Fix agent panel scroll while editing a past message (cherry-pick #30394 ) (#30399 )

Cherry-picked Fix agent panel scroll while editing a past message (#30394) This is similar to the `block_mouse_down` method added in #20649 (which has a very similar motivation), but is more comprehensive in stopping mouse events. Since I want to cherry-pick this to the releases, keeping this change just to the agent panel. In a follow-up will replace existing use of `block_mouse_down` to instead use this. Release Notes: - N/A Co-authored-by: Michael Sloan <michael@zed.dev>
assistant_context_editor: Register ContextEditor actions that were lost (#30428 )
2025-05-09 16:31:16 -04:00 · 2025-05-09 13:17:34 -07:00 · 2025-05-09 13:17:26 -07:00 · 2025-05-09 15:23:11 -04:00 · 2025-05-09 15:23:11 -04:00 · 2025-05-09 14:28:48 -04:00
714 changed files with 16386 additions and 28911 deletions
--- a/.cargo/config.toml
+++ b/.cargo/config.toml
@@ -13,6 +13,12 @@ rustflags = ["-C", "link-arg=-fuse-ld=mold"]
 linker = "clang"
 rustflags = ["-C", "link-arg=-fuse-ld=mold"]

+[target.aarch64-apple-darwin]
+rustflags = ["-C", "link-args=-all_load"]
+
+[target.x86_64-apple-darwin]
+rustflags = ["-C", "link-args=-all_load"]
+
 [target.'cfg(target_os = "windows")']
 rustflags = [
    "--cfg",
--- a/.git-blame-ignore-revs
+++ b/.git-blame-ignore-revs
@@ -30,7 +30,3 @@ ffdda588b41f7d9d270ffe76cab116f828ad545e
 # 2024-07-05 Improved formatting of default keymaps (single line per bind)
 # https://github.com/zed-industries/zed/pull/13887
 813cc3f5e537372fc86720b5e71b6e1c815440ab
-
-# 2024-07-24 docs: Format docs
-# https://github.com/zed-industries/zed/pull/15352
-3a44a59f8ec114ac1ba22f7da1652717ef7e4e5c
--- a/.github/ISSUE_TEMPLATE/01_bug_agent.yml
+++ b/.github/ISSUE_TEMPLATE/01_bug_agent.yml
@@ -29,8 +29,8 @@ body:
    id: environment
    attributes:
      label: Zed Version and System Specs
-      description: 'Open Zed, and in the command palette select "zed: copy system specs into clipboard"'
+      description: 'Open Zed, and in the command palette select "zed: Copy System Specs Into Clipboard"'
      placeholder: |
-        Output of "zed: copy system specs into clipboard"
+        Output of "zed: Copy System Specs Into Clipboard"
    validations:
      required: true
--- a/.github/ISSUE_TEMPLATE/02_bug_edit_predictions.yml
+++ b/.github/ISSUE_TEMPLATE/02_bug_edit_predictions.yml
@@ -29,8 +29,8 @@ body:
    id: environment
    attributes:
      label: Zed Version and System Specs
-      description: 'Open Zed, and in the command palette select "zed: copy system specs into clipboard"'
+      description: 'Open Zed, and in the command palette select "zed: Copy System Specs Into Clipboard"'
      placeholder: |
-        Output of "zed: copy system specs into clipboard"
+        Output of "zed: Copy System Specs Into Clipboard"
    validations:
      required: true
--- a/.github/ISSUE_TEMPLATE/03_bug_git.yml
+++ b/.github/ISSUE_TEMPLATE/03_bug_git.yml
@@ -28,8 +28,8 @@ body:
    id: environment
    attributes:
      label: Zed Version and System Specs
-      description: 'Open Zed, and in the command palette select "zed: copy system specs into clipboard"'
+      description: 'Open Zed, and in the command palette select "zed: Copy System Specs Into Clipboard"'
      placeholder: |
-        Output of "zed: copy system specs into clipboard"
+        Output of "zed: Copy System Specs Into Clipboard"
    validations:
      required: true
--- a/.github/ISSUE_TEMPLATE/04_bug_debugger.yml
+++ b/.github/ISSUE_TEMPLATE/04_bug_debugger.yml
@@ -1,35 +0,0 @@
-name: Bug Report (Debugger)
-description: Zed Debugger-Related Bugs
-type: "Bug"
-labels: ["debugger"]
-title: "Debugger: <a short description of the Debugger bug>"
-body:
-  - type: textarea
-    attributes:
-      label: Summary
-      description: Describe the bug with a one line summary, and provide detailed reproduction steps
-      value: |
-        <!-- Please insert a one line summary of the issue below -->
-        SUMMARY_SENTENCE_HERE
-
-        ### Description
-        <!--  Describe with sufficient detail to reproduce from a clean Zed install. -->
-        Steps to trigger the problem:
-        1.
-        2.
-        3.
-
-        Actual Behavior:
-        Expected Behavior:
-
-    validations:
-      required: true
-  - type: textarea
-    id: environment
-    attributes:
-      label: Zed Version and System Specs
-      description: 'Open Zed, and in the command palette select "zed: copy system specs into clipboard"'
-      placeholder: |
-        Output of "zed: copy system specs into clipboard"
-    validations:
-      required: true
--- a/.github/ISSUE_TEMPLATE/10_bug_report.yml
+++ b/.github/ISSUE_TEMPLATE/10_bug_report.yml
@@ -49,8 +49,8 @@ body:
    attributes:
      label: Zed Version and System Specs
      description: |
-        Open Zed, from the command palette select "zed: copy system specs into clipboard"
+        Open Zed, from the command palette select "zed: Copy System Specs Into Clipboard"
      placeholder: |
-        Output of "zed: copy system specs into clipboard"
+        Output of "zed: Copy System Specs Into Clipboard"
    validations:
      required: true
--- a/.github/ISSUE_TEMPLATE/11_crash_report.yml
+++ b/.github/ISSUE_TEMPLATE/11_crash_report.yml
@@ -26,9 +26,9 @@ body:
    id: environment
    attributes:
      label: Zed Version and System Specs
-      description: 'Open Zed, and in the command palette select "zed: copy system specs into clipboard"'
+      description: 'Open Zed, and in the command palette select "zed: Copy System Specs Into Clipboard"'
      placeholder: |
-        Output of "zed: copy system specs into clipboard"
+        Output of "zed: Copy System Specs Into Clipboard"
    validations:
      required: true
  - type: textarea
--- a/.gitignore
+++ b/.gitignore
@@ -2,7 +2,6 @@
 **/cargo-target
 **/target
 **/venv
-**/.direnv
 *.wasm
 *.xcodeproj
 .DS_Store
--- a/.mailmap
+++ b/.mailmap
@@ -19,8 +19,6 @@ amtoaer <amtoaer@gmail.com>
 amtoaer <amtoaer@gmail.com> <amtoaer@outlook.com>
 Andrei Zvonimir Crnković <andrei@0x7f.dev>
 Andrei Zvonimir Crnković <andrei@0x7f.dev> <andreicek@0x7f.dev>
-Angelk90 <angelo.k90@hotmail.it>
-Angelk90 <angelo.k90@hotmail.it> <20476002+Angelk90@users.noreply.github.com>
 Antonio Scandurra <me@as-cii.com>
 Antonio Scandurra <me@as-cii.com> <antonio@zed.dev>
 Ben Kunkle <ben@zed.dev>
@@ -40,8 +38,6 @@ Dairon Medina <dairon.medina@gmail.com>
 Danilo Leal <danilo@zed.dev>
 Danilo Leal <danilo@zed.dev> <67129314+danilo-leal@users.noreply.github.com>
 Edwin Aronsson <75266237+4teapo@users.noreply.github.com>
-Elvis Pranskevichus <elvis@geldata.com>
-Elvis Pranskevichus <elvis@geldata.com> <elvis@magic.io>
 Evren Sen <nervenes@icloud.com>
 Evren Sen <nervenes@icloud.com> <146845123+evrensen467@users.noreply.github.com>
 Evren Sen <nervenes@icloud.com> <146845123+evrsen@users.noreply.github.com>
@@ -73,8 +69,6 @@ Lilith Iris <itslirissama@gmail.com> <83819417+Irilith@users.noreply.github.com>
 LoganDark <contact@logandark.mozmail.com>
 LoganDark <contact@logandark.mozmail.com> <git@logandark.mozmail.com>
 LoganDark <contact@logandark.mozmail.com> <github@logandark.mozmail.com>
-Marko Kungla <marko.kungla@gmail.com>
-Marko Kungla <marko.kungla@gmail.com> <marko@mkungla.dev>
 Marshall Bowers <git@maxdeviant.com>
 Marshall Bowers <git@maxdeviant.com> <elliott.codes@gmail.com>
 Marshall Bowers <git@maxdeviant.com> <marshall@zed.dev>
@@ -90,7 +84,6 @@ Michael Sloan <michael@zed.dev> <mgsloan@google.com>
 Mikayla Maki <mikayla@zed.dev>
 Mikayla Maki <mikayla@zed.dev> <mikayla.c.maki@gmail.com>
 Mikayla Maki <mikayla@zed.dev> <mikayla.c.maki@icloud.com>
-Morgan Krey <morgan@zed.dev>
 Muhammad Talal Anwar <mail@talal.io>
 Muhammad Talal Anwar <mail@talal.io> <talalanwar@outlook.com>
 Nate Butler <iamnbutler@gmail.com>
@@ -123,18 +116,11 @@ Shish <webmaster@shishnet.org>
 Shish <webmaster@shishnet.org> <shish@shishnet.org>
 Smit Barmase <0xtimsb@gmail.com>
 Smit Barmase <0xtimsb@gmail.com> <smit@zed.dev>
-Thomas <github.thomaub@gmail.com>
-Thomas <github.thomaub@gmail.com> <thomas.aubry94@gmail.com>
-Thomas <github.thomaub@gmail.com> <thomas.aubry@paylead.fr>
-Thomas Heartman <thomasheartman+github@gmail.com>
-Thomas Heartman <thomasheartman+github@gmail.com> <thomas@getunleash.io>
-Thomas Mickley-Doyle <tmickleydoyle@gmail.com>
-Thomas Mickley-Doyle <tmickleydoyle@gmail.com> <thomas@zed.dev>
 Thorben Kröger <dev@thorben.net>
 Thorben Kröger <dev@thorben.net> <thorben.kroeger@hexagon.com>
-Thorsten Ball <mrnugget@gmail.com>
-Thorsten Ball <mrnugget@gmail.com> <me@thorstenball.com>
-Thorsten Ball <mrnugget@gmail.com> <thorsten@zed.dev>
+Thorsten Ball <thorsten@zed.dev>
+Thorsten Ball <thorsten@zed.dev> <me@thorstenball.com>
+Thorsten Ball <thorsten@zed.dev> <mrnugget@gmail.com>
 Tristan Hume <tris.hume@gmail.com>
 Tristan Hume <tris.hume@gmail.com> <tristan@anthropic.com>
 Uladzislau Kaminski <i@uladkaminski.com>
--- a/.rules
+++ b/.rules
@@ -115,7 +115,7 @@ Other entities can then register a callback to handle these events by doing `cx.
 GPUI has had some changes to its APIs. Always write code using the new APIs:

 * `spawn` methods now take async closures (`AsyncFn`), and so should be called like `cx.spawn(async move |cx| ...)`.
-* Use `Entity<T>`. This replaces `Model<T>` and `View<T>` which no longer exist and should NEVER be used.
+* Use `Entity<T>`. This replaces `Model<T>` and `View<T>` which longer exists and should NEVER be used.
 * Use `App` references. This replaces `AppContext` which no longer exists and should NEVER be used.
 * Use `Context<T>` references. This replaces `ModelContext<T>` which no longer exists and should NEVER be used.
 * `Window` is now passed around explicitly. The new interface adds a `Window` reference parameter to some methods, and adds some new "*_in" methods for plumbing `Window`. The old types `WindowContext` and `ViewContext<T>` should NEVER be used.
--- a/.zed/debug.json
+++ b/.zed/debug.json
@@ -2,14 +2,16 @@
  {
    "label": "Debug Zed (CodeLLDB)",
    "adapter": "CodeLLDB",
-    "program": "target/debug/zed",
-    "request": "launch"
+    "program": "$ZED_WORKTREE_ROOT/target/debug/zed",
+    "request": "launch",
+    "cwd": "$ZED_WORKTREE_ROOT"
  },
  {
    "label": "Debug Zed (GDB)",
    "adapter": "GDB",
-    "program": "target/debug/zed",
+    "program": "$ZED_WORKTREE_ROOT/target/debug/zed",
    "request": "launch",
+    "cwd": "$ZED_WORKTREE_ROOT",
    "initialize_args": {
      "stopAtBeginningOfMainSubprogram": true
    }
--- a/Cargo.lock
+++ b/Cargo.lock
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -31,13 +31,13 @@ members = [
    "crates/command_palette",
    "crates/command_palette_hooks",
    "crates/component",
+    "crates/component_preview",
    "crates/context_server",
    "crates/copilot",
    "crates/credentials_provider",
    "crates/dap",
    "crates/dap_adapters",
    "crates/db",
-    "crates/debug_adapter_extension",
    "crates/debugger_tools",
    "crates/debugger_ui",
    "crates/deepseek",
@@ -74,12 +74,11 @@ members = [
    "crates/inline_completion",
    "crates/inline_completion_button",
    "crates/install_cli",
-    "crates/jj",
-    "crates/jj_ui",
    "crates/journal",
    "crates/language",
    "crates/language_extension",
    "crates/language_model",
+    "crates/language_model_selector",
    "crates/language_models",
    "crates/language_selector",
    "crates/language_tools",
@@ -239,13 +238,13 @@ collections = { path = "crates/collections" }
 command_palette = { path = "crates/command_palette" }
 command_palette_hooks = { path = "crates/command_palette_hooks" }
 component = { path = "crates/component" }
+component_preview = { path = "crates/component_preview" }
 context_server = { path = "crates/context_server" }
 copilot = { path = "crates/copilot" }
 credentials_provider = { path = "crates/credentials_provider" }
 dap = { path = "crates/dap" }
 dap_adapters = { path = "crates/dap_adapters" }
 db = { path = "crates/db" }
-debug_adapter_extension = { path = "crates/debug_adapter_extension" }
 debugger_tools = { path = "crates/debugger_tools" }
 debugger_ui = { path = "crates/debugger_ui" }
 deepseek = { path = "crates/deepseek" }
@@ -280,12 +279,11 @@ indexed_docs = { path = "crates/indexed_docs" }
 inline_completion = { path = "crates/inline_completion" }
 inline_completion_button = { path = "crates/inline_completion_button" }
 install_cli = { path = "crates/install_cli" }
-jj = { path = "crates/jj" }
-jj_ui = { path = "crates/jj_ui" }
 journal = { path = "crates/journal" }
 language = { path = "crates/language" }
 language_extension = { path = "crates/language_extension" }
 language_model = { path = "crates/language_model" }
+language_model_selector = { path = "crates/language_model_selector" }
 language_models = { path = "crates/language_models" }
 language_selector = { path = "crates/language_selector" }
 language_tools = { path = "crates/language_tools" }
@@ -412,9 +410,9 @@ 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"
 bitflags = "2.6.0"
-blade-graphics = { git = "https://github.com/kvark/blade", rev = "416375211bb0b5826b3584dccdb6a43369e499ad" }
-blade-macros = { git = "https://github.com/kvark/blade", rev = "416375211bb0b5826b3584dccdb6a43369e499ad" }
-blade-util = { git = "https://github.com/kvark/blade", rev = "416375211bb0b5826b3584dccdb6a43369e499ad" }
+blade-graphics = { git = "https://github.com/kvark/blade", rev = "b16f5c7bd873c7126f48c82c39e7ae64602ae74f" }
+blade-macros = { git = "https://github.com/kvark/blade", rev = "b16f5c7bd873c7126f48c82c39e7ae64602ae74f" }
+blade-util = { git = "https://github.com/kvark/blade", rev = "b16f5c7bd873c7126f48c82c39e7ae64602ae74f" }
 blake3 = "1.5.3"
 bytes = "1.0"
 cargo_metadata = "0.19"
@@ -428,7 +426,6 @@ convert_case = "0.8.0"
 core-foundation = "0.10.0"
 core-foundation-sys = "0.8.6"
 core-video = { version = "0.4.3", features = ["metal"] }
-criterion = { version = "0.5", features = ["html_reports"] }
 ctor = "0.4.0"
 dap-types = { git = "https://github.com/zed-industries/dap-types", rev = "be69a016ba710191b9fdded28c8b042af4b617f7" }
 dashmap = "6.0"
@@ -461,7 +458,6 @@ indexmap = { version = "2.7.0", features = ["serde"] }
 indoc = "2"
 inventory = "0.3.19"
 itertools = "0.14.0"
-jj-lib = { git = "https://github.com/jj-vcs/jj", rev = "e18eb8e05efaa153fad5ef46576af145bba1807f" }
 jsonschema = "0.30.0"
 jsonwebtoken = "9.3"
 jupyter-protocol = { git = "https://github.com/ConradIrwin/runtimed", rev = "7130c804216b6914355d15d0b91ea91f6babd734" }
@@ -469,13 +465,13 @@ jupyter-websocket-client = {  git = "https://github.com/ConradIrwin/runtimed" ,r
 libc = "0.2"
 libsqlite3-sys = { version = "0.30.1", features = ["bundled"] }
 linkify = "0.10.0"
+linkme = "0.3.31"
 log = { version = "0.4.16", features = ["kv_unstable_serde", "serde"] }
 lsp-types = { git = "https://github.com/zed-industries/lsp-types", rev = "c9c189f1c5dd53c624a419ce35bc77ad6a908d18" }
 markup5ever_rcdom = "0.3.0"
 metal = "0.29"
 mlua = { version = "0.10", features = ["lua54", "vendored", "async", "send"] }
-moka = { version = "0.12.10", features = ["sync"] }
-naga = { version = "25.0", features = ["wgsl-in"] }
+naga = { version = "23.1.0", features = ["wgsl-in"] }
 nanoid = "0.4"
 nbformat = {  git = "https://github.com/ConradIrwin/runtimed", rev = "7130c804216b6914355d15d0b91ea91f6babd734" }
 nix = "0.29"
@@ -553,9 +549,9 @@ syn = { version = "1.0.72", features = ["full", "extra-traits"] }
 sys-locale = "0.3.1"
 sysinfo = "0.31.0"
 take-until = "0.2.0"
-tempfile = "3.20.0"
+tempfile = "3.9.0"
 thiserror = "2.0.12"
-tiktoken-rs = "0.7.0"
+tiktoken-rs = "0.6.0"
 time = { version = "0.3", features = [
    "macros",
    "parsing",
@@ -599,7 +595,6 @@ url = "2.2"
 urlencoding = "2.1.2"
 uuid = { version = "1.1.2", features = ["v4", "v5", "v7", "serde"] }
 walkdir = "2.3"
-wasi-preview1-component-adapter-provider = "29"
 wasm-encoder = "0.221"
 wasmparser = "0.221"
 wasmtime = { version = "29", default-features = false, features = [
@@ -608,14 +603,12 @@ wasmtime = { version = "29", default-features = false, features = [
    "runtime",
    "cranelift",
    "component-model",
-    "incremental-cache",
-    "parallel-compilation",
 ] }
 wasmtime-wasi = "29"
 which = "6.0.0"
 wit-component = "0.221"
 workspace-hack = "0.1.0"
-zed_llm_client = "0.8.1"
+zed_llm_client = "0.8.0"
 zstd = "0.11"

 [workspace.dependencies.async-stripe]
@@ -795,9 +788,6 @@ let_underscore_future = "allow"
 # running afoul of the borrow checker.
 too_many_arguments = "allow"

-# We often have large enum variants yet we rarely actually bother with splitting them up.
-large_enum_variant = "allow"
-
 [workspace.metadata.cargo-machete]
 ignored = [
    "bindgen",
@@ -805,6 +795,7 @@ ignored = [
    "prost_build",
    "serde",
    "component",
+    "linkme",
    "documented",
    "workspace-hack",
 ]
--- a/2
+++ b/2
@@ -1,6 +1,6 @@
 # syntax = docker/dockerfile:1.2

-FROM rust:1.87-bookworm as builder
+FROM rust:1.86-bookworm as builder
 WORKDIR app
 COPY . .

--- a/README.md
+++ b/README.md
@@ -8,6 +8,10 @@ Welcome to Zed, a high-performance, multiplayer code editor from the creators of

 ### Installation

+<a href="https://repology.org/project/zed-editor/versions">
+    <img src="https://repology.org/badge/vertical-allrepos/zed-editor.svg?minversion=0.143.5" alt="Packaging status" align="right">
+</a>
+
 On macOS and Linux you can [download Zed directly](https://zed.dev/download) or [install Zed via your local package manager](https://zed.dev/docs/linux#installing-via-a-package-manager).

 Other platforms are not yet available:
--- a/assets/keymaps/default-linux.json
+++ b/assets/keymaps/default-linux.json
@@ -217,6 +217,7 @@
    "context": "ContextEditor > Editor",
    "bindings": {
      "ctrl-enter": "assistant::Assist",
+      "ctrl-shift-enter": "assistant::Edit",
      "ctrl-s": "workspace::Save",
      "save": "workspace::Save",
      "ctrl->": "assistant::QuoteSelection",
@@ -244,7 +245,7 @@
      "ctrl-shift-a": "agent::ToggleContextPicker",
      "ctrl-shift-o": "agent::ToggleNavigationMenu",
      "ctrl-shift-i": "agent::ToggleOptionsMenu",
-      "shift-alt-escape": "agent::ExpandMessageEditor",
+      "shift-escape": "agent::ExpandMessageEditor",
      "ctrl-alt-e": "agent::RemoveAllContext",
      "ctrl-shift-e": "project_panel::ToggleFocus"
    }
@@ -512,8 +513,6 @@
      "alt-ctrl-o": "projects::OpenRecent",
      "alt-shift-open": "projects::OpenRemote",
      "alt-ctrl-shift-o": "projects::OpenRemote",
-      // Change to open path modal for existing remote connection by setting the parameter
-      // "alt-ctrl-shift-o": "["projects::OpenRemote", { "from_existing_connection": true }]",
      "alt-ctrl-shift-b": "branches::OpenRecent",
      "alt-shift-enter": "toast::RunAction",
      "ctrl-~": "workspace::NewTerminal",
@@ -768,7 +767,7 @@
      "alt-ctrl-r": "project_panel::RevealInFileManager",
      "ctrl-shift-enter": "project_panel::OpenWithSystem",
      "shift-find": "project_panel::NewSearchInDirectory",
-      "ctrl-alt-shift-f": "project_panel::NewSearchInDirectory",
+      "ctrl-shift-f": "project_panel::NewSearchInDirectory",
      "shift-down": "menu::SelectNext",
      "shift-up": "menu::SelectPrevious",
      "escape": "menu::Cancel"
@@ -930,14 +929,12 @@
      "alt-b": ["terminal::SendText", "\u001bb"],
      "alt-f": ["terminal::SendText", "\u001bf"],
      "alt-.": ["terminal::SendText", "\u001b."],
-      "ctrl-delete": ["terminal::SendText", "\u001bd"],
      // Overrides for conflicting keybindings
      "ctrl-b": ["terminal::SendKeystroke", "ctrl-b"],
      "ctrl-c": ["terminal::SendKeystroke", "ctrl-c"],
      "ctrl-e": ["terminal::SendKeystroke", "ctrl-e"],
      "ctrl-o": ["terminal::SendKeystroke", "ctrl-o"],
      "ctrl-w": ["terminal::SendKeystroke", "ctrl-w"],
-      "ctrl-backspace": ["terminal::SendKeystroke", "ctrl-w"],
      "ctrl-shift-a": "editor::SelectAll",
      "find": "buffer_search::Deploy",
      "ctrl-shift-f": "buffer_search::Deploy",
@@ -955,10 +952,7 @@
      "shift-down": "terminal::ScrollLineDown",
      "shift-home": "terminal::ScrollToTop",
      "shift-end": "terminal::ScrollToBottom",
-      "ctrl-shift-space": "terminal::ToggleViMode",
-      "ctrl-shift-r": "terminal::RerunTask",
-      "ctrl-alt-r": "terminal::RerunTask",
-      "alt-t": "terminal::RerunTask"
+      "ctrl-shift-space": "terminal::ToggleViMode"
    }
  },
  {
@@ -981,12 +975,5 @@
    "bindings": {
      "ctrl-r": "diagnostics::ToggleDiagnosticsRefresh"
    }
-  },
-  {
-    "context": "DebugConsole > Editor",
-    "use_key_equivalents": true,
-    "bindings": {
-      "enter": "menu::Confirm"
-    }
  }
 ]
--- a/assets/keymaps/default-macos.json
+++ b/assets/keymaps/default-macos.json
@@ -263,6 +263,7 @@
    "use_key_equivalents": true,
    "bindings": {
      "cmd-enter": "assistant::Assist",
+      "cmd-shift-enter": "assistant::Edit",
      "cmd-s": "workspace::Save",
      "cmd->": "assistant::QuoteSelection",
      "cmd-<": "assistant::InsertIntoEditor",
@@ -290,7 +291,7 @@
      "cmd-shift-a": "agent::ToggleContextPicker",
      "cmd-shift-o": "agent::ToggleNavigationMenu",
      "cmd-shift-i": "agent::ToggleOptionsMenu",
-      "shift-alt-escape": "agent::ExpandMessageEditor",
+      "shift-escape": "agent::ExpandMessageEditor",
      "cmd-alt-e": "agent::RemoveAllContext",
      "cmd-shift-e": "project_panel::ToggleFocus"
    }
@@ -588,7 +589,6 @@
      // "alt-cmd-o": ["projects::OpenRecent", {"create_new_window": true }],
      "alt-cmd-o": "projects::OpenRecent",
      "ctrl-cmd-o": "projects::OpenRemote",
-      "ctrl-cmd-shift-o": ["projects::OpenRemote", { "from_existing_connection": true }],
      "alt-cmd-b": "branches::OpenRecent",
      "ctrl-~": "workspace::NewTerminal",
      "cmd-s": "workspace::Save",
@@ -826,7 +826,7 @@
      "alt-cmd-r": "project_panel::RevealInFileManager",
      "ctrl-shift-enter": "project_panel::OpenWithSystem",
      "cmd-alt-backspace": ["project_panel::Delete", { "skip_prompt": false }],
-      "cmd-alt-shift-f": "project_panel::NewSearchInDirectory",
+      "cmd-shift-f": "project_panel::NewSearchInDirectory",
      "shift-down": "menu::SelectNext",
      "shift-up": "menu::SelectPrevious",
      "escape": "menu::Cancel"
@@ -1012,7 +1012,7 @@
      "alt-right": ["terminal::SendText", "\u001bf"],
      "alt-b": ["terminal::SendText", "\u001bb"],
      "alt-f": ["terminal::SendText", "\u001bf"],
-      "ctrl-delete": ["terminal::SendText", "\u001bd"],
+      "alt-.": ["terminal::SendText", "\u001b."],
      // There are conflicting bindings for these keys in the global context.
      // these bindings override them, remove at your own risk:
      "up": ["terminal::SendKeystroke", "up"],
@@ -1022,7 +1022,6 @@
      "escape": ["terminal::SendKeystroke", "escape"],
      "enter": ["terminal::SendKeystroke", "enter"],
      "ctrl-c": ["terminal::SendKeystroke", "ctrl-c"],
-      "ctrl-backspace": ["terminal::SendKeystroke", "ctrl-w"],
      "shift-pageup": "terminal::ScrollPageUp",
      "cmd-up": "terminal::ScrollPageUp",
      "shift-pagedown": "terminal::ScrollPageDown",
@@ -1039,8 +1038,7 @@
      "ctrl-alt-up": "pane::SplitUp",
      "ctrl-alt-down": "pane::SplitDown",
      "ctrl-alt-left": "pane::SplitLeft",
-      "ctrl-alt-right": "pane::SplitRight",
-      "cmd-alt-r": "terminal::RerunTask"
+      "ctrl-alt-right": "pane::SplitRight"
    }
  },
  {
@@ -1085,12 +1083,5 @@
    "bindings": {
      "ctrl-r": "diagnostics::ToggleDiagnosticsRefresh"
    }
-  },
-  {
-    "context": "DebugConsole > Editor",
-    "use_key_equivalents": true,
-    "bindings": {
-      "enter": "menu::Confirm"
-    }
  }
 ]
--- a/assets/keymaps/linux/emacs.json
+++ b/assets/keymaps/linux/emacs.json
@@ -72,9 +72,7 @@
      "alt-left": "editor::SelectToPreviousWordStart",
      "alt-right": "editor::SelectToNextWordEnd",
      "pagedown": "editor::SelectPageDown",
-      "ctrl-v": "editor::SelectPageDown",
      "pageup": "editor::SelectPageUp",
-      "alt-v": "editor::SelectPageUp",
      "ctrl-f": "editor::SelectRight",
      "ctrl-b": "editor::SelectLeft",
      "ctrl-n": "editor::SelectDown",
--- a/assets/keymaps/linux/sublime_text.json
+++ b/assets/keymaps/linux/sublime_text.json
@@ -51,7 +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/emacs.json
+++ b/assets/keymaps/macos/emacs.json
@@ -72,9 +72,7 @@
      "alt-left": "editor::SelectToPreviousWordStart",
      "alt-right": "editor::SelectToNextWordEnd",
      "pagedown": "editor::SelectPageDown",
-      "ctrl-v": "editor::SelectPageDown",
      "pageup": "editor::SelectPageUp",
-      "alt-v": "editor::SelectPageUp",
      "ctrl-f": "editor::SelectRight",
      "ctrl-b": "editor::SelectLeft",
      "ctrl-n": "editor::SelectDown",
--- a/assets/keymaps/macos/sublime_text.json
+++ b/assets/keymaps/macos/sublime_text.json
@@ -53,7 +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
@@ -152,7 +152,6 @@
      "g end": ["vim::EndOfLine", { "display_lines": true }],
      "g 0": ["vim::StartOfLine", { "display_lines": true }],
      "g home": ["vim::StartOfLine", { "display_lines": true }],
-      "g shift-m": ["vim::MiddleOfLine", { "display_lines": true }],
      "g ^": ["vim::FirstNonWhitespace", { "display_lines": true }],
      "g v": "vim::RestoreVisualSelection",
      "g ]": "editor::GoToDiagnostic",
--- a/assets/prompts/content_prompt.hbs
+++ b/assets/prompts/content_prompt.hbs
@@ -49,9 +49,10 @@ And here's the section to rewrite based on that prompt again for reference:
 </rewrite_this>

 {{#if diagnostic_errors}}
+{{#each diagnostic_errors}}
+
 Below are the diagnostic errors visible to the user.  If the user requests problems to be fixed, use this information, but do not try to fix these errors if the user hasn't asked you to.

-{{#each diagnostic_errors}}
 <diagnostic_error>
    <line_number>{{line_number}}</line_number>
    <error_message>{{error_message}}</error_message>
--- a/assets/prompts/suggest_edits.hbs
+++ b/assets/prompts/suggest_edits.hbs
@@ -0,0 +1,206 @@
+<task_description>
+
+The user of a code editor wants to make a change to their codebase.
+You must describe the change using the following XML structure:
+
+- <patch> - A group of related code changes.
+  Child tags:
+    - <title> (required) - A high-level description of the changes. This should be as short
+      as possible, possibly using common abbreviations.
+    - <edit> (1 or more) - An edit to make at a particular range within a file.
+      Includes the following child tags:
+        - <path> (required) - The path to the file that will be changed.
+        - <description> (optional) - An arbitrarily-long comment that describes the purpose
+          of this edit.
+        - <old_text> (optional) - An excerpt from the file's current contents that uniquely
+          identifies a range within the file where the edit should occur. Required for all operations
+          except `create`.
+        - <new_text> (required) - The new text to insert into the file.
+        - <operation> (required) - The type of change that should occur at the given range
+          of the file. Must be one of the following values:
+            - `update`: Replaces the entire range with the new text.
+            - `insert_before`: Inserts the new text before the range.
+            - `insert_after`: Inserts new text after the range.
+            - `create`: Creates or overwrites a file with the given path and the new text.
+            - `delete`: Deletes the specified range from the file.
+
+<guidelines>
+- Never provide multiple edits whose ranges intersect each other. Instead, merge them into one edit.
+- Prefer multiple edits to smaller, disjoint ranges, rather than one edit to a larger range.
+- There's no need to escape angle brackets within XML tags.
+- Always ensure imports are added if you're referencing symbols that are not in scope.
+</guidelines>
+
+Here are some concrete examples.
+
+<example>
+<message role="user">
+
+```rs src/shapes.rs
+pub mod rectangle;
+pub mod circle;
+```
+
+```rs src/shapes/rectangle.rs
+pub struct Rectangle {
+    width: f64,
+    height: f64,
+}
+
+impl Rectangle {
+    pub fn new(width: f64, height: f64) -> Self {
+        Rectangle { width, height }
+    }
+}
+```
+
+```rs src/shapes/circle.rs
+pub struct Circle {
+    radius: f64,
+}
+
+impl Circle {
+    pub fn new(radius: f64) -> Self {
+        Circle { radius }
+    }
+}
+```
+
+Update all shapes to store their origin as an (x, y) tuple and implement Display.
+</message>
+
+<message role="assistant">
+We'll need to update both the rectangle and circle modules.
+
+<patch>
+<title>Add origins and display impls to shapes</title>
+<edit>
+<path>src/shapes/rectangle.rs</path>
+<description>Add the origin field to Rectangle struct</description>
+<operation>insert_after</operation>
+<old_text>
+pub struct Rectangle {
+</old_text>
+<new_text>
+origin: (f64, f64),
+</new_text>
+</edit>
+
+<edit>
+<path>src/shapes/rectangle.rs</path>
+<operation>update</operation>
+<old_text>
+fn new(width: f64, height: f64) -> Self {
+    Rectangle { width, height }
+}
+</old_text>
+<new_text>
+fn new(origin: (f64, f64), width: f64, height: f64) -> Self {
+    Rectangle { origin, width, height }
+}
+</new_text>
+</edit>
+
+<edit>
+<path>src/shapes/circle.rs</path>
+<description>Add the origin field to Circle struct</description>
+<operation>insert_after</operation>
+<old_text>
+pub struct Circle {
+    radius: f64,
+</old_text>
+<new_text>
+    origin: (f64, f64),
+</new_text>
+</edit>
+
+<edit>
+<path>src/shapes/circle.rs</path>
+<operation>update</operation>
+<old_text>
+fn new(radius: f64) -> Self {
+    Circle { radius }
+}
+</old_text>
+<new_text>
+fn new(origin: (f64, f64), radius: f64) -> Self {
+    Circle { origin, radius }
+}
+</new_text>
+</edit>
+</step>
+
+<edit>
+<path>src/shapes/rectangle.rs</path>
+<operation>insert_before</operation>
+<old_text>
+struct Rectangle {
+</old_text>
+<new_text>
+use std::fmt;
+
+</new_text>
+</edit>
+
+<edit>
+<path>src/shapes/rectangle.rs</path>
+<description>
+Add a manual Display implementation for Rectangle.
+Currently, this is the same as a derived Display implementation.
+</description>
+<operation>insert_after</operation>
+<old_text>
+        Rectangle { width, height }
+    }
+}
+</old_text>
+<new_text>
+impl fmt::Display for Rectangle {
+    fn fmt(&self, f: &mut fmt::Formatter<'_>) -> fmt::Result {
+        f.format_struct(f, "Rectangle")
+            .field("origin", &self.origin)
+            .field("width", &self.width)
+            .field("height", &self.height)
+            .finish()
+    }
+}
+</new_text>
+</edit>
+
+<edit>
+<path>src/shapes/circle.rs</path>
+<operation>insert_before</operation>
+<old_text>
+struct Circle {
+</old_text>
+<new_text>
+use std::fmt;
+</new_text>
+</edit>
+
+<edit>
+<path>src/shapes/circle.rs</path>
+<operation>insert_after</operation>
+<old_text>
+        Circle { radius }
+    }
+}
+</old_text>
+<new_text>
+impl fmt::Display for Rectangle {
+    fn fmt(&self, f: &mut fmt::Formatter<'_>) -> fmt::Result {
+        f.format_struct(f, "Rectangle")
+            .field("origin", &self.origin)
+            .field("width", &self.width)
+            .field("height", &self.height)
+            .finish()
+    }
+}
+</new_text>
+</edit>
+</patch>
+
+</message>
+</example>
+
+</task_description>
--- a/assets/settings/default.json
+++ b/assets/settings/default.json
@@ -113,8 +113,8 @@
  // Whether to show the informational hover box when moving the mouse
  // over symbols in the editor.
  "hover_popover_enabled": true,
-  // Time to wait in milliseconds before showing the informational hover box.
-  "hover_popover_delay": 300,
+  // Time to wait before showing the informational hover box
+  "hover_popover_delay": 350,
  // Whether to confirm before quitting Zed.
  "confirm_quit": false,
  // Whether to restore last closed project when fresh Zed instance is opened.
@@ -218,23 +218,6 @@
  // 1. Do nothing: `none`
  // 2. Find references for the same symbol: `find_all_references` (default)
  "go_to_definition_fallback": "find_all_references",
-  // Which level to use to filter out diagnostics displayed in the editor.
-  //
-  // Affects the editor rendering only, and does not interrupt
-  // the functionality of diagnostics fetching and project diagnostics editor.
-  // Which files containing diagnostic errors/warnings to mark in the tabs.
-  // Diagnostics are only shown when file icons are also active.
-  // This setting only works when can take the following three values:
-  //
-  // Which diagnostic indicators to show in the scrollbar, their level should be more or equal to the specified severity level.
-  // Possible values:
-  //  - "off" — no diagnostics are allowed
-  //  - "error"
-  //  - "warning" (default)
-  //  - "info"
-  //  - "hint"
-  //  - null — allow all diagnostics
-  "diagnostics_max_severity": "warning",
  // Whether to show wrap guides (vertical rulers) in the editor.
  // Setting this to true will show a guide at the 'preferred_line_length' value
  // if 'soft_wrap' is set to 'preferred_line_length', and will show any
@@ -328,16 +311,10 @@
  "title_bar": {
    // Whether to show the branch icon beside branch switcher in the titlebar.
    "show_branch_icon": false,
-    // Whether to show the branch name button in the titlebar.
-    "show_branch_name": true,
-    // Whether to show the project host and name in the titlebar.
-    "show_project_items": true,
    // Whether to show onboarding banners in the titlebar.
    "show_onboarding_banner": true,
    // Whether to show user picture in the titlebar.
-    "show_user_picture": true,
-    // Whether to show the sign in button in the titlebar.
-    "show_sign_in": true
+    "show_user_picture": true
  },
  // Scrollbar related settings
  "scrollbar": {
@@ -379,45 +356,6 @@
      "vertical": true
    }
  },
-  // Minimap related settings
-  "minimap": {
-    // When to show the minimap in the editor.
-    // This setting can take three values:
-    // 1. Show the minimap if the editor's scrollbar is visible:
-    //    "auto"
-    // 2. Always show the minimap:
-    //    "always"
-    // 3. Never show the minimap:
-    //    "never" (default)
-    "show": "never",
-    // When to show the minimap thumb.
-    // This setting can take two values:
-    // 1. Show the minimap thumb if the mouse is over the minimap:
-    //    "hover"
-    // 2. Always show the minimap thumb:
-    //    "always" (default)
-    "thumb": "always",
-    // How the minimap thumb border should look.
-    // This setting can take five values:
-    // 1. Display a border on all sides of the thumb:
-    //    "thumb_border": "full"
-    // 2. Display a border on all sides except the left side of the thumb:
-    //    "thumb_border": "left_open" (default)
-    // 3. Display a border on all sides except the right side of the thumb:
-    //    "thumb_border": "right_open"
-    // 4. Display a border only on the left side of the thumb:
-    //    "thumb_border": "left_only"
-    // 5. Display the thumb without any border:
-    //    "thumb_border": "none"
-    "thumb_border": "left_open",
-    // How to highlight the current line in the minimap.
-    // This setting can take the following values:
-    //
-    // 1. `null` to inherit the editor `current_line_highlight` setting (default)
-    // 2. "line" or "all" to highlight the current line in the minimap.
-    // 3. "gutter" or "none" to not highlight the current line in the minimap.
-    "current_line_highlight": null
-  },
  // Enable middle-click paste on Linux.
  "middle_click_paste": true,
  // What to do when multibuffer is double clicked in some of its excerpts
@@ -432,6 +370,8 @@
  "gutter": {
    // Whether to show line numbers in the gutter.
    "line_numbers": true,
+    // Whether to show code action buttons in the gutter.
+    "code_actions": true,
    // Whether to show runnables buttons in the gutter.
    "runnables": true,
    // Whether to show breakpoints in the gutter.
@@ -476,8 +416,6 @@
  "search_wrap": true,
  // Search options to enable by default when opening new project and buffer searches.
  "search": {
-    // Whether to show the project search button in the status bar.
-    "button": true,
    "whole_word": false,
    "case_sensitive": false,
    "include_ignored": false,
@@ -758,8 +696,6 @@
    "stream_edits": false,
    // When enabled, agent edits will be displayed in single-file editors for review
    "single_file_review": true,
-    // When enabled, show voting thumbs for feedback on agent edits.
-    "enable_feedback": true,
    "default_profile": "write",
    "profiles": {
      "write": {
@@ -1012,8 +948,6 @@
  "auto_update": true,
  // Diagnostics configuration.
  "diagnostics": {
-    // Whether to show the project diagnostics button in the status bar.
-    "button": true,
    // Whether to show warnings or not by default.
    "include_warnings": true,
    // Settings for inline diagnostics
@@ -1031,7 +965,7 @@
      // longer than this value will still push diagnostics further to the right.
      "min_column": 0,
      // The minimum severity of the diagnostics to show inline.
-      // Inherits editor's diagnostics' max severity settings when `null`.
+      // Shows all diagnostics when not specified.
      "max_severity": null
    },
    "cargo": {
@@ -1715,8 +1649,6 @@
  //   }
  // ]
  "ssh_connections": [],
-  // Whether to read ~/.ssh/config for ssh connection sources.
-  "read_ssh_config": true,
  // Configures context servers for use by the agent.
  "context_servers": {},
  "debugger": {
--- a/crates/agent/Cargo.toml
+++ b/crates/agent/Cargo.toml
@@ -47,11 +47,12 @@ heed.workspace = true
 html_to_markdown.workspace = true
 http_client.workspace = true
 indexed_docs.workspace = true
-inventory.workspace = true
 itertools.workspace = true
 jsonschema.workspace = true
 language.workspace = true
 language_model.workspace = true
+language_model_selector.workspace = true
+linkme.workspace = true
 log.workspace = true
 lsp.workspace = true
 markdown.workspace = true
--- a/crates/agent/src/active_thread.rs
+++ b/crates/agent/src/active_thread.rs
@@ -3,10 +3,9 @@ use crate::context::{AgentContextHandle, RULES_ICON};
 use crate::context_picker::{ContextPicker, MentionLink};
 use crate::context_store::ContextStore;
 use crate::context_strip::{ContextStrip, ContextStripEvent, SuggestContextKind};
-use crate::message_editor::insert_message_creases;
 use crate::thread::{
-    LastRestoreCheckpoint, MessageCrease, MessageId, MessageSegment, Thread, ThreadError,
-    ThreadEvent, ThreadFeedback, ThreadSummary,
+    LastRestoreCheckpoint, MessageId, MessageSegment, Thread, ThreadError, ThreadEvent,
+    ThreadFeedback,
 };
 use crate::thread_store::{RulesLoadingError, TextThreadStore, ThreadStore};
 use crate::tool_use::{PendingToolUseStatus, ToolUse};
@@ -33,9 +32,7 @@ use language_model::{
    LanguageModelRequestMessage, LanguageModelToolUseId, MessageContent, Role, StopReason,
 };
 use markdown::parser::{CodeBlockKind, CodeBlockMetadata};
-use markdown::{
-    HeadingLevelStyles, Markdown, MarkdownElement, MarkdownStyle, ParsedMarkdown, PathWithRange,
-};
+use markdown::{HeadingLevelStyles, Markdown, MarkdownElement, MarkdownStyle, ParsedMarkdown};
 use project::{ProjectEntryId, ProjectItem as _};
 use rope::Point;
 use settings::{Settings as _, SettingsStore, update_settings_file};
@@ -185,14 +182,12 @@ pub(crate) fn default_markdown_style(window: &Window, cx: &App) -> MarkdownStyle
    let ui_font_size = TextSize::Default.rems(cx);
    let buffer_font_size = TextSize::Small.rems(cx);
    let mut text_style = window.text_style();
-    let line_height = buffer_font_size * 1.75;

