::io::BufReader;
 use futures::{AsyncBufReadExt, AsyncReadExt, FutureExt};
 use gpui::{App, AppContext, Entity, Task};
@@ -44,7 +44,7 @@ impl Tool for TerminalTool {
        IconName::Terminal
    }

-    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> serde_json::Value {
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
        json_schema_for::<TerminalToolInput>(format)
    }

@@ -79,10 +79,10 @@ impl Tool for TerminalTool {
        project: Entity<Project>,
        _action_log: Entity<ActionLog>,
        cx: &mut App,
-    ) -> Task<Result<String>> {
+    ) -> ToolResult {
        let input: TerminalToolInput = match serde_json::from_value(input) {
            Ok(input) => input,
-            Err(err) => return Task::ready(Err(anyhow!(err))),
+            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
        };

        let project = project.read(cx);
@@ -93,13 +93,15 @@ impl Tool for TerminalTool {

            let only_worktree = match worktrees.next() {
                Some(worktree) => worktree,
-                None => return Task::ready(Err(anyhow!("No worktrees found in the project"))),
+                None => {
+                    return Task::ready(Err(anyhow!("No worktrees found in the project"))).into();
+                }
            };

            if worktrees.next().is_some() {
                return Task::ready(Err(anyhow!(
                    "'.' is ambiguous in multi-root workspaces. Please specify a root directory explicitly."
-                )));
+                ))).into();
            }

            only_worktree.read(cx).abs_path()
@@ -111,7 +113,8 @@ impl Tool for TerminalTool {
            {
                return Task::ready(Err(anyhow!(
                    "The absolute path must be within one of the project's worktrees"
-                )));
+                )))
+                .into();
            }

            input_path.into()
@@ -120,13 +123,15 @@ impl Tool for TerminalTool {
                return Task::ready(Err(anyhow!(
                    "`cd` directory {} not found in the project",
                    &input.cd
-                )));
+                )))
+                .into();
            };

            worktree.read(cx).abs_path()
        };

        cx.background_spawn(run_command_limited(working_dir, input.command))
+            .into()
    }
 }

--- a/crates/assistant_tools/src/thinking_tool.rs
+++ b/crates/assistant_tools/src/thinking_tool.rs
@@ -2,7 +2,7 @@ use std::sync::Arc;

 use crate::schema::json_schema_for;
 use anyhow::{Result, anyhow};
-use assistant_tool::{ActionLog, Tool};
+use assistant_tool::{ActionLog, Tool, ToolResult};
 use gpui::{App, Entity, Task};
 use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
 use project::Project;
@@ -36,7 +36,7 @@ impl Tool for ThinkingTool {
        IconName::LightBulb
    }

-    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> serde_json::Value {
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
        json_schema_for::<ThinkingToolInput>(format)
    }

@@ -51,11 +51,12 @@ impl Tool for ThinkingTool {
        _project: Entity<Project>,
        _action_log: Entity<ActionLog>,
        _cx: &mut App,
-    ) -> Task<Result<String>> {
+    ) -> ToolResult {
        // This tool just "thinks out loud" and doesn't perform any actions.
        Task::ready(match serde_json::from_value::<ThinkingToolInput>(input) {
            Ok(_input) => Ok("Finished thinking.".to_string()),
            Err(err) => Err(anyhow!(err)),
        })
+        .into()
    }
 }
--- a/crates/auto_update/Cargo.toml
+++ b/crates/auto_update/Cargo.toml
@@ -27,6 +27,8 @@ serde_json.workspace = true
 settings.workspace = true
 smol.workspace = true
 tempfile.workspace = true
-which.workspace = true
 workspace.workspace = true
 workspace-hack.workspace = true
+
+[target.'cfg(not(target_os = "windows"))'.dependencies]
+which.workspace = true
--- a/crates/auto_update/src/auto_update.rs
+++ b/crates/auto_update/src/auto_update.rs
@@ -23,7 +23,6 @@ use std::{
    sync::Arc,
    time::Duration,
 };
-use which::which;
 use workspace::Workspace;

 const SHOULD_SHOW_UPDATE_NOTIFICATION_KEY: &str = "auto-updater-should-show-updated-notification";
@@ -63,7 +62,7 @@ pub struct AutoUpdater {
    pending_poll: Option<Task<Option<()>>>,
 }

-#[derive(Deserialize)]
+#[derive(Deserialize, Debug)]
 pub struct JsonRelease {
    pub version: String,
    pub url: String,
@@ -237,6 +236,46 @@ pub fn view_release_notes(_: &ViewReleaseNotes, cx: &mut App) -> Option<()> {
    None
 }

+#[cfg(not(target_os = "windows"))]
+struct InstallerDir(tempfile::TempDir);
+
+#[cfg(not(target_os = "windows"))]
+impl InstallerDir {
+    async fn new() -> Result<Self> {
+        Ok(Self(
+            tempfile::Builder::new()
+                .prefix("zed-auto-update")
+                .tempdir()?,
+        ))
+    }
+
+    fn path(&self) -> &Path {
+        self.0.path()
+    }
+}
+
+#[cfg(target_os = "windows")]
+struct InstallerDir(PathBuf);
+
+#[cfg(target_os = "windows")]
+impl InstallerDir {
+    async fn new() -> Result<Self> {
+        let installer_dir = std::env::current_exe()?
+            .parent()
+            .context("No parent dir for Zed.exe")?
+            .join("updates");
+        if smol::fs::metadata(&installer_dir).await.is_ok() {
+            smol::fs::remove_dir_all(&installer_dir).await?;
+        }
+        smol::fs::create_dir(&installer_dir).await?;
+        Ok(Self(installer_dir))
+    }
+
+    fn path(&self) -> &Path {
+        self.0.as_path()
+    }
+}
+
 impl AutoUpdater {
    pub fn get(cx: &mut App) -> Option<Entity<Self>> {
        cx.default_global::<GlobalAutoUpdate>().0.clone()
@@ -469,22 +508,21 @@ impl AutoUpdater {
            cx.notify();
        })?;

-        let temp_dir = tempfile::Builder::new()
-            .prefix("zed-auto-update")
-            .tempdir()?;
-
+        let installer_dir = InstallerDir::new().await?;
        let filename = match OS {
            "macos" => Ok("Zed.dmg"),
            "linux" => Ok("zed.tar.gz"),
+            "windows" => Ok("ZedUpdateInstaller.exe"),
            _ => Err(anyhow!("not supported: {:?}", OS)),
        }?;

+        #[cfg(not(target_os = "windows"))]
        anyhow::ensure!(
-            which("rsync").is_ok(),
+            which::which("rsync").is_ok(),
            "Aborting. Could not find rsync which is required for auto-updates."
        );

-        let downloaded_asset = temp_dir.path().join(filename);
+        let downloaded_asset = installer_dir.path().join(filename);
        download_release(&downloaded_asset, release, client, &cx).await?;

        this.update(&mut cx, |this, cx| {
@@ -493,8 +531,9 @@ impl AutoUpdater {
        })?;

        let binary_path = match OS {
-            "macos" => install_release_macos(&temp_dir, downloaded_asset, &cx).await,
-            "linux" => install_release_linux(&temp_dir, downloaded_asset, &cx).await,
+            "macos" => install_release_macos(&installer_dir, downloaded_asset, &cx).await,
+            "linux" => install_release_linux(&installer_dir, downloaded_asset, &cx).await,
+            "windows" => install_release_windows(downloaded_asset).await,
            _ => Err(anyhow!("not supported: {:?}", OS)),
        }?;

@@ -629,7 +668,7 @@ async fn download_release(
 }

 async fn install_release_linux(
-    temp_dir: &tempfile::TempDir,
+    temp_dir: &InstallerDir,
    downloaded_tar_gz: PathBuf,
    cx: &AsyncApp,
 ) -> Result<PathBuf> {
@@ -696,7 +735,7 @@ async fn install_release_linux(
 }

 async fn install_release_macos(
-    temp_dir: &tempfile::TempDir,
+    temp_dir: &InstallerDir,
    downloaded_dmg: PathBuf,
    cx: &AsyncApp,
 ) -> Result<PathBuf> {
@@ -743,3 +782,41 @@ async fn install_release_macos(

    Ok(running_app_path)
 }
+
+async fn install_release_windows(downloaded_installer: PathBuf) -> Result<PathBuf> {
+    let output = Command::new(downloaded_installer)
+        .arg("/verysilent")
+        .arg("/update=true")
+        .arg("!desktopicon")
+        .arg("!quicklaunchicon")
+        .output()
+        .await?;
+    anyhow::ensure!(
+        output.status.success(),
+        "failed to start installer: {:?}",
+        String::from_utf8_lossy(&output.stderr)
+    );
+    Ok(std::env::current_exe()?)
+}
+
+pub fn check_pending_installation() -> bool {
+    let Some(installer_path) = std::env::current_exe()
+        .ok()
+        .and_then(|p| p.parent().map(|p| p.join("updates")))
+    else {
+        return false;
+    };
+
+    // The installer will create a flag file after it finishes updating
+    let flag_file = installer_path.join("versions.txt");
+    if flag_file.exists() {
+        if let Some(helper) = installer_path
+            .parent()
+            .map(|p| p.join("tools\\auto_update_helper.exe"))
+        {
+            let _ = std::process::Command::new(helper).spawn();
+            return true;
+        }
+    }
+    false
+}
--- a/crates/auto_update_helper/Cargo.toml
+++ b/crates/auto_update_helper/Cargo.toml
@@ -0,0 +1,29 @@
+[package]
+name = "auto_update_helper"
+version = "0.1.0"
+edition.workspace = true
+publish.workspace = true
+license = "GPL-3.0-or-later"
+
+[lints]
+workspace = true
+
+[[bin]]
+name = "auto_update_helper"
+path = "src/auto_update_helper.rs"
+doctest = false
+
+[dependencies]
+anyhow.workspace = true
+log.workspace = true
+simplelog.workspace = true
+workspace-hack.workspace = true
+
+[target.'cfg(target_os = "windows")'.dependencies]
+windows.workspace = true
+
+[target.'cfg(target_os = "windows")'.build-dependencies]
+winresource = "0.1"
+
+[package.metadata.docs.rs]
+targets = ["x86_64-pc-windows-msvc"]
--- a/crates/auto_update_helper/LICENSE-GPL
+++ b/crates/auto_update_helper/LICENSE-GPL
--- a/crates/eval/examples/find_and_replace_diff_card/rubric.md
+++ b/crates/eval/examples/find_and_replace_diff_card/rubric.md
--- a/crates/auto_update_helper/build.rs
+++ b/crates/auto_update_helper/build.rs
@@ -0,0 +1,15 @@
+fn main() {
+    #[cfg(target_os = "windows")]
+    {
+        println!("cargo:rerun-if-changed=manifest.xml");
+
+        let mut res = winresource::WindowsResource::new();
+        res.set_manifest_file("manifest.xml");
+        res.set_icon("app-icon.ico");
+
+        if let Err(e) = res.compile() {
+            eprintln!("{}", e);
+            std::process::exit(1);
+        }
+    }
+}
--- a/crates/auto_update_helper/manifest.xml
+++ b/crates/auto_update_helper/manifest.xml
@@ -0,0 +1,16 @@
+<assembly xmlns="urn:schemas-microsoft-com:asm.v1" manifestVersion="1.0" xmlns:asmv3="urn:schemas-microsoft-com:asm.v3">
+    <asmv3:application>
+        <asmv3:windowsSettings>
+            <dpiAware xmlns="http://schemas.microsoft.com/SMI/2005/WindowsSettings">true</dpiAware>
+            <dpiAwareness xmlns="http://schemas.microsoft.com/SMI/2016/WindowsSettings">PerMonitorV2</dpiAwareness>
+        </asmv3:windowsSettings>
+    </asmv3:application>
+    <dependency>
+        <dependentAssembly>
+            <assemblyIdentity type='win32'
+                name='Microsoft.Windows.Common-Controls'
+                version='6.0.0.0' processorArchitecture='*'
+                publicKeyToken='6595b64144ccf1df' />
+        </dependentAssembly>
+    </dependency>
+</assembly>
--- a/crates/auto_update_helper/src/auto_update_helper.rs
+++ b/crates/auto_update_helper/src/auto_update_helper.rs
@@ -0,0 +1,94 @@
+#![cfg_attr(not(debug_assertions), windows_subsystem = "windows")]
+
+#[cfg(target_os = "windows")]
+mod dialog;
+#[cfg(target_os = "windows")]
+mod updater;
+
+#[cfg(target_os = "windows")]
+fn main() {
+    if let Err(e) = windows_impl::run() {
+        log::error!("Error: Zed update failed, {:?}", e);
+        windows_impl::show_error(format!("Error: {:?}", e));
+    }
+}
+
+#[cfg(not(target_os = "windows"))]
+fn main() {}
+
+#[cfg(target_os = "windows")]
+mod windows_impl {
+    use std::path::Path;
+
+    use super::dialog::create_dialog_window;
+    use super::updater::perform_update;
+    use anyhow::{Context, Result};
+    use windows::{
+        Win32::{
+            Foundation::{HWND, LPARAM, WPARAM},
+            UI::WindowsAndMessaging::{
+                DispatchMessageW, GetMessageW, MB_ICONERROR, MB_SYSTEMMODAL, MSG, MessageBoxW,
+                PostMessageW, WM_USER,
+            },
+        },
+        core::HSTRING,
+    };
+
+    pub(crate) const WM_JOB_UPDATED: u32 = WM_USER + 1;
+    pub(crate) const WM_TERMINATE: u32 = WM_USER + 2;
+
+    pub(crate) fn run() -> Result<()> {
+        let helper_dir = std::env::current_exe()?
+            .parent()
+            .context("No parent directory")?
+            .to_path_buf();
+        init_log(&helper_dir)?;
+        let app_dir = helper_dir
+            .parent()
+            .context("No parent directory")?
+            .to_path_buf();
+
+        log::info!("======= Starting Zed update =======");
+        let (tx, rx) = std::sync::mpsc::channel();
+        let hwnd = create_dialog_window(rx)?.0 as isize;
+        std::thread::spawn(move || {
+            let result = perform_update(app_dir.as_path(), Some(hwnd));
+            tx.send(result).ok();
+            unsafe { PostMessageW(Some(HWND(hwnd as _)), WM_TERMINATE, WPARAM(0), LPARAM(0)) }.ok();
+        });
+        unsafe {
+            let mut message = MSG::default();
+            while GetMessageW(&mut message, None, 0, 0).as_bool() {
+                DispatchMessageW(&message);
+            }
+        }
+        Ok(())
+    }
+
+    fn init_log(helper_dir: &Path) -> Result<()> {
+        simplelog::WriteLogger::init(
+            simplelog::LevelFilter::Info,
+            simplelog::Config::default(),
+            std::fs::File::options()
+                .append(true)
+                .create(true)
+                .open(helper_dir.join("auto_update_helper.log"))?,
+        )?;
+        Ok(())
+    }
+
+    pub(crate) fn show_error(mut content: String) {
+        if content.len() > 600 {
+            content.truncate(600);
+            content.push_str("...\n");
+        }
+        let _ = unsafe {
+            MessageBoxW(
+                None,
+                &HSTRING::from(content),
+                windows::core::w!("Error: Zed update failed."),
+                MB_ICONERROR | MB_SYSTEMMODAL,
+            )
+        };
+    }
+}
--- a/crates/auto_update_helper/src/dialog.rs
+++ b/crates/auto_update_helper/src/dialog.rs
@@ -0,0 +1,236 @@
+use std::{cell::RefCell, sync::mpsc::Receiver};
+
+use anyhow::{Context as _, Result};
+use windows::{
+    Win32::{