    text_style.refine(&TextStyleRefinement {
        font_family: Some(theme_settings.ui_font.family.clone()),
        font_fallbacks: theme_settings.ui_font.fallbacks.clone(),
        font_features: Some(theme_settings.ui_font.features.clone()),
        font_size: Some(ui_font_size.into()),
-        line_height: Some(line_height.into()),
        color: Some(cx.theme().colors().text),
        ..Default::default()
    });
@@ -333,6 +328,7 @@ fn tool_use_markdown_style(window: &Window, cx: &mut App) -> MarkdownStyle {
 }

 const CODEBLOCK_CONTAINER_GROUP: &str = "codeblock_container";
+const MAX_UNCOLLAPSED_LINES_IN_CODE_BLOCK: usize = 10;

 fn render_markdown_code_block(
    message_id: MessageId,
@@ -345,20 +341,17 @@ fn render_markdown_code_block(
    _window: &Window,
    cx: &App,
 ) -> Div {
-    let label_size = rems(0.8125);
-
    let label = match kind {
        CodeBlockKind::Indented => None,
        CodeBlockKind::Fenced => Some(
            h_flex()
-                .px_1()
                .gap_1()
                .child(
                    Icon::new(IconName::Code)
                        .color(Color::Muted)
                        .size(IconSize::XSmall),
                )
-                .child(div().text_size(label_size).child("Plain Text"))
+                .child(Label::new("untitled").size(LabelSize::Small))
                .into_any_element(),
        ),
        CodeBlockKind::FencedLang(raw_language_name) => Some(render_code_language(
@@ -387,36 +380,28 @@ fn render_markdown_code_block(
                )
            } else {
                let content = if let Some(parent) = path_range.path.parent() {
-                    let file_name = file_name.to_string_lossy().to_string();
-                    let path = parent.to_string_lossy().to_string();
-                    let path_and_file = format!("{}/{}", path, file_name);
-
                    h_flex()
-                        .id(("code-block-header-label", ix))
                        .ml_1()
                        .gap_1()
-                        .child(div().text_size(label_size).child(file_name))
-                        .child(Label::new(path).color(Color::Muted).size(LabelSize::Small))
-                        .tooltip(move |window, cx| {
-                            Tooltip::with_meta(
-                                "Jump to File",
-                                None,
-                                path_and_file.clone(),
-                                window,
-                                cx,
-                            )
-                        })
+                        .child(
+                            Label::new(file_name.to_string_lossy().to_string())
+                                .size(LabelSize::Small),
+                        )
+                        .child(
+                            Label::new(parent.to_string_lossy().to_string())
+                                .color(Color::Muted)
+                                .size(LabelSize::Small),
+                        )
                        .into_any_element()
                } else {
-                    div()
+                    Label::new(path_range.path.to_string_lossy().to_string())
+                        .size(LabelSize::Small)
                        .ml_1()
-                        .text_size(label_size)
-                        .child(path_range.path.to_string_lossy().to_string())
                        .into_any_element()
                };

                h_flex()
-                    .id(("code-block-header-button", ix))
+                    .id(("code-block-header-label", ix))
                    .w_full()
                    .max_w_full()
                    .px_1()
@@ -424,6 +409,7 @@ fn render_markdown_code_block(
                    .cursor_pointer()
                    .rounded_sm()
                    .hover(|item| item.bg(cx.theme().colors().element_hover.opacity(0.5)))
+                    .tooltip(Tooltip::text("Jump to File"))
                    .child(
                        h_flex()
                            .gap_0p5()
@@ -443,8 +429,49 @@ fn render_markdown_code_block(
                        let path_range = path_range.clone();
                        move |_, window, cx| {
                            workspace
-                                .update(cx, |workspace, cx| {
-                                    open_path(&path_range, window, workspace, cx)
+                                .update(cx, {
+                                    |workspace, cx| {
+                                        let Some(project_path) = workspace
+                                            .project()
+                                            .read(cx)
+                                            .find_project_path(&path_range.path, cx)
+                                        else {
+                                            return;
+                                        };
+                                        let Some(target) = path_range.range.as_ref().map(|range| {
+                                            Point::new(
+                                                // Line number is 1-based
+                                                range.start.line.saturating_sub(1),
+                                                range.start.col.unwrap_or(0),
+                                            )
+                                        }) else {
+                                            return;
+                                        };
+                                        let open_task = workspace.open_path(
+                                            project_path,
+                                            None,
+                                            true,
+                                            window,
+                                            cx,
+                                        );
+                                        window
+                                            .spawn(cx, async move |cx| {
+                                                let item = open_task.await?;
+                                                if let Some(active_editor) =
+                                                    item.downcast::<Editor>()
+                                                {
+                                                    active_editor
+                                                        .update_in(cx, |editor, window, cx| {
+                                                            editor.go_to_singleton_buffer_point(
+                                                                target, window, cx,
+                                                            );
+                                                        })
+                                                        .ok();
+                                                }
+                                                anyhow::Ok(())
+                                            })
+                                            .detach_and_log_err(cx);
+                                    }
                                })
                                .ok();
                        }
@@ -459,157 +486,124 @@ fn render_markdown_code_block(
        .copied_code_block_ids
        .contains(&(message_id, ix));

-    let is_expanded = active_thread.read(cx).is_codeblock_expanded(message_id, ix);
+    let can_expand = metadata.line_count > MAX_UNCOLLAPSED_LINES_IN_CODE_BLOCK;
+
+    let is_expanded = if can_expand {
+        active_thread
+            .read(cx)
+            .expanded_code_blocks
+            .get(&(message_id, ix))
+            .copied()
+            .unwrap_or(false)
+    } else {
+        false
+    };

    let codeblock_header_bg = cx
        .theme()
        .colors()
        .element_background
-        .blend(cx.theme().colors().editor_foreground.opacity(0.025));
-
-    let control_buttons = h_flex()
-        .visible_on_hover(CODEBLOCK_CONTAINER_GROUP)
-        .absolute()
-        .top_0()
-        .right_0()
-        .h_full()
-        .bg(codeblock_header_bg)
-        .rounded_tr_md()
-        .px_1()
-        .gap_1()
-        .child(
-            IconButton::new(
-                ("copy-markdown-code", ix),
-                if codeblock_was_copied {
-                    IconName::Check
-                } else {
-                    IconName::Copy
-                },
-            )
-            .icon_color(Color::Muted)
-            .shape(ui::IconButtonShape::Square)
-            .tooltip(Tooltip::text("Copy Code"))
-            .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 = 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().timer(Duration::from_secs(2)).await;
-
-                            cx.update(|cx| {
-                                this.update(cx, |this, cx| {
-                                    this.copied_code_block_ids.remove(&(message_id, ix));
-                                    cx.notify();
-                                })
-                            })
-                            .ok();
-                        })
-                        .detach();
-                    });
-                }
-            }),
-        )
-        .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 {
-                "Expand Code"
-            }))
-            .on_click({
-                let active_thread = active_thread.clone();
-                move |_event, _window, cx| {
-                    active_thread.update(cx, |this, cx| {
-                        this.toggle_codeblock_expanded(message_id, ix);
-                        cx.notify();
-                    });
-                }
-            }),
-        );
+        .blend(cx.theme().colors().editor_foreground.opacity(0.01));

    let codeblock_header = h_flex()
-        .relative()
-        .p_1()
+        .py_1()
+        .pl_1p5()
+        .pr_1()
        .gap_1()
        .justify_between()
+        .border_b_1()
+        .border_color(cx.theme().colors().border.opacity(0.6))
        .bg(codeblock_header_bg)
-        .map(|this| {
-            if !is_expanded {
-                this.rounded_md()
-            } else {
-                this.rounded_t_md()
-                    .border_b_1()
-                    .border_color(cx.theme().colors().border.opacity(0.6))
-            }
-        })
+        .rounded_t_md()
        .children(label)
-        .child(control_buttons);
+        .child(
+            h_flex()
+                .visible_on_hover(CODEBLOCK_CONTAINER_GROUP)
+                .gap_1()
+                .child(
+                    IconButton::new(
+                        ("copy-markdown-code", ix),
+                        if codeblock_was_copied {
+                            IconName::Check
+                        } else {
+                            IconName::Copy
+                        },
+                    )
+                    .icon_color(Color::Muted)
+                    .shape(ui::IconButtonShape::Square)
+                    .tooltip(Tooltip::text("Copy Code"))
+                    .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 =
+                                    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().timer(Duration::from_secs(2)).await;
+
+                                    cx.update(|cx| {
+                                        this.update(cx, |this, cx| {
+                                            this.copied_code_block_ids.remove(&(message_id, ix));
+                                            cx.notify();
+                                        })
+                                    })
+                                    .ok();
+                                })
+                                .detach();
+                            });
+                        }
+                    }),
+                )
+                .when(can_expand, |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 {
+                            "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(true);
+                                    *is_expanded = !*is_expanded;
+                                    cx.notify();
+                                });
+                            }
+                        }),
+                    )
+                }),
+        );

    v_flex()
        .group(CODEBLOCK_CONTAINER_GROUP)
        .my_2()
        .overflow_hidden()
-        .rounded_md()
+        .rounded_lg()
        .border_1()
        .border_color(cx.theme().colors().border.opacity(0.6))
        .bg(cx.theme().colors().editor_background)
        .child(codeblock_header)
-        .when(!is_expanded, |this| this.h(rems_from_px(31.)))
-}
-
-fn open_path(
-    path_range: &PathWithRange,
-    window: &mut Window,
-    workspace: &mut Workspace,
-    cx: &mut Context<'_, Workspace>,
-) {
-    let Some(project_path) = workspace
-        .project()
-        .read(cx)
-        .find_project_path(&path_range.path, cx)
-    else {
-        return; // TODO instead of just bailing out, open that path in a buffer.
-    };
-
-    let Some(target) = path_range.range.as_ref().map(|range| {
-        Point::new(
-            // Line number is 1-based
-            range.start.line.saturating_sub(1),
-            range.start.col.unwrap_or(0),
-        )
-    }) else {
-        return;
-    };
-    let open_task = workspace.open_path(project_path, None, true, window, cx);
-    window
-        .spawn(cx, async move |cx| {
-            let item = open_task.await?;
-            if let Some(active_editor) = item.downcast::<Editor>() {
-                active_editor
-                    .update_in(cx, |editor, window, cx| {
-                        editor.go_to_singleton_buffer_point(target, window, cx);
-                    })
-                    .ok();
-            }
-            anyhow::Ok(())
-        })
-        .detach_and_log_err(cx);
+        .when(can_expand && !is_expanded, |this| this.max_h_80())
 }

 fn render_code_language(
@@ -631,13 +625,10 @@ fn render_code_language(
        .map(|language| language.name().into())
        .unwrap_or(name_fallback);

-    let label_size = rems(0.8125);
-
    h_flex()
-        .px_1()
-        .gap_1p5()
-        .children(icon_path.map(|icon| icon.color(Color::Muted).size(IconSize::XSmall)))
-        .child(div().text_size(label_size).child(language_label))
+        .gap_1()
+        .children(icon_path.map(|icon| icon.color(Color::Muted).size(IconSize::Small)))
+        .child(Label::new(language_label).size(LabelSize::Small))
        .into_any_element()
 }

@@ -831,12 +822,12 @@ impl ActiveThread {
        self.messages.is_empty()
    }

-    pub fn summary<'a>(&'a self, cx: &'a App) -> &'a ThreadSummary {
+    pub fn summary(&self, cx: &App) -> Option<SharedString> {
        self.thread.read(cx).summary()
    }

-    pub fn regenerate_summary(&self, cx: &mut App) {
-        self.thread.update(cx, |thread, cx| thread.summarize(cx))
+    pub fn summary_or_default(&self, cx: &App) -> SharedString {
+        self.thread.read(cx).summary_or_default()
    }

    pub fn cancel_last_completion(&mut self, window: &mut Window, cx: &mut App) -> bool {
@@ -1018,7 +1009,6 @@ impl ActiveThread {
                    self.push_message(message_id, &message_segments, window, cx);
                }

-                self.scroll_to_bottom(cx);
                self.save_thread(cx);
                cx.notify();
            }
@@ -1032,7 +1022,6 @@ impl ActiveThread {
                    self.edited_message(message_id, &message_segments, window, cx);
                }

-                self.scroll_to_bottom(cx);
                self.save_thread(cx);
                cx.notify();
            }
@@ -1144,7 +1133,11 @@ impl ActiveThread {
            return;
        }

-        let title = self.thread.read(cx).summary().unwrap_or("Agent Panel");
+        let title = self
+            .thread
+            .read(cx)
+            .summary()
+            .unwrap_or("Agent Panel".into());

        match AssistantSettings::get_global(cx).notify_when_agent_waiting {
            NotifyWhenAgentWaiting::PrimaryScreen => {
@@ -1274,7 +1267,6 @@ impl ActiveThread {
        &mut self,
        message_id: MessageId,
        message_segments: &[MessageSegment],
-        message_creases: &[MessageCrease],
        window: &mut Window,
        cx: &mut Context<Self>,
    ) {
@@ -1284,6 +1276,9 @@ impl ActiveThread {
            return;
        };

+        // Cancel any ongoing streaming when user starts editing a previous message
+        self.cancel_last_completion(window, cx);
+
        let editor = crate::message_editor::create_editor(
            self.workspace.clone(),
            self.context_store.downgrade(),
@@ -1294,7 +1289,6 @@ impl ActiveThread {
        );
        editor.update(cx, |editor, cx| {
            editor.set_text(message_text.clone(), window, cx);
-            insert_message_creases(editor, message_creases, &self.context_store, window, cx);
            editor.focus_handle(cx).focus(window);
            editor.move_to_end(&editor::actions::MoveToEnd, window, cx);
        });
@@ -1546,15 +1540,11 @@ impl ActiveThread {
        let project = self.thread.read(cx).project().clone();
        let prompt_store = self.thread_store.read(cx).prompt_store().clone();

-        let git_store = project.read(cx).git_store().clone();
-        let checkpoint = git_store.update(cx, |git_store, cx| git_store.checkpoint(cx));
-
        let load_context_task =
            crate::context::load_context(new_context, &project, &prompt_store, cx);
        self._load_edited_message_context_task =
            Some(cx.spawn_in(window, async move |this, cx| {
-                let (context, checkpoint) =
-                    futures::future::join(load_context_task, checkpoint).await;
+                let context = load_context_task.await;
                let _ = this
                    .update_in(cx, |this, window, cx| {
                        this.thread.update(cx, |thread, cx| {
@@ -1563,7 +1553,6 @@ impl ActiveThread {
                                Role::User,
                                vec![MessageSegment::Text(edited_text)],
                                Some(context.loaded_context),
-                                checkpoint.ok(),
                                cx,
                            );
                            for message_id in this.messages_after(message_id) {
@@ -1733,11 +1722,10 @@ impl ActiveThread {
            .on_action(cx.listener(Self::confirm_editing_message))
            .capture_action(cx.listener(Self::paste))
            .min_h_6()
-            .w_full()
            .flex_grow()
+            .w_full()
            .gap_2()
-            .child(state.context_strip.clone())
-            .child(div().pt(px(-3.)).px_neg_0p5().child(EditorElement::new(
+            .child(EditorElement::new(
                &state.editor,
                EditorStyle {
                    background: colors.editor_background,
@@ -1746,7 +1734,8 @@ impl ActiveThread {
                    syntax: cx.theme().syntax().clone(),
                    ..Default::default()
                },
-            )))
+            ))
+            .child(state.context_strip.clone())
    }

    fn render_message(&self, ix: usize, window: &mut Window, cx: &mut Context<Self>) -> AnyElement {
@@ -1754,7 +1743,6 @@ impl ActiveThread {
        let Some(message) = self.thread.read(cx).message(message_id) else {
            return Empty.into_any();
        };
-        let message_creases = message.creases.clone();

        let Some(rendered_message) = self.rendered_messages_by_id.get(&message_id) else {
            return Empty.into_any();
@@ -1874,8 +1862,7 @@ impl ActiveThread {
                        .child(open_as_markdown),
                )
                .into_any_element(),
-            None if AssistantSettings::get_global(cx).enable_feedback =>
-                feedback_container
+            None => feedback_container
                .child(
                    div().visible_on_hover("feedback_container").child(
                        Label::new(
@@ -1918,9 +1905,6 @@ impl ActiveThread {
                        .child(open_as_markdown),
                )
                .into_any_element(),
-            None => feedback_container
-                .child(h_flex().child(open_as_markdown))
-                .into_any_element(),
        };

        let message_is_empty = message.should_display_content();
@@ -1934,6 +1918,16 @@ impl ActiveThread {
                v_flex()
                    .w_full()
                    .gap_1()
+                    .when(!message_is_empty, |parent| {
+                        parent.child(div().min_h_6().child(self.render_message_content(
+                            message_id,
+                            rendered_message,
+                            has_tool_uses,
+                            workspace.clone(),
+                            window,
+                            cx,
+                        )))
+                    })
                    .when(!added_context.is_empty(), |parent| {
                        parent.child(h_flex().flex_wrap().gap_1().children(
                            added_context.into_iter().map(|added_context| {
@@ -1952,16 +1946,6 @@ impl ActiveThread {
                            }),
                        ))
                    })
-                    .when(!message_is_empty, |parent| {
-                        parent.child(div().pt_0p5().min_h_6().child(self.render_message_content(
-                            message_id,
-                            rendered_message,
-                            has_tool_uses,
-                            workspace.clone(),
-                            window,
-                            cx,
-                        )))
-                    })
                    .into_any_element()
            }
        });
@@ -1987,7 +1971,6 @@ impl ActiveThread {
                            h_flex()
                                .p_2p5()
                                .gap_1()
-                                .items_end()
                                .children(message_content)
                                .when_some(editing_message_state, |this, state| {
                                    let focus_handle = state.editor.focus_handle(cx).clone();
@@ -2001,7 +1984,6 @@ impl ActiveThread {
                                                )
                                                .shape(ui::IconButtonShape::Square)
                                                .icon_color(Color::Error)
-                                                .icon_size(IconSize::Small)
                                                .tooltip({
                                                    let focus_handle = focus_handle.clone();
                                                    move |window, cx| {
@@ -2019,12 +2001,11 @@ impl ActiveThread {
                                            .child(
                                                IconButton::new(
                                                    "confirm-edit-message",
-                                                    IconName::Return,
+                                                    IconName::Check,
                                                )
                                                .disabled(state.editor.read(cx).is_empty(cx))
                                                .shape(ui::IconButtonShape::Square)
-                                                .icon_color(Color::Muted)
-                                                .icon_size(IconSize::Small)
+                                                .icon_color(Color::Success)
                                                .tooltip({
                                                    let focus_handle = focus_handle.clone();
                                                    move |window, cx| {
@@ -2044,13 +2025,15 @@ impl ActiveThread {
                                    )
                                }),
                        )
+                        .when(editing_message_state.is_none(), |this| {
+                            this.tooltip(Tooltip::text("Click To Edit"))
+                        })
                        .on_click(cx.listener({
                            let message_segments = message.segments.clone();
                            move |this, _, window, cx| {
                                this.start_editing_message(
                                    message_id,
                                    &message_segments,
-                                    &message_creases,
                                    window,
                                    cx,
                                );
@@ -2084,16 +2067,6 @@ impl ActiveThread {

        let panel_background = cx.theme().colors().panel_background;

-        let backdrop = div()
-            .id("backdrop")
-            .stop_mouse_events_except_scroll()
-            .absolute()
-            .inset_0()
-            .size_full()
-            .bg(panel_background)
-            .opacity(0.8)
-            .on_click(cx.listener(Self::handle_cancel_click));
-
        v_flex()
            .w_full()
            .map(|parent| {
@@ -2263,7 +2236,15 @@ impl ActiveThread {
            })
            .when(after_editing_message, |parent| {
                // Backdrop to dim out the whole thread below the editing user message
-                parent.relative().child(backdrop)
+                parent.relative().child(
+                    div()
+                        .stop_mouse_events_except_scroll()
+                        .absolute()
+                        .inset_0()
+                        .size_full()
+                        .bg(panel_background)
+                        .opacity(0.8),
+                )
            })
            .into_any()
    }
@@ -2373,17 +2354,42 @@ impl ActiveThread {
                                        }),
                                        transform: Some(Arc::new({
                                            let active_thread = cx.entity();
+                                            let editor_bg = cx.theme().colors().editor_background;

-                                            move |element, range, _, _, cx| {
-                                                let is_expanded = active_thread
-                                                    .read(cx)
-                                                    .is_codeblock_expanded(message_id, range.start);
-
-                                                if is_expanded {
-                                                    return element;
+                                            move |el, range, metadata, _, cx| {
+                                                let can_expand = metadata.line_count
+                                                    > MAX_UNCOLLAPSED_LINES_IN_CODE_BLOCK;
+                                                if !can_expand {
+                                                    return el;
                                                }

-                                                element
+                                                let is_expanded = active_thread
+                                                    .read(cx)
+                                                    .expanded_code_blocks
+                                                    .get(&(message_id, range.start))
+                                                    .copied()
+                                                    .unwrap_or(false);
+                                                if is_expanded {
+                                                    return el;
+                                                }
+
+                                                el.child(
+                                                    div()
+                                                        .absolute()
+                                                        .bottom_0()
+                                                        .left_0()
+                                                        .w_full()
+                                                        .h_1_4()
+                                                        .rounded_b_lg()
+                                                        .bg(linear_gradient(
+                                                            0.,
+                                                            linear_color_stop(editor_bg, 0.),
+                                                            linear_color_stop(
+                                                                editor_bg.opacity(0.),
+                                                                1.,
+                                                            ),
+                                                        )),
+                                                )
                                            }
                                        })),
                                    },
@@ -2392,7 +2398,6 @@ impl ActiveThread {
                                markdown_element.code_block_renderer(
                                    markdown::CodeBlockRenderer::Default {
                                        copy_button: false,
-                                        copy_button_on_hover: false,
                                        border: true,
                                    },
                                )
@@ -2712,7 +2717,6 @@ impl ActiveThread {
                                )
                                .code_block_renderer(markdown::CodeBlockRenderer::Default {
                                    copy_button: false,
-                                    copy_button_on_hover: false,
                                    border: false,
                                })
                                .on_url_click({
@@ -2743,7 +2747,6 @@ impl ActiveThread {
                                )
                                .code_block_renderer(markdown::CodeBlockRenderer::Default {
                                    copy_button: false,
-                                    copy_button_on_hover: false,
                                    border: false,
                                })
                                .on_url_click({
@@ -3380,26 +3383,6 @@ impl ActiveThread {
                .log_err();
        }))
    }
-
-    pub fn is_codeblock_expanded(&self, message_id: MessageId, ix: usize) -> bool {
-        self.expanded_code_blocks
-            .get(&(message_id, ix))
-            .copied()
-            .unwrap_or(true)
-    }
-
-    pub fn toggle_codeblock_expanded(&mut self, message_id: MessageId, ix: usize) {
-        let is_expanded = self
-            .expanded_code_blocks
-            .entry((message_id, ix))
-            .or_insert(true);
-        *is_expanded = !*is_expanded;
-    }
-
-    pub fn scroll_to_bottom(&mut self, cx: &mut Context<Self>) {
-        self.list_state.reset(self.messages.len());
-        cx.notify();
-    }
 }

 pub enum ActiveThreadEvent {
@@ -3413,7 +3396,6 @@ impl Render for ActiveThread {
        v_flex()
            .size_full()
            .relative()
-            .bg(cx.theme().colors().panel_background)
            .on_mouse_move(cx.listener(|this, _, _, cx| {
                this.show_scrollbar = true;
                this.hide_scrollbar_later(cx);
@@ -3455,7 +3437,10 @@ pub(crate) fn open_active_thread_as_markdown(
        workspace.update_in(cx, |workspace, window, cx| {
            let thread = thread.read(cx);
            let markdown = thread.to_markdown(cx)?;
-            let thread_summary = thread.summary().or_default().to_string();
+            let thread_summary = thread
+                .summary()
+                .map(|summary| summary.to_string())
+                .unwrap_or_else(|| "Thread".to_string());

            let project = workspace.project().clone();

@@ -3593,3 +3578,152 @@ fn open_editor_at_position(
        }
    })
 }
+
+#[cfg(test)]
+mod tests {
+    use assistant_tool::{ToolRegistry, ToolWorkingSet};
+    use editor::EditorSettings;
+    use fs::FakeFs;
+    use gpui::{TestAppContext, VisualTestContext};
+    use language_model::{LanguageModel, fake_provider::FakeLanguageModel};
+    use project::Project;
+    use prompt_store::PromptBuilder;
+    use serde_json::json;
+    use settings::SettingsStore;
+    use util::path;
+
+    use crate::{ContextLoadResult, thread_store};
+
+    use super::*;
+
+    #[gpui::test]
+    async fn test_current_completion_cancelled_when_message_edited(cx: &mut TestAppContext) {
+        init_test_settings(cx);
+
+        let project = create_test_project(
+            cx,
+            json!({"code.rs": "fn main() {\n    println!(\"Hello, world!\");\n}"}),
+        )
+        .await;
+
+        let (cx, active_thread, thread, model) = setup_test_environment(cx, project.clone()).await;
+
+        // Insert user message without any context (empty context vector)
+        let message = thread.update(cx, |thread, cx| {
+            let message_id = thread.insert_user_message(
+                "What is the best way to learn Rust?",
+                ContextLoadResult::default(),
+                None,
+                vec![],
+                cx,
+            );
+            thread
+                .message(message_id)
+                .expect("message should exist")
+                .clone()
+        });
+
+        // Stream response to user message
+        thread.update(cx, |thread, cx| {
+            let request = thread.to_completion_request(model.clone(), cx);
+            thread.stream_completion(request, model, cx.active_window(), cx)
+        });
+        let generating = thread.update(cx, |thread, _cx| thread.is_generating());
+        assert!(generating, "There should be one pending completion");
+
+        // Edit the previous message
+        active_thread.update_in(cx, |active_thread, window, cx| {
+            active_thread.start_editing_message(message.id, &message.segments, window, cx);
+        });
+
+        // Check that the stream was cancelled
+        let generating = thread.update(cx, |thread, _cx| thread.is_generating());
+        assert!(!generating, "The completion should have been cancelled");
+    }
+
+    fn init_test_settings(cx: &mut TestAppContext) {
+        cx.update(|cx| {
+            let settings_store = SettingsStore::test(cx);
+            cx.set_global(settings_store);
+            language::init(cx);
+            Project::init_settings(cx);
+            AssistantSettings::register(cx);
+            prompt_store::init(cx);
+            thread_store::init(cx);
+            workspace::init_settings(cx);
+            language_model::init_settings(cx);
+            ThemeSettings::register(cx);
+            EditorSettings::register(cx);
+            ToolRegistry::default_global(cx);
+        });
+    }
+
+    // Helper to create a test project with test files
+    async fn create_test_project(
+        cx: &mut TestAppContext,
+        files: serde_json::Value,
+    ) -> Entity<Project> {
+        let fs = FakeFs::new(cx.executor());
+        fs.insert_tree(path!("/test"), files).await;
+        Project::test(fs, [path!("/test").as_ref()], cx).await
+    }
+
+    async fn setup_test_environment(
+        cx: &mut TestAppContext,
+        project: Entity<Project>,
+    ) -> (
+        &mut VisualTestContext,
+        Entity<ActiveThread>,
+        Entity<Thread>,
+        Arc<dyn LanguageModel>,
+    ) {
+        let (workspace, cx) =
+            cx.add_window_view(|window, cx| Workspace::test_new(project.clone(), window, cx));
+
+        let prompt_builder = Arc::new(PromptBuilder::new(None).unwrap());
+        let thread_store = cx
+            .update(|_, cx| {
+                ThreadStore::load(
+                    project.clone(),
+                    cx.new(|_| ToolWorkingSet::default()),
+                    None,
+                    prompt_builder.clone(),
+                    cx,
+                )
+            })
+            .await
+            .unwrap();
+        let text_thread_store = cx
+            .update(|_, cx| {
+                TextThreadStore::new(project.clone(), prompt_builder, Default::default(), cx)
+            })
+            .await
+            .unwrap();
+
+        let thread = thread_store.update(cx, |store, cx| store.create_thread(cx));
+        let context_store = cx.new(|_cx| ContextStore::new(project.downgrade(), None));
+
+        let model = FakeLanguageModel::default();
+        let model: Arc<dyn LanguageModel> = Arc::new(model);
+
+        let language_registry = LanguageRegistry::new(cx.executor());
+        let language_registry = Arc::new(language_registry);
+
+        let active_thread = cx.update(|window, cx| {
+            cx.new(|cx| {
+                ActiveThread::new(
+                    thread.clone(),
+                    thread_store.clone(),
+                    text_thread_store.clone(),
+                    context_store.clone(),
+                    language_registry.clone(),
+                    workspace.downgrade(),
+                    window,
+                    cx,
+                )
+            })
+        });
+
+        (cx, active_thread, thread, model)
+    }
+}
--- a/crates/agent/src/agent.rs
+++ b/crates/agent/src/agent.rs
@@ -49,7 +49,7 @@ pub use crate::context::{ContextLoadResult, LoadedContext};
 pub use crate::inline_assistant::InlineAssistant;
 use crate::slash_command_settings::SlashCommandSettings;
 pub use crate::thread::{Message, MessageSegment, Thread, ThreadEvent};
-pub use crate::thread_store::{SerializedThread, TextThreadStore, ThreadStore};
+pub use crate::thread_store::{TextThreadStore, ThreadStore};
 pub use agent_diff::{AgentDiffPane, AgentDiffToolbar};
 pub use context_store::ContextStore;
 pub use ui::preview::{all_agent_previews, get_agent_preview};
@@ -85,7 +85,6 @@ actions!(
        KeepAll,
        Follow,
        ResetTrialUpsell,
-        ResetTrialEndUpsell,
    ]
 );

@@ -217,6 +216,7 @@ fn register_slash_commands(cx: &mut App) {
    slash_command_registry.register_command(assistant_slash_commands::PromptSlashCommand, true);
    slash_command_registry.register_command(assistant_slash_commands::SelectionCommand, true);
    slash_command_registry.register_command(assistant_slash_commands::DefaultSlashCommand, false);
+    slash_command_registry.register_command(assistant_slash_commands::TerminalSlashCommand, true);
    slash_command_registry.register_command(assistant_slash_commands::NowSlashCommand, false);
    slash_command_registry
        .register_command(assistant_slash_commands::DiagnosticsSlashCommand, true);
--- a/crates/agent/src/agent_configuration.rs
+++ b/crates/agent/src/agent_configuration.rs
@@ -18,8 +18,8 @@ use language_model::{LanguageModelProvider, LanguageModelProviderId, LanguageMod
 use project::context_server_store::{ContextServerStatus, ContextServerStore};
 use settings::{Settings, update_settings_file};
 use ui::{
-    Disclosure, ElevationIndex, Indicator, Scrollbar, ScrollbarState, Switch, SwitchColor, Tooltip,
-    prelude::*,
+    Disclosure, Divider, DividerColor, ElevationIndex, Indicator, Scrollbar, ScrollbarState,
+    Switch, SwitchColor, Tooltip, prelude::*,
 };
 use util::ResultExt as _;
 use zed_actions::ExtensionCategoryFilter;
@@ -36,7 +36,6 @@ pub struct AgentConfiguration {
    configuration_views_by_provider: HashMap<LanguageModelProviderId, AnyView>,
    context_server_store: Entity<ContextServerStore>,
    expanded_context_server_tools: HashMap<ContextServerId, bool>,
-    expanded_provider_configurations: HashMap<LanguageModelProviderId, bool>,
    tools: Entity<ToolWorkingSet>,
    _registry_subscription: Subscription,
    scroll_handle: ScrollHandle,
@@ -79,7 +78,6 @@ impl AgentConfiguration {
            configuration_views_by_provider: HashMap::default(),
            context_server_store,
            expanded_context_server_tools: HashMap::default(),
-            expanded_provider_configurations: HashMap::default(),
            tools,
            _registry_subscription: registry_subscription,
            scroll_handle,
@@ -98,7 +96,6 @@ impl AgentConfiguration {

    fn remove_provider_configuration_view(&mut self, provider_id: &LanguageModelProviderId) {
        self.configuration_views_by_provider.remove(provider_id);
-        self.expanded_provider_configurations.remove(provider_id);
    }

    fn add_provider_configuration_view(
@@ -138,14 +135,9 @@ impl AgentConfiguration {
            .get(&provider.id())
            .cloned();