+        Foundation::{HWND, LPARAM, LRESULT, RECT, WPARAM},
+        Graphics::Gdi::{
+            BeginPaint, CLEARTYPE_QUALITY, CLIP_DEFAULT_PRECIS, CreateFontW, DEFAULT_CHARSET,
+            DeleteObject, EndPaint, FW_NORMAL, LOGFONTW, OUT_TT_ONLY_PRECIS, PAINTSTRUCT,
+            ReleaseDC, SelectObject, TextOutW,
+        },
+        System::LibraryLoader::GetModuleHandleW,
+        UI::{
+            Controls::{PBM_SETRANGE, PBM_SETSTEP, PBM_STEPIT, PROGRESS_CLASS},
+            WindowsAndMessaging::{
+                CREATESTRUCTW, CS_HREDRAW, CS_VREDRAW, CreateWindowExW, DefWindowProcW,
+                GWLP_USERDATA, GetDesktopWindow, GetWindowLongPtrW, GetWindowRect, HICON,
+                IMAGE_ICON, LR_DEFAULTSIZE, LR_SHARED, LoadImageW, PostQuitMessage, RegisterClassW,
+                SPI_GETICONTITLELOGFONT, SYSTEM_PARAMETERS_INFO_UPDATE_FLAGS, SendMessageW,
+                SetWindowLongPtrW, SystemParametersInfoW, WINDOW_EX_STYLE, WM_CLOSE, WM_CREATE,
+                WM_DESTROY, WM_NCCREATE, WM_PAINT, WNDCLASSW, WS_CAPTION, WS_CHILD, WS_EX_TOPMOST,
+                WS_POPUP, WS_VISIBLE,
+            },
+        },
+    },
+    core::HSTRING,
+};
+
+use crate::{
+    updater::JOBS,
+    windows_impl::{WM_JOB_UPDATED, WM_TERMINATE, show_error},
+};
+
+#[repr(C)]
+#[derive(Debug)]
+struct DialogInfo {
+    rx: Receiver<Result<()>>,
+    progress_bar: isize,
+}
+
+pub(crate) fn create_dialog_window(receiver: Receiver<Result<()>>) -> Result<HWND> {
+    unsafe {
+        let class_name = windows::core::w!("Zed-Auto-Updater-Dialog-Class");
+        let module = GetModuleHandleW(None).context("unable to get module handle")?;
+        let handle = LoadImageW(
+            Some(module.into()),
+            windows::core::PCWSTR(1 as _),
+            IMAGE_ICON,
+            0,
+            0,
+            LR_DEFAULTSIZE | LR_SHARED,
+        )
+        .context("unable to load icon file")?;
+        let wc = WNDCLASSW {
+            lpfnWndProc: Some(wnd_proc),
+            lpszClassName: class_name,
+            style: CS_HREDRAW | CS_VREDRAW,
+            hIcon: HICON(handle.0),
+            ..Default::default()
+        };
+        RegisterClassW(&wc);
+        let mut rect = RECT::default();
+        GetWindowRect(GetDesktopWindow(), &mut rect)
+            .context("unable to get desktop window rect")?;
+        let width = 400;
+        let height = 150;
+        let info = Box::new(RefCell::new(DialogInfo {
+            rx: receiver,
+            progress_bar: 0,
+        }));
+
+        let hwnd = CreateWindowExW(
+            WS_EX_TOPMOST,
+            class_name,
+            windows::core::w!("Zed Editor"),
+            WS_VISIBLE | WS_POPUP | WS_CAPTION,
+            rect.right / 2 - width / 2,
+            rect.bottom / 2 - height / 2,
+            width,
+            height,
+            None,
+            None,
+            None,
+            Some(Box::into_raw(info) as _),
+        )
+        .context("unable to create dialog window")?;
+        Ok(hwnd)
+    }
+}
+
+macro_rules! return_if_failed {
+    ($e:expr) => {
+        match $e {
+            Ok(v) => v,
+            Err(e) => {
+                return LRESULT(e.code().0 as _);
+            }
+        }
+    };
+}
+
+macro_rules! make_lparam {
+    ($l:expr, $h:expr) => {
+        LPARAM(($l as u32 | ($h as u32) << 16) as isize)
+    };
+}
+
+unsafe extern "system" fn wnd_proc(
+    hwnd: HWND,
+    msg: u32,
+    wparam: WPARAM,
+    lparam: LPARAM,
+) -> LRESULT {
+    match msg {
+        WM_NCCREATE => unsafe {
+            let create_struct = lparam.0 as *const CREATESTRUCTW;
+            let info = (*create_struct).lpCreateParams as *mut RefCell<DialogInfo>;
+            let info = Box::from_raw(info);
+            SetWindowLongPtrW(hwnd, GWLP_USERDATA, Box::into_raw(info) as _);
+            DefWindowProcW(hwnd, msg, wparam, lparam)
+        },
+        WM_CREATE => unsafe {
+            // Create progress bar
+            let mut rect = RECT::default();
+            return_if_failed!(GetWindowRect(hwnd, &mut rect));
+            let progress_bar = return_if_failed!(CreateWindowExW(
+                WINDOW_EX_STYLE(0),
+                PROGRESS_CLASS,
+                None,
+                WS_CHILD | WS_VISIBLE,
+                20,
+                50,
+                340,
+                35,
+                Some(hwnd),
+                None,
+                None,
+                None,
+            ));
+            SendMessageW(
+                progress_bar,
+                PBM_SETRANGE,
+                None,
+                Some(make_lparam!(0, JOBS.len() * 10)),
+            );
+            SendMessageW(progress_bar, PBM_SETSTEP, Some(WPARAM(10)), None);
+            with_dialog_data(hwnd, |data| {
+                data.borrow_mut().progress_bar = progress_bar.0 as isize
+            });
+            LRESULT(0)
+        },
+        WM_PAINT => unsafe {
+            let mut ps = PAINTSTRUCT::default();
+            let hdc = BeginPaint(hwnd, &mut ps);
+
+            let font_name = get_system_ui_font_name();
+            let font = CreateFontW(
+                24,
+                0,
+                0,
+                0,
+                FW_NORMAL.0 as _,
+                0,
+                0,
+                0,
+                DEFAULT_CHARSET,
+                OUT_TT_ONLY_PRECIS,
+                CLIP_DEFAULT_PRECIS,
+                CLEARTYPE_QUALITY,
+                0,
+                &HSTRING::from(font_name),
+            );
+            let temp = SelectObject(hdc, font.into());
+            let string = HSTRING::from("Zed Editor is updating...");
+            return_if_failed!(TextOutW(hdc, 20, 15, &string).ok());
+            return_if_failed!(DeleteObject(temp).ok());
+
+            return_if_failed!(EndPaint(hwnd, &ps).ok());
+            ReleaseDC(Some(hwnd), hdc);
+
+            LRESULT(0)
+        },
+        WM_JOB_UPDATED => with_dialog_data(hwnd, |data| {
+            let progress_bar = data.borrow().progress_bar;
+            unsafe { SendMessageW(HWND(progress_bar as _), PBM_STEPIT, None, None) }
+        }),
+        WM_TERMINATE => {
+            with_dialog_data(hwnd, |data| {
+                if let Ok(result) = data.borrow_mut().rx.recv() {
+                    if let Err(e) = result {
+                        log::error!("Failed to update Zed: {:?}", e);
+                        show_error(format!("Error: {:?}", e));
+                    }
+                }
+            });
+            unsafe { PostQuitMessage(0) };
+            LRESULT(0)
+        }
+        WM_CLOSE => LRESULT(0), // Prevent user occasionally closing the window
+        WM_DESTROY => {
+            unsafe { PostQuitMessage(0) };
+            LRESULT(0)
+        }
+        _ => unsafe { DefWindowProcW(hwnd, msg, wparam, lparam) },
+    }
+}
+
+fn with_dialog_data<F, T>(hwnd: HWND, f: F) -> T
+where
+    F: FnOnce(&RefCell<DialogInfo>) -> T,
+{
+    let raw = unsafe { GetWindowLongPtrW(hwnd, GWLP_USERDATA) as *mut RefCell<DialogInfo> };
+    let data = unsafe { Box::from_raw(raw) };
+    let result = f(data.as_ref());
+    unsafe { SetWindowLongPtrW(hwnd, GWLP_USERDATA, Box::into_raw(data) as _) };
+    result
+}
+
+fn get_system_ui_font_name() -> String {