-        let is_expanded = self
-            .expanded_provider_configurations
-            .get(&provider.id())
-            .copied()
-            .unwrap_or(false);
-
        v_flex()
            .pt_3()
+            .pb_1()
            .gap_1p5()
            .border_t_1()
            .border_color(cx.theme().colors().border.opacity(0.6))
@@ -160,63 +152,36 @@ impl AgentConfiguration {
                                    .size(IconSize::Small)
                                    .color(Color::Muted),
                            )
-                            .child(Label::new(provider_name.clone()).size(LabelSize::Large))
-                            .when(provider.is_authenticated(cx) && !is_expanded, |parent| {
-                                parent.child(Icon::new(IconName::Check).color(Color::Success))
-                            }),
+                            .child(Label::new(provider_name.clone()).size(LabelSize::Large)),
                    )
-                    .child(
-                        h_flex()
-                            .gap_1()
-                            .when(provider.is_authenticated(cx), |parent| {
-                                parent.child(
-                                    Button::new(
-                                        SharedString::from(format!("new-thread-{provider_id}")),
-                                        "Start New Thread",
-                                    )
-                                    .icon_position(IconPosition::Start)
-                                    .icon(IconName::Plus)
-                                    .icon_size(IconSize::Small)
-                                    .layer(ElevationIndex::ModalSurface)
-                                    .label_size(LabelSize::Small)
-                                    .on_click(cx.listener({
-                                        let provider = provider.clone();
-                                        move |_this, _event, _window, cx| {
-                                            cx.emit(AssistantConfigurationEvent::NewThread(
-                                                provider.clone(),
-                                            ))
-                                        }
-                                    })),
-                                )
-                            })
-                            .child(
-                                Disclosure::new(
-                                    SharedString::from(format!(
-                                        "provider-disclosure-{provider_id}"
-                                    )),
-                                    is_expanded,
-                                )
-                                .opened_icon(IconName::ChevronUp)
-                                .closed_icon(IconName::ChevronDown)
-                                .on_click(cx.listener({
-                                    let provider_id = provider.id().clone();
-                                    move |this, _event, _window, _cx| {
-                                        let is_expanded = this
-                                            .expanded_provider_configurations
-                                            .entry(provider_id.clone())
-                                            .or_insert(false);
-
-                                        *is_expanded = !*is_expanded;
-                                    }
-                                })),
-                            ),
-                    ),
+                    .when(provider.is_authenticated(cx), |parent| {
+                        parent.child(
+                            Button::new(
+                                SharedString::from(format!("new-thread-{provider_id}")),
+                                "Start New Thread",
+                            )
+                            .icon_position(IconPosition::Start)
+                            .icon(IconName::Plus)
+                            .icon_size(IconSize::Small)
+                            .style(ButtonStyle::Filled)
+                            .layer(ElevationIndex::ModalSurface)
+                            .label_size(LabelSize::Small)
+                            .on_click(cx.listener({
+                                let provider = provider.clone();
+                                move |_this, _event, _window, cx| {
+                                    cx.emit(AssistantConfigurationEvent::NewThread(
+                                        provider.clone(),
+                                    ))
+                                }
+                            })),
+                        )
+                    }),
            )
-            .when(is_expanded, |parent| match configuration_view {
+            .map(|parent| match configuration_view {
                Some(configuration_view) => parent.child(configuration_view),
-                None => parent.child(Label::new(format!(
+                None => parent.child(div().child(Label::new(format!(
                    "No configuration view for {provider_name}",
-                ))),
+                )))),
            })
    }

@@ -230,8 +195,7 @@ impl AgentConfiguration {
            .p(DynamicSpacing::Base16.rems(cx))
            .pr(DynamicSpacing::Base20.rems(cx))
            .gap_4()
-            .border_b_1()
-            .border_color(cx.theme().colors().border)
+            .flex_1()
            .child(
                v_flex()
                    .gap_0p5()
@@ -332,8 +296,7 @@ impl AgentConfiguration {
            .p(DynamicSpacing::Base16.rems(cx))
            .pr(DynamicSpacing::Base20.rems(cx))
            .gap_2p5()
-            .border_b_1()
-            .border_color(cx.theme().colors().border)
+            .flex_1()
            .child(Headline::new("General Settings"))
            .child(self.render_command_permission(cx))
            .child(self.render_single_file_review(cx))
@@ -346,17 +309,18 @@ impl AgentConfiguration {
    ) -> impl IntoElement {
        let context_server_ids = self.context_server_store.read(cx).all_server_ids().clone();

+        const SUBHEADING: &str = "Connect to context servers via the Model Context Protocol either via Zed extensions or directly.";
+
        v_flex()
            .p(DynamicSpacing::Base16.rems(cx))
            .pr(DynamicSpacing::Base20.rems(cx))
            .gap_2()
-            .border_b_1()
-            .border_color(cx.theme().colors().border)
+            .flex_1()
            .child(
                v_flex()
                    .gap_0p5()
                    .child(Headline::new("Model Context Protocol (MCP) Servers"))
-                    .child(Label::new("Connect to context servers via the Model Context Protocol either via Zed extensions or directly.").color(Color::Muted)),
+                    .child(Label::new(SUBHEADING).color(Color::Muted)),
            )
            .children(
                context_server_ids.into_iter().map(|context_server_id| {
@@ -423,7 +387,6 @@ impl AgentConfiguration {
            .unwrap_or(ContextServerStatus::Stopped);

        let is_running = matches!(server_status, ContextServerStatus::Running);
-        let item_id = SharedString::from(context_server_id.0.clone());

        let error = if let ContextServerStatus::Error(error) = server_status.clone() {
            Some(error)
@@ -445,38 +408,9 @@ impl AgentConfiguration {
        let tool_count = tools.len();

        let border_color = cx.theme().colors().border.opacity(0.6);
-        let success_color = Color::Success.color(cx);
-
-        let (status_indicator, tooltip_text) = match server_status {
-            ContextServerStatus::Starting => (
-                Indicator::dot()
-                    .color(Color::Success)
-                    .with_animation(
-                        SharedString::from(format!("{}-starting", context_server_id.0.clone(),)),
-                        Animation::new(Duration::from_secs(2))
-                            .repeat()
-                            .with_easing(pulsating_between(0.4, 1.)),
-                        move |this, delta| this.color(success_color.alpha(delta).into()),
-                    )
-                    .into_any_element(),
-                "Server is starting.",
-            ),
-            ContextServerStatus::Running => (
-                Indicator::dot().color(Color::Success).into_any_element(),
-                "Server is running.",
-            ),
-            ContextServerStatus::Error(_) => (
-                Indicator::dot().color(Color::Error).into_any_element(),
-                "Server has an error.",
-            ),
-            ContextServerStatus::Stopped => (
-                Indicator::dot().color(Color::Muted).into_any_element(),
-                "Server is stopped.",
-            ),
-        };

        v_flex()
-            .id(item_id.clone())
+            .id(SharedString::from(context_server_id.0.clone()))
            .border_1()
            .rounded_md()
            .border_color(border_color)
@@ -511,12 +445,35 @@ impl AgentConfiguration {
                                    }
                                })),
                            )
-                            .child(
-                                div()
-                                    .id(item_id.clone())
-                                    .tooltip(Tooltip::text(tooltip_text))
-                                    .child(status_indicator),
-                            )
+                            .child(match server_status {
+                                ContextServerStatus::Starting => {
+                                    let color = Color::Success.color(cx);
+                                    Indicator::dot()
+                                        .color(Color::Success)
+                                        .with_animation(
+                                            SharedString::from(format!(
+                                                "{}-starting",
+                                                context_server_id.0.clone(),
+                                            )),
+                                            Animation::new(Duration::from_secs(2))
+                                                .repeat()
+                                                .with_easing(pulsating_between(0.4, 1.)),
+                                            move |this, delta| {
+                                                this.color(color.alpha(delta).into())
+                                            },
+                                        )
+                                        .into_any_element()
+                                }
+                                ContextServerStatus::Running => {
+                                    Indicator::dot().color(Color::Success).into_any_element()
+                                }
+                                ContextServerStatus::Error(_) => {
+                                    Indicator::dot().color(Color::Error).into_any_element()
+                                }
+                                ContextServerStatus::Stopped => {
+                                    Indicator::dot().color(Color::Muted).into_any_element()
+                                }
+                            })
                            .child(Label::new(context_server_id.0.clone()).ml_0p5())
                            .when(is_running, |this| {
                                this.child(
@@ -631,7 +588,9 @@ impl Render for AgentConfiguration {
                    .size_full()
                    .overflow_y_scroll()
                    .child(self.render_general_settings_section(cx))
+                    .child(Divider::horizontal().color(DividerColor::Border))
                    .child(self.render_context_servers_section(window, cx))
+                    .child(Divider::horizontal().color(DividerColor::Border))
                    .child(self.render_provider_configuration_section(cx)),
            )
            .child(
--- a/crates/agent/src/agent_configuration/configure_context_server_modal.rs
+++ b/crates/agent/src/agent_configuration/configure_context_server_modal.rs
@@ -30,6 +30,7 @@ pub(crate) struct ConfigureContextServerModal {
    context_server_store: Entity<ContextServerStore>,
 }

+#[allow(clippy::large_enum_variant)]
 enum Configuration {
    NotAvailable,
    Required(ConfigurationRequiredState),
--- a/crates/agent/src/agent_diff.rs
+++ b/crates/agent/src/agent_diff.rs
@@ -215,7 +215,11 @@ impl AgentDiffPane {
    }

    fn update_title(&mut self, cx: &mut Context<Self>) {
-        let new_title = self.thread.read(cx).summary().unwrap_or("Agent Changes");
+        let new_title = self
+            .thread
+            .read(cx)
+            .summary()
+            .unwrap_or("Agent Changes".into());
        if new_title != self.title {
            self.title = new_title;
            cx.emit(EditorEvent::TitleChanged);
@@ -465,7 +469,11 @@ impl Item for AgentDiffPane {
    }

    fn tab_content(&self, params: TabContentParams, _window: &Window, cx: &App) -> AnyElement {
-        let summary = self.thread.read(cx).summary().unwrap_or("Agent Changes");
+        let summary = self
+            .thread
+            .read(cx)
+            .summary()
+            .unwrap_or("Agent Changes".into());
        Label::new(format!("Review: {}", summary))
            .color(if params.selected {
                Color::Default
--- a/crates/agent/src/agent_model_selector.rs
+++ b/crates/agent/src/agent_model_selector.rs
@@ -3,10 +3,10 @@ use fs::Fs;
 use gpui::{Entity, FocusHandle, SharedString};

 use crate::Thread;
-use assistant_context_editor::language_model_selector::{
+use language_model::{ConfiguredModel, LanguageModelRegistry};
+use language_model_selector::{
    LanguageModelSelector, LanguageModelSelectorPopoverMenu, ToggleModelSelector,
 };
-use language_model::{ConfiguredModel, LanguageModelRegistry};
 use settings::update_settings_file;
 use std::sync::Arc;
 use ui::{PopoverMenuHandle, Tooltip, prelude::*};
--- a/crates/agent/src/agent_panel.rs
+++ b/crates/agent/src/agent_panel.rs
@@ -3,21 +3,20 @@ use std::path::Path;
 use std::sync::Arc;
 use std::time::Duration;

-use db::kvp::{Dismissable, KEY_VALUE_STORE};
+use db::kvp::KEY_VALUE_STORE;
 use markdown::Markdown;
 use serde::{Deserialize, Serialize};

 use anyhow::{Result, anyhow};
 use assistant_context_editor::{
    AgentPanelDelegate, AssistantContext, ConfigurationError, ContextEditor, ContextEvent,
-    ContextSummary, SlashCommandCompletionProvider, humanize_token_count,
-    make_lsp_adapter_delegate, render_remaining_tokens,
+    SlashCommandCompletionProvider, humanize_token_count, make_lsp_adapter_delegate,
+    render_remaining_tokens,
 };
 use assistant_settings::{AssistantDockPosition, AssistantSettings};
 use assistant_slash_command::SlashCommandWorkingSet;
 use assistant_tool::ToolWorkingSet;

-use assistant_context_editor::language_model_selector::ToggleModelSelector;
 use client::{UserStore, zed_urls};
 use editor::{Anchor, AnchorRangeExt as _, Editor, EditorEvent, MultiBuffer};
 use fs::Fs;
@@ -31,6 +30,7 @@ use language::LanguageRegistry;
 use language_model::{
    LanguageModelProviderTosView, LanguageModelRegistry, RequestUsage, ZED_CLOUD_PROVIDER_ID,
 };
+use language_model_selector::ToggleModelSelector;
 use project::{Project, ProjectPath, Worktree};
 use prompt_store::{PromptBuilder, PromptStore, UserPromptId};
 use proto::Plan;
@@ -46,9 +46,7 @@ use ui::{
 };
 use util::{ResultExt as _, maybe};
 use workspace::dock::{DockPosition, Panel, PanelEvent};
-use workspace::{
-    CollaboratorId, DraggedSelection, DraggedTab, ToggleZoom, ToolbarItemView, Workspace,
-};
+use workspace::{CollaboratorId, DraggedSelection, DraggedTab, ToolbarItemView, Workspace};
 use zed_actions::agent::{OpenConfiguration, OpenOnboardingModal, ResetOnboarding};
 use zed_actions::assistant::{OpenRulesLibrary, ToggleFocus};
 use zed_actions::{DecreaseBufferFontSize, IncreaseBufferFontSize, ResetBufferFontSize};
@@ -59,15 +57,15 @@ use crate::agent_configuration::{AgentConfiguration, AssistantConfigurationEvent
 use crate::agent_diff::AgentDiff;
 use crate::history_store::{HistoryStore, RecentEntry};
 use crate::message_editor::{MessageEditor, MessageEditorEvent};
-use crate::thread::{Thread, ThreadError, ThreadId, ThreadSummary, TokenUsageRatio};
+use crate::thread::{Thread, ThreadError, ThreadId, TokenUsageRatio};
 use crate::thread_history::{HistoryEntryElement, ThreadHistory};
 use crate::thread_store::ThreadStore;
 use crate::ui::AgentOnboardingModal;
 use crate::{
    AddContextServer, AgentDiffPane, ContextStore, DeleteRecentlyOpenThread, ExpandMessageEditor,
    Follow, InlineAssistant, NewTextThread, NewThread, OpenActiveThreadAsMarkdown, OpenAgentDiff,
-    OpenHistory, ResetTrialEndUpsell, ResetTrialUpsell, TextThreadStore, ThreadEvent,
-    ToggleContextPicker, ToggleNavigationMenu, ToggleOptionsMenu,
+    OpenHistory, ResetTrialUpsell, TextThreadStore, ThreadEvent, ToggleContextPicker,
+    ToggleNavigationMenu, ToggleOptionsMenu,
 };

 const AGENT_PANEL_KEY: &str = "agent_panel";
@@ -157,10 +155,7 @@ pub fn init(cx: &mut App) {
                    window.refresh();
                })
                .register_action(|_workspace, _: &ResetTrialUpsell, _window, cx| {
-                    TrialUpsell::set_dismissed(false, cx);
-                })
-                .register_action(|_workspace, _: &ResetTrialEndUpsell, _window, cx| {
-                    TrialEndUpsell::set_dismissed(false, cx);
+                    set_trial_upsell_dismissed(false, cx);
                });
        },
    )
@@ -199,7 +194,7 @@ impl ActiveView {
    }

    pub fn thread(thread: Entity<Thread>, window: &mut Window, cx: &mut App) -> Self {
-        let summary = thread.read(cx).summary().or_default();
+        let summary = thread.read(cx).summary_or_default();

        let editor = cx.new(|cx| {
            let mut editor = Editor::single_line(window, cx);
@@ -221,7 +216,7 @@ impl ActiveView {
                        }
                        EditorEvent::Blurred => {
                            if editor.read(cx).text(cx).is_empty() {
-                                let summary = thread.read(cx).summary().or_default();
+                                let summary = thread.read(cx).summary_or_default();

                                editor.update(cx, |editor, cx| {
                                    editor.set_text(summary, window, cx);
@@ -236,7 +231,7 @@ impl ActiveView {
                let editor = editor.clone();
                move |thread, event, window, cx| match event {
                    ThreadEvent::SummaryGenerated => {
-                        let summary = thread.read(cx).summary().or_default();
+                        let summary = thread.read(cx).summary_or_default();

                        editor.update(cx, |editor, cx| {
                            editor.set_text(summary, window, cx);
@@ -299,8 +294,7 @@ impl ActiveView {
                                    .read(cx)
                                    .context()
                                    .read(cx)
-                                    .summary()
-                                    .or_default();
+                                    .summary_or_default();

                                editor.update(cx, |editor, cx| {
                                    editor.set_text(summary, window, cx);
@@ -315,7 +309,7 @@ impl ActiveView {
                let editor = editor.clone();
                move |assistant_context, event, window, cx| match event {
                    ContextEvent::SummaryGenerated => {
-                        let summary = assistant_context.read(cx).summary().or_default();
+                        let summary = assistant_context.read(cx).summary_or_default();

                        editor.update(cx, |editor, cx| {
                            editor.set_text(summary, window, cx);
@@ -368,7 +362,6 @@ pub struct AgentPanel {
    assistant_navigation_menu: Option<Entity<ContextMenu>>,
    width: Option<Pixels>,
    height: Option<Pixels>,
-    zoomed: bool,
    pending_serialization: Option<Task<Result<()>>>,
    hide_trial_upsell: bool,
    _trial_markdown: Entity<Markdown>,
@@ -570,15 +563,6 @@ impl AgentPanel {
                        menu = menu.header("Recently Opened");

                        for entry in recently_opened.iter() {
-                            if let RecentEntry::Context(context) = entry {
-                                if context.read(cx).path().is_none() {
-                                    log::error!(
-                                        "bug: text thread in recent history list was never saved"
-                                    );
-                                    continue;
-                                }
-                            }
-
                            let summary = entry.summary(cx);

                            menu = menu.entry_with_end_slot_on_hover(
@@ -719,7 +703,6 @@ impl AgentPanel {
            assistant_navigation_menu: None,
            width: None,
            height: None,
-            zoomed: false,
            pending_serialization: None,
            hide_trial_upsell: false,
            _trial_markdown: trial_markdown,
@@ -1161,17 +1144,6 @@ impl AgentPanel {
        }
    }

-    pub fn toggle_zoom(&mut self, _: &ToggleZoom, window: &mut Window, cx: &mut Context<Self>) {
-        if self.zoomed {
-            cx.emit(PanelEvent::ZoomOut);
-        } else {
-            if !self.focus_handle(cx).contains_focused(window, cx) {
-                cx.focus_self(window);
-            }
-            cx.emit(PanelEvent::ZoomIn);
-        }
-    }
-
    pub fn open_agent_diff(
        &mut self,
        _: &OpenAgentDiff,
@@ -1212,7 +1184,12 @@ impl AgentPanel {
        window: &mut Window,
        cx: &mut Context<Self>,
    ) {
-        let Some(workspace) = self.workspace.upgrade() else {
+        let Some(workspace) = self
+            .workspace
+            .upgrade()
+            .ok_or_else(|| anyhow!("workspace dropped"))
+            .log_err()
+        else {
            return;
        };

@@ -1297,26 +1274,14 @@ impl AgentPanel {
        let new_is_history = matches!(new_view, ActiveView::History);

        match &self.active_view {
-            ActiveView::Thread { thread, .. } => {
+            ActiveView::Thread { thread, .. } => self.history_store.update(cx, |store, cx| {
                if let Some(thread) = thread.upgrade() {
                    if thread.read(cx).is_empty() {
                        let id = thread.read(cx).id().clone();
-                        self.history_store.update(cx, |store, cx| {
-                            store.remove_recently_opened_thread(id, cx);
-                        });
+                        store.remove_recently_opened_thread(id, cx);
                    }
                }
-            }
-            ActiveView::PromptEditor { context_editor, .. } => {
-                let context = context_editor.read(cx).context();
-                // When switching away from an unsaved text thread, delete its entry.
-                if context.read(cx).path().is_none() {
-                    let context = context.clone();
-                    self.history_store.update(cx, |store, cx| {
-                        store.remove_recently_opened_entry(&RecentEntry::Context(context), cx);
-                    });
-                }
-            }
+            }),
            _ => {}
        }

@@ -1451,15 +1416,6 @@ impl Panel for AgentPanel {
    fn enabled(&self, cx: &App) -> bool {
        AssistantSettings::get_global(cx).enabled
    }
-
-    fn is_zoomed(&self, _window: &Window, _cx: &App) -> bool {
-        self.zoomed
-    }
-
-    fn set_zoomed(&mut self, zoomed: bool, _window: &mut Window, cx: &mut Context<Self>) {
-        self.zoomed = zoomed;
-        cx.notify();
-    }
 }

 impl AgentPanel {
@@ -1472,45 +1428,23 @@ impl AgentPanel {
                ..
            } => {
                let active_thread = self.thread.read(cx);
-                let state = if active_thread.is_empty() {
-                    &ThreadSummary::Pending
-                } else {
-                    active_thread.summary(cx)
-                };
+                let is_empty = active_thread.is_empty();

-                match state {
-                    ThreadSummary::Pending => Label::new(ThreadSummary::DEFAULT.clone())
+                let summary = active_thread.summary(cx);
+
+                if is_empty {
+                    Label::new(Thread::DEFAULT_SUMMARY.clone())
                        .truncate()
-                        .into_any_element(),
-                    ThreadSummary::Generating => Label::new(LOADING_SUMMARY_PLACEHOLDER)
+                        .into_any_element()
+                } else if summary.is_none() {
+                    Label::new(LOADING_SUMMARY_PLACEHOLDER)
                        .truncate()
-                        .into_any_element(),
-                    ThreadSummary::Ready(_) => div()
+                        .into_any_element()
+                } else {
+                    div()
                        .w_full()
                        .child(change_title_editor.clone())
-                        .into_any_element(),
-                    ThreadSummary::Error => h_flex()
-                        .w_full()
-                        .child(change_title_editor.clone())
-                        .child(
-                            ui::IconButton::new("retry-summary-generation", IconName::RotateCcw)
-                                .on_click({
-                                    let active_thread = self.thread.clone();
-                                    move |_, _window, cx| {
-                                        active_thread.update(cx, |thread, cx| {
-                                            thread.regenerate_summary(cx);
-                                        });
-                                    }
-                                })
-                                .tooltip(move |_window, cx| {
-                                    cx.new(|_| {
-                                        Tooltip::new("Failed to generate title")
-                                            .meta("Click to try again")
-                                    })
-                                    .into()
-                                }),
-                        )
-                        .into_any_element(),
+                        .into_any_element()
                }
            }
            ActiveView::PromptEditor {
@@ -1518,13 +1452,14 @@ impl AgentPanel {
                context_editor,
                ..
            } => {
-                let summary = context_editor.read(cx).context().read(cx).summary();
+                let context_editor = context_editor.read(cx);
+                let summary = context_editor.context().read(cx).summary();

                match summary {
-                    ContextSummary::Pending => Label::new(ContextSummary::DEFAULT)
+                    None => Label::new(AssistantContext::DEFAULT_SUMMARY.clone())
                        .truncate()
                        .into_any_element(),
-                    ContextSummary::Content(summary) => {
+                    Some(summary) => {
                        if summary.done {
                            div()
                                .w_full()
@@ -1536,28 +1471,6 @@ impl AgentPanel {
                                .into_any_element()
                        }
                    }
-                    ContextSummary::Error => h_flex()
-                        .w_full()
-                        .child(title_editor.clone())
-                        .child(
-                            ui::IconButton::new("retry-summary-generation", IconName::RotateCcw)
-                                .on_click({
-                                    let context_editor = context_editor.clone();
-                                    move |_, _window, cx| {
-                                        context_editor.update(cx, |context_editor, cx| {
-                                            context_editor.regenerate_summary(cx);
-                                        });
-                                    }
-                                })
-                                .tooltip(move |_window, cx| {
-                                    cx.new(|_| {
-                                        Tooltip::new("Failed to generate title")
-                                            .meta("Click to try again")
-                                    })
-                                    .into()
-                                }),
-                        )
-                        .into_any_element(),
                }
            }
            ActiveView::History => Label::new("History").truncate().into_any_element(),
@@ -1667,12 +1580,6 @@ impl AgentPanel {
                }),
        );

-        let zoom_in_label = if self.is_zoomed(window, cx) {
-            "Zoom Out"
-        } else {
-            "Zoom In"
-        };
-
        let agent_extra_menu = PopoverMenu::new("agent-options-menu")
            .trigger_with_tooltip(
                IconButton::new("agent-options-menu", IconName::Ellipsis)
@@ -1759,8 +1666,7 @@ impl AgentPanel {

                    menu = menu
                        .action("Rules…", Box::new(OpenRulesLibrary::default()))
-                        .action("Settings", Box::new(OpenConfiguration))
-                        .action(zoom_in_label, Box::new(ToggleZoom));
+                        .action("Settings", Box::new(OpenConfiguration));
                    menu
                }))
            });
@@ -1930,23 +1836,12 @@ impl AgentPanel {
        }
    }

-    fn should_render_trial_end_upsell(&self, cx: &mut Context<Self>) -> bool {
-        if TrialEndUpsell::dismissed() {
-            return false;
-        }
-
-        let plan = self.user_store.read(cx).current_plan();
-        let has_previous_trial = self.user_store.read(cx).trial_started_at().is_some();
-
-        matches!(plan, Some(Plan::Free)) && has_previous_trial
-    }
-
    fn should_render_upsell(&self, cx: &mut Context<Self>) -> bool {
        if !matches!(self.active_view, ActiveView::Thread { .. }) {
            return false;
        }

-        if self.hide_trial_upsell || TrialUpsell::dismissed() {
+        if self.hide_trial_upsell || dismissed_trial_upsell() {
            return false;
        }

@@ -1992,115 +1887,125 @@ impl AgentPanel {
            move |toggle_state, _window, cx| {
                let toggle_state_bool = toggle_state.selected();

-                TrialUpsell::set_dismissed(toggle_state_bool, cx);
+                set_trial_upsell_dismissed(toggle_state_bool, cx);
            },
        );

-        let contents = div()
-            .size_full()
-            .gap_2()
-            .flex()
-            .flex_col()
-            .child(Headline::new("Build better with Zed Pro").size(HeadlineSize::Small))
-            .child(
-                Label::new("Try Zed Pro for free for 14 days - no credit card required.")
-                    .size(LabelSize::Small),
-            )
-            .child(
-                Label::new(
-                    "Use your own API keys or enable usage-based billing once you hit the cap.",
-                )
-                .color(Color::Muted),
-            )
-            .child(
-                h_flex()
+        Some(
+            div().p_2().child(
+                v_flex()
                    .w_full()
-                    .px_neg_1()
-                    .justify_between()
-                    .items_center()
-                    .child(h_flex().items_center().gap_1().child(checkbox))
+                    .elevation_2(cx)
+                    .rounded(px(8.))
+                    .bg(cx.theme().colors().background.alpha(0.5))
+                    .p(px(3.))
+
                    .child(
-                        h_flex()
+                        div()
                            .gap_2()
+                            .flex()
+                            .flex_col()
+                            .size_full()
+                            .border_1()
+                            .rounded(px(5.))
+                            .border_color(cx.theme().colors().text.alpha(0.1))
+                            .overflow_hidden()
+                            .relative()
+                            .bg(cx.theme().colors().panel_background)
+                            .px_4()
+                            .py_3()
                            .child(
-                                Button::new("dismiss-button", "Not Now")
-                                    .style(ButtonStyle::Transparent)
-                                    .color(Color::Muted)
-                                    .on_click({
-                                        let agent_panel = cx.entity();
-                                        move |_, _, cx| {
-                                            agent_panel.update(cx, |this, cx| {
-                                                this.hide_trial_upsell = true;
-                                                cx.notify();
-                                            });
-                                        }
-                                    }),
+                                div()
+                                    .absolute()
+                                    .top_0()
+                                    .right(px(-1.0))
+                                    .w(px(441.))
+                                    .h(px(167.))
+                                    .child(
+                                    Vector::new(VectorName::Grid, rems_from_px(441.), rems_from_px(167.)).color(ui::Color::Custom(cx.theme().colors().text.alpha(0.1)))
+                                )
                            )
                            .child(
-                                Button::new("cta-button", "Start Trial")
-                                    .style(ButtonStyle::Transparent)
-                                    .on_click(|_, _, cx| cx.open_url(&zed_urls::account_url(cx))),
-                            ),
-                    ),
-            );
-
-        Some(self.render_upsell_container(cx, contents))
-    }
-
-    fn render_trial_end_upsell(
-        &self,
-        _window: &mut Window,
-        cx: &mut Context<Self>,
-    ) -> Option<impl IntoElement> {
-        if !self.should_render_trial_end_upsell(cx) {
-            return None;
-        }
-
-        Some(
-            self.render_upsell_container(
-                cx,
-                div()
-                    .size_full()
-                    .gap_2()
-                    .flex()
-                    .flex_col()
-                    .child(
-                        Headline::new("Your Zed Pro trial has expired.").size(HeadlineSize::Small),
-                    )
-                    .child(
-                        Label::new("You've been automatically reset to the free plan.")
-                            .size(LabelSize::Small),
-                    )
-                    .child(
-                        h_flex()
-                            .w_full()
-                            .px_neg_1()
-                            .justify_between()
-                            .items_center()
-                            .child(div())
+                                div()
+                                    .absolute()
+                                    .top(px(-8.0))
+                                    .right_0()
+                                    .w(px(400.))
+                                    .h(px(92.))
+                                    .child(
+                                    Vector::new(VectorName::AiGrid, rems_from_px(400.), rems_from_px(92.)).color(ui::Color::Custom(cx.theme().colors().text.alpha(0.32)))
+                                )
+                            )
+                            // .child(
+                            //     div()
+                            //         .absolute()
+                            //         .top_0()
+                            //         .right(px(360.))
+                            //         .size(px(401.))
+                            //         .overflow_hidden()
+                            //         .bg(cx.theme().colors().panel_background)
+                            // )
+                            .child(
+                                div()
+                                    .absolute()
+                                    .top_0()
+                                    .right_0()
+                                    .w(px(660.))
+                                    .h(px(401.))
+                                    .overflow_hidden()
+                                    .bg(linear_gradient(
+                                        75.,
+                                        linear_color_stop(cx.theme().colors().panel_background.alpha(0.01), 1.0),
+                                        linear_color_stop(cx.theme().colors().panel_background, 0.45),
+                                    ))
+                            )
+                            .child(Headline::new("Build better with Zed Pro").size(HeadlineSize::Small))
+                            .child(Label::new("Try Zed Pro for free for 14 days - no credit card required.").size(LabelSize::Small))
+                            .child(Label::new("Use your own API keys or enable usage-based billing once you hit the cap.").color(Color::Muted))
                            .child(
                                h_flex()
-                                    .gap_2()
+                                    .w_full()
+                                    .px_neg_1()
+                                    .justify_between()
+                                    .items_center()
+                                    .child(h_flex().items_center().gap_1().child(checkbox))
                                    .child(
-                                        Button::new("dismiss-button", "Stay on Free")
-                                            .style(ButtonStyle::Transparent)
-                                            .color(Color::Muted)
-                                            .on_click({
-                                                let agent_panel = cx.entity();
-                                                move |_, _, cx| {
-                                                    agent_panel.update(cx, |_this, cx| {
-                                                        TrialEndUpsell::set_dismissed(true, cx);
-                                                        cx.notify();
-                                                    });
-                                                }
-                                            }),
-                                    )
-                                    .child(
-                                        Button::new("cta-button", "Upgrade to Zed Pro")
-                                            .style(ButtonStyle::Transparent)
-                                            .on_click(|_, _, cx| {
-                                                cx.open_url(&zed_urls::account_url(cx))
-                                            }),
+                                        h_flex()
+                                            .gap_2()
+                                            .child(
+                                                Button::new("dismiss-button", "Not Now")
+                                                    .style(ButtonStyle::Transparent)
+                                                    .color(Color::Muted)
+                                                    .on_click({
+                                                        let agent_panel = cx.entity();
+                                                        move |_, _, cx| {
+                                                            agent_panel.update(
+                                                                cx,
+                                                                |this, cx| {
+                                                                    let hidden =
+                                                                        this.hide_trial_upsell;
+                                                                    println!("hidden: {}", hidden);
+                                                                    this.hide_trial_upsell = true;
+                                                                    let new_hidden =
+                                                                        this.hide_trial_upsell;
+                                                                    println!(
+                                                                        "new_hidden: {}",
+                                                                        new_hidden
+                                                                    );
+
+                                                                    cx.notify();
+                                                                },
+                                                            );
+                                                        }
+                                                    }),
+                                            )
+                                            .child(
+                                                Button::new("cta-button", "Start Trial")
+                                                    .style(ButtonStyle::Transparent)
+                                                    .on_click(|_, _, cx| {
+                                                        cx.open_url(&zed_urls::account_url(cx))
+                                                    }),
+                                            ),
                                    ),
                            ),
                    ),
@@ -2108,91 +2013,6 @@ impl AgentPanel {
        )
    }

-    fn render_upsell_container(&self, cx: &mut Context<Self>, content: Div) -> Div {
-        div().p_2().child(
-            v_flex()
-                .w_full()
-                .elevation_2(cx)
-                .rounded(px(8.))
-                .bg(cx.theme().colors().background.alpha(0.5))
-                .p(px(3.))
-                .child(
-                    div()
-                        .gap_2()
-                        .flex()
-                        .flex_col()
-                        .size_full()
-                        .border_1()
-                        .rounded(px(5.))
-                        .border_color(cx.theme().colors().text.alpha(0.1))
-                        .overflow_hidden()
-                        .relative()
-                        .bg(cx.theme().colors().panel_background)
-                        .px_4()
-                        .py_3()
-                        .child(
-                            div()
-                                .absolute()
-                                .top_0()
-                                .right(px(-1.0))
-                                .w(px(441.))
-                                .h(px(167.))
-                                .child(
-                                    Vector::new(
-                                        VectorName::Grid,
-                                        rems_from_px(441.),
-                                        rems_from_px(167.),
-                                    )
-                                    .color(ui::Color::Custom(cx.theme().colors().text.alpha(0.1))),
-                                ),
-                        )
-                        .child(
-                            div()
-                                .absolute()
-                                .top(px(-8.0))
-                                .right_0()
-                                .w(px(400.))
-                                .h(px(92.))
-                                .child(
-                                    Vector::new(
-                                        VectorName::AiGrid,
-                                        rems_from_px(400.),
-                                        rems_from_px(92.),
-                                    )
-                                    .color(ui::Color::Custom(cx.theme().colors().text.alpha(0.32))),
-                                ),
-                        )
-                        // .child(
-                        //     div()
-                        //         .absolute()
-                        //         .top_0()
-                        //         .right(px(360.))
-                        //         .size(px(401.))
-                        //         .overflow_hidden()
-                        //         .bg(cx.theme().colors().panel_background)
-                        // )
-                        .child(
-                            div()
-                                .absolute()
-                                .top_0()
-                                .right_0()
-                                .w(px(660.))
-                                .h(px(401.))
-                                .overflow_hidden()
-                                .bg(linear_gradient(
-                                    75.,
-                                    linear_color_stop(
-                                        cx.theme().colors().panel_background.alpha(0.01),
-                                        1.0,
-                                    ),
-                                    linear_color_stop(cx.theme().colors().panel_background, 0.45),
-                                )),
-                        )
-                        .child(content),
-                ),
-        )
-    }
-
    fn render_active_thread_or_empty_state(
        &self,
        window: &mut Window,
@@ -2240,7 +2060,6 @@ impl AgentPanel {

        v_flex()
            .size_full()
-            .bg(cx.theme().colors().panel_background)
            .when(recent_history.is_empty(), |this| {
                let configuration_error_ref = &configuration_error;
                this.child(
@@ -2545,6 +2364,9 @@ impl AgentPanel {
                .occlude()
                .child(match last_error {
                    ThreadError::PaymentRequired => self.render_payment_required_error(cx),
+                    ThreadError::MaxMonthlySpendReached => {
+                        self.render_max_monthly_spend_reached_error(cx)
+                    }
                    ThreadError::ModelRequestLimitReached { plan } => {
                        self.render_model_request_limit_reached_error(plan, cx)
                    }
@@ -2604,6 +2426,56 @@ impl AgentPanel {
            .into_any()
    }

+    fn render_max_monthly_spend_reached_error(&self, cx: &mut Context<Self>) -> AnyElement {
+        const ERROR_MESSAGE: &str = "You have reached your maximum monthly spend. Increase your spend limit to continue using Zed LLMs.";
+
+        v_flex()
+            .gap_0p5()
+            .child(
+                h_flex()
+                    .gap_1p5()
+                    .items_center()
+                    .child(Icon::new(IconName::XCircle).color(Color::Error))
+                    .child(Label::new("Max Monthly Spend Reached").weight(FontWeight::MEDIUM)),
+            )
+            .child(
+                div()
+                    .id("error-message")
+                    .max_h_24()
+                    .overflow_y_scroll()
+                    .child(Label::new(ERROR_MESSAGE)),
+            )
+            .child(
+                h_flex()
+                    .justify_end()
+                    .mt_1()
+                    .gap_1()
+                    .child(self.create_copy_button(ERROR_MESSAGE))
+                    .child(
+                        Button::new("subscribe", "Update Monthly Spend Limit").on_click(
+                            cx.listener(|this, _, _, cx| {
+                                this.thread.update(cx, |this, _cx| {
+                                    this.clear_last_error();
+                                });
+
+                                cx.open_url(&zed_urls::account_url(cx));
+                                cx.notify();
+                            }),
+                        ),
+                    )
+                    .child(Button::new("dismiss", "Dismiss").on_click(cx.listener(
+                        |this, _, _, cx| {
+                            this.thread.update(cx, |this, _cx| {
+                                this.clear_last_error();
+                            });
+
+                            cx.notify();
+                        },
+                    ))),
+            )
+            .into_any()
+    }
+
    fn render_model_request_limit_reached_error(
        &self,
        plan: Plan,
@@ -2908,10 +2780,8 @@ impl Render for AgentPanel {
            .on_action(cx.listener(Self::increase_font_size))
            .on_action(cx.listener(Self::decrease_font_size))
            .on_action(cx.listener(Self::reset_font_size))
-            .on_action(cx.listener(Self::toggle_zoom))
            .child(self.render_toolbar(window, cx))
            .children(self.render_trial_upsell(window, cx))
-            .children(self.render_trial_end_upsell(window, cx))
            .map(|parent| match &self.active_view {
                ActiveView::Thread { .. } => parent
                    .relative()
@@ -3099,14 +2969,25 @@ impl AgentPanelDelegate for ConcreteAssistantPanelDelegate {
    }
 }