+    unsafe {
+        let mut info: LOGFONTW = std::mem::zeroed();
+        if SystemParametersInfoW(
+            SPI_GETICONTITLELOGFONT,
+            std::mem::size_of::<LOGFONTW>() as u32,
+            Some(&mut info as *mut _ as _),
+            SYSTEM_PARAMETERS_INFO_UPDATE_FLAGS(0),
+        )
+        .is_ok()
+        {
+            let font_name = String::from_utf16_lossy(&info.lfFaceName);
+            font_name.trim_matches(char::from(0)).to_owned()
+        } else {
+            "MS Shell Dlg".to_owned()
+        }
+    }
+}
--- a/crates/auto_update_helper/src/updater.rs
+++ b/crates/auto_update_helper/src/updater.rs
@@ -0,0 +1,171 @@
+use std::{
+    os::windows::process::CommandExt,
+    path::Path,
+    time::{Duration, Instant},
+};
+
+use anyhow::{Context, Result};
+use windows::Win32::{
+    Foundation::{HWND, LPARAM, WPARAM},
+    System::Threading::CREATE_NEW_PROCESS_GROUP,
+    UI::WindowsAndMessaging::PostMessageW,
+};
+
+use crate::windows_impl::WM_JOB_UPDATED;
+
+type Job = fn(&Path) -> Result<()>;
+
+#[cfg(not(test))]
+pub(crate) const JOBS: [Job; 6] = [
+    // Delete old files
+    |app_dir| {
+        let zed_executable = app_dir.join("Zed.exe");
+        log::info!("Removing old file: {}", zed_executable.display());
+        std::fs::remove_file(&zed_executable).context(format!(
+            "Failed to remove old file {}",
+            zed_executable.display()
+        ))
+    },
+    |app_dir| {
+        let zed_cli = app_dir.join("bin\\zed.exe");
+        log::info!("Removing old file: {}", zed_cli.display());
+        std::fs::remove_file(&zed_cli)
+            .context(format!("Failed to remove old file {}", zed_cli.display()))
+    },
+    // Copy new files
+    |app_dir| {
+        let zed_executable_source = app_dir.join("install\\Zed.exe");
+        let zed_executable_dest = app_dir.join("Zed.exe");
+        log::info!(
+            "Copying new file {} to {}",
+            zed_executable_source.display(),
+            zed_executable_dest.display()
+        );
+        std::fs::copy(&zed_executable_source, &zed_executable_dest)
+            .map(|_| ())
+            .context(format!(
+                "Failed to copy new file {} to {}",
+                zed_executable_source.display(),
+                zed_executable_dest.display()
+            ))
+    },
+    |app_dir| {
+        let zed_cli_source = app_dir.join("install\\bin\\zed.exe");
+        let zed_cli_dest = app_dir.join("bin\\zed.exe");
+        log::info!(
+            "Copying new file {} to {}",
+            zed_cli_source.display(),
+            zed_cli_dest.display()
+        );
+        std::fs::copy(&zed_cli_source, &zed_cli_dest)
+            .map(|_| ())
+            .context(format!(
+                "Failed to copy new file {} to {}",
+                zed_cli_source.display(),
+                zed_cli_dest.display()
+            ))
+    },
+    // Clean up installer folder and updates folder
+    |app_dir| {
+        let updates_folder = app_dir.join("updates");
+        log::info!("Cleaning up: {}", updates_folder.display());
+        std::fs::remove_dir_all(&updates_folder).context(format!(
+            "Failed to remove updates folder {}",
+            updates_folder.display()
+        ))
+    },
+    |app_dir| {
+        let installer_folder = app_dir.join("install");
+        log::info!("Cleaning up: {}", installer_folder.display());
+        std::fs::remove_dir_all(&installer_folder).context(format!(
+            "Failed to remove installer folder {}",
+            installer_folder.display()
+        ))
+    },
+];
+
+#[cfg(test)]
+pub(crate) const JOBS: [Job; 2] = [
+    |_| {
+        std::thread::sleep(Duration::from_millis(1000));
+        if let Ok(config) = std::env::var("ZED_AUTO_UPDATE") {
+            match config.as_str() {
+                "err" => Err(std::io::Error::new(
+                    std::io::ErrorKind::Other,
+                    "Simulated error",
+                ))
+                .context("Anyhow!"),
+                _ => panic!("Unknown ZED_AUTO_UPDATE value: {}", config),
+            }
+        } else {
+            Ok(())
+        }
+    },
+    |_| {
+        std::thread::sleep(Duration::from_millis(1000));
+        if let Ok(config) = std::env::var("ZED_AUTO_UPDATE") {
+            match config.as_str() {
+                "err" => Err(std::io::Error::new(
+                    std::io::ErrorKind::Other,
+                    "Simulated error",
+                ))
+                .context("Anyhow!"),
+                _ => panic!("Unknown ZED_AUTO_UPDATE value: {}", config),
+            }
+        } else {
+            Ok(())
+        }
+    },
+];
+
+pub(crate) fn perform_update(app_dir: &Path, hwnd: Option<isize>) -> Result<()> {
+    let hwnd = hwnd.map(|ptr| HWND(ptr as _));
+
+    for job in JOBS.iter() {
+        let start = Instant::now();
+        loop {
+            if start.elapsed().as_secs() > 2 {
+                return Err(anyhow::anyhow!("Timed out"));
+            }
+            match (*job)(app_dir) {
+                Ok(_) => {
+                    unsafe { PostMessageW(hwnd, WM_JOB_UPDATED, WPARAM(0), LPARAM(0))? };
+                    break;
+                }
+                Err(err) => {
+                    // Check if it's a "not found" error
+                    let io_err = err.downcast_ref::<std::io::Error>().unwrap();
+                    if io_err.kind() == std::io::ErrorKind::NotFound {
+                        log::warn!("File or folder not found.");
+                        unsafe { PostMessageW(hwnd, WM_JOB_UPDATED, WPARAM(0), LPARAM(0))? };
+                        break;
+                    }
+
+                    log::error!("Operation failed: {}", err);
+                    std::thread::sleep(Duration::from_millis(50));
+                }
+            }
+        }
+    }
+    let _ = std::process::Command::new(app_dir.join("Zed.exe"))
+        .creation_flags(CREATE_NEW_PROCESS_GROUP.0)
+        .spawn();
+    log::info!("Update completed successfully");
+    Ok(())
+}
+
+#[cfg(test)]
+mod test {
+    use super::perform_update;
+
+    #[test]
+    fn test_perform_update() {
+        let app_dir = std::path::Path::new("C:/");
+        assert!(perform_update(app_dir, None).is_ok());
+
+        // Simulate a timeout
+        unsafe { std::env::set_var("ZED_AUTO_UPDATE", "err") };
+        let ret = perform_update(app_dir, None);
+        assert!(ret.is_err_and(|e| e.to_string().as_str() == "Timed out"));
+    }
+}
--- a/crates/buffer_diff/src/buffer_diff.rs
+++ b/crates/buffer_diff/src/buffer_diff.rs
@@ -1,13 +1,21 @@
 use futures::channel::oneshot;
 use git2::{DiffLineType as GitDiffLineType, DiffOptions as GitOptions, Patch as GitPatch};
-use gpui::{App, AppContext as _, AsyncApp, Context, Entity, EventEmitter, Task};
+use gpui::{App, AppContext as _, AsyncApp, Context, Entity, EventEmitter, Task, TaskLabel};
 use language::{Language, LanguageRegistry};
 use rope::Rope;
-use std::{cmp::Ordering, future::Future, iter, mem, ops::Range, sync::Arc};
+use std::{
+    cmp::Ordering,
+    future::Future,
+    iter,
+    ops::Range,
+    sync::{Arc, LazyLock},
+};
 use sum_tree::SumTree;
 use text::{Anchor, Bias, BufferId, OffsetRangeExt, Point, ToOffset as _};
 use util::ResultExt;