-struct TrialUpsell;
+const DISMISSED_TRIAL_UPSELL_KEY: &str = "dismissed-trial-upsell";

-impl Dismissable for TrialUpsell {
-    const KEY: &'static str = "dismissed-trial-upsell";
+fn dismissed_trial_upsell() -> bool {
+    db::kvp::KEY_VALUE_STORE
+        .read_kvp(DISMISSED_TRIAL_UPSELL_KEY)
+        .log_err()
+        .map_or(false, |s| s.is_some())
 }

-struct TrialEndUpsell;
-
-impl Dismissable for TrialEndUpsell {
-    const KEY: &'static str = "dismissed-trial-end-upsell";
+fn set_trial_upsell_dismissed(is_dismissed: bool, cx: &mut App) {
+    db::write_and_log(cx, move || async move {
+        if is_dismissed {
+            db::kvp::KEY_VALUE_STORE
+                .write_kvp(DISMISSED_TRIAL_UPSELL_KEY.into(), "1".into())
+                .await
+        } else {
+            db::kvp::KEY_VALUE_STORE
+                .delete_kvp(DISMISSED_TRIAL_UPSELL_KEY.into())
+                .await
+        }
+    })
 }
--- a/crates/agent/src/buffer_codegen.rs
+++ b/crates/agent/src/buffer_codegen.rs
@@ -1,7 +1,7 @@
 use crate::context::ContextLoadResult;
 use crate::inline_prompt_editor::CodegenStatus;
 use crate::{context::load_context, context_store::ContextStore};
-use anyhow::{Context as _, Result};
+use anyhow::Result;
 use assistant_settings::AssistantSettings;
 use client::telemetry::Telemetry;
 use collections::HashSet;
@@ -419,16 +419,16 @@ impl CodegenAlternative {
            if start_buffer.remote_id() == end_buffer.remote_id() {
                (start_buffer.clone(), start_buffer_offset..end_buffer_offset)
            } else {
-                anyhow::bail!("invalid transformation range");
+                return Err(anyhow::anyhow!("invalid transformation range"));
            }
        } else {
-            anyhow::bail!("invalid transformation range");
+            return Err(anyhow::anyhow!("invalid transformation range"));
        };

        let prompt = self
            .builder
            .generate_inline_transformation_prompt(user_prompt, language_name, buffer, range)
-            .context("generating content prompt")?;
+            .map_err(|e| anyhow::anyhow!("Failed to generate content prompt: {}", e))?;

        let context_task = self.context_store.as_ref().map(|context_store| {
            if let Some(project) = self.project.upgrade() {
--- a/crates/agent/src/context.rs
+++ b/crates/agent/src/context.rs
@@ -586,7 +586,10 @@ impl ThreadContextHandle {
    }

    pub fn title(&self, cx: &App) -> SharedString {
-        self.thread.read(cx).summary().or_default()
+        self.thread
+            .read(cx)
+            .summary()
+            .unwrap_or_else(|| "New thread".into())
    }

    fn load(self, cx: &App) -> Task<Option<(AgentContext, Vec<Entity<Buffer>>)>> {
@@ -594,7 +597,9 @@ impl ThreadContextHandle {
            let text = Thread::wait_for_detailed_summary_or_text(&self.thread, cx).await?;
            let title = self
                .thread
-                .read_with(cx, |thread, _cx| thread.summary().or_default())
+                .read_with(cx, |thread, _cx| {
+                    thread.summary().unwrap_or_else(|| "New thread".into())
+                })
                .ok()?;
            let context = AgentContext::Thread(ThreadContext {
                title,
@@ -637,7 +642,7 @@ impl TextThreadContextHandle {
    }

    pub fn title(&self, cx: &App) -> SharedString {
-        self.context.read(cx).summary().or_default()
+        self.context.read(cx).summary_or_default()
    }

    fn load(self, cx: &App) -> Task<Option<(AgentContext, Vec<Entity<Buffer>>)>> {
@@ -749,11 +754,11 @@ pub enum ImageStatus {

 impl ImageContext {
    pub fn eq_for_key(&self, other: &Self) -> bool {
-        self.original_image.id() == other.original_image.id()
+        self.original_image.id == other.original_image.id
    }

    pub fn hash_for_key<H: Hasher>(&self, state: &mut H) {
-        self.original_image.id().hash(state);
+        self.original_image.id.hash(state);
    }

    pub fn image(&self) -> Option<LanguageModelImage> {
@@ -825,20 +830,23 @@ pub fn load_context(
    prompt_store: &Option<Entity<PromptStore>>,
    cx: &mut App,
 ) -> Task<ContextLoadResult> {
-    let load_tasks: Vec<_> = contexts
-        .into_iter()
-        .map(|context| match context {
-            AgentContextHandle::File(context) => context.load(cx),
-            AgentContextHandle::Directory(context) => context.load(project.clone(), cx),
-            AgentContextHandle::Symbol(context) => context.load(cx),
-            AgentContextHandle::Selection(context) => context.load(cx),
-            AgentContextHandle::FetchedUrl(context) => context.load(),
-            AgentContextHandle::Thread(context) => context.load(cx),
-            AgentContextHandle::TextThread(context) => context.load(cx),
-            AgentContextHandle::Rules(context) => context.load(prompt_store, cx),
-            AgentContextHandle::Image(context) => context.load(cx),
-        })
-        .collect();
+    let mut load_tasks = Vec::new();
+
+    for context in contexts.iter().cloned() {
+        match context {
+            AgentContextHandle::File(context) => load_tasks.push(context.load(cx)),
+            AgentContextHandle::Directory(context) => {
+                load_tasks.push(context.load(project.clone(), cx))
+            }
+            AgentContextHandle::Symbol(context) => load_tasks.push(context.load(cx)),
+            AgentContextHandle::Selection(context) => load_tasks.push(context.load(cx)),
+            AgentContextHandle::FetchedUrl(context) => load_tasks.push(context.load()),
+            AgentContextHandle::Thread(context) => load_tasks.push(context.load(cx)),
+            AgentContextHandle::TextThread(context) => load_tasks.push(context.load(cx)),
+            AgentContextHandle::Rules(context) => load_tasks.push(context.load(prompt_store, cx)),
+            AgentContextHandle::Image(context) => load_tasks.push(context.load(cx)),
+        }
+    }

    cx.background_spawn(async move {
        let load_results = future::join_all(load_tasks).await;
--- a/crates/agent/src/context_picker.rs
+++ b/crates/agent/src/context_picker.rs
@@ -942,8 +942,8 @@ impl MentionLink {
                format!("[@{}]({}:{})", title, Self::THREAD, id)
            }
            ThreadContextEntry::Context { path, title } => {
-                let filename = path.file_name().unwrap_or_default().to_string_lossy();
-                let escaped_filename = urlencoding::encode(&filename);
+                let filename = path.file_name().unwrap_or_default();
+                let escaped_filename = urlencoding::encode(&filename.to_string_lossy()).to_string();
                format!(
                    "[@{}]({}:{}{})",
                    title,
--- a/crates/agent/src/context_store.rs
+++ b/crates/agent/src/context_store.rs
@@ -2,7 +2,7 @@ use std::ops::Range;
 use std::path::{Path, PathBuf};
 use std::sync::Arc;

-use anyhow::{Context as _, Result, anyhow};
+use anyhow::{Result, anyhow};
 use assistant_context_editor::AssistantContext;
 use collections::{HashSet, IndexSet};
 use futures::{self, FutureExt};
@@ -142,12 +142,17 @@ impl ContextStore {
        remove_if_exists: bool,
        cx: &mut Context<Self>,
    ) -> Result<Option<AgentContextHandle>> {
-        let project = self.project.upgrade().context("failed to read project")?;
-        let entry_id = project
+        let Some(project) = self.project.upgrade() else {
+            return Err(anyhow!("failed to read project"));
+        };
+
+        let Some(entry_id) = project
            .read(cx)
            .entry_for_path(project_path, cx)
            .map(|entry| entry.id)
-            .context("no entry found for directory context")?;
+        else {
+            return Err(anyhow!("no entry found for directory context"));
+        };

        let context_id = self.next_context_id.post_inc();
        let context = AgentContextHandle::Directory(DirectoryContextHandle {
--- a/crates/agent/src/context_strip.rs
+++ b/crates/agent/src/context_strip.rs
@@ -84,12 +84,6 @@ impl ContextStrip {
        }
    }

-    /// Whether or not the context strip has items to display
-    pub fn has_context_items(&self, cx: &App) -> bool {
-        self.context_store.read(cx).context().next().is_some()
-            || self.suggested_context(cx).is_some()
-    }
-
    fn added_contexts(&self, cx: &App) -> Vec<AddedContext> {
        if let Some(workspace) = self.workspace.upgrade() {
            let project = workspace.read(cx).project().read(cx);
@@ -110,14 +104,14 @@ impl ContextStrip {
        }
    }

-    fn suggested_context(&self, cx: &App) -> Option<SuggestedContext> {
+    fn suggested_context(&self, cx: &Context<Self>) -> Option<SuggestedContext> {
        match self.suggest_context_kind {
            SuggestContextKind::File => self.suggested_file(cx),
            SuggestContextKind::Thread => self.suggested_thread(cx),
        }
    }

-    fn suggested_file(&self, cx: &App) -> Option<SuggestedContext> {
+    fn suggested_file(&self, cx: &Context<Self>) -> Option<SuggestedContext> {
        let workspace = self.workspace.upgrade()?;
        let active_item = workspace.read(cx).active_item(cx)?;

@@ -144,7 +138,7 @@ impl ContextStrip {
        })
    }

-    fn suggested_thread(&self, cx: &App) -> Option<SuggestedContext> {
+    fn suggested_thread(&self, cx: &Context<Self>) -> Option<SuggestedContext> {
        if !self.context_picker.read(cx).allow_threads() {
            return None;
        }
@@ -166,7 +160,7 @@ impl ContextStrip {
            }

            Some(SuggestedContext::Thread {
-                name: active_thread.summary().or_default(),
+                name: active_thread.summary_or_default(),
                thread: weak_active_thread,
            })
        } else if let Some(active_context_editor) = panel.active_context_editor() {
@@ -180,7 +174,7 @@ impl ContextStrip {
            }

            Some(SuggestedContext::TextThread {
-                name: context.summary().or_default(),
+                name: context.summary_or_default(),
                context: weak_context,
            })
        } else {
--- a/crates/agent/src/debug.rs
+++ b/crates/agent/src/debug.rs
@@ -75,7 +75,7 @@ impl Default for DebugAccountState {
        Self {
            enabled: false,
            trial_expired: false,
-            plan: Plan::ZedFree,
+            plan: Plan::Free,
            custom_prompt_usage: RequestUsage {
                limit: UsageLimit::Unlimited,
                amount: 0,
--- a/crates/agent/src/history_store.rs
+++ b/crates/agent/src/history_store.rs
@@ -1,6 +1,6 @@
 use std::{collections::VecDeque, path::Path, sync::Arc};

-use anyhow::Context as _;
+use anyhow::{Context as _, anyhow};
 use assistant_context_editor::{AssistantContext, SavedContextMetadata};
 use chrono::{DateTime, Utc};
 use futures::future::{TryFutureExt as _, join_all};
@@ -71,8 +71,8 @@ impl Eq for RecentEntry {}
 impl RecentEntry {
    pub(crate) fn summary(&self, cx: &App) -> SharedString {
        match self {
-            RecentEntry::Thread(_, thread) => thread.read(cx).summary().or_default(),
-            RecentEntry::Context(context) => context.read(cx).summary().or_default(),
+            RecentEntry::Thread(_, thread) => thread.read(cx).summary_or_default(),
+            RecentEntry::Context(context) => context.read(cx).summary_or_default(),
        }
    }
 }
@@ -130,10 +130,7 @@ impl HistoryStore {
                                        .boxed()
                                })
                                .unwrap_or_else(|_| {
-                                    async {
-                                        anyhow::bail!("no thread store");
-                                    }
-                                    .boxed()
+                                    async { Err(anyhow!("no thread store")) }.boxed()
                                }),
                            SerializedRecentEntry::Context(id) => context_store
                                .update(cx, |context_store, cx| {
@@ -143,10 +140,7 @@ impl HistoryStore {
                                        .boxed()
                                })
                                .unwrap_or_else(|_| {
-                                    async {
-                                        anyhow::bail!("no context store");
-                                    }
-                                    .boxed()
+                                    async { Err(anyhow!("no context store")) }.boxed()
                                }),
                        });
                    let entries = join_all(entries)
--- a/crates/agent/src/inline_assistant.rs
+++ b/crates/agent/src/inline_assistant.rs
@@ -8,10 +8,9 @@ use anyhow::{Context as _, Result};
 use assistant_settings::AssistantSettings;
 use client::telemetry::Telemetry;
 use collections::{HashMap, HashSet, VecDeque, hash_map};
-use editor::display_map::EditorMargins;
 use editor::{
    Anchor, AnchorRangeExt, CodeActionProvider, Editor, EditorEvent, ExcerptId, ExcerptRange,
-    MultiBuffer, MultiBufferSnapshot, ToOffset as _, ToPoint,
+    GutterDimensions, MultiBuffer, MultiBufferSnapshot, ToOffset as _, ToPoint,
    actions::SelectAll,
    display_map::{
        BlockContext, BlockPlacement, BlockProperties, BlockStyle, CustomBlockId, RenderBlock,
@@ -338,27 +337,13 @@ impl InlineAssistant {
        window: &mut Window,
        cx: &mut App,
    ) {
-        let (snapshot, initial_selections, newest_selection) = editor.update(cx, |editor, cx| {
-            let selections = editor.selections.all::<Point>(cx);
-            let newest_selection = editor.selections.newest::<Point>(cx);
-            (editor.snapshot(window, cx), selections, newest_selection)
+        let (snapshot, initial_selections) = editor.update(cx, |editor, cx| {
+            (
+                editor.snapshot(window, cx),
+                editor.selections.all::<Point>(cx),
+            )
        });

-        // Check if there is already an inline assistant that contains the
-        // newest selection, if there is, focus it
-        if let Some(editor_assists) = self.assists_by_editor.get(&editor.downgrade()) {
-            for assist_id in &editor_assists.assist_ids {
-                let assist = &self.assists[assist_id];
-                let range = assist.range.to_point(&snapshot.buffer_snapshot);
-                if range.start.row <= newest_selection.start.row
-                    && newest_selection.end.row <= range.end.row
-                {
-                    self.focus_assist(*assist_id, window, cx);
-                    return;
-                }
-            }
-        }
-
        let mut selections = Vec::<Selection<Point>>::new();
        let mut newest_selection = None;
        for mut selection in initial_selections {
@@ -472,11 +457,11 @@ impl InlineAssistant {
                )
            });

-            let editor_margins = Arc::new(Mutex::new(EditorMargins::default()));
+            let gutter_dimensions = Arc::new(Mutex::new(GutterDimensions::default()));
            let prompt_editor = cx.new(|cx| {
                PromptEditor::new_buffer(
                    assist_id,
-                    editor_margins,
+                    gutter_dimensions.clone(),
                    self.prompt_history.clone(),
                    prompt_buffer.clone(),
                    codegen.clone(),
@@ -591,11 +576,11 @@ impl InlineAssistant {
            )
        });

-        let editor_margins = Arc::new(Mutex::new(EditorMargins::default()));
+        let gutter_dimensions = Arc::new(Mutex::new(GutterDimensions::default()));
        let prompt_editor = cx.new(|cx| {
            PromptEditor::new_buffer(
                assist_id,
-                editor_margins,
+                gutter_dimensions.clone(),
                self.prompt_history.clone(),
                prompt_buffer.clone(),
                codegen.clone(),
@@ -664,7 +649,6 @@ impl InlineAssistant {
                height: Some(prompt_editor_height),
                render: build_assist_editor_renderer(prompt_editor),
                priority: 0,
-                render_in_minimap: false,
            },
            BlockProperties {
                style: BlockStyle::Sticky,
@@ -679,7 +663,6 @@ impl InlineAssistant {
                        .into_any_element()
                }),
                priority: 0,
-                render_in_minimap: false,
            },
        ];

@@ -1421,11 +1404,11 @@ impl InlineAssistant {

                    enum DeletedLines {}
                    let mut editor = Editor::for_multibuffer(multi_buffer, None, window, cx);
-                    editor.disable_scrollbars_and_minimap(window, cx);
                    editor.set_soft_wrap_mode(language::language_settings::SoftWrap::None, cx);
                    editor.set_show_wrap_guides(false, cx);
                    editor.set_show_gutter(false, cx);
                    editor.scroll_manager.set_forbid_vertical_scroll(true);
+                    editor.set_show_scrollbars(false, cx);
                    editor.set_read_only(true);
                    editor.set_show_edit_predictions(Some(false), window, cx);
                    editor.highlight_rows::<DeletedLines>(
@@ -1449,12 +1432,11 @@ impl InlineAssistant {
                            .bg(cx.theme().status().deleted_background)
                            .size_full()
                            .h(height as f32 * cx.window.line_height())
-                            .pl(cx.margins.gutter.full_width())
+                            .pl(cx.gutter_dimensions.full_width())
                            .child(deleted_lines_editor.clone())
                            .into_any_element()
                    }),
                    priority: 0,
-                    render_in_minimap: false,
                });
            }

@@ -1612,9 +1594,9 @@ fn build_assist_editor_renderer(editor: &Entity<PromptEditor<BufferCodegen>>) ->
    let editor = editor.clone();

    Arc::new(move |cx: &mut BlockContext| {
-        let editor_margins = editor.read(cx).editor_margins();
+        let gutter_dimensions = editor.read(cx).gutter_dimensions();

-        *editor_margins.lock() = *cx.margins;
+        *gutter_dimensions.lock() = *cx.gutter_dimensions;
        editor.clone().into_any_element()
    })
 }
--- a/crates/agent/src/inline_prompt_editor.rs
+++ b/crates/agent/src/inline_prompt_editor.rs
@@ -9,13 +9,11 @@ use crate::terminal_codegen::TerminalCodegen;
 use crate::thread_store::{TextThreadStore, ThreadStore};
 use crate::{CycleNextInlineAssist, CyclePreviousInlineAssist};
 use crate::{RemoveAllContext, ToggleContextPicker};
-use assistant_context_editor::language_model_selector::ToggleModelSelector;
 use client::ErrorExt;
 use collections::VecDeque;
-use db::kvp::Dismissable;
-use editor::display_map::EditorMargins;
 use editor::{
-    ContextMenuOptions, Editor, EditorElement, EditorEvent, EditorMode, EditorStyle, MultiBuffer,
+    ContextMenuOptions, Editor, EditorElement, EditorEvent, EditorMode, EditorStyle,
+    GutterDimensions, MultiBuffer,
    actions::{MoveDown, MoveUp},
 };
 use feature_flags::{FeatureFlagAppExt as _, ZedProFeatureFlag};
@@ -25,6 +23,7 @@ use gpui::{
    Focusable, FontWeight, Subscription, TextStyle, WeakEntity, Window, anchored, deferred, point,
 };
 use language_model::{LanguageModel, LanguageModelRegistry};
+use language_model_selector::ToggleModelSelector;
 use parking_lot::Mutex;
 use settings::Settings;
 use std::cmp;
@@ -34,6 +33,7 @@ use ui::utils::WithRemSize;
 use ui::{
    CheckboxWithLabel, IconButtonShape, KeyBinding, Popover, PopoverMenuHandle, Tooltip, prelude::*,
 };
+use util::ResultExt;
 use workspace::Workspace;

 pub struct PromptEditor<T> {
@@ -61,13 +61,11 @@ impl<T: 'static> Render for PromptEditor<T> {
        let ui_font_size = ThemeSettings::get_global(cx).ui_font_size(cx);
        let mut buttons = Vec::new();

-        const RIGHT_PADDING: Pixels = px(9.);
-
-        let (left_gutter_width, right_padding) = match &self.mode {
+        let left_gutter_width = match &self.mode {
            PromptEditorMode::Buffer {
                id: _,
                codegen,
-                editor_margins,
+                gutter_dimensions,
            } => {
                let codegen = codegen.read(cx);

@@ -75,17 +73,13 @@ impl<T: 'static> Render for PromptEditor<T> {
                    buttons.push(self.render_cycle_controls(&codegen, cx));
                }

-                let editor_margins = editor_margins.lock();
-                let gutter = editor_margins.gutter;
+                let gutter_dimensions = gutter_dimensions.lock();

-                let left_gutter_width = gutter.full_width() + (gutter.margin / 2.0);
-                let right_padding = editor_margins.right + RIGHT_PADDING;
-
-                (left_gutter_width, right_padding)
+                gutter_dimensions.full_width() + (gutter_dimensions.margin / 2.0)
            }
            PromptEditorMode::Terminal { .. } => {
                // Give the equivalent of the same left-padding that we're using on the right
-                (Pixels::from(40.0), Pixels::from(24.))
+                Pixels::from(40.0)
            }
        };

@@ -106,7 +100,7 @@ impl<T: 'static> Render for PromptEditor<T> {
            .size_full()
            .pt_0p5()
            .pb(bottom_padding)
-            .pr(right_padding)
+            .pr_6()
            .child(
                h_flex()
                    .items_start()
@@ -451,7 +445,7 @@ impl<T: 'static> PromptEditor<T> {
                    editor.move_to_end(&Default::default(), window, cx)
                });
            }
-        } else if self.context_strip.read(cx).has_context_items(cx) {
+        } else {
            self.context_strip.focus_handle(cx).focus(window);
        }
    }
@@ -722,7 +716,7 @@ impl<T: 'static> PromptEditor<T> {
                        .child(CheckboxWithLabel::new(
                            "dont-show-again",
                            Label::new("Don't show again"),
-                            if RateLimitNotice::dismissed() {
+                            if dismissed_rate_limit_notice() {
                                ui::ToggleState::Selected
                            } else {
                                ui::ToggleState::Unselected
@@ -734,7 +728,7 @@ impl<T: 'static> PromptEditor<T> {
                                    ui::ToggleState::Selected => true,
                                };

-                                RateLimitNotice::set_dismissed(is_dismissed, cx);
+                                set_rate_limit_notice_dismissed(is_dismissed, cx)
                            },
                        ))
                        .child(
@@ -812,7 +806,7 @@ pub enum PromptEditorMode {
    Buffer {
        id: InlineAssistId,
        codegen: Entity<BufferCodegen>,
-        editor_margins: Arc<Mutex<EditorMargins>>,
+        gutter_dimensions: Arc<Mutex<GutterDimensions>>,
    },
    Terminal {
        id: TerminalInlineAssistId,
@@ -844,7 +838,7 @@ impl InlineAssistId {
 impl PromptEditor<BufferCodegen> {
    pub fn new_buffer(
        id: InlineAssistId,
-        editor_margins: Arc<Mutex<EditorMargins>>,
+        gutter_dimensions: Arc<Mutex<GutterDimensions>>,
        prompt_history: VecDeque<String>,
        prompt_buffer: Entity<MultiBuffer>,
        codegen: Entity<BufferCodegen>,
@@ -861,7 +855,7 @@ impl PromptEditor<BufferCodegen> {
        let mode = PromptEditorMode::Buffer {
            id,
            codegen,
-            editor_margins,
+            gutter_dimensions,
        };

        let prompt_editor = cx.new(|cx| {
@@ -974,7 +968,7 @@ impl PromptEditor<BufferCodegen> {
            CodegenStatus::Error(error) => {
                if cx.has_flag::<ZedProFeatureFlag>()
                    && error.error_code() == proto::ErrorCode::RateLimitExceeded
-                    && !RateLimitNotice::dismissed()
+                    && !dismissed_rate_limit_notice()
                {
                    self.show_rate_limit_notice = true;
                    cx.notify();
@@ -1001,9 +995,11 @@ impl PromptEditor<BufferCodegen> {
        }
    }

-    pub fn editor_margins(&self) -> &Arc<Mutex<EditorMargins>> {
+    pub fn gutter_dimensions(&self) -> &Arc<Mutex<GutterDimensions>> {
        match &self.mode {
-            PromptEditorMode::Buffer { editor_margins, .. } => editor_margins,
+            PromptEditorMode::Buffer {
+                gutter_dimensions, ..
+            } => gutter_dimensions,
            PromptEditorMode::Terminal { .. } => unreachable!(),
        }
    }
@@ -1180,10 +1176,27 @@ impl PromptEditor<TerminalCodegen> {
    }
 }

-struct RateLimitNotice;
+const DISMISSED_RATE_LIMIT_NOTICE_KEY: &str = "dismissed-rate-limit-notice";

-impl Dismissable for RateLimitNotice {
-    const KEY: &'static str = "dismissed-rate-limit-notice";
+fn dismissed_rate_limit_notice() -> bool {
+    db::kvp::KEY_VALUE_STORE
+        .read_kvp(DISMISSED_RATE_LIMIT_NOTICE_KEY)
+        .log_err()
+        .map_or(false, |s| s.is_some())
+}
+
+fn set_rate_limit_notice_dismissed(is_dismissed: bool, cx: &mut App) {
+    db::write_and_log(cx, move || async move {
+        if is_dismissed {
+            db::kvp::KEY_VALUE_STORE
+                .write_kvp(DISMISSED_RATE_LIMIT_NOTICE_KEY.into(), "1".into())
+                .await
+        } else {
+            db::kvp::KEY_VALUE_STORE
+                .delete_kvp(DISMISSED_RATE_LIMIT_NOTICE_KEY.into())
+                .await
+        }
+    })
 }

 pub enum CodegenStatus {
--- a/crates/agent/src/message_editor.rs
+++ b/crates/agent/src/message_editor.rs
@@ -8,7 +8,6 @@ use crate::ui::{
    AnimatedLabel, MaxModeTooltip,
    preview::{AgentPreview, UsageCallout},
 };
-use assistant_context_editor::language_model_selector::ToggleModelSelector;
 use assistant_settings::{AssistantSettings, CompletionMode};
 use buffer_diff::BufferDiff;
 use client::UserStore;
@@ -31,6 +30,7 @@ use language_model::{
    ConfiguredModel, LanguageModelRequestMessage, MessageContent, RequestUsage,
    ZED_CLOUD_PROVIDER_ID,
 };
+use language_model_selector::ToggleModelSelector;
 use multi_buffer;
 use project::Project;
 use prompt_store::PromptStore;
@@ -401,7 +401,7 @@ impl MessageEditor {
    fn move_up(&mut self, _: &MoveUp, window: &mut Window, cx: &mut Context<Self>) {
        if self.context_picker_menu_handle.is_deployed() {
            cx.propagate();
-        } else if self.context_strip.read(cx).has_context_items(cx) {
+        } else {
            self.context_strip.focus_handle(cx).focus(window);
        }
    }
@@ -1085,11 +1085,11 @@ impl MessageEditor {
        let plan = user_store
            .current_plan()
            .map(|plan| match plan {
-                Plan::Free => zed_llm_client::Plan::ZedFree,
+                Plan::Free => zed_llm_client::Plan::Free,
                Plan::ZedPro => zed_llm_client::Plan::ZedPro,
                Plan::ZedProTrial => zed_llm_client::Plan::ZedProTrial,
            })
-            .unwrap_or(zed_llm_client::Plan::ZedFree);
+            .unwrap_or(zed_llm_client::Plan::Free);
        let usage = self.thread.read(cx).last_usage().or_else(|| {
            maybe!({
                let amount = user_store.model_request_usage_amount()?;
--- a/crates/agent/src/terminal_inline_assistant.rs
+++ b/crates/agent/src/terminal_inline_assistant.rs
@@ -191,7 +191,7 @@ impl TerminalInlineAssistant {
        };

        self.prompt_history.retain(|prompt| *prompt != user_prompt);
-        self.prompt_history.push_back(user_prompt);
+        self.prompt_history.push_back(user_prompt.clone());
        if self.prompt_history.len() > PROMPT_HISTORY_MAX_LEN {
            self.prompt_history.pop_front();
        }
--- a/crates/agent/src/thread.rs
+++ b/crates/agent/src/thread.rs
@@ -22,9 +22,9 @@ use language_model::{
    ConfiguredModel, LanguageModel, LanguageModelCompletionError, LanguageModelCompletionEvent,
    LanguageModelId, LanguageModelKnownError, LanguageModelRegistry, LanguageModelRequest,
    LanguageModelRequestMessage, LanguageModelRequestTool, LanguageModelToolResult,
-    LanguageModelToolResultContent, LanguageModelToolUseId, MessageContent,
+    LanguageModelToolUseId, MaxMonthlySpendReachedError, MessageContent,
    ModelRequestLimitReachedError, PaymentRequiredError, RequestUsage, Role, SelectedModel,
-    StopReason, TokenUsage, WrappedTextContent,
+    StopReason, TokenUsage,
 };
 use postage::stream::Stream as _;
 use project::Project;
@@ -36,7 +36,7 @@ use serde::{Deserialize, Serialize};
 use settings::Settings;
 use thiserror::Error;
 use ui::Window;
-use util::{ResultExt as _, post_inc};
+use util::{ResultExt as _, TryFutureExt as _, post_inc};
 use uuid::Uuid;
 use zed_llm_client::CompletionRequestStatus;

@@ -214,7 +214,7 @@ pub struct GitState {
    pub diff: Option<String>,
 }

-#[derive(Clone, Debug)]
+#[derive(Clone)]
 pub struct ThreadCheckpoint {
    message_id: MessageId,
    git_checkpoint: GitStoreCheckpoint,
@@ -324,7 +324,7 @@ pub enum QueueState {
 pub struct Thread {
    id: ThreadId,
    updated_at: DateTime<Utc>,
-    summary: ThreadSummary,
+    summary: Option<SharedString>,
    pending_summary: Task<Option<()>>,
    detailed_summary_task: Task<Option<()>>,
    detailed_summary_tx: postage::watch::Sender<DetailedSummaryState>,
@@ -361,33 +361,6 @@ pub struct Thread {
    configured_model: Option<ConfiguredModel>,
 }

-#[derive(Clone, Debug, PartialEq, Eq)]
-pub enum ThreadSummary {
-    Pending,
-    Generating,
-    Ready(SharedString),
-    Error,
-}
-
-impl ThreadSummary {
-    pub const DEFAULT: SharedString = SharedString::new_static("New Thread");
-
-    pub fn or_default(&self) -> SharedString {
-        self.unwrap_or(Self::DEFAULT)
-    }
-
-    pub fn unwrap_or(&self, message: impl Into<SharedString>) -> SharedString {
-        self.ready().unwrap_or_else(|| message.into())
-    }
-
-    pub fn ready(&self) -> Option<SharedString> {
-        match self {
-            ThreadSummary::Ready(summary) => Some(summary.clone()),
-            ThreadSummary::Pending | ThreadSummary::Generating | ThreadSummary::Error => None,
-        }
-    }
-}
-
 #[derive(Debug, Clone, Serialize, Deserialize)]
 pub struct ExceededWindowError {
    /// Model used when last message exceeded context window
@@ -410,7 +383,7 @@ impl Thread {
        Self {
            id: ThreadId::new(),
            updated_at: Utc::now(),
-            summary: ThreadSummary::Pending,
+            summary: None,
            pending_summary: Task::ready(None),
            detailed_summary_task: Task::ready(None),
            detailed_summary_tx,
@@ -458,7 +431,7 @@ impl Thread {
        tools: Entity<ToolWorkingSet>,
        prompt_builder: Arc<PromptBuilder>,
        project_context: SharedProjectContext,
-        window: Option<&mut Window>, // None in headless mode
+        window: &mut Window,
        cx: &mut Context<Self>,
    ) -> Self {
        let next_message_id = MessageId(
@@ -498,7 +471,7 @@ impl Thread {
        Self {
            id,
            updated_at: serialized.updated_at,
-            summary: ThreadSummary::Ready(serialized.summary),
+            summary: Some(serialized.summary),
            pending_summary: Task::ready(None),
            detailed_summary_task: Task::ready(None),
            detailed_summary_tx,
@@ -599,6 +572,10 @@ impl Thread {
        self.last_prompt_id = PromptId::new();
    }

+    pub fn summary(&self) -> Option<SharedString> {
+        self.summary.clone()
+    }
+
    pub fn project_context(&self) -> SharedProjectContext {
        self.project_context.clone()
    }
@@ -619,25 +596,26 @@ impl Thread {
        cx.notify();
    }

-    pub fn summary(&self) -> &ThreadSummary {
-        &self.summary
+    pub const DEFAULT_SUMMARY: SharedString = SharedString::new_static("New Thread");
+
+    pub fn summary_or_default(&self) -> SharedString {
+        self.summary.clone().unwrap_or(Self::DEFAULT_SUMMARY)
    }

    pub fn set_summary(&mut self, new_summary: impl Into<SharedString>, cx: &mut Context<Self>) {
-        let current_summary = match &self.summary {
-            ThreadSummary::Pending | ThreadSummary::Generating => return,
-            ThreadSummary::Ready(summary) => summary,
-            ThreadSummary::Error => &ThreadSummary::DEFAULT,
+        let Some(current_summary) = &self.summary else {
+            // Don't allow setting summary until generated
+            return;
        };

        let mut new_summary = new_summary.into();

        if new_summary.is_empty() {
-            new_summary = ThreadSummary::DEFAULT;
+            new_summary = Self::DEFAULT_SUMMARY;
        }

        if current_summary != &new_summary {
-            self.summary = ThreadSummary::Ready(new_summary);
+            self.summary = Some(new_summary);
            cx.emit(ThreadEvent::SummaryChanged);
        }
    }
@@ -880,16 +858,7 @@ impl Thread {
    }

    pub fn output_for_tool(&self, id: &LanguageModelToolUseId) -> Option<&Arc<str>> {
-        match &self.tool_use.tool_result(id)?.content {
-            LanguageModelToolResultContent::Text(text)
-            | LanguageModelToolResultContent::WrappedText(WrappedTextContent { text, .. }) => {
-                Some(text)
-            }
-            LanguageModelToolResultContent::Image(_) => {
-                // TODO: We should display image
-                None
-            }
-        }
+        Some(&self.tool_use.tool_result(id)?.content)
    }

    pub fn card_for_tool(&self, id: &LanguageModelToolUseId) -> Option<AnyToolCard> {
@@ -999,7 +968,6 @@ impl Thread {
        new_role: Role,
        new_segments: Vec<MessageSegment>,
        loaded_context: Option<LoadedContext>,
-        checkpoint: Option<GitStoreCheckpoint>,
        cx: &mut Context<Self>,
    ) -> bool {
        let Some(message) = self.messages.iter_mut().find(|message| message.id == id) else {
@@ -1010,15 +978,6 @@ impl Thread {
        if let Some(context) = loaded_context {
            message.loaded_context = context;
        }
-        if let Some(git_checkpoint) = checkpoint {
-            self.checkpoints_by_message.insert(
-                id,
-                ThreadCheckpoint {
-                    message_id: id,
-                    git_checkpoint,
-                },
-            );
-        }
        self.touch_updated_at();
        cx.emit(ThreadEvent::MessageEdited(id));
        true
@@ -1070,7 +1029,7 @@ impl Thread {
            let initial_project_snapshot = initial_project_snapshot.await;
            this.read_with(cx, |this, cx| SerializedThread {
                version: SerializedThread::VERSION.to_string(),
-                summary: this.summary().or_default(),
+                summary: this.summary_or_default(),
                updated_at: this.updated_at(),
                messages: this
                    .messages()
@@ -1630,7 +1589,7 @@ impl Thread {
                                        CompletionRequestStatus::Failed {
                                            code, message, request_id
                                        } => {
-                                            anyhow::bail!("completion request failed. request_id: {request_id}, code: {code}, message: {message}");
+                                            return Err(anyhow!("completion request failed. request_id: {request_id}, code: {code}, message: {message}"));
                                        }
                                        CompletionRequestStatus::UsageUpdated {
                                            amount, limit
@@ -1666,7 +1625,7 @@ impl Thread {

                    // If there is a response without tool use, summarize the message. Otherwise,
                    // allow two tool uses before summarizing.
-                    if matches!(thread.summary, ThreadSummary::Pending)
+                    if thread.summary.is_none()
                        && thread.messages.len() >= 2
                        && (!thread.has_pending_tool_uses() || thread.messages.len() >= 6)
                    {
@@ -1701,6 +1660,10 @@ impl Thread {

                            if error.is::<PaymentRequiredError>() {
                                cx.emit(ThreadEvent::ShowError(ThreadError::PaymentRequired));
+                            } else if error.is::<MaxMonthlySpendReachedError>() {
+                                cx.emit(ThreadEvent::ShowError(
+                                    ThreadError::MaxMonthlySpendReached,
+                                ));
                            } else if let Some(error) =
                                error.downcast_ref::<ModelRequestLimitReachedError>()
                            {
@@ -1776,7 +1739,6 @@ impl Thread {

    pub fn summarize(&mut self, cx: &mut Context<Self>) {
        let Some(model) = LanguageModelRegistry::read_global(cx).thread_summary_model() else {
-            println!("No thread summary model");
            return;
        };

@@ -1791,17 +1753,13 @@ impl Thread {

        let request = self.to_summarize_request(&model.model, added_user_message.into(), cx);

-        self.summary = ThreadSummary::Generating;
-
        self.pending_summary = cx.spawn(async move |this, cx| {
-            let result = async {
+            async move {
                let mut messages = model.model.stream_completion(request, &cx).await?;

                let mut new_summary = String::new();
                while let Some(event) = messages.next().await {
-                    let Ok(event) = event else {
-                        continue;
-                    };
+                    let event = event?;
                    let text = match event {
                        LanguageModelCompletionEvent::Text(text) => text,
                        LanguageModelCompletionEvent::StatusUpdate(
@@ -1827,29 +1785,18 @@ impl Thread {
                    }
                }

-                anyhow::Ok(new_summary)
+                this.update(cx, |this, cx| {
+                    if !new_summary.is_empty() {
+                        this.summary = Some(new_summary.into());
+                    }
+
+                    cx.emit(ThreadEvent::SummaryGenerated);
+                })?;
+
+                anyhow::Ok(())
            }
-            .await;
-
-            this.update(cx, |this, cx| {
-                match result {
-                    Ok(new_summary) => {
-                        if new_summary.is_empty() {
-                            this.summary = ThreadSummary::Error;
-                        } else {
-                            this.summary = ThreadSummary::Ready(new_summary.into());
-                        }
-                    }
-                    Err(err) => {
-                        this.summary = ThreadSummary::Error;
-                        log::error!("Failed to generate thread summary: {}", err);
-                    }
-                }
-                cx.emit(ThreadEvent::SummaryGenerated);
-            })
-            .log_err()?;
-
-            Some(())
+            .log_err()
+            .await
        });
    }

@@ -2256,7 +2203,7 @@ impl Thread {
            .read(cx)
            .enabled_tools(cx)
            .iter()
-            .map(|tool| tool.name())
+            .map(|tool| tool.name().to_string())
            .collect();

        self.message_feedback.insert(message_id, feedback);
@@ -2459,8 +2406,9 @@ impl Thread {
    pub fn to_markdown(&self, cx: &App) -> Result<String> {
        let mut markdown = Vec::new();

-        let summary = self.summary().or_default();
-        writeln!(markdown, "# {summary}\n")?;
+        if let Some(summary) = self.summary() {
+            writeln!(markdown, "# {summary}\n")?;
+        };

        for message in self.messages() {
            writeln!(
@@ -2517,19 +2465,7 @@ impl Thread {
                }

                writeln!(markdown, "**\n")?;
-                match &tool_result.content {
-                    LanguageModelToolResultContent::Text(text)
-                    | LanguageModelToolResultContent::WrappedText(WrappedTextContent {
-                        text,
-                        ..
-                    }) => {
-                        writeln!(markdown, "{text}")?;
-                    }
-                    LanguageModelToolResultContent::Image(image) => {
-                        writeln!(markdown, "![Image](data:base64,{})", image.source)?;
-                    }
-                }
-
+                writeln!(markdown, "{}", tool_result.content)?;
                if let Some(output) = tool_result.output.as_ref() {
                    writeln!(
                        markdown,
@@ -2600,7 +2536,7 @@ impl Thread {
            .read(cx)
            .current_user()
            .map(|user| user.github_login.clone());
-        let client = self.project.read(cx).client();
+        let client = self.project.read(cx).client().clone();
        let serialize_task = self.serialize(cx);

        cx.background_executor()
@@ -2719,6 +2655,8 @@ impl Thread {
 pub enum ThreadError {
    #[error("Payment required")]
    PaymentRequired,
+    #[error("Max monthly spend reached")]
+    MaxMonthlySpendReached,
    #[error("Model request limit reached")]
    ModelRequestLimitReached { plan: Plan },
    #[error("Message {header}: {message}")]
@@ -2787,7 +2725,7 @@ mod tests {
    use assistant_tool::ToolRegistry;
    use editor::EditorSettings;
    use gpui::TestAppContext;
-    use language_model::fake_provider::{FakeLanguageModel, FakeLanguageModelProvider};
+    use language_model::fake_provider::FakeLanguageModel;
    use project::{FakeFs, Project};
    use prompt_store::PromptBuilder;
    use serde_json::json;
@@ -3288,196 +3226,6 @@ fn main() {{
        assert_eq!(request.temperature, None);
    }

-    #[gpui::test]
-    async fn test_thread_summary(cx: &mut TestAppContext) {
-        init_test_settings(cx);
-
-        let project = create_test_project(cx, json!({})).await;
-
-        let (_, _thread_store, thread, _context_store, model) =
-            setup_test_environment(cx, project.clone()).await;
-
-        // Initial state should be pending
-        thread.read_with(cx, |thread, _| {
-            assert!(matches!(thread.summary(), ThreadSummary::Pending));
-            assert_eq!(thread.summary().or_default(), ThreadSummary::DEFAULT);
-        });
-
-        // Manually setting the summary should not be allowed in this state
-        thread.update(cx, |thread, cx| {
-            thread.set_summary("This should not work", cx);
-        });
-
-        thread.read_with(cx, |thread, _| {
-            assert!(matches!(thread.summary(), ThreadSummary::Pending));
-        });
-
-        // Send a message
-        thread.update(cx, |thread, cx| {
-            thread.insert_user_message("Hi!", ContextLoadResult::default(), None, vec![], cx);
-            thread.send_to_model(model.clone(), None, cx);
-        });
-
-        let fake_model = model.as_fake();
-        simulate_successful_response(&fake_model, cx);
-
-        // Should start generating summary when there are >= 2 messages
-        thread.read_with(cx, |thread, _| {
-            assert_eq!(*thread.summary(), ThreadSummary::Generating);
-        });
-
-        // Should not be able to set the summary while generating
-        thread.update(cx, |thread, cx| {
-            thread.set_summary("This should not work either", cx);
-        });
-
-        thread.read_with(cx, |thread, _| {
-            assert!(matches!(thread.summary(), ThreadSummary::Generating));
-            assert_eq!(thread.summary().or_default(), ThreadSummary::DEFAULT);
-        });
-
-        cx.run_until_parked();
-        fake_model.stream_last_completion_response("Brief".into());
-        fake_model.stream_last_completion_response(" Introduction".into());
-        fake_model.end_last_completion_stream();
-        cx.run_until_parked();
-
-        // Summary should be set
-        thread.read_with(cx, |thread, _| {
-            assert!(matches!(thread.summary(), ThreadSummary::Ready(_)));
-            assert_eq!(thread.summary().or_default(), "Brief Introduction");
-        });
-
-        // Now we should be able to set a summary
-        thread.update(cx, |thread, cx| {
-            thread.set_summary("Brief Intro", cx);
-        });
-
-        thread.read_with(cx, |thread, _| {
-            assert_eq!(thread.summary().or_default(), "Brief Intro");
-        });
-
-        // Test setting an empty summary (should default to DEFAULT)
-        thread.update(cx, |thread, cx| {
-            thread.set_summary("", cx);
-        });
-
-        thread.read_with(cx, |thread, _| {
-            assert!(matches!(thread.summary(), ThreadSummary::Ready(_)));
-            assert_eq!(thread.summary().or_default(), ThreadSummary::DEFAULT);
-        });
-    }
-
-    #[gpui::test]
-    async fn test_thread_summary_error_set_manually(cx: &mut TestAppContext) {
-        init_test_settings(cx);
-
-        let project = create_test_project(cx, json!({})).await;
-
-        let (_, _thread_store, thread, _context_store, model) =
-            setup_test_environment(cx, project.clone()).await;
-
-        test_summarize_error(&model, &thread, cx);
-
-        // Now we should be able to set a summary
-        thread.update(cx, |thread, cx| {
-            thread.set_summary("Brief Intro", cx);
-        });
-
-        thread.read_with(cx, |thread, _| {
-            assert!(matches!(thread.summary(), ThreadSummary::Ready(_)));
-            assert_eq!(thread.summary().or_default(), "Brief Intro");
-        });
-    }
-
-    #[gpui::test]
-    async fn test_thread_summary_error_retry(cx: &mut TestAppContext) {
-        init_test_settings(cx);
-
-        let project = create_test_project(cx, json!({})).await;
-
-        let (_, _thread_store, thread, _context_store, model) =
-            setup_test_environment(cx, project.clone()).await;
-
-        test_summarize_error(&model, &thread, cx);
-
-        // Sending another message should not trigger another summarize request
-        thread.update(cx, |thread, cx| {
-            thread.insert_user_message(
-                "How are you?",
-                ContextLoadResult::default(),
-                None,
-                vec![],
-                cx,
-            );
-            thread.send_to_model(model.clone(), None, cx);
-        });
-
-        let fake_model = model.as_fake();
-        simulate_successful_response(&fake_model, cx);
-
-        thread.read_with(cx, |thread, _| {
-            // State is still Error, not Generating
-            assert!(matches!(thread.summary(), ThreadSummary::Error));
-        });
-
-        // But the summarize request can be invoked manually
-        thread.update(cx, |thread, cx| {
-            thread.summarize(cx);
-        });
-
-        thread.read_with(cx, |thread, _| {
-            assert!(matches!(thread.summary(), ThreadSummary::Generating));
-        });
-
-        cx.run_until_parked();
-        fake_model.stream_last_completion_response("A successful summary".into());
-        fake_model.end_last_completion_stream();
-        cx.run_until_parked();
-
-        thread.read_with(cx, |thread, _| {
-            assert!(matches!(thread.summary(), ThreadSummary::Ready(_)));
-            assert_eq!(thread.summary().or_default(), "A successful summary");
-        });
-    }
-
-    fn test_summarize_error(
-        model: &Arc<dyn LanguageModel>,
-        thread: &Entity<Thread>,
-        cx: &mut TestAppContext,
-    ) {
-        thread.update(cx, |thread, cx| {
-            thread.insert_user_message("Hi!", ContextLoadResult::default(), None, vec![], cx);
-            thread.send_to_model(model.clone(), None, cx);
-        });
-
-        let fake_model = model.as_fake();
-        simulate_successful_response(&fake_model, cx);
-
-        thread.read_with(cx, |thread, _| {
-            assert!(matches!(thread.summary(), ThreadSummary::Generating));
-            assert_eq!(thread.summary().or_default(), ThreadSummary::DEFAULT);
-        });
-
-        // Simulate summary request ending
-        cx.run_until_parked();
-        fake_model.end_last_completion_stream();
-        cx.run_until_parked();
-
-        // State is set to Error and default message
-        thread.read_with(cx, |thread, _| {
-            assert!(matches!(thread.summary(), ThreadSummary::Error));
-            assert_eq!(thread.summary().or_default(), ThreadSummary::DEFAULT);
-        });
-    }
-
-    fn simulate_successful_response(fake_model: &FakeLanguageModel, cx: &mut TestAppContext) {
-        cx.run_until_parked();
-        fake_model.stream_last_completion_response("Assistant response".into());
-        fake_model.end_last_completion_stream();
-        cx.run_until_parked();
-    }
-
    fn init_test_settings(cx: &mut TestAppContext) {
        cx.update(|cx| {
            let settings_store = SettingsStore::test(cx);
@@ -3534,29 +3282,9 @@ fn main() {{
        let thread = thread_store.update(cx, |store, cx| store.create_thread(cx));
        let context_store = cx.new(|_cx| ContextStore::new(project.downgrade(), None));

-        let provider = Arc::new(FakeLanguageModelProvider);
-        let model = provider.test_model();
+        let model = FakeLanguageModel::default();
        let model: Arc<dyn LanguageModel> = Arc::new(model);

-        cx.update(|_, cx| {
-            LanguageModelRegistry::global(cx).update(cx, |registry, cx| {
-                registry.set_default_model(
-                    Some(ConfiguredModel {
-                        provider: provider.clone(),
-                        model: model.clone(),
-                    }),
-                    cx,
-                );
-                registry.set_thread_summary_model(
-                    Some(ConfiguredModel {
-                        provider,
-                        model: model.clone(),
-                    }),
-                    cx,
-                );
-            })
-        });
-
        (workspace, thread_store, thread, context_store, model)
    }

--- a/crates/agent/src/thread_history.rs
+++ b/crates/agent/src/thread_history.rs
@@ -260,7 +260,10 @@ impl ThreadHistory {
            }
        });

-        self.search_state = SearchState::Searching { query, _task: task };
+        self.search_state = SearchState::Searching {
+            query: query.clone(),
+            _task: task,
+        };
        cx.notify();
    }

--- a/crates/agent/src/thread_store.rs
+++ b/crates/agent/src/thread_store.rs
@@ -19,7 +19,7 @@ use gpui::{
 };
 use heed::Database;
 use heed::types::SerdeBincode;
-use language_model::{LanguageModelToolResultContent, LanguageModelToolUseId, Role, TokenUsage};
+use language_model::{LanguageModelToolUseId, Role, TokenUsage};
 use project::context_server_store::{ContextServerStatus, ContextServerStore};
 use project::{Project, ProjectItem, ProjectPath, Worktree};
 use prompt_store::{
@@ -386,25 +386,6 @@ impl ThreadStore {
        })
    }

-    pub fn create_thread_from_serialized(
-        &mut self,
-        serialized: SerializedThread,
-        cx: &mut Context<Self>,
-    ) -> Entity<Thread> {
-        cx.new(|cx| {
-            Thread::deserialize(
-                ThreadId::new(),
-                serialized,
-                self.project.clone(),
-                self.tools.clone(),
-                self.prompt_builder.clone(),
-                self.project_context.clone(),
-                None,
-                cx,
-            )
-        })
-    }
-
    pub fn open_thread(
        &self,
        id: &ThreadId,
@@ -419,7 +400,7 @@ impl ThreadStore {
            let thread = database
                .try_find_thread(id.clone())
                .await?
-                .with_context(|| format!("no thread found with ID: {id:?}"))?;
+                .ok_or_else(|| anyhow!("no thread found with ID: {id:?}"))?;

            let thread = this.update_in(cx, |this, window, cx| {
                cx.new(|cx| {
@@ -430,7 +411,7 @@ impl ThreadStore {
                        this.tools.clone(),
                        this.prompt_builder.clone(),
                        this.project_context.clone(),
-                        Some(window),
+                        window,
                        cx,
                    )
                })
@@ -505,8 +486,8 @@ impl ThreadStore {
                ToolSource::Native,
                &profile
                    .tools
-                    .into_iter()
-                    .filter_map(|(tool, enabled)| enabled.then(|| tool))
+                    .iter()
+                    .filter_map(|(tool, enabled)| enabled.then(|| tool.clone()))
                    .collect::<Vec<_>>(),
                cx,
            );
@@ -530,32 +511,32 @@ impl ThreadStore {
                });
            }
            // Enable all the tools from all context servers, but disable the ones that are explicitly disabled
-            for (context_server_id, preset) in profile.context_servers {
+            for (context_server_id, preset) in &profile.context_servers {
                self.tools.update(cx, |tools, cx| {
                    tools.disable(
                        ToolSource::ContextServer {
-                            id: context_server_id.into(),
+                            id: context_server_id.clone().into(),
                        },
                        &preset
                            .tools
-                            .into_iter()
-                            .filter_map(|(tool, enabled)| (!enabled).then(|| tool))
+                            .iter()
+                            .filter_map(|(tool, enabled)| (!enabled).then(|| tool.clone()))
                            .collect::<Vec<_>>(),
                        cx,
                    )
                })
            }
        } else {
-            for (context_server_id, preset) in profile.context_servers {
+            for (context_server_id, preset) in &profile.context_servers {
                self.tools.update(cx, |tools, cx| {
                    tools.enable(
                        ToolSource::ContextServer {
-                            id: context_server_id.into(),
+                            id: context_server_id.clone().into(),
                        },
                        &preset
                            .tools
-                            .into_iter()
-                            .filter_map(|(tool, enabled)| enabled.then(|| tool))
+                            .iter()
+                            .filter_map(|(tool, enabled)| enabled.then(|| tool.clone()))
                            .collect::<Vec<_>>(),
                        cx,
                    )
@@ -699,14 +680,20 @@ impl SerializedThread {
                SerializedThread::VERSION => Ok(serde_json::from_value::<SerializedThread>(
                    saved_thread_json,
                )?),
-                _ => anyhow::bail!("unrecognized serialized thread version: {version:?}"),
+                _ => Err(anyhow!(
+                    "unrecognized serialized thread version: {}",
+                    version
+                )),
            },
            None => {
                let saved_thread =
                    serde_json::from_value::<LegacySerializedThread>(saved_thread_json)?;
                Ok(saved_thread.upgrade())
            }
-            version => anyhow::bail!("unrecognized serialized thread version: {version:?}"),
+            version => Err(anyhow!(
+                "unrecognized serialized thread version: {:?}",
+                version
+            )),
        }
    }
 }
@@ -788,7 +775,7 @@ pub struct SerializedToolUse {
 pub struct SerializedToolResult {
    pub tool_use_id: LanguageModelToolUseId,
    pub is_error: bool,
-    pub content: LanguageModelToolResultContent,
+    pub content: Arc<str>,
    pub output: Option<serde_json::Value>,
 }

--- a/crates/agent/src/tool_use.rs
+++ b/crates/agent/src/tool_use.rs
@@ -1,16 +1,14 @@
 use std::sync::Arc;

 use anyhow::Result;
-use assistant_tool::{
-    AnyToolCard, Tool, ToolResultContent, ToolResultOutput, ToolUseStatus, ToolWorkingSet,
-};
+use assistant_tool::{AnyToolCard, Tool, ToolResultOutput, ToolUseStatus, ToolWorkingSet};
 use collections::HashMap;
 use futures::FutureExt as _;
 use futures::future::Shared;
 use gpui::{App, Entity, SharedString, Task};
 use language_model::{
    ConfiguredModel, LanguageModel, LanguageModelRequest, LanguageModelToolResult,
-    LanguageModelToolResultContent, LanguageModelToolUse, LanguageModelToolUseId, Role,
+    LanguageModelToolUse, LanguageModelToolUseId, Role,
 };
 use project::Project;
 use ui::{IconName, Window};
@@ -54,19 +52,15 @@ impl ToolUseState {
    /// Constructs a [`ToolUseState`] from the given list of [`SerializedMessage`]s.
    ///
    /// Accepts a function to filter the tools that should be used to populate the state.
-    ///
-    /// If `window` is `None` (e.g., when in headless mode or when running evals),
-    /// tool cards won't be deserialized
    pub fn from_serialized_messages(
        tools: Entity<ToolWorkingSet>,
        messages: &[SerializedMessage],
        project: Entity<Project>,
-        window: Option<&mut Window>, // None in headless mode
+        window: &mut Window,
        cx: &mut App,
    ) -> Self {
        let mut this = Self::new(tools);
        let mut tool_names_by_id = HashMap::default();
-        let mut window = window;

        for message in messages {
            match message.role {
@@ -111,17 +105,12 @@ impl ToolUseState {
                                },
                            );

-                            if let Some(window) = &mut window {
-                                if let Some(tool) = this.tools.read(cx).tool(tool_use, cx) {
-                                    if let Some(output) = tool_result.output.clone() {
-                                        if let Some(card) = tool.deserialize_card(
-                                            output,
-                                            project.clone(),
-                                            window,
-                                            cx,
-                                        ) {
-                                            this.tool_result_cards.insert(tool_use_id, card);
-                                        }
+                            if let Some(tool) = this.tools.read(cx).tool(tool_use, cx) {
+                                if let Some(output) = tool_result.output.clone() {
+                                    if let Some(card) =
+                                        tool.deserialize_card(output, project.clone(), window, cx)
+                                    {
+                                        this.tool_result_cards.insert(tool_use_id, card);
                                    }
                                }
                            }
@@ -176,16 +165,10 @@ impl ToolUseState {

            let status = (|| {
                if let Some(tool_result) = tool_result {
-                    let content = tool_result
-                        .content
-                        .to_str()
-                        .map(|str| str.to_owned().into())
-                        .unwrap_or_default();
-
                    return if tool_result.is_error {
-                        ToolUseStatus::Error(content)
+                        ToolUseStatus::Error(tool_result.content.clone().into())
                    } else {
-                        ToolUseStatus::Finished(content)
+                        ToolUseStatus::Finished(tool_result.content.clone().into())
                    };
                }

@@ -416,45 +399,21 @@ impl ToolUseState {
                let tool_result = output.content;
                const BYTES_PER_TOKEN_ESTIMATE: usize = 3;

-                let old_use = self.pending_tool_uses_by_id.remove(&tool_use_id);
-
-                // Protect from overly large output
+                // Protect from clearly large output
                let tool_output_limit = configured_model
                    .map(|model| model.model.max_token_count() * BYTES_PER_TOKEN_ESTIMATE)
                    .unwrap_or(usize::MAX);

-                let content = match tool_result {
-                    ToolResultContent::Text(text) => {
-                        let text = if text.len() < tool_output_limit {
-                            text
-                        } else {
-                            let truncated = truncate_lines_to_byte_limit(&text, tool_output_limit);
-                            format!(
-                                "Tool result too long. The first {} bytes:\n\n{}",
-                                truncated.len(),
-                                truncated
-                            )
-                        };
-                        LanguageModelToolResultContent::Text(text.into())
-                    }
-                    ToolResultContent::Image(language_model_image) => {
-                        if language_model_image.estimate_tokens() < tool_output_limit {
-                            LanguageModelToolResultContent::Image(language_model_image)
-                        } else {
-                            self.tool_results.insert(
-                                tool_use_id.clone(),
-                                LanguageModelToolResult {
-                                    tool_use_id: tool_use_id.clone(),
-                                    tool_name,
-                                    content: "Tool responded with an image that would exceeded the remaining tokens".into(),
-                                    is_error: true,
-                                    output: None,
-                                },
-                            );
+                let tool_result = if tool_result.len() <= tool_output_limit {
+                    tool_result
+                } else {
+                    let truncated = truncate_lines_to_byte_limit(&tool_result, tool_output_limit);

-                            return old_use;
-                        }
-                    }
+                    format!(
+                        "Tool result too long. The first {} bytes:\n\n{}",
+                        truncated.len(),
+                        truncated
+                    )
                };

                self.tool_results.insert(
@@ -462,13 +421,12 @@ impl ToolUseState {
                    LanguageModelToolResult {
                        tool_use_id: tool_use_id.clone(),
                        tool_name,
-                        content,
+                        content: tool_result.into(),
                        is_error: false,
                        output: output.output,
                    },
                );
-
-                old_use
+                self.pending_tool_uses_by_id.remove(&tool_use_id)
            }
            Err(err) => {
                self.tool_results.insert(
@@ -476,7 +434,7 @@ impl ToolUseState {
                    LanguageModelToolResult {
                        tool_use_id: tool_use_id.clone(),
                        tool_name,
-                        content: LanguageModelToolResultContent::Text(err.to_string().into()),
+                        content: err.to_string().into(),
                        is_error: true,
                        output: None,
                    },
--- a/crates/agent/src/ui/preview/agent_preview.rs
+++ b/crates/agent/src/ui/preview/agent_preview.rs
@@ -1,8 +1,8 @@
-use std::sync::OnceLock;
-
 use collections::HashMap;
 use component::ComponentId;
 use gpui::{App, Entity, WeakEntity};
+use linkme::distributed_slice;
+use std::sync::OnceLock;
 use ui::{AnyElement, Component, ComponentScope, Window};
 use workspace::Workspace;

@@ -12,15 +12,9 @@ use crate::ActiveThread;
 pub type PreviewFn =
    fn(WeakEntity<Workspace>, Entity<ActiveThread>, &mut Window, &mut App) -> Option<AnyElement>;

-pub struct AgentPreviewFn(fn() -> (ComponentId, PreviewFn));
-
-impl AgentPreviewFn {
-    pub const fn new(f: fn() -> (ComponentId, PreviewFn)) -> Self {
-        Self(f)
-    }
-}
-
-inventory::collect!(AgentPreviewFn);
+/// Distributed slice for preview registration functions
+#[distributed_slice]
+pub static __ALL_AGENT_PREVIEWS: [fn() -> (ComponentId, PreviewFn)] = [..];

 /// Trait that must be implemented by components that provide agent previews.
 pub trait AgentPreview: Component + Sized {
@@ -42,14 +36,16 @@ pub trait AgentPreview: Component + Sized {
 #[macro_export]
 macro_rules! register_agent_preview {
    ($type:ty) => {
-        inventory::submit! {
-            $crate::ui::preview::AgentPreviewFn::new(|| {
-                (
-                    <$type as component::Component>::id(),
-                    <$type as $crate::ui::preview::AgentPreview>::agent_preview,
-                )
-            })
-        }
+        #[linkme::distributed_slice($crate::ui::preview::__ALL_AGENT_PREVIEWS)]
+        static __REGISTER_AGENT_PREVIEW: fn() -> (
+            component::ComponentId,
+            $crate::ui::preview::PreviewFn,
+        ) = || {
+            (
+                <$type as component::Component>::id(),
+                <$type as $crate::ui::preview::AgentPreview>::agent_preview,
+            )
+        };
    };
 }

@@ -60,8 +56,8 @@ static AGENT_PREVIEW_REGISTRY: OnceLock<HashMap<ComponentId, PreviewFn>> = OnceL
 fn get_or_init_registry() -> &'static HashMap<ComponentId, PreviewFn> {
    AGENT_PREVIEW_REGISTRY.get_or_init(|| {
        let mut map = HashMap::default();
-        for register_fn in inventory::iter::<AgentPreviewFn>() {
-            let (id, preview_fn) = (register_fn.0)();
+        for register_fn in __ALL_AGENT_PREVIEWS.iter() {
+            let (id, preview_fn) = register_fn();
            map.insert(id, preview_fn);
        }
        map
--- a/crates/agent/src/ui/preview/usage_callouts.rs
+++ b/crates/agent/src/ui/preview/usage_callouts.rs
@@ -39,7 +39,7 @@ impl RenderOnce for UsageCallout {

        let (title, message, button_text, url) = if is_limit_reached {
            match self.plan {
-                Plan::ZedFree => (
+                Plan::Free => (
                    "Out of free prompts",
                    "Upgrade to continue, wait for the next reset, or switch to API key."
                        .to_string(),
@@ -61,7 +61,7 @@ impl RenderOnce for UsageCallout {
            }
        } else {
            match self.plan {
-                Plan::ZedFree => (
+                Plan::Free => (
                    "Reaching free plan limit soon",
                    format!(
                        "{remaining} remaining - Upgrade to increase limit, or switch providers",
@@ -120,7 +120,7 @@ impl Component for UsageCallout {
                single_example(
                    "Approaching limit (90%)",
                    UsageCallout::new(
-                        Plan::ZedFree,
+                        Plan::Free,
                        RequestUsage {
                            limit: UsageLimit::Limited(50),
                            amount: 45, // 90% of limit
@@ -131,7 +131,7 @@ impl Component for UsageCallout {
                single_example(
                    "Limit reached (100%)",
                    UsageCallout::new(
-                        Plan::ZedFree,
+                        Plan::Free,
                        RequestUsage {
                            limit: UsageLimit::Limited(50),
                            amount: 50, // 100% of limit
--- a/crates/anthropic/src/anthropic.rs
+++ b/crates/anthropic/src/anthropic.rs
@@ -90,7 +90,7 @@ impl Model {
        } else if id.starts_with("claude-3-haiku") {
            Ok(Self::Claude3Haiku)
        } else {
-            anyhow::bail!("invalid model id {id}");
+            Err(anyhow!("invalid model id"))
        }
    }

@@ -385,10 +385,10 @@ impl RateLimitInfo {
    }
 }

-fn get_header<'a>(key: &str, headers: &'a HeaderMap) -> anyhow::Result<&'a str> {
+fn get_header<'a>(key: &str, headers: &'a HeaderMap) -> Result<&'a str, anyhow::Error> {
    Ok(headers
        .get(key)
-        .with_context(|| format!("missing header `{key}`"))?
+        .ok_or_else(|| anyhow!("missing header `{key}`"))?
        .to_str()?)
 }

@@ -534,26 +534,12 @@ pub enum RequestContent {
    ToolResult {
        tool_use_id: String,
        is_error: bool,
-        content: ToolResultContent,
+        content: String,
        #[serde(skip_serializing_if = "Option::is_none")]
        cache_control: Option<CacheControl>,
    },
 }

-#[derive(Debug, Serialize, Deserialize)]
-#[serde(untagged)]
-pub enum ToolResultContent {
-    Plain(String),
-    Multipart(Vec<ToolResultPart>),
-}
-
-#[derive(Debug, Serialize, Deserialize)]
-#[serde(tag = "type", rename_all = "lowercase")]
-pub enum ToolResultPart {
-    Text { text: String },
-    Image { source: ImageSource },
-}
-
 #[derive(Debug, Serialize, Deserialize)]
 #[serde(tag = "type")]
 pub enum ResponseContent {
--- a/crates/askpass/src/askpass.rs
+++ b/crates/askpass/src/askpass.rs
@@ -163,10 +163,8 @@ impl AskPassSession {
 #[cfg(unix)]
 fn get_shell_safe_zed_path() -> anyhow::Result<String> {
    let zed_path = std::env::current_exe()
-        .context("Failed to determine current executable path for use in askpass")?
+        .context("Failed to figure out current executable path for use in askpass")?
        .to_string_lossy()
-        // see https://github.com/rust-lang/rust/issues/69343
-        .trim_end_matches(" (deleted)")
        .to_string();

    // NOTE: this was previously enabled, however, it caused errors when it shouldn't have
--- a/crates/assets/src/assets.rs
+++ b/crates/assets/src/assets.rs
@@ -1,6 +1,6 @@
 // This crate was essentially pulled out verbatim from main `zed` crate to avoid having to run RustEmbed macro whenever zed has to be rebuilt. It saves a second or two on an incremental build.
+use anyhow::anyhow;

-use anyhow::Context as _;
 use gpui::{App, AssetSource, Result, SharedString};
 use rust_embed::RustEmbed;

@@ -21,7 +21,7 @@ impl AssetSource for Assets {
    fn load(&self, path: &str) -> Result<Option<std::borrow::Cow<'static, [u8]>>> {
        Self::get(path)
            .map(|f| Some(f.data))
-            .with_context(|| format!("loading asset at path {path:?}"))
+            .ok_or_else(|| anyhow!("could not find asset at path \"{}\"", path))
    }

    fn list(&self, path: &str) -> Result<Vec<SharedString>> {
@@ -39,7 +39,7 @@ impl AssetSource for Assets {

 impl Assets {
    /// Populate the [`TextSystem`] of the given [`AppContext`] with all `.ttf` fonts in the `fonts` directory.
-    pub fn load_fonts(&self, cx: &App) -> anyhow::Result<()> {
+    pub fn load_fonts(&self, cx: &App) -> gpui::Result<()> {
        let font_paths = self.list("fonts")?;
        let mut embedded_fonts = Vec::new();
        for font_path in font_paths {
--- a/crates/assistant_context_editor/Cargo.toml
+++ b/crates/assistant_context_editor/Cargo.toml
@@ -22,7 +22,6 @@ clock.workspace = true
 collections.workspace = true
 context_server.workspace = true
 editor.workspace = true
-feature_flags.workspace = true
 fs.workspace = true
 futures.workspace = true
 fuzzy.workspace = true
@@ -30,16 +29,15 @@ gpui.workspace = true
 indexed_docs.workspace = true
 language.workspace = true
 language_model.workspace = true
+language_model_selector.workspace = true
 log.workspace = true
 multi_buffer.workspace = true
 open_ai.workspace = true
-ordered-float.workspace = true
 parking_lot.workspace = true
 paths.workspace = true
 picker.workspace = true
 project.workspace = true
 prompt_store.workspace = true
-proto.workspace = true
 regex.workspace = true
 rope.workspace = true
 rpc.workspace = true
@@ -48,6 +46,7 @@ serde_json.workspace = true
 settings.workspace = true
 smallvec.workspace = true
 smol.workspace = true
+strum.workspace = true
 telemetry_events.workspace = true
 text.workspace = true
 theme.workspace = true
--- a/crates/assistant_context_editor/src/assistant_context_editor.rs
+++ b/crates/assistant_context_editor/src/assistant_context_editor.rs
@@ -2,7 +2,7 @@ mod context;
 mod context_editor;
 mod context_history;
 mod context_store;
-pub mod language_model_selector;
+mod patch;
 mod slash_command;
 mod slash_command_picker;

@@ -16,6 +16,7 @@ pub use crate::context::*;
 pub use crate::context_editor::*;
 pub use crate::context_history::*;
 pub use crate::context_store::*;
+pub use crate::patch::*;
 pub use crate::slash_command::*;

 pub fn init(client: Arc<Client>, cx: &mut App) {
--- a/crates/assistant_context_editor/src/context.rs
+++ b/crates/assistant_context_editor/src/context.rs
@@ -1,7 +1,8 @@
 #[cfg(test)]
 mod context_tests;

-use anyhow::{Context as _, Result, bail};
+use crate::patch::{AssistantEdit, AssistantPatch, AssistantPatchStatus};
+use anyhow::{Context as _, Result, anyhow};
 use assistant_settings::AssistantSettings;
 use assistant_slash_command::{
    SlashCommandContent, SlashCommandEvent, SlashCommandLine, SlashCommandOutputSection,
@@ -21,8 +22,8 @@ use language::{AnchorRangeExt, Bias, Buffer, LanguageRegistry, OffsetRangeExt, P
 use language_model::{
    LanguageModel, LanguageModelCacheConfiguration, LanguageModelCompletionEvent,
    LanguageModelImage, LanguageModelRegistry, LanguageModelRequest, LanguageModelRequestMessage,
-    LanguageModelToolUseId, MessageContent, PaymentRequiredError, Role, StopReason,
-    report_assistant_event,
+    LanguageModelToolUseId, MaxMonthlySpendReachedError, MessageContent, PaymentRequiredError,
+    Role, StopReason, report_assistant_event,
 };
 use open_ai::Model as OpenAiModel;
 use paths::contexts_dir;
@@ -36,6 +37,7 @@ use std::{
    iter, mem,
    ops::Range,
    path::Path,
+    str::FromStr as _,
    sync::Arc,
    time::{Duration, Instant},
 };
@@ -120,6 +122,14 @@ impl MessageStatus {
    }
 }

+#[derive(Clone, Copy, Debug, PartialEq, Eq)]
+pub enum RequestType {
+    /// Request a normal chat response from the model.
+    Chat,
+    /// Add a preamble to the message, which tells the model to return a structured response that suggests edits.
+    SuggestEdits,
+}
+
 #[derive(Clone, Debug)]
 pub enum ContextOperation {
    InsertMessage {
@@ -133,7 +143,7 @@ pub enum ContextOperation {
        version: clock::Global,
    },
    UpdateSummary {
-        summary: ContextSummaryContent,
+        summary: ContextSummary,
        version: clock::Global,
    },
    SlashCommandStarted {
@@ -203,7 +213,7 @@ impl ContextOperation {
                version: language::proto::deserialize_version(&update.version),
            }),
            proto::context_operation::Variant::UpdateSummary(update) => Ok(Self::UpdateSummary {
-                summary: ContextSummaryContent {
+                summary: ContextSummary {
                    text: update.summary,
                    done: update.done,
                    timestamp: language::proto::deserialize_timestamp(
@@ -447,12 +457,17 @@ impl ContextOperation {
 pub enum ContextEvent {
    ShowAssistError(SharedString),
    ShowPaymentRequiredError,
+    ShowMaxMonthlySpendReachedError,
    MessagesEdited,
    SummaryChanged,
    SummaryGenerated,
    StreamedCompletion,
    StartedThoughtProcess(Range<language::Anchor>),
    EndedThoughtProcess(language::Anchor),
+    PatchesUpdated {
+        removed: Vec<Range<language::Anchor>>,
+        updated: Vec<Range<language::Anchor>>,
+    },
    InvokedSlashCommandChanged {
        command_id: InvokedSlashCommandId,
    },
@@ -466,73 +481,11 @@ pub enum ContextEvent {
    Operation(ContextOperation),
 }

-#[derive(Clone, Debug, Eq, PartialEq)]
-pub enum ContextSummary {
-    Pending,
-    Content(ContextSummaryContent),
-    Error,
-}
-
-#[derive(Default, Clone, Debug, Eq, PartialEq)]
-pub struct ContextSummaryContent {
+#[derive(Clone, Default, Debug)]
+pub struct ContextSummary {
    pub text: String,
    pub done: bool,
-    pub timestamp: clock::Lamport,
-}
-
-impl ContextSummary {
-    pub const DEFAULT: &str = "New Text Thread";
-
-    pub fn or_default(&self) -> SharedString {
-        self.unwrap_or(Self::DEFAULT)
-    }
-
-    pub fn unwrap_or(&self, message: impl Into<SharedString>) -> SharedString {
-        self.content()
-            .map_or_else(|| message.into(), |content| content.text.clone().into())
-    }
-
-    pub fn content(&self) -> Option<&ContextSummaryContent> {
-        match self {
-            ContextSummary::Content(content) => Some(content),
-            ContextSummary::Pending | ContextSummary::Error => None,
-        }
-    }
-
-    fn content_as_mut(&mut self) -> Option<&mut ContextSummaryContent> {
-        match self {
-            ContextSummary::Content(content) => Some(content),
-            ContextSummary::Pending | ContextSummary::Error => None,
-        }
-    }
-
-    fn content_or_set_empty(&mut self) -> &mut ContextSummaryContent {
-        match self {
-            ContextSummary::Content(content) => content,
-            ContextSummary::Pending | ContextSummary::Error => {
-                let content = ContextSummaryContent::default();
-                *self = ContextSummary::Content(content);
-                self.content_as_mut().unwrap()
-            }
-        }
-    }
-
-    pub fn is_pending(&self) -> bool {
-        matches!(self, ContextSummary::Pending)
-    }
-
-    fn timestamp(&self) -> Option<clock::Lamport> {
-        match self {
-            ContextSummary::Content(content) => Some(content.timestamp),
-            ContextSummary::Pending | ContextSummary::Error => None,
-        }
-    }
-}
-
-impl PartialOrd for ContextSummary {
-    fn partial_cmp(&self, other: &Self) -> Option<Ordering> {
-        self.timestamp().partial_cmp(&other.timestamp())
-    }
+    timestamp: clock::Lamport,
 }

 #[derive(Clone, Debug, Eq, PartialEq)]
@@ -652,6 +605,26 @@ struct PendingCompletion {
 #[derive(Copy, Clone, Debug, Hash, Eq, PartialEq)]
 pub struct InvokedSlashCommandId(clock::Lamport);

+#[derive(Clone, Debug)]
+pub struct XmlTag {
+    pub kind: XmlTagKind,
+    pub range: Range<text::Anchor>,
+    pub is_open_tag: bool,
+}
+
+#[derive(Copy, Clone, Debug, strum::EnumString, PartialEq, Eq, strum::AsRefStr)]
+#[strum(serialize_all = "snake_case")]
+pub enum XmlTagKind {
+    Patch,
+    Title,
+    Edit,
+    Path,
+    Description,
+    OldText,
+    NewText,
+    Operation,
+}
+
 pub struct AssistantContext {
    id: ContextId,
    timestamp: clock::Lamport,
@@ -668,7 +641,7 @@ pub struct AssistantContext {
    message_anchors: Vec<MessageAnchor>,
    contents: Vec<Content>,
    messages_metadata: HashMap<MessageId, MessageMetadata>,
-    summary: ContextSummary,
+    summary: Option<ContextSummary>,
    summary_task: Task<Option<()>>,
    completion_count: usize,
    pending_completions: Vec<PendingCompletion>,
@@ -680,6 +653,8 @@ pub struct AssistantContext {
    _subscriptions: Vec<Subscription>,
    telemetry: Option<Arc<Telemetry>>,
    language_registry: Arc<LanguageRegistry>,
+    patches: Vec<AssistantPatch>,
+    xml_tags: Vec<XmlTag>,
    project: Option<Entity<Project>>,
    prompt_builder: Arc<PromptBuilder>,
 }
@@ -694,6 +669,18 @@ impl ContextAnnotation for ParsedSlashCommand {
    }
 }