+pub static CALCULATE_DIFF_TASK: LazyLock<TaskLabel> = LazyLock::new(TaskLabel::new);
+
 pub struct BufferDiff {
    pub buffer_id: BufferId,
    inner: BufferDiffInner,
@@ -181,10 +189,12 @@ impl BufferDiffSnapshot {
            base_text_exists = false;
        };

-        let hunks = cx.background_spawn({
-            let buffer = buffer.clone();
-            async move { compute_hunks(base_text_pair, buffer) }
-        });
+        let hunks = cx
+            .background_executor()
+            .spawn_labeled(*CALCULATE_DIFF_TASK, {
+                let buffer = buffer.clone();
+                async move { compute_hunks(base_text_pair, buffer) }
+            });

        async move {
            let (base_text, hunks) = futures::join!(base_text_snapshot, hunks);
@@ -208,17 +218,18 @@ impl BufferDiffSnapshot {
    ) -> impl Future<Output = Self> + use<> {
        let base_text_exists = base_text.is_some();
        let base_text_pair = base_text.map(|text| (text, base_text_snapshot.as_rope().clone()));
-        cx.background_spawn(async move {
-            Self {
-                inner: BufferDiffInner {
-                    base_text: base_text_snapshot,
-                    pending_hunks: SumTree::new(&buffer),
-                    hunks: compute_hunks(base_text_pair, buffer),
-                    base_text_exists,
-                },
-                secondary_diff: None,
-            }
-        })
+        cx.background_executor()
+            .spawn_labeled(*CALCULATE_DIFF_TASK, async move {
+                Self {
+                    inner: BufferDiffInner {
+                        base_text: base_text_snapshot,
+                        pending_hunks: SumTree::new(&buffer),
+                        hunks: compute_hunks(base_text_pair, buffer),
+                        base_text_exists,
+                    },
+                    secondary_diff: None,
+                }
+            })
    }

    #[cfg(test)]
@@ -381,6 +392,7 @@ impl BufferDiffInner {
        while let Some(PendingHunk {
            buffer_range,
            diff_base_byte_range,
+            new_status,
            ..
        }) = pending_hunks_iter.next()
        {
@@ -439,16 +451,23 @@ impl BufferDiffInner {
            let index_end = prev_unstaged_hunk_base_text_end + end_overshoot;
            let index_byte_range = index_start..index_end;

-            let replacement_text = if stage {
-                log::debug!("stage hunk {:?}", buffer_offset_range);
-                buffer
-                    .text_for_range(buffer_offset_range)
-                    .collect::<String>()
-            } else {
-                log::debug!("unstage hunk {:?}", buffer_offset_range);
-                head_text
-                    .chunks_in_range(diff_base_byte_range.clone())
-                    .collect::<String>()
+            let replacement_text = match new_status {
+                DiffHunkSecondaryStatus::SecondaryHunkRemovalPending => {
+                    log::debug!("staging hunk {:?}", buffer_offset_range);
+                    buffer
+                        .text_for_range(buffer_offset_range)
+                        .collect::<String>()
+                }
+                DiffHunkSecondaryStatus::SecondaryHunkAdditionPending => {
+                    log::debug!("unstaging hunk {:?}", buffer_offset_range);
+                    head_text
+                        .chunks_in_range(diff_base_byte_range.clone())
+                        .collect::<String>()
+                }
+                _ => {
+                    debug_assert!(false);
+                    continue;
+                }
            };

            edits.push((index_byte_range, replacement_text));
@@ -631,28 +650,6 @@ impl BufferDiffInner {
        })
    }

-    fn set_state(
-        &mut self,
-        new_state: Self,
-        buffer: &text::BufferSnapshot,
-    ) -> Option<Range<Anchor>> {
-        let (base_text_changed, changed_range) =
-            match (self.base_text_exists, new_state.base_text_exists) {
-                (false, false) => (true, None),
-                (true, true) if self.base_text.remote_id() == new_state.base_text.remote_id() => {
-                    (false, new_state.compare(&self, buffer))
-                }
-                _ => (true, Some(text::Anchor::MIN..text::Anchor::MAX)),
-            };
-
-        let pending_hunks = mem::replace(&mut self.pending_hunks, SumTree::new(buffer));
-        *self = new_state;
-        if !base_text_changed {
-            self.pending_hunks = pending_hunks;
-        }
-        changed_range
-    }
-
    fn compare(&self, old: &Self, new_snapshot: &text::BufferSnapshot) -> Option<Range<Anchor>> {
        let mut new_cursor = self.hunks.cursor::<()>(new_snapshot);
        let mut old_cursor = old.hunks.cursor::<()>(new_snapshot);
@@ -1011,26 +1008,61 @@ impl BufferDiff {
        &mut self,
        new_snapshot: BufferDiffSnapshot,
        buffer: &text::BufferSnapshot,
-        secondary_changed_range: Option<Range<Anchor>>,
        cx: &mut Context<Self>,
    ) -> Option<Range<Anchor>> {
-        let changed_range = self.inner.set_state(new_snapshot.inner, buffer);
+        self.set_snapshot_with_secondary(new_snapshot, buffer, None, false, cx)
+    }

-        let changed_range = match (secondary_changed_range, changed_range) {
-            (None, None) => None,
-            (Some(unstaged_range), None) => self.range_to_hunk_range(unstaged_range, &buffer, cx),
-            (None, Some(uncommitted_range)) => Some(uncommitted_range),
-            (Some(unstaged_range), Some(uncommitted_range)) => {
-                let mut start = uncommitted_range.start;
-                let mut end = uncommitted_range.end;
-                if let Some(unstaged_range) = self.range_to_hunk_range(unstaged_range, &buffer, cx)
-                {
-                    start = unstaged_range.start.min(&uncommitted_range.start, &buffer);
-                    end = unstaged_range.end.max(&uncommitted_range.end, &buffer);
+    pub fn set_snapshot_with_secondary(
+        &mut self,
+        new_snapshot: BufferDiffSnapshot,
+        buffer: &text::BufferSnapshot,
+        secondary_diff_change: Option<Range<Anchor>>,
+        clear_pending_hunks: bool,
+        cx: &mut Context<Self>,
+    ) -> Option<Range<Anchor>> {
+        log::debug!("set snapshot with secondary {secondary_diff_change:?}");
+
+        let state = &mut self.inner;
+        let new_state = new_snapshot.inner;
+        let (base_text_changed, mut changed_range) =
+            match (state.base_text_exists, new_state.base_text_exists) {
+                (false, false) => (true, None),
+                (true, true) if state.base_text.remote_id() == new_state.base_text.remote_id() => {
+                    (false, new_state.compare(&state, buffer))
+                }
+                _ => (true, Some(text::Anchor::MIN..text::Anchor::MAX)),
+            };
+
+        if let Some(secondary_changed_range) = secondary_diff_change {
+            if let Some(secondary_hunk_range) =
+                self.range_to_hunk_range(secondary_changed_range, &buffer, cx)
+            {
+                if let Some(range) = &mut changed_range {
+                    range.start = secondary_hunk_range.start.min(&range.start, &buffer);
+                    range.end = secondary_hunk_range.end.max(&range.end, &buffer);
+                } else {
+                    changed_range = Some(secondary_hunk_range);
                }
-                Some(start..end)
            }
-        };
+        }
+
+        let state = &mut self.inner;
+        state.base_text_exists = new_state.base_text_exists;
+        state.base_text = new_state.base_text;
+        state.hunks = new_state.hunks;
+        if base_text_changed || clear_pending_hunks {
+            if let Some((first, last)) = state.pending_hunks.first().zip(state.pending_hunks.last())
+            {
+                if let Some(range) = &mut changed_range {
+                    range.start = range.start.min(&first.buffer_range.start, &buffer);
+                    range.end = range.end.max(&last.buffer_range.end, &buffer);
+                } else {
+                    changed_range = Some(first.buffer_range.start..last.buffer_range.end);
+                }
+            }
+            state.pending_hunks = SumTree::new(buffer);
+        }