+impl ContextAnnotation for AssistantPatch {
+    fn range(&self) -> &Range<language::Anchor> {
+        &self.range
+    }
+}
+
+impl ContextAnnotation for XmlTag {
+    fn range(&self) -> &Range<language::Anchor> {
+        &self.range
+    }
+}
+
 impl EventEmitter<ContextEvent> for AssistantContext {}

 impl AssistantContext {
@@ -755,7 +742,7 @@ impl AssistantContext {
            slash_command_output_sections: Vec::new(),
            thought_process_output_sections: Vec::new(),
            edits_since_last_parse: edits_since_last_slash_command_parse,
-            summary: ContextSummary::Pending,
+            summary: None,
            summary_task: Task::ready(None),
            completion_count: Default::default(),
            pending_completions: Default::default(),
@@ -770,6 +757,8 @@ impl AssistantContext {
            project,
            language_registry,
            slash_commands,
+            patches: Vec::new(),
+            xml_tags: Vec::new(),
            prompt_builder,
        };

@@ -814,7 +803,7 @@ impl AssistantContext {
                .collect(),
            summary: self
                .summary
-                .content()
+                .as_ref()
                .map(|summary| summary.text.clone())
                .unwrap_or_default(),
            slash_command_output_sections: self
@@ -1000,10 +989,12 @@ impl AssistantContext {
                    summary: new_summary,
                    ..
                } => {
-                    if self.summary.timestamp().map_or(true, |current_timestamp| {
-                        new_summary.timestamp > current_timestamp
-                    }) {
-                        self.summary = ContextSummary::Content(new_summary);
+                    if self
+                        .summary
+                        .as_ref()
+                        .map_or(true, |summary| new_summary.timestamp > summary.timestamp)
+                    {
+                        self.summary = Some(new_summary);
                        summary_generated = true;
                    }
                }
@@ -1161,8 +1152,50 @@ impl AssistantContext {
        self.path.as_ref()
    }

-    pub fn summary(&self) -> &ContextSummary {
-        &self.summary
+    pub fn summary(&self) -> Option<&ContextSummary> {
+        self.summary.as_ref()
+    }
+
+    pub fn patch_containing(&self, position: Point, cx: &App) -> Option<&AssistantPatch> {
+        let buffer = self.buffer.read(cx);
+        let index = self.patches.binary_search_by(|patch| {
+            let patch_range = patch.range.to_point(&buffer);
+            if position < patch_range.start {
+                Ordering::Greater
+            } else if position > patch_range.end {
+                Ordering::Less
+            } else {
+                Ordering::Equal
+            }
+        });
+        if let Ok(ix) = index {
+            Some(&self.patches[ix])
+        } else {
+            None
+        }
+    }
+
+    pub fn patch_ranges(&self) -> impl Iterator<Item = Range<language::Anchor>> + '_ {
+        self.patches.iter().map(|patch| patch.range.clone())
+    }
+
+    pub fn patch_for_range(
+        &self,
+        range: &Range<language::Anchor>,
+        cx: &App,
+    ) -> Option<&AssistantPatch> {
+        let buffer = self.buffer.read(cx);
+        let index = self.patch_index_for_range(range, buffer).ok()?;
+        Some(&self.patches[index])
+    }
+
+    fn patch_index_for_range(
+        &self,
+        tagged_range: &Range<text::Anchor>,
+        buffer: &text::BufferSnapshot,
+    ) -> Result<usize, usize> {
+        self.patches
+            .binary_search_by(|probe| probe.range.cmp(&tagged_range, buffer))
    }

    pub fn parsed_slash_commands(&self) -> &[ParsedSlashCommand] {
@@ -1244,7 +1277,7 @@ impl AssistantContext {
        let Some(model) = LanguageModelRegistry::read_global(cx).default_model() else {
            return;
        };
-        let request = self.to_completion_request(Some(&model.model), cx);
+        let request = self.to_completion_request(Some(&model.model), RequestType::Chat, cx);
        let debounce = self.token_count.is_some();
        self.pending_token_count = cx.spawn(async move |this, cx| {
            async move {
@@ -1390,7 +1423,7 @@ impl AssistantContext {
        }

        let request = {
-            let mut req = self.to_completion_request(Some(&model), cx);
+            let mut req = self.to_completion_request(Some(&model), RequestType::Chat, cx);
            // Skip the last message because it's likely to change and
            // therefore would be a waste to cache.
            req.messages.pop();
@@ -1465,6 +1498,8 @@ impl AssistantContext {

        let mut removed_parsed_slash_command_ranges = Vec::new();
        let mut updated_parsed_slash_commands = Vec::new();
+        let mut removed_patches = Vec::new();
+        let mut updated_patches = Vec::new();
        while let Some(mut row_range) = row_ranges.next() {
            while let Some(next_row_range) = row_ranges.peek() {
                if row_range.end >= next_row_range.start {
@@ -1489,6 +1524,13 @@ impl AssistantContext {
                cx,
            );
            self.invalidate_pending_slash_commands(&buffer, cx);
+            self.reparse_patches_in_range(
+                start..end,
+                &buffer,
+                &mut updated_patches,
+                &mut removed_patches,
+                cx,
+            );
        }

        if !updated_parsed_slash_commands.is_empty()
@@ -1499,6 +1541,13 @@ impl AssistantContext {
                updated: updated_parsed_slash_commands,
            });
        }
+
+        if !updated_patches.is_empty() || !removed_patches.is_empty() {
+            cx.emit(ContextEvent::PatchesUpdated {
+                removed: removed_patches,
+                updated: updated_patches,
+            });
+        }
    }

    fn reparse_slash_commands_in_range(
@@ -1589,6 +1638,267 @@ impl AssistantContext {
        }
    }

+    fn reparse_patches_in_range(
+        &mut self,
+        range: Range<text::Anchor>,
+        buffer: &BufferSnapshot,
+        updated: &mut Vec<Range<text::Anchor>>,
+        removed: &mut Vec<Range<text::Anchor>>,
+        cx: &mut Context<Self>,
+    ) {
+        // Rebuild the XML tags in the edited range.
+        let intersecting_tags_range =
+            self.indices_intersecting_buffer_range(&self.xml_tags, range.clone(), cx);
+        let new_tags = self.parse_xml_tags_in_range(buffer, range.clone(), cx);
+        self.xml_tags
+            .splice(intersecting_tags_range.clone(), new_tags);
+
+        // Find which patches intersect the changed range.
+        let intersecting_patches_range =
+            self.indices_intersecting_buffer_range(&self.patches, range.clone(), cx);
+
+        // Reparse all tags after the last unchanged patch before the change.
+        let mut tags_start_ix = 0;
+        if let Some(preceding_unchanged_patch) =
+            self.patches[..intersecting_patches_range.start].last()
+        {
+            tags_start_ix = match self.xml_tags.binary_search_by(|tag| {
+                tag.range
+                    .start
+                    .cmp(&preceding_unchanged_patch.range.end, buffer)
+                    .then(Ordering::Less)
+            }) {
+                Ok(ix) | Err(ix) => ix,
+            };
+        }
+
+        // Rebuild the patches in the range.
+        let new_patches = self.parse_patches(tags_start_ix, range.end, buffer, cx);
+        updated.extend(new_patches.iter().map(|patch| patch.range.clone()));
+        let removed_patches = self.patches.splice(intersecting_patches_range, new_patches);
+        removed.extend(
+            removed_patches
+                .map(|patch| patch.range)
+                .filter(|range| !updated.contains(&range)),
+        );
+    }
+
+    fn parse_xml_tags_in_range(
+        &self,
+        buffer: &BufferSnapshot,
+        range: Range<text::Anchor>,
+        cx: &App,
+    ) -> Vec<XmlTag> {
+        let mut messages = self.messages(cx).peekable();
+
+        let mut tags = Vec::new();
+        let mut lines = buffer.text_for_range(range).lines();
+        let mut offset = lines.offset();
+
+        while let Some(line) = lines.next() {
+            while let Some(message) = messages.peek() {
+                if offset < message.offset_range.end {
+                    break;
+                } else {
+                    messages.next();
+                }
+            }
+
+            let is_assistant_message = messages
+                .peek()
+                .map_or(false, |message| message.role == Role::Assistant);
+            if is_assistant_message {
+                for (start_ix, _) in line.match_indices('<') {
+                    let mut name_start_ix = start_ix + 1;
+                    let closing_bracket_ix = line[start_ix..].find('>').map(|i| start_ix + i);
+                    if let Some(closing_bracket_ix) = closing_bracket_ix {
+                        let end_ix = closing_bracket_ix + 1;
+                        let mut is_open_tag = true;
+                        if line[name_start_ix..closing_bracket_ix].starts_with('/') {
+                            name_start_ix += 1;
+                            is_open_tag = false;
+                        }
+                        let tag_inner = &line[name_start_ix..closing_bracket_ix];
+                        let tag_name_len = tag_inner
+                            .find(|c: char| c.is_whitespace())
+                            .unwrap_or(tag_inner.len());
+                        if let Ok(kind) = XmlTagKind::from_str(&tag_inner[..tag_name_len]) {
+                            tags.push(XmlTag {
+                                range: buffer.anchor_after(offset + start_ix)
+                                    ..buffer.anchor_before(offset + end_ix),
+                                is_open_tag,
+                                kind,
+                            });
+                        };
+                    }
+                }
+            }
+
+            offset = lines.offset();
+        }
+        tags
+    }
+
+    fn parse_patches(
+        &mut self,
+        tags_start_ix: usize,
+        buffer_end: text::Anchor,
+        buffer: &BufferSnapshot,
+        cx: &App,
+    ) -> Vec<AssistantPatch> {
+        let mut new_patches = Vec::new();
+        let mut pending_patch = None;
+        let mut patch_tag_depth = 0;
+        let mut tags = self.xml_tags[tags_start_ix..].iter().peekable();
+        'tags: while let Some(tag) = tags.next() {
+            if tag.range.start.cmp(&buffer_end, buffer).is_gt() && patch_tag_depth == 0 {
+                break;
+            }
+
+            if tag.kind == XmlTagKind::Patch && tag.is_open_tag {
+                patch_tag_depth += 1;
+                let patch_start = tag.range.start;
+                let mut edits = Vec::<Result<AssistantEdit>>::new();
+                let mut patch = AssistantPatch {
+                    range: patch_start..patch_start,
+                    title: String::new().into(),
+                    edits: Default::default(),
+                    status: crate::AssistantPatchStatus::Pending,
+                };
+
+                while let Some(tag) = tags.next() {
+                    if tag.kind == XmlTagKind::Patch && !tag.is_open_tag {
+                        patch_tag_depth -= 1;
+                        if patch_tag_depth == 0 {
+                            patch.range.end = tag.range.end;
+
+                            // Include the line immediately after this <patch> tag if it's empty.
+                            let patch_end_offset = patch.range.end.to_offset(buffer);
+                            let mut patch_end_chars = buffer.chars_at(patch_end_offset);
+                            if patch_end_chars.next() == Some('\n')
+                                && patch_end_chars.next().map_or(true, |ch| ch == '\n')
+                            {
+                                let messages = self.messages_for_offsets(
+                                    [patch_end_offset, patch_end_offset + 1],
+                                    cx,
+                                );
+                                if messages.len() == 1 {
+                                    patch.range.end = buffer.anchor_before(patch_end_offset + 1);
+                                }
+                            }
+
+                            edits.sort_unstable_by(|a, b| {
+                                if let (Ok(a), Ok(b)) = (a, b) {
+                                    a.path.cmp(&b.path)
+                                } else {
+                                    Ordering::Equal
+                                }
+                            });
+                            patch.edits = edits.into();
+                            patch.status = AssistantPatchStatus::Ready;
+                            new_patches.push(patch);
+                            continue 'tags;
+                        }
+                    }
+
+                    if tag.kind == XmlTagKind::Title && tag.is_open_tag {
+                        let content_start = tag.range.end;
+                        while let Some(tag) = tags.next() {
+                            if tag.kind == XmlTagKind::Title && !tag.is_open_tag {
+                                let content_end = tag.range.start;
+                                patch.title =
+                                    trimmed_text_in_range(buffer, content_start..content_end)
+                                        .into();
+                                break;
+                            }
+                        }
+                    }
+
+                    if tag.kind == XmlTagKind::Edit && tag.is_open_tag {
+                        let mut path = None;
+                        let mut old_text = None;
+                        let mut new_text = None;
+                        let mut operation = None;
+                        let mut description = None;
+
+                        while let Some(tag) = tags.next() {
+                            if tag.kind == XmlTagKind::Edit && !tag.is_open_tag {
+                                edits.push(AssistantEdit::new(
+                                    path,
+                                    operation,
+                                    old_text,
+                                    new_text,
+                                    description,
+                                ));
+                                break;
+                            }
+
+                            if tag.is_open_tag
+                                && [
+                                    XmlTagKind::Path,
+                                    XmlTagKind::OldText,
+                                    XmlTagKind::NewText,
+                                    XmlTagKind::Operation,
+                                    XmlTagKind::Description,
+                                ]
+                                .contains(&tag.kind)
+                            {
+                                let kind = tag.kind;
+                                let content_start = tag.range.end;
+                                if let Some(tag) = tags.peek() {
+                                    if tag.kind == kind && !tag.is_open_tag {
+                                        let tag = tags.next().unwrap();
+                                        let content_end = tag.range.start;
+                                        let content = trimmed_text_in_range(
+                                            buffer,
+                                            content_start..content_end,
+                                        );
+                                        match kind {
+                                            XmlTagKind::Path => path = Some(content),
+                                            XmlTagKind::Operation => operation = Some(content),
+                                            XmlTagKind::OldText => {
+                                                old_text = Some(content).filter(|s| !s.is_empty())
+                                            }
+                                            XmlTagKind::NewText => {
+                                                new_text = Some(content).filter(|s| !s.is_empty())
+                                            }
+                                            XmlTagKind::Description => {
+                                                description =
+                                                    Some(content).filter(|s| !s.is_empty())
+                                            }
+                                            _ => {}
+                                        }
+                                    }
+                                }
+                            }
+                        }
+                    }
+                }
+
+                patch.edits = edits.into();
+                pending_patch = Some(patch);
+            }
+        }
+
+        if let Some(mut pending_patch) = pending_patch {
+            let patch_start = pending_patch.range.start.to_offset(buffer);
+            if let Some(message) = self.message_for_offset(patch_start, cx) {
+                if message.anchor_range.end == text::Anchor::MAX {
+                    pending_patch.range.end = text::Anchor::MAX;
+                } else {
+                    let message_end = buffer.anchor_after(message.offset_range.end - 1);
+                    pending_patch.range.end = message_end;
+                }
+            } else {
+                pending_patch.range.end = text::Anchor::MAX;
+            }
+
+            new_patches.push(pending_patch);
+        }
+
+        new_patches
+    }
+
    pub fn pending_command_for_position(
        &mut self,
        position: language::Anchor,
@@ -1993,7 +2303,11 @@ impl AssistantContext {
        })
    }

-    pub fn assist(&mut self, cx: &mut Context<Self>) -> Option<MessageAnchor> {
+    pub fn assist(
+        &mut self,
+        request_type: RequestType,
+        cx: &mut Context<Self>,
+    ) -> Option<MessageAnchor> {
        let model_registry = LanguageModelRegistry::read_global(cx);
        let model = model_registry.default_model()?;
        let last_message_id = self.get_last_valid_message_id(cx)?;
@@ -2008,7 +2322,7 @@ impl AssistantContext {
        // Compute which messages to cache, including the last one.
        self.mark_cache_anchors(&model.cache_configuration(), false, cx);

-        let request = self.to_completion_request(Some(&model), cx);
+        let request = self.to_completion_request(Some(&model), request_type, cx);

        let assistant_message = self
            .insert_message_after(last_message_id, Role::Assistant, MessageStatus::Pending, cx)
@@ -2154,6 +2468,12 @@ impl AssistantContext {
                                metadata.status = MessageStatus::Canceled;
                            });
                            Some(error.to_string())
+                        } else if error.is::<MaxMonthlySpendReachedError>() {
+                            cx.emit(ContextEvent::ShowMaxMonthlySpendReachedError);
+                            this.update_metadata(assistant_message_id, cx, |metadata| {
+                                metadata.status = MessageStatus::Canceled;
+                            });
+                            Some(error.to_string())
                        } else {
                            let error_message = error
                                .chain()
@@ -2243,6 +2563,7 @@ impl AssistantContext {
    pub fn to_completion_request(
        &self,
        model: Option<&Arc<dyn LanguageModel>>,
+        request_type: RequestType,
        cx: &App,
    ) -> LanguageModelRequest {
        let buffer = self.buffer.read(cx);
@@ -2323,6 +2644,25 @@ impl AssistantContext {
            }
        }

+        if let RequestType::SuggestEdits = request_type {
+            if let Ok(preamble) = self.prompt_builder.generate_suggest_edits_prompt() {
+                let last_elem_index = completion_request.messages.len();
+
+                completion_request
+                    .messages
+                    .push(LanguageModelRequestMessage {
+                        role: Role::User,
+                        content: vec![MessageContent::Text(preamble)],
+                        cache: false,
+                    });
+
+                // The preamble message should be sent right before the last actual user message.
+                completion_request
+                    .messages
+                    .swap(last_elem_index, last_elem_index.saturating_sub(1));
+            }
+        }
+
        completion_request
    }

@@ -2357,6 +2697,17 @@ impl AssistantContext {
                ranges.push(message.anchor_range.clone());
            }
        }
+
+        let buffer = self.buffer.read(cx).text_snapshot();
+        let mut updated = Vec::new();
+        let mut removed = Vec::new();
+        for range in ranges {
+            self.reparse_patches_in_range(range, &buffer, &mut updated, &mut removed, cx);
+        }
+
+        if !updated.is_empty() || !removed.is_empty() {
+            cx.emit(ContextEvent::PatchesUpdated { removed, updated })
+        }
    }

    pub fn update_metadata(
@@ -2629,12 +2980,12 @@ impl AssistantContext {
            return;
        };

-        if replace_old || (self.message_anchors.len() >= 2 && self.summary.is_pending()) {
+        if replace_old || (self.message_anchors.len() >= 2 && self.summary.is_none()) {
            if !model.provider.is_authenticated(cx) {
                return;
            }

-            let mut request = self.to_completion_request(Some(&model.model), cx);
+            let mut request = self.to_completion_request(Some(&model.model), RequestType::Chat, cx);
            request.messages.push(LanguageModelRequestMessage {
                role: Role::User,
                content: vec![
@@ -2646,20 +2997,17 @@ impl AssistantContext {

            // If there is no summary, it is set with `done: false` so that "Loading Summary…" can
            // be displayed.
-            match self.summary {
-                ContextSummary::Pending | ContextSummary::Error => {
-                    self.summary = ContextSummary::Content(ContextSummaryContent {
-                        text: "".to_string(),
-                        done: false,
-                        timestamp: clock::Lamport::default(),
-                    });
-                    replace_old = true;
-                }
-                ContextSummary::Content(_) => {}
+            if self.summary.is_none() {
+                self.summary = Some(ContextSummary {
+                    text: "".to_string(),
+                    done: false,
+                    timestamp: clock::Lamport::default(),
+                });
+                replace_old = true;
            }

            self.summary_task = cx.spawn(async move |this, cx| {
-                let result = async {
+                async move {
                    let stream = model.model.stream_completion_text(request, &cx);
                    let mut messages = stream.await?;

@@ -2670,7 +3018,7 @@ impl AssistantContext {
                        this.update(cx, |this, cx| {
                            let version = this.version.clone();
                            let timestamp = this.next_timestamp();
-                            let summary = this.summary.content_or_set_empty();
+                            let summary = this.summary.get_or_insert(ContextSummary::default());
                            if !replaced && replace_old {
                                summary.text.clear();
                                replaced = true;
@@ -2692,19 +3040,10 @@ impl AssistantContext {
                        }
                    }

-                    this.read_with(cx, |this, _cx| {
-                        if let Some(summary) = this.summary.content() {
-                            if summary.text.is_empty() {
-                                bail!("Model generated an empty summary");
-                            }
-                        }
-                        Ok(())
-                    })??;
-
                    this.update(cx, |this, cx| {
                        let version = this.version.clone();
                        let timestamp = this.next_timestamp();
-                        if let Some(summary) = this.summary.content_as_mut() {
+                        if let Some(summary) = this.summary.as_mut() {
                            summary.done = true;
                            summary.timestamp = timestamp;
                            let operation = ContextOperation::UpdateSummary {
@@ -2719,18 +3058,8 @@ impl AssistantContext {

                    anyhow::Ok(())
                }
-                .await;
-
-                if let Err(err) = result {
-                    this.update(cx, |this, cx| {
-                        this.summary = ContextSummary::Error;
-                        cx.emit(ContextEvent::SummaryChanged);
-                    })
-                    .log_err();
-                    log::error!("Error generating context summary: {}", err);
-                }
-
-                Some(())
+                .log_err()
+                .await
            });
        }
    }
@@ -2844,7 +3173,7 @@ impl AssistantContext {

            let (old_path, summary) = this.read_with(cx, |this, _| {
                let path = this.path.clone();
-                let summary = if let Some(summary) = this.summary.content() {
+                let summary = if let Some(summary) = this.summary.as_ref() {
                    if summary.done {
                        Some(summary.text.clone())
                    } else {
@@ -2898,12 +3227,39 @@ impl AssistantContext {

    pub fn set_custom_summary(&mut self, custom_summary: String, cx: &mut Context<Self>) {
        let timestamp = self.next_timestamp();
-        let summary = self.summary.content_or_set_empty();
+        let summary = self.summary.get_or_insert(ContextSummary::default());
        summary.timestamp = timestamp;
        summary.done = true;
        summary.text = custom_summary;
        cx.emit(ContextEvent::SummaryChanged);
    }
+
+    pub const DEFAULT_SUMMARY: SharedString = SharedString::new_static("New Text Thread");
+
+    pub fn summary_or_default(&self) -> SharedString {
+        self.summary
+            .as_ref()
+            .map(|summary| summary.text.clone().into())
+            .unwrap_or(Self::DEFAULT_SUMMARY)
+    }
+}
+
+fn trimmed_text_in_range(buffer: &BufferSnapshot, range: Range<text::Anchor>) -> String {
+    let mut is_start = true;
+    let mut content = buffer
+        .text_for_range(range)
+        .map(|mut chunk| {
+            if is_start {
+                chunk = chunk.trim_start_matches('\n');
+                if !chunk.is_empty() {
+                    is_start = false;
+                }
+            }
+            chunk
+        })
+        .collect::<String>();
+    content.truncate(content.trim_end().len());
+    content
 }

 #[derive(Debug, Default)]
@@ -3011,7 +3367,7 @@ impl SavedContext {
        let saved_context_json = serde_json::from_str::<serde_json::Value>(json)?;
        match saved_context_json
            .get("version")
-            .context("version not found")?
+            .ok_or_else(|| anyhow!("version not found"))?
        {
            serde_json::Value::String(version) => match version.as_str() {
                SavedContext::VERSION => {
@@ -3032,9 +3388,9 @@ impl SavedContext {
                        serde_json::from_value::<SavedContextV0_1_0>(saved_context_json)?;
                    Ok(saved_context.upgrade())
                }
-                _ => anyhow::bail!("unrecognized saved context version: {version:?}"),
+                _ => Err(anyhow!("unrecognized saved context version: {}", version)),
            },
-            _ => anyhow::bail!("version not found on saved context"),
+            _ => Err(anyhow!("version not found on saved context")),
        }
    }

@@ -3119,7 +3475,7 @@ impl SavedContext {

        let timestamp = next_timestamp.tick();
        operations.push(ContextOperation::UpdateSummary {
-            summary: ContextSummaryContent {
+            summary: ContextSummary {
                text: self.summary,
                done: true,
                timestamp,
--- a/crates/assistant_context_editor/src/context/context_tests.rs
+++ b/crates/assistant_context_editor/src/context/context_tests.rs
@@ -1,6 +1,6 @@
 use crate::{
-    AssistantContext, CacheStatus, ContextEvent, ContextId, ContextOperation, ContextSummary,
-    InvokedSlashCommandId, MessageCacheMetadata, MessageId, MessageStatus,
+    AssistantContext, AssistantEdit, AssistantEditKind, CacheStatus, ContextEvent, ContextId,
+    ContextOperation, InvokedSlashCommandId, MessageCacheMetadata, MessageId, MessageStatus,
 };
 use anyhow::Result;
 use assistant_slash_command::{
@@ -16,10 +16,7 @@ use futures::{
 };
 use gpui::{App, Entity, SharedString, Task, TestAppContext, WeakEntity, prelude::*};
 use language::{Buffer, BufferSnapshot, LanguageRegistry, LspAdapterDelegate};
-use language_model::{
-    ConfiguredModel, LanguageModelCacheConfiguration, LanguageModelRegistry, Role,
-    fake_provider::{FakeLanguageModel, FakeLanguageModelProvider},
-};
+use language_model::{LanguageModelCacheConfiguration, LanguageModelRegistry, Role};
 use parking_lot::Mutex;
 use pretty_assertions::assert_eq;
 use project::Project;
@@ -35,10 +32,13 @@ use std::{
    rc::Rc,
    sync::{Arc, atomic::AtomicBool},
 };
-use text::{ReplicaId, ToOffset, network::Network};
+use text::{OffsetRangeExt as _, ReplicaId, ToOffset, network::Network};
 use ui::{IconName, Window};
 use unindent::Unindent;
-use util::RandomCharIter;
+use util::{
+    RandomCharIter,
+    test::{generate_marked_text, marked_text_ranges},
+};
 use workspace::Workspace;

 #[gpui::test]
@@ -664,6 +664,401 @@ async fn test_slash_commands(cx: &mut TestAppContext) {
    }
 }

+#[gpui::test]
+async fn test_workflow_step_parsing(cx: &mut TestAppContext) {
+    cx.update(|cx| {
+        init_test(cx);
+        cx.update_global(|settings_store: &mut SettingsStore, cx| {
+            settings_store
+                .set_user_settings(
+                    r#"{ "assistant": { "enable_experimental_live_diffs": true } }"#,
+                    cx,
+                )
+                .unwrap()
+        })
+    });
+    let fs = FakeFs::new(cx.executor());
+    let project = Project::test(fs, [Path::new("/root")], cx).await;
+
+    let registry = Arc::new(LanguageRegistry::test(cx.executor()));
+
+    // Create a new context
+    let prompt_builder = Arc::new(PromptBuilder::new(None).unwrap());
+    let context = cx.new(|cx| {
+        AssistantContext::local(
+            registry.clone(),
+            Some(project),
+            None,
+            prompt_builder.clone(),
+            Arc::new(SlashCommandWorkingSet::default()),
+            cx,
+        )
+    });
+
+    // Insert an assistant message to simulate a response.
+    let assistant_message_id = context.update(cx, |context, cx| {
+        let user_message_id = context.messages(cx).next().unwrap().id;
+        context
+            .insert_message_after(user_message_id, Role::Assistant, MessageStatus::Done, cx)
+            .unwrap()
+            .id
+    });
+
+    // No edit tags
+    edit(
+        &context,
+        "
+
+        «one
+        two
+        »",
+        cx,
+    );
+    expect_patches(
+        &context,
+        "
+
+        one
+        two
+        ",
+        &[],
+        cx,
+    );
+
+    // Partial edit step tag is added
+    edit(
+        &context,
+        "
+
+        one
+        two
+        «
+        <patch»",
+        cx,
+    );
+    expect_patches(
+        &context,
+        "
+
+        one
+        two
+
+        <patch",
+        &[],
+        cx,
+    );
+
+    // The rest of the step tag is added. The unclosed
+    // step is treated as incomplete.
+    edit(
+        &context,
+        "
+
+        one
+        two
+
+        <patch«>
+        <edit>»",
+        cx,
+    );
+    expect_patches(
+        &context,
+        "
+
+        one
+        two
+
+        «<patch>
+        <edit>»",
+        &[&[]],
+        cx,
+    );
+
+    // The full patch is added
+    edit(
+        &context,
+        "
+
+        one
+        two
+
+        <patch>
+        <edit>«
+        <description>add a `two` function</description>
+        <path>src/lib.rs</path>
+        <operation>insert_after</operation>
+        <old_text>fn one</old_text>
+        <new_text>
+        fn two() {}
+        </new_text>
+        </edit>
+        </patch>
+
+        also,»",
+        cx,
+    );
+    expect_patches(
+        &context,
+        "
+
+        one
+        two
+
+        «<patch>
+        <edit>
+        <description>add a `two` function</description>
+        <path>src/lib.rs</path>
+        <operation>insert_after</operation>
+        <old_text>fn one</old_text>
+        <new_text>
+        fn two() {}
+        </new_text>
+        </edit>
+        </patch>
+        »
+        also,",
+        &[&[AssistantEdit {
+            path: "src/lib.rs".into(),
+            kind: AssistantEditKind::InsertAfter {
+                old_text: "fn one".into(),
+                new_text: "fn two() {}".into(),
+                description: Some("add a `two` function".into()),
+            },
+        }]],
+        cx,
+    );
+
+    // The step is manually edited.
+    edit(
+        &context,
+        "
+
+        one
+        two
+
+        <patch>
+        <edit>
+        <description>add a `two` function</description>
+        <path>src/lib.rs</path>
+        <operation>insert_after</operation>
+        <old_text>«fn zero»</old_text>
+        <new_text>
+        fn two() {}
+        </new_text>
+        </edit>
+        </patch>
+
+        also,",
+        cx,
+    );
+    expect_patches(
+        &context,
+        "
+
+        one
+        two
+
+        «<patch>
+        <edit>
+        <description>add a `two` function</description>
+        <path>src/lib.rs</path>
+        <operation>insert_after</operation>
+        <old_text>fn zero</old_text>
+        <new_text>
+        fn two() {}
+        </new_text>
+        </edit>
+        </patch>
+        »
+        also,",
+        &[&[AssistantEdit {
+            path: "src/lib.rs".into(),
+            kind: AssistantEditKind::InsertAfter {
+                old_text: "fn zero".into(),
+                new_text: "fn two() {}".into(),
+                description: Some("add a `two` function".into()),
+            },
+        }]],
+        cx,
+    );
+
+    // When setting the message role to User, the steps are cleared.
+    context.update(cx, |context, cx| {
+        context.cycle_message_roles(HashSet::from_iter([assistant_message_id]), cx);
+        context.cycle_message_roles(HashSet::from_iter([assistant_message_id]), cx);
+    });
+    expect_patches(
+        &context,
+        "
+
+        one
+        two
+
+        <patch>
+        <edit>
+        <description>add a `two` function</description>
+        <path>src/lib.rs</path>
+        <operation>insert_after</operation>
+        <old_text>fn zero</old_text>
+        <new_text>
+        fn two() {}
+        </new_text>
+        </edit>
+        </patch>
+
+        also,",
+        &[],
+        cx,
+    );
+
+    // When setting the message role back to Assistant, the steps are reparsed.
+    context.update(cx, |context, cx| {
+        context.cycle_message_roles(HashSet::from_iter([assistant_message_id]), cx);
+    });
+    expect_patches(
+        &context,
+        "
+
+        one
+        two
+
+        «<patch>
+        <edit>
+        <description>add a `two` function</description>
+        <path>src/lib.rs</path>
+        <operation>insert_after</operation>
+        <old_text>fn zero</old_text>
+        <new_text>
+        fn two() {}
+        </new_text>
+        </edit>
+        </patch>
+        »
+        also,",
+        &[&[AssistantEdit {
+            path: "src/lib.rs".into(),
+            kind: AssistantEditKind::InsertAfter {
+                old_text: "fn zero".into(),
+                new_text: "fn two() {}".into(),
+                description: Some("add a `two` function".into()),
+            },
+        }]],
+        cx,
+    );
+
+    // Ensure steps are re-parsed when deserializing.
+    let serialized_context = context.read_with(cx, |context, cx| context.serialize(cx));
+    let deserialized_context = cx.new(|cx| {
+        AssistantContext::deserialize(
+            serialized_context,
+            Path::new("").into(),
+            registry.clone(),
+            prompt_builder.clone(),
+            Arc::new(SlashCommandWorkingSet::default()),
+            None,
+            None,
+            cx,
+        )
+    });
+    expect_patches(
+        &deserialized_context,
+        "
+
+        one
+        two
+
+        «<patch>
+        <edit>
+        <description>add a `two` function</description>
+        <path>src/lib.rs</path>
+        <operation>insert_after</operation>
+        <old_text>fn zero</old_text>
+        <new_text>
+        fn two() {}
+        </new_text>
+        </edit>
+        </patch>
+        »
+        also,",
+        &[&[AssistantEdit {
+            path: "src/lib.rs".into(),
+            kind: AssistantEditKind::InsertAfter {
+                old_text: "fn zero".into(),
+                new_text: "fn two() {}".into(),
+                description: Some("add a `two` function".into()),
+            },
+        }]],
+        cx,
+    );
+
+    fn edit(
+        context: &Entity<AssistantContext>,
+        new_text_marked_with_edits: &str,
+        cx: &mut TestAppContext,
+    ) {
+        context.update(cx, |context, cx| {
+            context.buffer.update(cx, |buffer, cx| {
+                buffer.edit_via_marked_text(&new_text_marked_with_edits.unindent(), None, cx);
+            });
+        });
+        cx.executor().run_until_parked();
+    }
+
+    #[track_caller]
+    fn expect_patches(
+        context: &Entity<AssistantContext>,
+        expected_marked_text: &str,
+        expected_suggestions: &[&[AssistantEdit]],
+        cx: &mut TestAppContext,
+    ) {
+        let expected_marked_text = expected_marked_text.unindent();
+        let (expected_text, _) = marked_text_ranges(&expected_marked_text, false);
+
+        let (buffer_text, ranges, patches) = context.update(cx, |context, cx| {
+            context.buffer.read_with(cx, |buffer, _| {
+                let ranges = context
+                    .patches
+                    .iter()
+                    .map(|entry| entry.range.to_offset(buffer))
+                    .collect::<Vec<_>>();
+                (
+                    buffer.text(),
+                    ranges,
+                    context
+                        .patches
+                        .iter()
+                        .map(|step| step.edits.clone())
+                        .collect::<Vec<_>>(),
+                )
+            })
+        });
+
+        assert_eq!(buffer_text, expected_text);
+
+        let actual_marked_text = generate_marked_text(&expected_text, &ranges, false);
+        assert_eq!(actual_marked_text, expected_marked_text);
+
+        assert_eq!(
+            patches
+                .iter()
+                .map(|patch| {
+                    patch
+                        .iter()
+                        .map(|edit| {
+                            let edit = edit.as_ref().unwrap();
+                            AssistantEdit {
+                                path: edit.path.clone(),
+                                kind: edit.kind.clone(),
+                            }
+                        })
+                        .collect::<Vec<_>>()
+                })
+                .collect::<Vec<_>>(),
+            expected_suggestions
+        );
+    }
+}
+
 #[gpui::test]
 async fn test_serialization(cx: &mut TestAppContext) {
    cx.update(init_test);
@@ -1180,187 +1575,6 @@ fn test_mark_cache_anchors(cx: &mut App) {
    );
 }