        cx.emit(BufferDiffEvent::DiffChanged {
            changed_range: changed_range.clone(),
@@ -1138,7 +1170,7 @@ impl BufferDiff {
                return;
            };
            this.update(cx, |this, cx| {
-                this.set_snapshot(snapshot, &buffer, None, cx);
+                this.set_snapshot(snapshot, &buffer, cx);
            })
            .log_err();
            drop(complete_on_drop)
@@ -1163,7 +1195,7 @@ impl BufferDiff {
            cx,
        );
        let snapshot = cx.background_executor().block(snapshot);
-        self.set_snapshot(snapshot, &buffer, None, cx);
+        self.set_snapshot(snapshot, &buffer, cx);
    }
 }

@@ -1752,13 +1784,13 @@ mod tests {

            let unstaged_diff = cx.new(|cx| {
                let mut diff = BufferDiff::new(&buffer, cx);
-                diff.set_snapshot(unstaged, &buffer, None, cx);
+                diff.set_snapshot(unstaged, &buffer, cx);
                diff
            });

            let uncommitted_diff = cx.new(|cx| {
                let mut diff = BufferDiff::new(&buffer, cx);
-                diff.set_snapshot(uncommitted, &buffer, None, cx);
+                diff.set_snapshot(uncommitted, &buffer, cx);
                diff.set_secondary_diff(unstaged_diff);
                diff
            });
@@ -1819,12 +1851,12 @@ mod tests {
        let uncommitted = BufferDiffSnapshot::new_sync(buffer.clone(), head_text.clone(), cx);
        let unstaged_diff = cx.new(|cx| {
            let mut diff = BufferDiff::new(&buffer, cx);
-            diff.set_snapshot(unstaged, &buffer, None, cx);
+            diff.set_snapshot(unstaged, &buffer, cx);
            diff
        });
        let uncommitted_diff = cx.new(|cx| {
            let mut diff = BufferDiff::new(&buffer, cx);
-            diff.set_snapshot(uncommitted, &buffer, None, cx);
+            diff.set_snapshot(uncommitted, &buffer, cx);
            diff.set_secondary_diff(unstaged_diff.clone());
            diff
        });
--- a/crates/cli/build.rs
+++ b/crates/cli/build.rs
@@ -7,8 +7,6 @@ fn main() {

    if cfg!(target_os = "macos") {
        println!("cargo:rustc-env=MACOSX_DEPLOYMENT_TARGET=10.15.7");
-        // Weakly link ScreenCaptureKit to ensure can be used on macOS 10.15+.
-        println!("cargo:rustc-link-arg=-Wl,-weak_framework,ScreenCaptureKit");
    }

    // Populate git sha environment variable if git is available
--- a/crates/cli/src/cli.rs
+++ b/crates/cli/src/cli.rs
@@ -16,6 +16,7 @@ pub enum CliRequest {
        wait: bool,
        open_new_workspace: Option<bool>,
        env: Option<HashMap<String, String>>,
+        user_data_dir: Option<String>,
    },
 }

--- a/crates/cli/src/main.rs
+++ b/crates/cli/src/main.rs
@@ -26,7 +26,11 @@ struct Detect;
 trait InstalledApp {
    fn zed_version_string(&self) -> String;
    fn launch(&self, ipc_url: String) -> anyhow::Result<()>;
-    fn run_foreground(&self, ipc_url: String) -> io::Result<ExitStatus>;
+    fn run_foreground(
+        &self,
+        ipc_url: String,
+        user_data_dir: Option<&str>,
+    ) -> io::Result<ExitStatus>;
    fn path(&self) -> PathBuf;
 }

@@ -58,6 +62,13 @@ struct Args {
    /// Create a new workspace
    #[arg(short, long, overrides_with = "add")]
    new: bool,
+    /// Sets a custom directory for all user data (e.g., database, extensions, logs).
+    /// This overrides the default platform-specific data directory location.
+    /// On macOS, the default is `~/Library/Application Support/Zed`.
+    /// On Linux/FreeBSD, the default is `$XDG_DATA_HOME/zed`.
+    /// On Windows, the default is `%LOCALAPPDATA%\Zed`.
+    #[arg(long, value_name = "DIR")]
+    user_data_dir: Option<String>,
    /// The paths to open in Zed (space-separated).
    ///
    /// Use `path:line:column` syntax to open a file at the given line and column.
@@ -135,6 +146,12 @@ fn main() -> Result<()> {
    }
    let args = Args::parse();

+    // Set custom data directory before any path operations
+    let user_data_dir = args.user_data_dir.clone();
+    if let Some(dir) = &user_data_dir {
+        paths::set_custom_data_dir(dir);
+    }
+
    #[cfg(any(target_os = "linux", target_os = "freebsd"))]
    let args = flatpak::set_bin_if_no_escape(args);

@@ -246,6 +263,7 @@ fn main() -> Result<()> {

    let sender: JoinHandle<anyhow::Result<()>> = thread::spawn({
        let exit_status = exit_status.clone();
+        let user_data_dir_for_thread = user_data_dir.clone();
        move || {
            let (_, handshake) = server.accept().context("Handshake after Zed spawn")?;
            let (tx, rx) = (handshake.requests, handshake.responses);
@@ -256,6 +274,7 @@ fn main() -> Result<()> {
                wait: args.wait,
                open_new_workspace,
                env,
+                user_data_dir: user_data_dir_for_thread,
            })?;

            while let Ok(response) = rx.recv() {
@@ -291,7 +310,7 @@ fn main() -> Result<()> {
        .collect();

    if args.foreground {
-        app.run_foreground(url)?;
+        app.run_foreground(url, user_data_dir.as_deref())?;
    } else {
        app.launch(url)?;
        sender.join().unwrap()?;
@@ -437,7 +456,7 @@ mod linux {
        }

        fn launch(&self, ipc_url: String) -> anyhow::Result<()> {
-            let sock_path = paths::support_dir().join(format!("zed-{}.sock", *RELEASE_CHANNEL));
+            let sock_path = paths::data_dir().join(format!("zed-{}.sock", *RELEASE_CHANNEL));
            let sock = UnixDatagram::unbound()?;
            if sock.connect(&sock_path).is_err() {
                self.boot_background(ipc_url)?;
@@ -447,10 +466,17 @@ mod linux {
            Ok(())
        }

-        fn run_foreground(&self, ipc_url: String) -> io::Result<ExitStatus> {
-            std::process::Command::new(self.0.clone())
-                .arg(ipc_url)
-                .status()
+        fn run_foreground(
+            &self,
+            ipc_url: String,
+            user_data_dir: Option<&str>,
+        ) -> io::Result<ExitStatus> {
+            let mut cmd = std::process::Command::new(self.0.clone());
+            cmd.arg(ipc_url);
+            if let Some(dir) = user_data_dir {
+                cmd.arg("--user-data-dir").arg(dir);
+            }
+            cmd.status()
        }

        fn path(&self) -> PathBuf {
@@ -688,12 +714,17 @@ mod windows {
            Ok(())
        }