-#[gpui::test]
-async fn test_summarization(cx: &mut TestAppContext) {
-    let (context, fake_model) = setup_context_editor_with_fake_model(cx);
-
-    // Initial state should be pending
-    context.read_with(cx, |context, _| {
-        assert!(matches!(context.summary(), ContextSummary::Pending));
-        assert_eq!(context.summary().or_default(), ContextSummary::DEFAULT);
-    });
-
-    let message_1 = context.read_with(cx, |context, _cx| context.message_anchors[0].clone());
-    context.update(cx, |context, cx| {
-        context
-            .insert_message_after(message_1.id, Role::Assistant, MessageStatus::Done, cx)
-            .unwrap();
-    });
-
-    // Send a message
-    context.update(cx, |context, cx| {
-        context.assist(cx);
-    });
-
-    simulate_successful_response(&fake_model, cx);
-
-    // Should start generating summary when there are >= 2 messages
-    context.read_with(cx, |context, _| {
-        assert!(!context.summary().content().unwrap().done);
-    });
-
-    cx.run_until_parked();
-    fake_model.stream_last_completion_response("Brief".into());
-    fake_model.stream_last_completion_response(" Introduction".into());
-    fake_model.end_last_completion_stream();
-    cx.run_until_parked();
-
-    // Summary should be set
-    context.read_with(cx, |context, _| {
-        assert_eq!(context.summary().or_default(), "Brief Introduction");
-    });
-
-    // We should be able to manually set a summary
-    context.update(cx, |context, cx| {
-        context.set_custom_summary("Brief Intro".into(), cx);
-    });
-
-    context.read_with(cx, |context, _| {
-        assert_eq!(context.summary().or_default(), "Brief Intro");
-    });
-}
-
-#[gpui::test]
-async fn test_thread_summary_error_set_manually(cx: &mut TestAppContext) {
-    let (context, fake_model) = setup_context_editor_with_fake_model(cx);
-
-    test_summarize_error(&fake_model, &context, cx);
-
-    // Now we should be able to set a summary
-    context.update(cx, |context, cx| {
-        context.set_custom_summary("Brief Intro".into(), cx);
-    });
-
-    context.read_with(cx, |context, _| {
-        assert_eq!(context.summary().or_default(), "Brief Intro");
-    });
-}
-
-#[gpui::test]
-async fn test_thread_summary_error_retry(cx: &mut TestAppContext) {
-    let (context, fake_model) = setup_context_editor_with_fake_model(cx);
-
-    test_summarize_error(&fake_model, &context, cx);
-
-    // Sending another message should not trigger another summarize request
-    context.update(cx, |context, cx| {
-        context.assist(cx);
-    });
-
-    simulate_successful_response(&fake_model, cx);
-
-    context.read_with(cx, |context, _| {
-        // State is still Error, not Generating
-        assert!(matches!(context.summary(), ContextSummary::Error));
-    });
-
-    // But the summarize request can be invoked manually
-    context.update(cx, |context, cx| {
-        context.summarize(true, cx);
-    });
-
-    context.read_with(cx, |context, _| {
-        assert!(!context.summary().content().unwrap().done);
-    });
-
-    cx.run_until_parked();
-    fake_model.stream_last_completion_response("A successful summary".into());
-    fake_model.end_last_completion_stream();
-    cx.run_until_parked();
-
-    context.read_with(cx, |context, _| {
-        assert_eq!(context.summary().or_default(), "A successful summary");
-    });
-}
-
-fn test_summarize_error(
-    model: &Arc<FakeLanguageModel>,
-    context: &Entity<AssistantContext>,
-    cx: &mut TestAppContext,
-) {
-    let message_1 = context.read_with(cx, |context, _cx| context.message_anchors[0].clone());
-    context.update(cx, |context, cx| {
-        context
-            .insert_message_after(message_1.id, Role::Assistant, MessageStatus::Done, cx)
-            .unwrap();
-    });
-
-    // Send a message
-    context.update(cx, |context, cx| {
-        context.assist(cx);
-    });
-
-    simulate_successful_response(&model, cx);
-
-    context.read_with(cx, |context, _| {
-        assert!(!context.summary().content().unwrap().done);
-    });
-
-    // Simulate summary request ending
-    cx.run_until_parked();
-    model.end_last_completion_stream();
-    cx.run_until_parked();
-
-    // State is set to Error and default message
-    context.read_with(cx, |context, _| {
-        assert_eq!(*context.summary(), ContextSummary::Error);
-        assert_eq!(context.summary().or_default(), ContextSummary::DEFAULT);
-    });
-}
-
-fn setup_context_editor_with_fake_model(
-    cx: &mut TestAppContext,
-) -> (Entity<AssistantContext>, Arc<FakeLanguageModel>) {
-    let registry = Arc::new(LanguageRegistry::test(cx.executor().clone()));
-
-    let fake_provider = Arc::new(FakeLanguageModelProvider);
-    let fake_model = Arc::new(fake_provider.test_model());
-
-    cx.update(|cx| {
-        init_test(cx);
-        LanguageModelRegistry::global(cx).update(cx, |registry, cx| {
-            registry.set_default_model(
-                Some(ConfiguredModel {
-                    provider: fake_provider.clone(),
-                    model: fake_model.clone(),
-                }),
-                cx,
-            )
-        })
-    });
-
-    let prompt_builder = Arc::new(PromptBuilder::new(None).unwrap());
-    let context = cx.new(|cx| {
-        AssistantContext::local(
-            registry,
-            None,
-            None,
-            prompt_builder.clone(),
-            Arc::new(SlashCommandWorkingSet::default()),
-            cx,
-        )
-    });
-
-    (context, fake_model)
-}
-
-fn simulate_successful_response(fake_model: &FakeLanguageModel, cx: &mut TestAppContext) {
-    cx.run_until_parked();
-    fake_model.stream_last_completion_response("Assistant response".into());
-    fake_model.end_last_completion_stream();
-    cx.run_until_parked();
-}
-
 fn messages(context: &Entity<AssistantContext>, cx: &App) -> Vec<(MessageId, Role, Range<usize>)> {
    context
        .read(cx)
--- a/crates/assistant_context_editor/src/context_editor.rs
+++ b/crates/assistant_context_editor/src/context_editor.rs
--- a/crates/assistant_context_editor/src/context_store.rs
+++ b/crates/assistant_context_editor/src/context_store.rs
@@ -2,7 +2,7 @@ use crate::{
    AssistantContext, ContextEvent, ContextId, ContextOperation, ContextVersion, SavedContext,
    SavedContextMetadata,
 };
-use anyhow::{Context as _, Result};
+use anyhow::{Context as _, Result, anyhow};
 use assistant_slash_command::{SlashCommandId, SlashCommandWorkingSet};
 use client::{Client, TypedEnvelope, proto, telemetry::Telemetry};
 use clock::ReplicaId;
@@ -164,18 +164,16 @@ impl ContextStore {
    ) -> Result<proto::OpenContextResponse> {
        let context_id = ContextId::from_proto(envelope.payload.context_id);
        let operations = this.update(&mut cx, |this, cx| {
-            anyhow::ensure!(
-                !this.project.read(cx).is_via_collab(),
-                "only the host contexts can be opened"
-            );
+            if this.project.read(cx).is_via_collab() {
+                return Err(anyhow!("only the host contexts can be opened"));
+            }

            let context = this
                .loaded_context_for_id(&context_id, cx)
                .context("context not found")?;
-            anyhow::ensure!(
-                context.read(cx).replica_id() == ReplicaId::default(),
-                "context must be opened via the host"
-            );
+            if context.read(cx).replica_id() != ReplicaId::default() {
+                return Err(anyhow!("context must be opened via the host"));
+            }

            anyhow::Ok(
                context
@@ -195,10 +193,9 @@ impl ContextStore {
        mut cx: AsyncApp,
    ) -> Result<proto::CreateContextResponse> {
        let (context_id, operations) = this.update(&mut cx, |this, cx| {
-            anyhow::ensure!(
-                !this.project.read(cx).is_via_collab(),
-                "can only create contexts as the host"
-            );
+            if this.project.read(cx).is_via_collab() {
+                return Err(anyhow!("can only create contexts as the host"));
+            }

            let context = this.create(cx);
            let context_id = context.read(cx).id().clone();
@@ -240,10 +237,9 @@ impl ContextStore {
        mut cx: AsyncApp,
    ) -> Result<proto::SynchronizeContextsResponse> {
        this.update(&mut cx, |this, cx| {
-            anyhow::ensure!(
-                !this.project.read(cx).is_via_collab(),
-                "only the host can synchronize contexts"
-            );
+            if this.project.read(cx).is_via_collab() {
+                return Err(anyhow!("only the host can synchronize contexts"));
+            }

            let mut local_versions = Vec::new();
            for remote_version_proto in envelope.payload.contexts {
@@ -374,7 +370,7 @@ impl ContextStore {
    ) -> Task<Result<Entity<AssistantContext>>> {
        let project = self.project.read(cx);
        let Some(project_id) = project.remote_id() else {
-            return Task::ready(Err(anyhow::anyhow!("project was not remote")));
+            return Task::ready(Err(anyhow!("project was not remote")));
        };

        let replica_id = project.replica_id();
@@ -537,7 +533,7 @@ impl ContextStore {
    ) -> Task<Result<Entity<AssistantContext>>> {
        let project = self.project.read(cx);
        let Some(project_id) = project.remote_id() else {
-            return Task::ready(Err(anyhow::anyhow!("project was not remote")));
+            return Task::ready(Err(anyhow!("project was not remote")));
        };

        if let Some(context) = self.loaded_context_for_id(&context_id, cx) {
@@ -652,10 +648,7 @@ impl ContextStore {
                if context.replica_id() == ReplicaId::default() {
                    Some(proto::ContextMetadata {
                        context_id: context.id().to_proto(),
-                        summary: context
-                            .summary()
-                            .content()
-                            .map(|summary| summary.text.clone()),
+                        summary: context.summary().map(|summary| summary.text.clone()),
                    })
                } else {
                    None
--- a/crates/assistant_context_editor/src/patch.rs
+++ b/crates/assistant_context_editor/src/patch.rs
@@ -0,0 +1,957 @@
+use anyhow::{Context as _, Result, anyhow};
+use collections::HashMap;
+use editor::ProposedChangesEditor;
+use futures::{TryFutureExt as _, future};
+use gpui::{App, AppContext as _, AsyncApp, Entity, SharedString};
+use language::{AutoindentMode, Buffer, BufferSnapshot};
+use project::{Project, ProjectPath};
+use std::{cmp, ops::Range, path::Path, sync::Arc};
+use text::{AnchorRangeExt as _, Bias, OffsetRangeExt as _, Point};
+
+#[derive(Clone, Debug)]
+pub struct AssistantPatch {
+    pub range: Range<language::Anchor>,
+    pub title: SharedString,
+    pub edits: Arc<[Result<AssistantEdit>]>,
+    pub status: AssistantPatchStatus,
+}
+
+#[derive(Copy, Clone, Debug, PartialEq, Eq)]
+pub enum AssistantPatchStatus {
+    Pending,
+    Ready,
+}
+
+#[derive(Clone, Debug, PartialEq, Eq)]
+pub struct AssistantEdit {
+    pub path: String,
+    pub kind: AssistantEditKind,
+}
+
+#[derive(Clone, Debug, PartialEq, Eq)]
+pub enum AssistantEditKind {
+    Update {
+        old_text: String,
+        new_text: String,
+        description: Option<String>,
+    },
+    Create {
+        new_text: String,
+        description: Option<String>,
+    },
+    InsertBefore {
+        old_text: String,
+        new_text: String,
+        description: Option<String>,
+    },
+    InsertAfter {
+        old_text: String,
+        new_text: String,
+        description: Option<String>,
+    },
+    Delete {
+        old_text: String,
+    },
+}
+
+#[derive(Clone, Debug, Eq, PartialEq)]
+pub struct ResolvedPatch {
+    pub edit_groups: HashMap<Entity<Buffer>, Vec<ResolvedEditGroup>>,
+    pub errors: Vec<AssistantPatchResolutionError>,
+}
+
+#[derive(Clone, Debug, Eq, PartialEq)]
+pub struct ResolvedEditGroup {
+    pub context_range: Range<language::Anchor>,
+    pub edits: Vec<ResolvedEdit>,
+}
+
+#[derive(Clone, Debug, Eq, PartialEq)]
+pub struct ResolvedEdit {
+    range: Range<language::Anchor>,
+    new_text: String,
+    description: Option<String>,
+}
+
+#[derive(Clone, Debug, Eq, PartialEq)]
+pub struct AssistantPatchResolutionError {
+    pub edit_ix: usize,
+    pub message: String,
+}
+
+#[derive(Clone, Copy, Debug, PartialEq, Eq, PartialOrd, Ord)]
+enum SearchDirection {
+    Up,
+    Left,
+    Diagonal,
+}
+
+#[derive(Copy, Clone, PartialEq, Eq, PartialOrd, Ord)]
+struct SearchState {
+    cost: u32,
+    direction: SearchDirection,
+}
+
+impl SearchState {
+    fn new(cost: u32, direction: SearchDirection) -> Self {
+        Self { cost, direction }
+    }
+}
+
+struct SearchMatrix {
+    cols: usize,
+    data: Vec<SearchState>,
+}
+
+impl SearchMatrix {
+    fn new(rows: usize, cols: usize) -> Self {
+        SearchMatrix {
+            cols,
+            data: vec![SearchState::new(0, SearchDirection::Diagonal); rows * cols],
+        }
+    }
+
+    fn get(&self, row: usize, col: usize) -> SearchState {
+        self.data[row * self.cols + col]
+    }
+
+    fn set(&mut self, row: usize, col: usize, cost: SearchState) {
+        self.data[row * self.cols + col] = cost;
+    }
+}
+
+impl ResolvedPatch {
+    pub fn apply(&self, editor: &ProposedChangesEditor, cx: &mut App) {
+        for (buffer, groups) in &self.edit_groups {
+            let branch = editor.branch_buffer_for_base(buffer).unwrap();
+            Self::apply_edit_groups(groups, &branch, cx);
+        }
+        editor.recalculate_all_buffer_diffs();
+    }
+
+    fn apply_edit_groups(groups: &Vec<ResolvedEditGroup>, buffer: &Entity<Buffer>, cx: &mut App) {
+        let mut edits = Vec::new();
+        for group in groups {
+            for suggestion in &group.edits {
+                edits.push((suggestion.range.clone(), suggestion.new_text.clone()));
+            }
+        }
+        buffer.update(cx, |buffer, cx| {
+            buffer.edit(
+                edits,
+                Some(AutoindentMode::Block {
+                    original_indent_columns: Vec::new(),
+                }),
+                cx,
+            );
+        });
+    }
+}
+
+impl ResolvedEdit {
+    pub fn try_merge(&mut self, other: &Self, buffer: &text::BufferSnapshot) -> bool {
+        let range = &self.range;
+        let other_range = &other.range;
+
+        // Don't merge if we don't contain the other suggestion.
+        if range.start.cmp(&other_range.start, buffer).is_gt()
+            || range.end.cmp(&other_range.end, buffer).is_lt()
+        {
+            return false;
+        }
+
+        let other_offset_range = other_range.to_offset(buffer);
+        let offset_range = range.to_offset(buffer);
+
+        // If the other range is empty at the start of this edit's range, combine the new text
+        if other_offset_range.is_empty() && other_offset_range.start == offset_range.start {
+            self.new_text = format!("{}\n{}", other.new_text, self.new_text);
+            self.range.start = other_range.start;
+
+            if let Some((description, other_description)) =
+                self.description.as_mut().zip(other.description.as_ref())
+            {
+                *description = format!("{}\n{}", other_description, description)
+            }
+        } else {
+            if let Some((description, other_description)) =
+                self.description.as_mut().zip(other.description.as_ref())
+            {
+                description.push('\n');
+                description.push_str(other_description);
+            }
+        }
+
+        true
+    }
+}
+
+impl AssistantEdit {
+    pub fn new(
+        path: Option<String>,
+        operation: Option<String>,
+        old_text: Option<String>,
+        new_text: Option<String>,
+        description: Option<String>,
+    ) -> Result<Self> {
+        let path = path.ok_or_else(|| anyhow!("missing path"))?;
+        let operation = operation.ok_or_else(|| anyhow!("missing operation"))?;
+
+        let kind = match operation.as_str() {
+            "update" => AssistantEditKind::Update {
+                old_text: old_text.ok_or_else(|| anyhow!("missing old_text"))?,
+                new_text: new_text.ok_or_else(|| anyhow!("missing new_text"))?,
+                description,
+            },
+            "insert_before" => AssistantEditKind::InsertBefore {
+                old_text: old_text.ok_or_else(|| anyhow!("missing old_text"))?,
+                new_text: new_text.ok_or_else(|| anyhow!("missing new_text"))?,
+                description,
+            },
+            "insert_after" => AssistantEditKind::InsertAfter {
+                old_text: old_text.ok_or_else(|| anyhow!("missing old_text"))?,
+                new_text: new_text.ok_or_else(|| anyhow!("missing new_text"))?,
+                description,
+            },
+            "delete" => AssistantEditKind::Delete {
+                old_text: old_text.ok_or_else(|| anyhow!("missing old_text"))?,
+            },
+            "create" => AssistantEditKind::Create {
+                description,
+                new_text: new_text.ok_or_else(|| anyhow!("missing new_text"))?,
+            },
+            _ => Err(anyhow!("unknown operation {operation:?}"))?,
+        };
+
+        Ok(Self { path, kind })
+    }
+
+    pub async fn resolve(
+        &self,
+        project: Entity<Project>,
+        mut cx: AsyncApp,
+    ) -> Result<(Entity<Buffer>, ResolvedEdit)> {
+        let path = self.path.clone();
+        let kind = self.kind.clone();
+        let buffer = project
+            .update(&mut cx, |project, cx| {
+                let project_path = project
+                    .find_project_path(Path::new(&path), cx)
+                    .or_else(|| {
+                        // If we couldn't find a project path for it, put it in the active worktree
+                        // so that when we create the buffer, it can be saved.
+                        let worktree = project
+                            .active_entry()
+                            .and_then(|entry_id| project.worktree_for_entry(entry_id, cx))
+                            .or_else(|| project.worktrees(cx).next())?;
+                        let worktree = worktree.read(cx);
+
+                        Some(ProjectPath {
+                            worktree_id: worktree.id(),
+                            path: Arc::from(Path::new(&path)),
+                        })
+                    })
+                    .with_context(|| format!("worktree not found for {:?}", path))?;
+                anyhow::Ok(project.open_buffer(project_path, cx))
+            })??
+            .await?;
+
+        let snapshot = buffer.update(&mut cx, |buffer, _| buffer.snapshot())?;
+        let suggestion = cx
+            .background_spawn(async move { kind.resolve(&snapshot) })
+            .await;
+
+        Ok((buffer, suggestion))
+    }
+}
+
+impl AssistantEditKind {
+    fn resolve(self, snapshot: &BufferSnapshot) -> ResolvedEdit {
+        match self {
+            Self::Update {
+                old_text,
+                new_text,
+                description,
+            } => {
+                let range = Self::resolve_location(&snapshot, &old_text);
+                ResolvedEdit {
+                    range,
+                    new_text,
+                    description,
+                }
+            }
+            Self::Create {
+                new_text,
+                description,
+            } => ResolvedEdit {
+                range: text::Anchor::MIN..text::Anchor::MAX,
+                description,
+                new_text,
+            },
+            Self::InsertBefore {
+                old_text,
+                mut new_text,
+                description,
+            } => {
+                let range = Self::resolve_location(&snapshot, &old_text);
+                new_text.push('\n');
+                ResolvedEdit {
+                    range: range.start..range.start,
+                    new_text,
+                    description,
+                }
+            }
+            Self::InsertAfter {
+                old_text,
+                mut new_text,
+                description,
+            } => {
+                let range = Self::resolve_location(&snapshot, &old_text);
+                new_text.insert(0, '\n');
+                ResolvedEdit {
+                    range: range.end..range.end,
+                    new_text,
+                    description,
+                }
+            }
+            Self::Delete { old_text } => {
+                let range = Self::resolve_location(&snapshot, &old_text);
+                ResolvedEdit {
+                    range,
+                    new_text: String::new(),
+                    description: None,
+                }
+            }
+        }
+    }
+
+    fn resolve_location(buffer: &text::BufferSnapshot, search_query: &str) -> Range<text::Anchor> {
+        const INSERTION_COST: u32 = 3;
+        const DELETION_COST: u32 = 10;
+        const WHITESPACE_INSERTION_COST: u32 = 1;
+        const WHITESPACE_DELETION_COST: u32 = 1;
+
+        let buffer_len = buffer.len();
+        let query_len = search_query.len();
+        let mut matrix = SearchMatrix::new(query_len + 1, buffer_len + 1);
+        let mut leading_deletion_cost = 0_u32;
+        for (row, query_byte) in search_query.bytes().enumerate() {
+            let deletion_cost = if query_byte.is_ascii_whitespace() {
+                WHITESPACE_DELETION_COST
+            } else {
+                DELETION_COST
+            };
+
+            leading_deletion_cost = leading_deletion_cost.saturating_add(deletion_cost);
+            matrix.set(
+                row + 1,
+                0,
+                SearchState::new(leading_deletion_cost, SearchDirection::Diagonal),
+            );
+
+            for (col, buffer_byte) in buffer.bytes_in_range(0..buffer.len()).flatten().enumerate() {
+                let insertion_cost = if buffer_byte.is_ascii_whitespace() {
+                    WHITESPACE_INSERTION_COST
+                } else {
+                    INSERTION_COST
+                };
+
+                let up = SearchState::new(
+                    matrix.get(row, col + 1).cost.saturating_add(deletion_cost),
+                    SearchDirection::Up,
+                );
+                let left = SearchState::new(
+                    matrix.get(row + 1, col).cost.saturating_add(insertion_cost),
+                    SearchDirection::Left,
+                );
+                let diagonal = SearchState::new(
+                    if query_byte == *buffer_byte {
+                        matrix.get(row, col).cost
+                    } else {
+                        matrix
+                            .get(row, col)
+                            .cost
+                            .saturating_add(deletion_cost + insertion_cost)
+                    },
+                    SearchDirection::Diagonal,
+                );
+                matrix.set(row + 1, col + 1, up.min(left).min(diagonal));
+            }
+        }
+
+        // Traceback to find the best match
+        let mut best_buffer_end = buffer_len;
+        let mut best_cost = u32::MAX;
+        for col in 1..=buffer_len {
+            let cost = matrix.get(query_len, col).cost;
+            if cost < best_cost {
+                best_cost = cost;
+                best_buffer_end = col;
+            }
+        }
+
+        let mut query_ix = query_len;
+        let mut buffer_ix = best_buffer_end;
+        while query_ix > 0 && buffer_ix > 0 {
+            let current = matrix.get(query_ix, buffer_ix);
+            match current.direction {
+                SearchDirection::Diagonal => {
+                    query_ix -= 1;
+                    buffer_ix -= 1;
+                }
+                SearchDirection::Up => {
+                    query_ix -= 1;
+                }
+                SearchDirection::Left => {
+                    buffer_ix -= 1;
+                }
+            }
+        }
+
+        let mut start = buffer.offset_to_point(buffer.clip_offset(buffer_ix, Bias::Left));
+        start.column = 0;
+        let mut end = buffer.offset_to_point(buffer.clip_offset(best_buffer_end, Bias::Right));
+        if end.column > 0 {
+            end.column = buffer.line_len(end.row);
+        }
+
+        buffer.anchor_after(start)..buffer.anchor_before(end)
+    }
+}
+
+impl AssistantPatch {
+    pub async fn resolve(&self, project: Entity<Project>, cx: &mut AsyncApp) -> ResolvedPatch {
+        let mut resolve_tasks = Vec::new();
+        for (ix, edit) in self.edits.iter().enumerate() {
+            if let Ok(edit) = edit.as_ref() {
+                resolve_tasks.push(
+                    edit.resolve(project.clone(), cx.clone())
+                        .map_err(move |error| (ix, error)),
+                );
+            }
+        }
+
+        let edits = future::join_all(resolve_tasks).await;
+        let mut errors = Vec::new();
+        let mut edits_by_buffer = HashMap::default();
+        for entry in edits {
+            match entry {
+                Ok((buffer, edit)) => {
+                    edits_by_buffer
+                        .entry(buffer)
+                        .or_insert_with(Vec::new)
+                        .push(edit);
+                }
+                Err((edit_ix, error)) => errors.push(AssistantPatchResolutionError {
+                    edit_ix,
+                    message: error.to_string(),
+                }),
+            }
+        }
+
+        // Expand the context ranges of each edit and group edits with overlapping context ranges.
+        let mut edit_groups_by_buffer = HashMap::default();
+        for (buffer, edits) in edits_by_buffer {
+            if let Ok(snapshot) = buffer.update(cx, |buffer, _| buffer.text_snapshot()) {
+                edit_groups_by_buffer.insert(buffer, Self::group_edits(edits, &snapshot));
+            }
+        }
+
+        ResolvedPatch {
+            edit_groups: edit_groups_by_buffer,
+            errors,
+        }
+    }
+
+    fn group_edits(
+        mut edits: Vec<ResolvedEdit>,
+        snapshot: &text::BufferSnapshot,
+    ) -> Vec<ResolvedEditGroup> {
+        let mut edit_groups = Vec::<ResolvedEditGroup>::new();
+        // Sort edits by their range so that earlier, larger ranges come first
+        edits.sort_by(|a, b| a.range.cmp(&b.range, &snapshot));
+
+        // Merge overlapping edits
+        edits.dedup_by(|a, b| b.try_merge(a, &snapshot));
+
+        // Create context ranges for each edit
+        for edit in edits {
+            let context_range = {
+                let edit_point_range = edit.range.to_point(&snapshot);
+                let start_row = edit_point_range.start.row.saturating_sub(5);
+                let end_row = cmp::min(edit_point_range.end.row + 5, snapshot.max_point().row);
+                let start = snapshot.anchor_before(Point::new(start_row, 0));
+                let end = snapshot.anchor_after(Point::new(end_row, snapshot.line_len(end_row)));
+                start..end
+            };
+
+            if let Some(last_group) = edit_groups.last_mut() {
+                if last_group
+                    .context_range
+                    .end
+                    .cmp(&context_range.start, &snapshot)
+                    .is_ge()
+                {
+                    // Merge with the previous group if context ranges overlap
+                    last_group.context_range.end = context_range.end;
+                    last_group.edits.push(edit);
+                } else {
+                    // Create a new group
+                    edit_groups.push(ResolvedEditGroup {
+                        context_range,
+                        edits: vec![edit],
+                    });
+                }
+            } else {
+                // Create the first group
+                edit_groups.push(ResolvedEditGroup {
+                    context_range,
+                    edits: vec![edit],
+                });
+            }
+        }
+
+        edit_groups
+    }
+
+    pub fn path_count(&self) -> usize {
+        self.paths().count()
+    }
+
+    pub fn paths(&self) -> impl '_ + Iterator<Item = &str> {
+        let mut prev_path = None;
+        self.edits.iter().filter_map(move |edit| {
+            if let Ok(edit) = edit {
+                let path = Some(edit.path.as_str());
+                if path != prev_path {
+                    prev_path = path;
+                    return path;
+                }
+            }
+            None
+        })
+    }
+}
+
+impl PartialEq for AssistantPatch {
+    fn eq(&self, other: &Self) -> bool {
+        self.range == other.range
+            && self.title == other.title
+            && Arc::ptr_eq(&self.edits, &other.edits)
+    }
+}
+
+impl Eq for AssistantPatch {}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+    use gpui::App;
+    use language::{
+        Language, LanguageConfig, LanguageMatcher, language_settings::AllLanguageSettings,
+    };
+    use settings::SettingsStore;
+    use ui::BorrowAppContext;
+    use unindent::Unindent as _;
+    use util::test::{generate_marked_text, marked_text_ranges};
+
+    #[gpui::test]
+    fn test_resolve_location(cx: &mut App) {
+        assert_location_resolution(
+            concat!(
+                "    Lorem\n",
+                "«    ipsum\n",
+                "    dolor sit amet»\n",
+                "    consecteur",
+            ),
+            "ipsum\ndolor",
+            cx,
+        );
+
+        assert_location_resolution(
+            &"
+            «fn foo1(a: usize) -> usize {
+                40
+            }»
+
+            fn foo2(b: usize) -> usize {
+                42
+            }
+            "
+            .unindent(),
+            "fn foo1(b: usize) {\n40\n}",
+            cx,
+        );
+
+        assert_location_resolution(
+            &"
+            fn main() {
+            «    Foo
+                    .bar()
+                    .baz()
+                    .qux()»
+            }
+
+            fn foo2(b: usize) -> usize {
+                42
+            }
+            "
+            .unindent(),
+            "Foo.bar.baz.qux()",
+            cx,
+        );
+
+        assert_location_resolution(
+            &"
+            class Something {
+                one() { return 1; }
+            «    two() { return 2222; }
+                three() { return 333; }
+                four() { return 4444; }
+                five() { return 5555; }
+                six() { return 6666; }
+            »    seven() { return 7; }
+                eight() { return 8; }
+            }
+            "
+            .unindent(),
+            &"
+                two() { return 2222; }
+                four() { return 4444; }
+                five() { return 5555; }
+                six() { return 6666; }
+            "
+            .unindent(),
+            cx,
+        );
+    }
+
+    #[gpui::test]
+    fn test_resolve_edits(cx: &mut App) {
+        init_test(cx);
+
+        assert_edits(
+            "
+                /// A person
+                struct Person {
+                    name: String,
+                    age: usize,
+                }
+
+                /// A dog
+                struct Dog {
+                    weight: f32,
+                }
+
+                impl Person {
+                    fn name(&self) -> &str {
+                        &self.name
+                    }
+                }
+            "
+            .unindent(),
+            vec![
+                AssistantEditKind::Update {
+                    old_text: "
+                        name: String,
+                    "
+                    .unindent(),
+                    new_text: "
+                        first_name: String,
+                        last_name: String,
+                    "
+                    .unindent(),
+                    description: None,
+                },
+                AssistantEditKind::Update {
+                    old_text: "
+                        fn name(&self) -> &str {
+                            &self.name
+                        }
+                    "
+                    .unindent(),
+                    new_text: "
+                        fn name(&self) -> String {
+                            format!(\"{} {}\", self.first_name, self.last_name)
+                        }
+                    "
+                    .unindent(),
+                    description: None,
+                },
+            ],
+            "
+                /// A person
+                struct Person {
+                    first_name: String,
+                    last_name: String,
+                    age: usize,
+                }
+
+                /// A dog
+                struct Dog {
+                    weight: f32,
+                }
+
+                impl Person {
+                    fn name(&self) -> String {
+                        format!(\"{} {}\", self.first_name, self.last_name)
+                    }
+                }
+            "
+            .unindent(),
+            cx,
+        );
+
+        // Ensure InsertBefore merges correctly with Update of the same text
+        assert_edits(
+            "
+                fn foo() {
+
+                }
+            "
+            .unindent(),
+            vec![
+                AssistantEditKind::InsertBefore {
+                    old_text: "
+                        fn foo() {"
+                        .unindent(),
+                    new_text: "
+                        fn bar() {
+                            qux();
+                        }"
+                    .unindent(),
+                    description: Some("implement bar".into()),
+                },
+                AssistantEditKind::Update {
+                    old_text: "
+                        fn foo() {
+
+                        }"
+                    .unindent(),
+                    new_text: "
+                        fn foo() {
+                            bar();
+                        }"
+                    .unindent(),
+                    description: Some("call bar in foo".into()),
+                },
+                AssistantEditKind::InsertAfter {
+                    old_text: "
+                        fn foo() {
+
+                        }
+                    "
+                    .unindent(),
+                    new_text: "
+                        fn qux() {
+                            // todo
+                        }
+                    "
+                    .unindent(),
+                    description: Some("implement qux".into()),
+                },
+            ],
+            "
+                fn bar() {
+                    qux();
+                }
+
+                fn foo() {
+                    bar();
+                }
+
+                fn qux() {
+                    // todo
+                }
+            "
+            .unindent(),
+            cx,
+        );
+
+        // Correctly indent new text when replacing multiple adjacent indented blocks.
+        assert_edits(
+            "
+            impl Numbers {
+                fn one() {
+                    1
+                }
+
+                fn two() {
+                    2
+                }
+
+                fn three() {
+                    3
+                }
+            }
+            "
+            .unindent(),
+            vec![
+                AssistantEditKind::Update {
+                    old_text: "
+                        fn one() {
+                            1
+                        }
+                    "
+                    .unindent(),
+                    new_text: "
+                        fn one() {
+                            101
+                        }
+                    "
+                    .unindent(),
+                    description: None,
+                },
+                AssistantEditKind::Update {
+                    old_text: "
+                        fn two() {
+                            2
+                        }
+                    "
+                    .unindent(),
+                    new_text: "
+                        fn two() {
+                            102
+                        }
+                    "
+                    .unindent(),
+                    description: None,
+                },
+                AssistantEditKind::Update {
+                    old_text: "
+                        fn three() {
+                            3
+                        }
+                    "
+                    .unindent(),
+                    new_text: "
+                        fn three() {
+                            103
+                        }
+                    "
+                    .unindent(),
+                    description: None,
+                },
+            ],
+            "
+                impl Numbers {
+                    fn one() {
+                        101
+                    }
+
+                    fn two() {
+                        102
+                    }
+
+                    fn three() {
+                        103
+                    }
+                }
+            "
+            .unindent(),
+            cx,
+        );
+
+        assert_edits(
+            "
+            impl Person {
+                fn set_name(&mut self, name: String) {
+                    self.name = name;
+                }
+
+                fn name(&self) -> String {
+                    return self.name;
+                }
+            }
+            "
+            .unindent(),
+            vec![
+                AssistantEditKind::Update {
+                    old_text: "self.name = name;".unindent(),
+                    new_text: "self._name = name;".unindent(),
+                    description: None,
+                },
+                AssistantEditKind::Update {
+                    old_text: "return self.name;\n".unindent(),
+                    new_text: "return self._name;\n".unindent(),
+                    description: None,
+                },
+            ],
+            "
+                impl Person {
+                    fn set_name(&mut self, name: String) {
+                        self._name = name;
+                    }
+
+                    fn name(&self) -> String {
+                        return self._name;
+                    }
+                }
+            "
+            .unindent(),
+            cx,
+        );
+    }
+
+    fn init_test(cx: &mut App) {
+        let settings_store = SettingsStore::test(cx);
+        cx.set_global(settings_store);
+        language::init(cx);
+        cx.update_global::<SettingsStore, _>(|settings, cx| {
+            settings.update_user_settings::<AllLanguageSettings>(cx, |_| {});
+        });
+    }
+
+    #[track_caller]
+    fn assert_location_resolution(text_with_expected_range: &str, query: &str, cx: &mut App) {
+        let (text, _) = marked_text_ranges(text_with_expected_range, false);
+        let buffer = cx.new(|cx| Buffer::local(text.clone(), cx));
+        let snapshot = buffer.read(cx).snapshot();
+        let range = AssistantEditKind::resolve_location(&snapshot, query).to_offset(&snapshot);
+        let text_with_actual_range = generate_marked_text(&text, &[range], false);
+        pretty_assertions::assert_eq!(text_with_actual_range, text_with_expected_range);
+    }
+
+    #[track_caller]
+    fn assert_edits(
+        old_text: String,
+        edits: Vec<AssistantEditKind>,
+        new_text: String,
+        cx: &mut App,
+    ) {
+        let buffer =
+            cx.new(|cx| Buffer::local(old_text, cx).with_language(Arc::new(rust_lang()), cx));
+        let snapshot = buffer.read(cx).snapshot();
+        let resolved_edits = edits
+            .into_iter()
+            .map(|kind| kind.resolve(&snapshot))
+            .collect();
+        let edit_groups = AssistantPatch::group_edits(resolved_edits, &snapshot);
+        ResolvedPatch::apply_edit_groups(&edit_groups, &buffer, cx);
+        let actual_new_text = buffer.read(cx).text();
+        pretty_assertions::assert_eq!(actual_new_text, new_text);
+    }
+
+    fn rust_lang() -> Language {
+        Language::new(
+            LanguageConfig {
+                name: "Rust".into(),
+                matcher: LanguageMatcher {
+                    path_suffixes: vec!["rs".to_string()],
+                    ..Default::default()
+                },
+                ..Default::default()
+            },
+            Some(language::tree_sitter_rust::LANGUAGE.into()),
+        )
+        .with_indents_query(
+            r#"
+            (call_expression) @indent
+            (field_expression) @indent
+            (_ "(" ")" @end) @indent
+            (_ "{" "}" @end) @indent
+            "#,
+        )
+        .unwrap()
+    }
+}
--- a/crates/assistant_context_editor/src/slash_command.rs
+++ b/crates/assistant_context_editor/src/slash_command.rs
@@ -278,8 +278,8 @@ impl CompletionProvider for SlashCommandCompletionProvider {
                        buffer.anchor_after(Point::new(position.row, first_arg_start.start as u32));
                    let arguments = call
                        .arguments
-                        .into_iter()
-                        .filter_map(|argument| Some(line.get(argument)?.to_string()))
+                        .iter()
+                        .filter_map(|argument| Some(line.get(argument.clone())?.to_string()))
                        .collect::<Vec<_>>();
                    let argument_range = first_arg_start..buffer_position;
                    (
--- a/crates/assistant_settings/Cargo.toml
+++ b/crates/assistant_settings/Cargo.toml
@@ -23,7 +23,6 @@ log.workspace = true
 ollama = { workspace = true, features = ["schemars"] }
 open_ai = { workspace = true, features = ["schemars"] }
 deepseek = { workspace = true, features = ["schemars"] }
-mistral = { workspace = true, features = ["schemars"] }
 schemars.workspace = true
 serde.workspace = true
 settings.workspace = true
--- a/crates/assistant_settings/src/assistant_settings.rs
+++ b/crates/assistant_settings/src/assistant_settings.rs
@@ -10,7 +10,6 @@ use deepseek::Model as DeepseekModel;
 use gpui::{App, Pixels, SharedString};
 use language_model::{CloudModel, LanguageModel};
 use lmstudio::Model as LmStudioModel;
-use mistral::Model as MistralModel;
 use ollama::Model as OllamaModel;
 use schemars::{JsonSchema, schema::Schema};
 use serde::{Deserialize, Serialize};
@@ -42,7 +41,6 @@ pub enum NotifyWhenAgentWaiting {

 #[derive(Clone, Debug, Serialize, Deserialize, JsonSchema, PartialEq)]
 #[serde(tag = "name", rename_all = "snake_case")]
-#[schemars(deny_unknown_fields)]
 pub enum AssistantProviderContentV1 {
    #[serde(rename = "zed.dev")]
    ZedDotDev { default_model: Option<CloudModel> },
@@ -72,11 +70,6 @@ pub enum AssistantProviderContentV1 {
        default_model: Option<DeepseekModel>,
        api_url: Option<String>,
    },
-    #[serde(rename = "mistral")]
-    Mistral {
-        default_model: Option<MistralModel>,
-        api_url: Option<String>,
-    },
 }

 #[derive(Default, Clone, Debug)]
@@ -92,6 +85,7 @@ pub struct AssistantSettings {
    pub thread_summary_model: Option<LanguageModelSelection>,
    pub inline_alternatives: Vec<LanguageModelSelection>,
    pub using_outdated_settings_version: bool,
+    pub enable_experimental_live_diffs: bool,
    pub default_profile: AgentProfileId,
    pub profiles: IndexMap<AgentProfileId, AgentProfile>,
    pub always_allow_tool_actions: bool,
@@ -100,7 +94,6 @@ pub struct AssistantSettings {
    pub single_file_review: bool,
    pub model_parameters: Vec<LanguageModelParameters>,
    pub preferred_completion_mode: CompletionMode,
-    pub enable_feedback: bool,
 }

 impl AssistantSettings {
@@ -113,6 +106,10 @@ impl AssistantSettings {
            .and_then(|m| m.temperature)
    }

+    pub fn are_live_diffs_enabled(&self, _cx: &App) -> bool {
+        false
+    }
+
    pub fn set_inline_assistant_model(&mut self, provider: String, model: String) {
        self.inline_assistant_model = Some(LanguageModelSelection {
            provider: provider.into(),
@@ -255,17 +252,12 @@ impl AssistantSettingsContent {
                                    model: model.id().to_string(),
                                })
                            }
-                            AssistantProviderContentV1::Mistral { default_model, .. } => {
-                                default_model.map(|model| LanguageModelSelection {
-                                    provider: "mistral".into(),
-                                    model: model.id().to_string(),
-                                })
-                            }
                        }),
                    inline_assistant_model: None,
                    commit_message_model: None,
                    thread_summary_model: None,
                    inline_alternatives: None,
+                    enable_experimental_live_diffs: None,
                    default_profile: None,
                    profiles: None,
                    always_allow_tool_actions: None,
@@ -274,7 +266,6 @@ impl AssistantSettingsContent {
                    single_file_review: None,
                    model_parameters: Vec::new(),
                    preferred_completion_mode: None,
-                    enable_feedback: None,
                },
                VersionedAssistantSettingsContent::V2(ref settings) => settings.clone(),
            },
@@ -297,6 +288,7 @@ impl AssistantSettingsContent {
                commit_message_model: None,
                thread_summary_model: None,
                inline_alternatives: None,
+                enable_experimental_live_diffs: None,
                default_profile: None,
                profiles: None,
                always_allow_tool_actions: None,
@@ -305,7 +297,6 @@ impl AssistantSettingsContent {
                single_file_review: None,
                model_parameters: Vec::new(),
                preferred_completion_mode: None,
-                enable_feedback: None,
            },
            None => AssistantSettingsContentV2::default(),
        }
@@ -559,7 +550,6 @@ impl AssistantSettingsContent {