-        fn run_foreground(&self, ipc_url: String) -> io::Result<ExitStatus> {
-            std::process::Command::new(self.0.clone())
-                .arg(ipc_url)
-                .arg("--foreground")
-                .spawn()?
-                .wait()
+        fn run_foreground(
+            &self,
+            ipc_url: String,
+            user_data_dir: Option<&str>,
+        ) -> io::Result<ExitStatus> {
+            let mut cmd = std::process::Command::new(self.0.clone());
+            cmd.arg(ipc_url).arg("--foreground");
+            if let Some(dir) = user_data_dir {
+                cmd.arg("--user-data-dir").arg(dir);
+            }
+            cmd.spawn()?.wait()
        }

        fn path(&self) -> PathBuf {
@@ -875,13 +906,22 @@ mod mac_os {
            Ok(())
        }

-        fn run_foreground(&self, ipc_url: String) -> io::Result<ExitStatus> {
+        fn run_foreground(
+            &self,
+            ipc_url: String,
+            user_data_dir: Option<&str>,
+        ) -> io::Result<ExitStatus> {
            let path = match self {
                Bundle::App { app_bundle, .. } => app_bundle.join("Contents/MacOS/zed"),
                Bundle::LocalPath { executable, .. } => executable.clone(),
            };

-            std::process::Command::new(path).arg(ipc_url).status()
+            let mut cmd = std::process::Command::new(path);
+            cmd.arg(ipc_url);
+            if let Some(dir) = user_data_dir {
+                cmd.arg("--user-data-dir").arg(dir);
+            }
+            cmd.status()
        }

        fn path(&self) -> PathBuf {
--- a/crates/collab/Cargo.toml
+++ b/crates/collab/Cargo.toml
@@ -18,7 +18,6 @@ sqlite = ["sea-orm/sqlx-sqlite", "sqlx/sqlite"]
 test-support = ["sqlite"]

 [dependencies]
-anthropic.workspace = true
 anyhow.workspace = true
 async-stripe.workspace = true
 async-tungstenite.workspace = true
--- a/crates/collab/migrations.sqlite/20221109000000_test_schema.sql
+++ b/crates/collab/migrations.sqlite/20221109000000_test_schema.sql
@@ -505,7 +505,10 @@ CREATE TABLE IF NOT EXISTS billing_subscriptions (
    stripe_subscription_id TEXT NOT NULL,
    stripe_subscription_status TEXT NOT NULL,
    stripe_cancel_at TIMESTAMP,
-    stripe_cancellation_reason TEXT
+    stripe_cancellation_reason TEXT,
+    kind TEXT,
+    stripe_current_period_start BIGINT,
+    stripe_current_period_end BIGINT
 );

 CREATE INDEX "ix_billing_subscriptions_on_billing_customer_id" ON billing_subscriptions (billing_customer_id);
--- a/crates/collab/migrations/20250415164141_add_kind_and_period_to_billing_subscriptions.sql
+++ b/crates/collab/migrations/20250415164141_add_kind_and_period_to_billing_subscriptions.sql
@@ -0,0 +1,4 @@
+alter table billing_subscriptions
+    add column kind text,
+    add column stripe_current_period_start bigint,
+    add column stripe_current_period_end bigint;
--- a/crates/collab/src/api/billing.rs
+++ b/crates/collab/src/api/billing.rs
@@ -21,7 +21,9 @@ use stripe::{
 use util::ResultExt;

 use crate::api::events::SnowflakeRow;
-use crate::db::billing_subscription::{StripeCancellationReason, StripeSubscriptionStatus};
+use crate::db::billing_subscription::{
+    StripeCancellationReason, StripeSubscriptionStatus, SubscriptionKind,
+};
 use crate::llm::{DEFAULT_MAX_MONTHLY_SPEND, FREE_TIER_MONTHLY_SPENDING_LIMIT};
 use crate::rpc::{ResultExt as _, Server};
 use crate::{AppState, Cents, Error, Result};
@@ -184,7 +186,10 @@ async fn list_billing_subscriptions(
            .into_iter()
            .map(|subscription| BillingSubscriptionJson {
                id: subscription.id,
-                name: "Zed LLM Usage".to_string(),
+                name: match subscription.kind {
+                    Some(SubscriptionKind::ZedPro) => "Zed Pro".to_string(),
+                    None => "Zed LLM Usage".to_string(),
+                },
                status: subscription.stripe_subscription_status,
                cancel_at: subscription.stripe_cancel_at.map(|cancel_at| {
                    cancel_at
@@ -198,9 +203,16 @@ async fn list_billing_subscriptions(
    }))
 }

+#[derive(Debug, Clone, Copy, Deserialize)]
+#[serde(rename_all = "snake_case")]
+enum ProductCode {
+    ZedPro,
+}
+
 #[derive(Debug, Deserialize)]
 struct CreateBillingSubscriptionBody {
    github_user_id: i32,
+    product: Option<ProductCode>,
 }

 #[derive(Debug, Serialize)]
@@ -274,15 +286,30 @@ async fn create_billing_subscription(
        customer.id
    };

-    let default_model = llm_db.model(rpc::LanguageModelProvider::Anthropic, "claude-3-5-sonnet")?;
-    let stripe_model = stripe_billing.register_model(default_model).await?;
-    let success_url = format!(
-        "{}/account?checkout_complete=1",
-        app.config.zed_dot_dev_url()
-    );
-    let checkout_session_url = stripe_billing
-        .checkout(customer_id, &user.github_login, &stripe_model, &success_url)
-        .await?;
+    let checkout_session_url = match body.product {
+        Some(ProductCode::ZedPro) => {
+            let success_url = format!(
+                "{}/account?checkout_complete=1",
+                app.config.zed_dot_dev_url()
+            );
+            stripe_billing
+                .checkout_with_zed_pro(customer_id, &user.github_login, &success_url)
+                .await?
+        }
+        None => {
+            let default_model =
+                llm_db.model(rpc::LanguageModelProvider::Anthropic, "claude-3-7-sonnet")?;
+            let stripe_model = stripe_billing.register_model(default_model).await?;
+            let success_url = format!(
+                "{}/account?checkout_complete=1",
+                app.config.zed_dot_dev_url()
+            );
+            stripe_billing
+                .checkout(customer_id, &user.github_login, &stripe_model, &success_url)
+                .await?
+        }
+    };
+
    Ok(Json(CreateBillingSubscriptionResponse {
        checkout_session_url,
    }))
@@ -291,6 +318,10 @@ async fn create_billing_subscription(
 #[derive(Debug, PartialEq, Deserialize)]
 #[serde(rename_all = "snake_case")]
 enum ManageSubscriptionIntent {
+    /// The user intends to manage their subscription.
+    ///
+    /// This will open the Stripe billing portal without putting the user in a specific flow.
+    ManageSubscription,
    /// The user intends to cancel their subscription.
    Cancel,
    /// The user intends to stop the cancellation of their subscription.
@@ -378,7 +409,8 @@ async fn manage_billing_subscription(
    }

    let flow = match body.intent {
-        ManageSubscriptionIntent::Cancel => CreateBillingPortalSessionFlowData {
+        ManageSubscriptionIntent::ManageSubscription => None,
+        ManageSubscriptionIntent::Cancel => Some(CreateBillingPortalSessionFlowData {
            type_: CreateBillingPortalSessionFlowDataType::SubscriptionCancel,
            after_completion: Some(CreateBillingPortalSessionFlowDataAfterCompletion {
                type_: stripe::CreateBillingPortalSessionFlowDataAfterCompletionType::Redirect,
@@ -394,12 +426,12 @@ async fn manage_billing_subscription(
                },
            ),
            ..Default::default()
-        },
+        }),
        ManageSubscriptionIntent::StopCancellation => unreachable!(),
    };

    let mut params = CreateBillingPortalSession::new(customer_id);
-    params.flow_data = Some(flow);
+    params.flow_data = flow;
    let return_url = format!("{}/account", app.config.zed_dot_dev_url());
    params.return_url = Some(&return_url);

@@ -664,6 +696,23 @@ async fn handle_customer_subscription_event(

    log::info!("handling Stripe {} event: {}", event.type_, event.id);

+    let subscription_kind =
+        if let Some(zed_pro_price_id) = app.config.stripe_zed_pro_price_id.as_deref() {
+            let has_zed_pro_price = subscription.items.data.iter().any(|item| {
+                item.price
+                    .as_ref()
+                    .map_or(false, |price| price.id.as_str() == zed_pro_price_id)
+            });
+
+            if has_zed_pro_price {
+                Some(SubscriptionKind::ZedPro)
+            } else {
+                None
+            }
+        } else {
+            None
+        };
+
    let billing_customer =
        find_or_create_billing_customer(app, stripe_client, subscription.customer)
            .await?
@@ -700,6 +749,7 @@ async fn handle_customer_subscription_event(
                existing_subscription.id,
                &UpdateBillingSubscriptionParams {
                    billing_customer_id: ActiveValue::set(billing_customer.id),
+                    kind: ActiveValue::set(subscription_kind),
                    stripe_subscription_id: ActiveValue::set(subscription.id.to_string()),
                    stripe_subscription_status: ActiveValue::set(subscription.status.into()),
                    stripe_cancel_at: ActiveValue::set(
@@ -714,6 +764,12 @@ async fn handle_customer_subscription_event(
                            .and_then(|details| details.reason)
                            .map(|reason| reason.into()),
                    ),
+                    stripe_current_period_start: ActiveValue::set(Some(
+                        subscription.current_period_start,
+                    )),
+                    stripe_current_period_end: ActiveValue::set(Some(
+                        subscription.current_period_end,
+                    )),
                },
            )
            .await?;
@@ -748,12 +804,15 @@ async fn handle_customer_subscription_event(
        app.db
            .create_billing_subscription(&CreateBillingSubscriptionParams {
                billing_customer_id: billing_customer.id,
+                kind: subscription_kind,
                stripe_subscription_id: subscription.id.to_string(),
                stripe_subscription_status: subscription.status.into(),
                stripe_cancellation_reason: subscription
                    .cancellation_details
                    .and_then(|details| details.reason)
                    .map(|reason| reason.into()),
+                stripe_current_period_start: Some(subscription.current_period_start),
+                stripe_current_period_end: Some(subscription.current_period_end),
            })
            .await?;
    }
--- a/crates/collab/src/db/queries/billing_subscriptions.rs
+++ b/crates/collab/src/db/queries/billing_subscriptions.rs
@@ -1,22 +1,30 @@
-use crate::db::billing_subscription::{StripeCancellationReason, StripeSubscriptionStatus};
+use crate::db::billing_subscription::{
+    StripeCancellationReason, StripeSubscriptionStatus, SubscriptionKind,
+};

 use super::*;

 #[derive(Debug)]
 pub struct CreateBillingSubscriptionParams {
    pub billing_customer_id: BillingCustomerId,
+    pub kind: Option<SubscriptionKind>,
    pub stripe_subscription_id: String,
    pub stripe_subscription_status: StripeSubscriptionStatus,
    pub stripe_cancellation_reason: Option<StripeCancellationReason>,
+    pub stripe_current_period_start: Option<i64>,
+    pub stripe_current_period_end: Option<i64>,
 }

 #[derive(Debug, Default)]
 pub struct UpdateBillingSubscriptionParams {
    pub billing_customer_id: ActiveValue<BillingCustomerId>,
+    pub kind: ActiveValue<Option<SubscriptionKind>>,
    pub stripe_subscription_id: ActiveValue<String>,
    pub stripe_subscription_status: ActiveValue<StripeSubscriptionStatus>,
    pub stripe_cancel_at: ActiveValue<Option<DateTime>>,
    pub stripe_cancellation_reason: ActiveValue<Option<StripeCancellationReason>>,
+    pub stripe_current_period_start: ActiveValue<Option<i64>>,
+    pub stripe_current_period_end: ActiveValue<Option<i64>>,
 }

 impl Database {
@@ -28,9 +36,12 @@ impl Database {
        self.transaction(|tx| async move {
            billing_subscription::Entity::insert(billing_subscription::ActiveModel {
                billing_customer_id: ActiveValue::set(params.billing_customer_id),
+                kind: ActiveValue::set(params.kind),
                stripe_subscription_id: ActiveValue::set(params.stripe_subscription_id.clone()),
                stripe_subscription_status: ActiveValue::set(params.stripe_subscription_status),
                stripe_cancellation_reason: ActiveValue::set(params.stripe_cancellation_reason),
+                stripe_current_period_start: ActiveValue::set(params.stripe_current_period_start),
+                stripe_current_period_end: ActiveValue::set(params.stripe_current_period_end),
                ..Default::default()
            })
            .exec_without_returning(&*tx)
--- a/crates/collab/src/db/tables/billing_subscription.rs
+++ b/crates/collab/src/db/tables/billing_subscription.rs
@@ -9,10 +9,13 @@ pub struct Model {
    #[sea_orm(primary_key)]
    pub id: BillingSubscriptionId,
    pub billing_customer_id: BillingCustomerId,
+    pub kind: Option<SubscriptionKind>,
    pub stripe_subscription_id: String,
    pub stripe_subscription_status: StripeSubscriptionStatus,
    pub stripe_cancel_at: Option<DateTime>,
    pub stripe_cancellation_reason: Option<StripeCancellationReason>,
+    pub stripe_current_period_start: Option<i64>,
+    pub stripe_current_period_end: Option<i64>,
    pub created_at: DateTime,
 }

@@ -34,6 +37,14 @@ impl Related<super::billing_customer::Entity> for Entity {

 impl ActiveModelBehavior for ActiveModel {}

+#[derive(Eq, PartialEq, Copy, Clone, Debug, EnumIter, DeriveActiveEnum, Hash, Serialize)]
+#[sea_orm(rs_type = "String", db_type = "String(StringLen::None)")]
+#[serde(rename_all = "snake_case")]
+pub enum SubscriptionKind {
+    #[sea_orm(string_value = "zed_pro")]
+    ZedPro,
+}
+
 /// The status of a Stripe subscription.
 ///
 /// [Stripe docs](https://docs.stripe.com/api/subscriptions/object#subscription_object-status)
--- a/crates/collab/src/db/tests/billing_subscription_tests.rs
+++ b/crates/collab/src/db/tests/billing_subscription_tests.rs
@@ -39,9 +39,12 @@ async fn test_get_active_billing_subscriptions(db: &Arc<Database>) {

        db.create_billing_subscription(&CreateBillingSubscriptionParams {
            billing_customer_id: customer.id,
+            kind: None,
            stripe_subscription_id: "sub_active_user".into(),
            stripe_subscription_status: StripeSubscriptionStatus::Active,
            stripe_cancellation_reason: None,
+            stripe_current_period_start: None,
+            stripe_current_period_end: None,
        })
        .await
        .unwrap();
@@ -74,9 +77,12 @@ async fn test_get_active_billing_subscriptions(db: &Arc<Database>) {

        db.create_billing_subscription(&CreateBillingSubscriptionParams {
            billing_customer_id: customer.id,
+            kind: None,
            stripe_subscription_id: "sub_past_due_user".into(),
            stripe_subscription_status: StripeSubscriptionStatus::PastDue,
            stripe_cancellation_reason: None,
+            stripe_current_period_start: None,
+            stripe_current_period_end: None,
        })
        .await
        .unwrap();
--- a/Show More
+++ b/Show More