 #[derive(Clone, Serialize, Deserialize, JsonSchema, Debug)]
 #[serde(tag = "version")]
-#[schemars(deny_unknown_fields)]
 pub enum VersionedAssistantSettingsContent {
    #[serde(rename = "1")]
    V1(AssistantSettingsContentV1),
@@ -580,6 +570,7 @@ impl Default for VersionedAssistantSettingsContent {
            commit_message_model: None,
            thread_summary_model: None,
            inline_alternatives: None,
+            enable_experimental_live_diffs: None,
            default_profile: None,
            profiles: None,
            always_allow_tool_actions: None,
@@ -588,13 +579,11 @@ impl Default for VersionedAssistantSettingsContent {
            single_file_review: None,
            model_parameters: Vec::new(),
            preferred_completion_mode: None,
-            enable_feedback: None,
        })
    }
 }

 #[derive(Clone, Serialize, Deserialize, JsonSchema, Debug, Default)]
-#[schemars(deny_unknown_fields)]
 pub struct AssistantSettingsContentV2 {
    /// Whether the Assistant is enabled.
    ///
@@ -626,6 +615,10 @@ pub struct AssistantSettingsContentV2 {
    thread_summary_model: Option<LanguageModelSelection>,
    /// Additional models with which to generate alternatives when performing inline assists.
    inline_alternatives: Option<Vec<LanguageModelSelection>>,
+    /// Enable experimental live diffs in the assistant panel.
+    ///
+    /// Default: false
+    enable_experimental_live_diffs: Option<bool>,
    /// The default profile to use in the Agent.
    ///
    /// Default: write
@@ -663,10 +656,6 @@ pub struct AssistantSettingsContentV2 {
    ///
    /// Default: normal
    preferred_completion_mode: Option<CompletionMode>,
-    /// Whether to show thumb buttons for feedback in the agent panel.
-    ///
-    /// Default: true
-    enable_feedback: Option<bool>,
 }

 #[derive(Clone, Copy, Debug, Serialize, Deserialize, JsonSchema, PartialEq, Default)]
@@ -704,7 +693,7 @@ impl JsonSchema for LanguageModelProviderSetting {
        schemars::schema::SchemaObject {
            enum_values: Some(vec![
                "anthropic".into(),
-                "amazon-bedrock".into(),
+                "bedrock".into(),
                "google".into(),
                "lmstudio".into(),
                "ollama".into(),
@@ -712,7 +701,6 @@ impl JsonSchema for LanguageModelProviderSetting {
                "zed.dev".into(),
                "copilot_chat".into(),
                "deepseek".into(),
-                "mistral".into(),
            ]),
            ..Default::default()
        }
@@ -758,7 +746,6 @@ pub struct ContextServerPresetContent {
 }

 #[derive(Clone, Serialize, Deserialize, JsonSchema, Debug)]
-#[schemars(deny_unknown_fields)]
 pub struct AssistantSettingsContentV1 {
    /// Whether the Assistant is enabled.
    ///
@@ -788,7 +775,6 @@ pub struct AssistantSettingsContentV1 {
 }

 #[derive(Clone, Serialize, Deserialize, JsonSchema, Debug)]
-#[schemars(deny_unknown_fields)]
 pub struct LegacyAssistantSettingsContent {
    /// Whether to show the assistant panel button in the status bar.
    ///
@@ -859,6 +845,10 @@ impl Settings for AssistantSettings {
                .thread_summary_model
                .or(settings.thread_summary_model.take());
            merge(&mut settings.inline_alternatives, value.inline_alternatives);
+            merge(
+                &mut settings.enable_experimental_live_diffs,
+                value.enable_experimental_live_diffs,
+            );
            merge(
                &mut settings.always_allow_tool_actions,
                value.always_allow_tool_actions,
@@ -874,7 +864,6 @@ impl Settings for AssistantSettings {
                &mut settings.preferred_completion_mode,
                value.preferred_completion_mode,
            );
-            merge(&mut settings.enable_feedback, value.enable_feedback);

            settings
                .model_parameters
@@ -1005,13 +994,13 @@ mod tests {
                                dock: None,
                                default_width: None,
                                default_height: None,
+                                enable_experimental_live_diffs: None,
                                default_profile: None,
                                profiles: None,
                                always_allow_tool_actions: None,
                                notify_when_agent_waiting: None,
                                stream_edits: None,
                                single_file_review: None,
-                                enable_feedback: None,
                                model_parameters: Vec::new(),
                                preferred_completion_mode: None,
                            },
--- a/crates/assistant_slash_command/src/assistant_slash_command.rs
+++ b/crates/assistant_slash_command/src/assistant_slash_command.rs
@@ -9,7 +9,6 @@ use anyhow::Result;
 use futures::StreamExt;
 use futures::stream::{self, BoxStream};
 use gpui::{App, SharedString, Task, WeakEntity, Window};
-use language::HighlightId;
 use language::{BufferSnapshot, CodeLabel, LspAdapterDelegate, OffsetRangeExt};
 pub use language_model::Role;
 use serde::{Deserialize, Serialize};
@@ -17,7 +16,6 @@ use std::{
    ops::Range,
    sync::{Arc, atomic::AtomicBool},
 };
-use ui::ActiveTheme;
 use workspace::{Workspace, ui::IconName};

 pub fn init(cx: &mut App) {
@@ -327,18 +325,6 @@ impl SlashCommandLine {
    }
 }

-pub fn create_label_for_command(command_name: &str, arguments: &[&str], cx: &App) -> CodeLabel {
-    let mut label = CodeLabel::default();
-    label.push_str(command_name, None);
-    label.push_str(" ", None);
-    label.push_str(
-        &arguments.join(" "),
-        cx.theme().syntax().highlight_id("comment").map(HighlightId),
-    );
-    label.filter_range = 0..command_name.len();
-    label
-}
-
 #[cfg(test)]
 mod tests {
    use pretty_assertions::assert_eq;
--- a/crates/assistant_slash_commands/Cargo.toml
+++ b/crates/assistant_slash_commands/Cargo.toml
@@ -35,6 +35,7 @@ rope.workspace = true
 serde.workspace = true
 serde_json.workspace = true
 smol.workspace = true
+terminal_view.workspace = true
 text.workspace = true
 toml.workspace = true
 ui.workspace = true
--- a/crates/assistant_slash_commands/src/assistant_slash_commands.rs
+++ b/crates/assistant_slash_commands/src/assistant_slash_commands.rs
@@ -12,6 +12,11 @@ mod selection_command;
 mod streaming_example_command;
 mod symbols_command;
 mod tab_command;
+mod terminal_command;
+
+use gpui::App;
+use language::{CodeLabel, HighlightId};
+use ui::ActiveTheme as _;

 pub use crate::cargo_workspace_command::*;
 pub use crate::context_server_command::*;
@@ -27,5 +32,16 @@ pub use crate::selection_command::*;
 pub use crate::streaming_example_command::*;
 pub use crate::symbols_command::*;
 pub use crate::tab_command::*;
+pub use crate::terminal_command::*;

-use assistant_slash_command::create_label_for_command;
+pub fn create_label_for_command(command_name: &str, arguments: &[&str], cx: &App) -> CodeLabel {
+    let mut label = CodeLabel::default();
+    label.push_str(command_name, None);
+    label.push_str(" ", None);
+    label.push_str(
+        &arguments.join(" "),
+        cx.theme().syntax().highlight_id("comment").map(HighlightId),
+    );
+    label.filter_range = 0..command_name.len();
+    label
+}
--- a/crates/assistant_slash_commands/src/context_server_command.rs
+++ b/crates/assistant_slash_commands/src/context_server_command.rs
@@ -1,4 +1,4 @@
-use anyhow::{Context as _, Result, anyhow};
+use anyhow::{Result, anyhow};
 use assistant_slash_command::{
    AfterCompletion, ArgumentCompletion, SlashCommand, SlashCommandOutput,
    SlashCommandOutputSection, SlashCommandResult,
@@ -84,7 +84,9 @@ impl SlashCommand for ContextServerSlashCommand {

        if let Some(server) = self.store.read(cx).get_running_server(&server_id) {
            cx.foreground_executor().spawn(async move {
-                let protocol = server.client().context("Context server not initialized")?;
+                let Some(protocol) = server.client() else {
+                    return Err(anyhow!("Context server not initialized"));
+                };

                let completion_result = protocol
                    .completion(
@@ -137,16 +139,21 @@ impl SlashCommand for ContextServerSlashCommand {
        let store = self.store.read(cx);
        if let Some(server) = store.get_running_server(&server_id) {
            cx.foreground_executor().spawn(async move {
-                let protocol = server.client().context("Context server not initialized")?;
+                let Some(protocol) = server.client() else {
+                    return Err(anyhow!("Context server not initialized"));
+                };
                let result = protocol.run_prompt(&prompt_name, prompt_args).await?;

-                anyhow::ensure!(
-                    result
-                        .messages
-                        .iter()
-                        .all(|msg| matches!(msg.role, context_server::types::Role::User)),
-                    "Prompt contains non-user roles, which is not supported"
-                );
+                // Check that there are only user roles
+                if result
+                    .messages
+                    .iter()
+                    .any(|msg| !matches!(msg.role, context_server::types::Role::User))
+                {
+                    return Err(anyhow!(
+                        "Prompt contains non-user roles, which is not supported"
+                    ));
+                }

                // Extract text from user messages into a single prompt string
                let mut prompt = result
@@ -185,7 +192,9 @@ impl SlashCommand for ContextServerSlashCommand {
 }

 fn completion_argument(prompt: &Prompt, arguments: &[String]) -> Result<(String, String)> {
-    anyhow::ensure!(!arguments.is_empty(), "No arguments given");
+    if arguments.is_empty() {
+        return Err(anyhow!("No arguments given"));
+    }

    match &prompt.arguments {
        Some(args) if args.len() == 1 => {
@@ -193,16 +202,16 @@ fn completion_argument(prompt: &Prompt, arguments: &[String]) -> Result<(String,
            let arg_value = arguments.join(" ");
            Ok((arg_name, arg_value))
        }
-        Some(_) => anyhow::bail!("Prompt must have exactly one argument"),
-        None => anyhow::bail!("Prompt has no arguments"),
+        Some(_) => Err(anyhow!("Prompt must have exactly one argument")),
+        None => Err(anyhow!("Prompt has no arguments")),
    }
 }

 fn prompt_arguments(prompt: &Prompt, arguments: &[String]) -> Result<HashMap<String, String>> {
    match &prompt.arguments {
-        Some(args) if args.len() > 1 => {
-            anyhow::bail!("Prompt has more than one argument, which is not supported");
-        }
+        Some(args) if args.len() > 1 => Err(anyhow!(
+            "Prompt has more than one argument, which is not supported"
+        )),
        Some(args) if args.len() == 1 => {
            if !arguments.is_empty() {
                let mut map = HashMap::default();
@@ -211,15 +220,15 @@ fn prompt_arguments(prompt: &Prompt, arguments: &[String]) -> Result<HashMap<Str
            } else if arguments.is_empty() && args[0].required == Some(false) {
                Ok(HashMap::default())
            } else {
-                anyhow::bail!("Prompt expects argument but none given");
+                Err(anyhow!("Prompt expects argument but none given"))
            }
        }
        Some(_) | None => {
-            anyhow::ensure!(
-                arguments.is_empty(),
-                "Prompt expects no arguments but some were given"
-            );
-            Ok(HashMap::default())
+            if arguments.is_empty() {
+                Ok(HashMap::default())
+            } else {
+                Err(anyhow!("Prompt expects no arguments but some were given"))
+            }
        }
    }
 }
--- a/crates/assistant_slash_commands/src/delta_command.rs
+++ b/crates/assistant_slash_commands/src/delta_command.rs
@@ -118,7 +118,10 @@ impl SlashCommand for DeltaSlashCommand {
                }
            }

-            anyhow::ensure!(changes_detected, "no new changes detected");
+            if !changes_detected {
+                return Err(anyhow!("no new changes detected"));
+            }
+
            Ok(output.to_event_stream())
        })
    }
--- a/crates/assistant_slash_commands/src/diagnostics_command.rs
+++ b/crates/assistant_slash_commands/src/diagnostics_command.rs
@@ -1,4 +1,4 @@
-use anyhow::{Context as _, Result, anyhow};
+use anyhow::{Result, anyhow};
 use assistant_slash_command::{
    ArgumentCompletion, SlashCommand, SlashCommandOutput, SlashCommandOutputSection,
    SlashCommandResult,
@@ -189,7 +189,7 @@ impl SlashCommand for DiagnosticsSlashCommand {
        window.spawn(cx, async move |_| {
            task.await?
                .map(|output| output.to_event_stream())
-                .context("No diagnostics found")
+                .ok_or_else(|| anyhow!("No diagnostics found"))
        })
    }
 }
--- a/crates/assistant_slash_commands/src/docs_command.rs
+++ b/crates/assistant_slash_commands/src/docs_command.rs
@@ -3,7 +3,7 @@ use std::sync::Arc;
 use std::sync::atomic::AtomicBool;
 use std::time::Duration;

-use anyhow::{Context as _, Result, anyhow, bail};
+use anyhow::{Result, anyhow, bail};
 use assistant_slash_command::{
    ArgumentCompletion, SlashCommand, SlashCommandOutput, SlashCommandOutputSection,
    SlashCommandResult,
@@ -52,16 +52,15 @@ impl DocsSlashCommand {
            .is_none()
        {
            let index_provider_deps = maybe!({
+                let workspace = workspace.clone().ok_or_else(|| anyhow!("no workspace"))?;
                let workspace = workspace
-                    .as_ref()
-                    .context("no workspace")?
                    .upgrade()
-                    .context("workspace dropped")?;
+                    .ok_or_else(|| anyhow!("workspace was dropped"))?;
                let project = workspace.read(cx).project().clone();
                let fs = project.read(cx).fs().clone();
                let cargo_workspace_root = Self::path_to_cargo_toml(project, cx)
                    .and_then(|path| path.parent().map(|path| path.to_path_buf()))
-                    .context("no Cargo workspace root found")?;
+                    .ok_or_else(|| anyhow!("no Cargo workspace root found"))?;

                anyhow::Ok((fs, cargo_workspace_root))
            });
@@ -79,11 +78,10 @@ impl DocsSlashCommand {
            .is_none()
        {
            let http_client = maybe!({
+                let workspace = workspace.ok_or_else(|| anyhow!("no workspace"))?;
                let workspace = workspace
-                    .as_ref()
-                    .context("no workspace")?
                    .upgrade()
-                    .context("workspace was dropped")?;
+                    .ok_or_else(|| anyhow!("workspace was dropped"))?;
                let project = workspace.read(cx).project().clone();
                anyhow::Ok(project.read(cx).client().http_client())
            });
@@ -176,7 +174,7 @@ impl SlashCommand for DocsSlashCommand {
        let args = DocsSlashCommandArgs::parse(arguments);
        let store = args
            .provider()
-            .context("no docs provider specified")
+            .ok_or_else(|| anyhow!("no docs provider specified"))
            .and_then(|provider| IndexedDocsStore::try_global(provider, cx));
        cx.background_spawn(async move {
            fn build_completions(items: Vec<String>) -> Vec<ArgumentCompletion> {
@@ -289,7 +287,7 @@ impl SlashCommand for DocsSlashCommand {
        let task = cx.background_spawn({
            let store = args
                .provider()
-                .context("no docs provider specified")
+                .ok_or_else(|| anyhow!("no docs provider specified"))
                .and_then(|provider| IndexedDocsStore::try_global(provider, cx));
            async move {
                let (provider, key) = match args.clone() {
--- a/crates/assistant_slash_commands/src/fetch_command.rs
+++ b/crates/assistant_slash_commands/src/fetch_command.rs
@@ -3,7 +3,7 @@ use std::rc::Rc;
 use std::sync::Arc;
 use std::sync::atomic::AtomicBool;

-use anyhow::{Context as _, Result, anyhow, bail};
+use anyhow::{Context, Result, anyhow, bail};
 use assistant_slash_command::{
    ArgumentCompletion, SlashCommand, SlashCommandOutput, SlashCommandOutputSection,
    SlashCommandResult,
--- a/crates/assistant_slash_commands/src/file_command.rs
+++ b/crates/assistant_slash_commands/src/file_command.rs
@@ -230,10 +230,7 @@ fn collect_files(
        })
        .collect::<anyhow::Result<Vec<custom_path_matcher::PathMatcher>>>()
    else {
-        return futures::stream::once(async {
-            anyhow::bail!("invalid path");
-        })
-        .boxed();
+        return futures::stream::once(async { Err(anyhow!("invalid path")) }).boxed();
    };

    let project_handle = project.downgrade();
--- a/crates/assistant_slash_commands/src/terminal_command.rs
+++ b/crates/assistant_slash_commands/src/terminal_command.rs
@@ -1,7 +1,6 @@
 use std::sync::Arc;
 use std::sync::atomic::AtomicBool;

-use crate::{TerminalView, terminal_panel::TerminalPanel};
 use anyhow::Result;
 use assistant_slash_command::{
    ArgumentCompletion, SlashCommand, SlashCommandOutput, SlashCommandOutputSection,
@@ -9,10 +8,11 @@ use assistant_slash_command::{
 };
 use gpui::{App, Entity, Task, WeakEntity};
 use language::{BufferSnapshot, CodeLabel, LspAdapterDelegate};
+use terminal_view::{TerminalView, terminal_panel::TerminalPanel};
 use ui::prelude::*;
 use workspace::{Workspace, dock::Panel};

-use assistant_slash_command::create_label_for_command;
+use super::create_label_for_command;

 pub struct TerminalSlashCommand;

--- a/crates/assistant_tool/src/action_log.rs
+++ b/crates/assistant_tool/src/action_log.rs
@@ -49,37 +49,6 @@ impl ActionLog {
        is_created: bool,
        cx: &mut Context<Self>,
    ) -> &mut TrackedBuffer {
-        let status = if is_created {
-            if let Some(tracked) = self.tracked_buffers.remove(&buffer) {
-                match tracked.status {
-                    TrackedBufferStatus::Created {
-                        existing_file_content,
-                    } => TrackedBufferStatus::Created {
-                        existing_file_content,
-                    },
-                    TrackedBufferStatus::Modified | TrackedBufferStatus::Deleted => {
-                        TrackedBufferStatus::Created {
-                            existing_file_content: Some(tracked.diff_base),
-                        }
-                    }
-                }
-            } else if buffer
-                .read(cx)
-                .file()
-                .map_or(false, |file| file.disk_state().exists())
-            {
-                TrackedBufferStatus::Created {
-                    existing_file_content: Some(buffer.read(cx).as_rope().clone()),
-                }
-            } else {
-                TrackedBufferStatus::Created {
-                    existing_file_content: None,
-                }
-            }
-        } else {
-            TrackedBufferStatus::Modified
-        };
-
        let tracked_buffer = self
            .tracked_buffers
            .entry(buffer.clone())
@@ -91,21 +60,36 @@ impl ActionLog {
                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();
-                let diff_base;
+                let base_text;
+                let status;
                let unreviewed_changes;
                if is_created {
-                    diff_base = Rope::default();
+                    let existing_file_content = if buffer
+                        .read(cx)
+                        .file()
+                        .map_or(false, |file| file.disk_state().exists())
+                    {
+                        Some(text_snapshot.as_rope().clone())
+                    } else {
+                        None
+                    };
+
+                    base_text = Rope::default();
+                    status = TrackedBufferStatus::Created {
+                        existing_file_content,
+                    };
                    unreviewed_changes = Patch::new(vec![Edit {
                        old: 0..1,
                        new: 0..text_snapshot.max_point().row + 1,
                    }])
                } else {
-                    diff_base = buffer.read(cx).as_rope().clone();
+                    base_text = buffer.read(cx).as_rope().clone();
+                    status = TrackedBufferStatus::Modified;
                    unreviewed_changes = Patch::default();
                }
                TrackedBuffer {
                    buffer: buffer.clone(),
-                    diff_base,
+                    base_text,
                    unreviewed_changes,
                    snapshot: text_snapshot.clone(),
                    status,
@@ -200,7 +184,7 @@ impl ActionLog {
                        .context("buffer not tracked")?;

                    let rebase = cx.background_spawn({
-                        let mut base_text = tracked_buffer.diff_base.clone();
+                        let mut base_text = tracked_buffer.base_text.clone();
                        let old_snapshot = tracked_buffer.snapshot.clone();
                        let new_snapshot = buffer_snapshot.clone();
                        let unreviewed_changes = tracked_buffer.unreviewed_changes.clone();
@@ -226,7 +210,7 @@ impl ActionLog {
                    ))
                })??;

-            let (new_base_text, new_diff_base) = rebase.await;
+            let (new_base_text, new_base_text_rope) = rebase.await;
            let diff_snapshot = BufferDiff::update_diff(
                diff.clone(),
                buffer_snapshot.clone(),
@@ -245,23 +229,24 @@ impl ActionLog {
                    .background_spawn({
                        let diff_snapshot = diff_snapshot.clone();
                        let buffer_snapshot = buffer_snapshot.clone();
-                        let new_diff_base = new_diff_base.clone();
+                        let new_base_text_rope = new_base_text_rope.clone();
                        async move {
                            let mut unreviewed_changes = Patch::default();
                            for hunk in diff_snapshot.hunks_intersecting_range(
                                Anchor::MIN..Anchor::MAX,
                                &buffer_snapshot,
                            ) {
-                                let old_range = new_diff_base
+                                let old_range = new_base_text_rope
                                    .offset_to_point(hunk.diff_base_byte_range.start)
-                                    ..new_diff_base.offset_to_point(hunk.diff_base_byte_range.end);
+                                    ..new_base_text_rope
+                                        .offset_to_point(hunk.diff_base_byte_range.end);
                                let new_range = hunk.range.start..hunk.range.end;
                                unreviewed_changes.push(point_to_row_edit(
                                    Edit {
                                        old: old_range,
                                        new: new_range,
                                    },
-                                    &new_diff_base,
+                                    &new_base_text_rope,
                                    &buffer_snapshot.as_rope(),
                                ));
                            }
@@ -279,7 +264,7 @@ impl ActionLog {
                    .tracked_buffers
                    .get_mut(&buffer)
                    .context("buffer not tracked")?;
-                tracked_buffer.diff_base = new_diff_base;
+                tracked_buffer.base_text = new_base_text_rope;
                tracked_buffer.snapshot = buffer_snapshot;
                tracked_buffer.unreviewed_changes = unreviewed_changes;
                cx.notify();
@@ -298,6 +283,7 @@ impl ActionLog {
    /// Mark a buffer as edited, so we can refresh it in the context
    pub fn buffer_created(&mut self, buffer: Entity<Buffer>, cx: &mut Context<Self>) {
        self.edited_since_project_diagnostics_check = true;
+        self.tracked_buffers.remove(&buffer);
        self.track_buffer_internal(buffer.clone(), true, cx);
    }

@@ -360,11 +346,11 @@ impl ActionLog {
                        true
                    } else {
                        let old_range = tracked_buffer
-                            .diff_base
+                            .base_text
                            .point_to_offset(Point::new(edit.old.start, 0))
-                            ..tracked_buffer.diff_base.point_to_offset(cmp::min(
+                            ..tracked_buffer.base_text.point_to_offset(cmp::min(
                                Point::new(edit.old.end, 0),
-                                tracked_buffer.diff_base.max_point(),
+                                tracked_buffer.base_text.max_point(),
                            ));
                        let new_range = tracked_buffer
                            .snapshot
@@ -373,7 +359,7 @@ impl ActionLog {
                                Point::new(edit.new.end, 0),
                                tracked_buffer.snapshot.max_point(),
                            ));
-                        tracked_buffer.diff_base.replace(
+                        tracked_buffer.base_text.replace(
                            old_range,
                            &tracked_buffer
                                .snapshot
@@ -431,7 +417,7 @@ impl ActionLog {
            }
            TrackedBufferStatus::Deleted => {
                buffer.update(cx, |buffer, cx| {
-                    buffer.set_text(tracked_buffer.diff_base.to_string(), cx)
+                    buffer.set_text(tracked_buffer.base_text.to_string(), cx)
                });
                let save = self
                    .project
@@ -478,14 +464,14 @@ impl ActionLog {

                        if revert {
                            let old_range = tracked_buffer
-                                .diff_base
+                                .base_text
                                .point_to_offset(Point::new(edit.old.start, 0))
-                                ..tracked_buffer.diff_base.point_to_offset(cmp::min(
+                                ..tracked_buffer.base_text.point_to_offset(cmp::min(
                                    Point::new(edit.old.end, 0),
-                                    tracked_buffer.diff_base.max_point(),
+                                    tracked_buffer.base_text.max_point(),
                                ));
                            let old_text = tracked_buffer
-                                .diff_base
+                                .base_text
                                .chunks_in_range(old_range)
                                .collect::<String>();
                            edits_to_revert.push((new_range, old_text));
@@ -506,7 +492,7 @@ impl ActionLog {
                TrackedBufferStatus::Deleted => false,
                _ => {
                    tracked_buffer.unreviewed_changes.clear();
-                    tracked_buffer.diff_base = tracked_buffer.snapshot.as_rope().clone();
+                    tracked_buffer.base_text = tracked_buffer.snapshot.as_rope().clone();
                    tracked_buffer.schedule_diff_update(ChangeAuthor::User, cx);
                    true
                }
@@ -669,7 +655,7 @@ enum TrackedBufferStatus {

 struct TrackedBuffer {
    buffer: Entity<Buffer>,
-    diff_base: Rope,
+    base_text: Rope,
    unreviewed_changes: Patch<u32>,
    status: TrackedBufferStatus,
    version: clock::Global,
@@ -1108,86 +1094,6 @@ mod tests {
        );
    }

-    #[gpui::test(iterations = 10)]
-    async fn test_overwriting_previously_edited_files(cx: &mut TestAppContext) {
-        init_test(cx);
-
-        let fs = FakeFs::new(cx.executor());
-        fs.insert_tree(
-            path!("/dir"),
-            json!({
-                "file1": "Lorem ipsum dolor"
-            }),
-        )
-        .await;
-        let project = Project::test(fs.clone(), [path!("/dir").as_ref()], cx).await;
-        let action_log = cx.new(|_| ActionLog::new(project.clone()));
-        let file_path = project
-            .read_with(cx, |project, cx| project.find_project_path("dir/file1", cx))
-            .unwrap();
-
-        let buffer = project
-            .update(cx, |project, cx| project.open_buffer(file_path, cx))
-            .await
-            .unwrap();
-        cx.update(|cx| {
-            action_log.update(cx, |log, cx| log.buffer_read(buffer.clone(), cx));
-            buffer.update(cx, |buffer, cx| buffer.append(" sit amet consecteur", cx));
-            action_log.update(cx, |log, cx| log.buffer_edited(buffer.clone(), cx));
-        });
-        project
-            .update(cx, |project, cx| project.save_buffer(buffer.clone(), cx))
-            .await
-            .unwrap();
-        cx.run_until_parked();
-        assert_eq!(
-            unreviewed_hunks(&action_log, cx),
-            vec![(
-                buffer.clone(),
-                vec![HunkStatus {
-                    range: Point::new(0, 0)..Point::new(0, 37),
-                    diff_status: DiffHunkStatusKind::Modified,
-                    old_text: "Lorem ipsum dolor".into(),
-                }],
-            )]
-        );
-
-        cx.update(|cx| {
-            action_log.update(cx, |log, cx| log.buffer_created(buffer.clone(), cx));
-            buffer.update(cx, |buffer, cx| buffer.set_text("rewritten", cx));
-            action_log.update(cx, |log, cx| log.buffer_edited(buffer.clone(), cx));
-        });
-        project
-            .update(cx, |project, cx| project.save_buffer(buffer.clone(), cx))
-            .await
-            .unwrap();
-        cx.run_until_parked();
-        assert_eq!(
-            unreviewed_hunks(&action_log, cx),
-            vec![(
-                buffer.clone(),
-                vec![HunkStatus {
-                    range: Point::new(0, 0)..Point::new(0, 9),
-                    diff_status: DiffHunkStatusKind::Added,
-                    old_text: "".into(),
-                }],
-            )]
-        );
-
-        action_log
-            .update(cx, |log, cx| {
-                log.reject_edits_in_ranges(buffer.clone(), vec![2..5], cx)
-            })
-            .await
-            .unwrap();
-        cx.run_until_parked();
-        assert_eq!(unreviewed_hunks(&action_log, cx), vec![]);
-        assert_eq!(
-            buffer.read_with(cx, |buffer, _cx| buffer.text()),
-            "Lorem ipsum dolor"
-        );
-    }
-
    #[gpui::test(iterations = 10)]
    async fn test_deleting_files(cx: &mut TestAppContext) {
        init_test(cx);
@@ -1695,7 +1601,7 @@ mod tests {
            cx.run_until_parked();
            action_log.update(cx, |log, cx| {
                let tracked_buffer = log.tracked_buffers.get(&buffer).unwrap();
-                let mut old_text = tracked_buffer.diff_base.clone();
+                let mut old_text = tracked_buffer.base_text.clone();
                let new_text = buffer.read(cx).as_rope();
                for edit in tracked_buffer.unreviewed_changes.edits() {
                    let old_start = old_text.point_to_offset(Point::new(edit.new.start, 0));
--- a/crates/assistant_tool/src/assistant_tool.rs
+++ b/crates/assistant_tool/src/assistant_tool.rs
@@ -19,7 +19,6 @@ use gpui::Window;
 use gpui::{App, Entity, SharedString, Task, WeakEntity};
 use icons::IconName;
 use language_model::LanguageModel;
-use language_model::LanguageModelImage;
 use language_model::LanguageModelRequest;
 use language_model::LanguageModelToolSchemaFormat;
 use project::Project;
@@ -66,50 +65,21 @@ impl ToolUseStatus {

 #[derive(Debug)]
 pub struct ToolResultOutput {
-    pub content: ToolResultContent,
+    pub content: String,
    pub output: Option<serde_json::Value>,
 }

-#[derive(Debug, PartialEq, Eq)]
-pub enum ToolResultContent {
-    Text(String),
-    Image(LanguageModelImage),
-}
-
-impl ToolResultContent {
-    pub fn len(&self) -> usize {
-        match self {
-            ToolResultContent::Text(str) => str.len(),
-            ToolResultContent::Image(image) => image.len(),
-        }
-    }
-
-    pub fn is_empty(&self) -> bool {
-        match self {
-            ToolResultContent::Text(str) => str.is_empty(),
-            ToolResultContent::Image(image) => image.is_empty(),
-        }
-    }
-
-    pub fn as_str(&self) -> Option<&str> {
-        match self {
-            ToolResultContent::Text(str) => Some(str),
-            ToolResultContent::Image(_) => None,
-        }
-    }
-}
-
 impl From<String> for ToolResultOutput {
    fn from(value: String) -> Self {
        ToolResultOutput {
-            content: ToolResultContent::Text(value),
+            content: value,
            output: None,
        }
    }
 }

 impl Deref for ToolResultOutput {
-    type Target = ToolResultContent;
+    type Target = String;

    fn deref(&self) -> &Self::Target {
        &self.content
--- a/crates/assistant_tool/src/outline.rs
+++ b/crates/assistant_tool/src/outline.rs
@@ -1,5 +1,5 @@
 use crate::ActionLog;
-use anyhow::{Context as _, Result};
+use anyhow::{Result, anyhow};
 use gpui::{AsyncApp, Entity};
 use language::{OutlineItem, ParseStatus};
 use project::Project;
@@ -22,7 +22,7 @@ pub async fn file_outline(
        let project_path = project.read_with(cx, |project, cx| {
            project
                .find_project_path(&path, cx)
-                .with_context(|| format!("Path {path} not found in project"))
+                .ok_or_else(|| anyhow!("Path {path} not found in project"))
        })??;

        project
@@ -41,9 +41,9 @@ pub async fn file_outline(
    }

    let snapshot = buffer.read_with(cx, |buffer, _| buffer.snapshot())?;
-    let outline = snapshot
-        .outline(None)
-        .context("No outline information available for this file at path {path}")?;
+    let Some(outline) = snapshot.outline(None) else {
+        return Err(anyhow!("No outline information available for this file."));
+    };

    render_outline(
        outline
--- a/crates/assistant_tool/src/tool_schema.rs
+++ b/crates/assistant_tool/src/tool_schema.rs
@@ -27,10 +27,12 @@ fn adapt_to_json_schema_subset(json: &mut Value) -> Result<()> {
        const UNSUPPORTED_KEYS: [&str; 4] = ["if", "then", "else", "$ref"];

        for key in UNSUPPORTED_KEYS {
-            anyhow::ensure!(
-                !obj.contains_key(key),
-                "Schema cannot be made compatible because it contains \"{key}\""
-            );
+            if obj.contains_key(key) {
+                return Err(anyhow::anyhow!(
+                    "Schema cannot be made compatible because it contains \"{}\" ",
+                    key
+                ));
+            }
        }

        const KEYS_TO_REMOVE: [&str; 5] = [
--- a/crates/assistant_tools/Cargo.toml
+++ b/crates/assistant_tools/Cargo.toml
@@ -35,13 +35,13 @@ indoc.workspace = true
 itertools.workspace = true
 language.workspace = true
 language_model.workspace = true
+linkme.workspace = true
 log.workspace = true
 markdown.workspace = true
 open.workspace = true
 paths.workspace = true
 portable-pty.workspace = true
 project.workspace = true
-prompt_store.workspace = true
 regex.workspace = true
 rust-embed.workspace = true
 schemars.workspace = true
--- a/crates/assistant_tools/src/assistant_tools.rs
+++ b/crates/assistant_tools/src/assistant_tools.rs
@@ -40,12 +40,13 @@ use crate::find_path_tool::FindPathTool;
 use crate::grep_tool::GrepTool;
 use crate::list_directory_tool::ListDirectoryTool;
 use crate::now_tool::NowTool;
+use crate::read_file_tool::ReadFileTool;
 use crate::thinking_tool::ThinkingTool;

-pub use edit_file_tool::{EditFileMode, EditFileToolInput};
+pub use edit_file_tool::EditFileToolInput;
 pub use find_path_tool::FindPathToolInput;
 pub use open_tool::OpenTool;
-pub use read_file_tool::{ReadFileTool, ReadFileToolInput};
+pub use read_file_tool::ReadFileToolInput;
 pub use terminal_tool::TerminalTool;

 pub fn init(http_client: Arc<HttpClientWithUrl>, cx: &mut App) {
--- a/crates/assistant_tools/src/copy_path_tool.rs
+++ b/crates/assistant_tools/src/copy_path_tool.rs
@@ -1,5 +1,5 @@
 use crate::schema::json_schema_for;
-use anyhow::{Context as _, Result, anyhow};
+use anyhow::{Result, anyhow};
 use assistant_tool::{ActionLog, Tool, ToolResult};
 use gpui::AnyWindowHandle;
 use gpui::{App, AppContext, Entity, Task};
@@ -107,13 +107,17 @@ impl Tool for CopyPathTool {
        });

        cx.background_spawn(async move {
-            let _ = copy_task.await.with_context(|| {
-                format!(
-                    "Copying {} to {}",
-                    input.source_path, input.destination_path
-                )
-            })?;
-            Ok(format!("Copied {} to {}", input.source_path, input.destination_path).into())
+            match copy_task.await {
+                Ok(_) => Ok(
+                    format!("Copied {} to {}", input.source_path, input.destination_path).into(),
+                ),
+                Err(err) => Err(anyhow!(
+                    "Failed to copy {} to {}: {}",
+                    input.source_path,
+                    input.destination_path,
+                    err
+                )),
+            }
        })
        .into()
    }
--- a/crates/assistant_tools/src/create_directory_tool.rs
+++ b/crates/assistant_tools/src/create_directory_tool.rs
@@ -1,5 +1,5 @@
 use crate::schema::json_schema_for;
-use anyhow::{Context as _, Result, anyhow};
+use anyhow::{Result, anyhow};
 use assistant_tool::{ActionLog, Tool, ToolResult};
 use gpui::AnyWindowHandle;
 use gpui::{App, Entity, Task};
@@ -86,7 +86,7 @@ impl Tool for CreateDirectoryTool {
                    project.create_entry(project_path.clone(), true, cx)
                })?
                .await
-                .with_context(|| format!("Creating directory {destination_path}"))?;
+                .map_err(|err| anyhow!("Unable to create directory {destination_path}: {err}"))?;

            Ok(format!("Created directory {destination_path}").into())
        })
--- a/crates/assistant_tools/src/delete_path_tool.rs
+++ b/crates/assistant_tools/src/delete_path_tool.rs
@@ -1,5 +1,5 @@
 use crate::schema::json_schema_for;
-use anyhow::{Context as _, Result, anyhow};
+use anyhow::{Result, anyhow};
 use assistant_tool::{ActionLog, Tool, ToolResult};
 use futures::{SinkExt, StreamExt, channel::mpsc};
 use gpui::{AnyWindowHandle, App, AppContext, Entity, Task};
@@ -122,17 +122,19 @@ impl Tool for DeletePathTool {
                }
            }

-            let deletion_task = project
-                .update(cx, |project, cx| {
-                    project.delete_file(project_path, false, cx)
-                })?
-                .with_context(|| {
-                    format!("Couldn't delete {path_str} because that path isn't in this project.")
-                })?;
-            deletion_task
-                .await
-                .with_context(|| format!("Deleting {path_str}"))?;
-            Ok(format!("Deleted {path_str}").into())
+            let delete = project.update(cx, |project, cx| {
+                project.delete_file(project_path, false, cx)
+            })?;
+
+            match delete {
+                Some(deletion_task) => match deletion_task.await {
+                    Ok(()) => Ok(format!("Deleted {path_str}").into()),
+                    Err(err) => Err(anyhow!("Failed to delete {path_str}: {err}")),
+                },
+                None => Err(anyhow!(
+                    "Couldn't delete {path_str} because that path isn't in this project."
+                )),
+            }
        })
        .into()
    }
--- a/crates/assistant_tools/src/edit_agent.rs
+++ b/crates/assistant_tools/src/edit_agent.rs
@@ -24,7 +24,6 @@ use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
 use std::{cmp, iter, mem, ops::Range, path::PathBuf, sync::Arc, task::Poll};
 use streaming_diff::{CharOperation, StreamingDiff};
-use util::debug_panic;

 #[derive(Serialize)]
 struct CreateFilePromptTemplate {
@@ -544,11 +543,6 @@ impl EditAgent {
                if last_message.content.is_empty() {
                    conversation.messages.pop();
                }
-            } else {
-                debug_panic!(
-                    "Last message must be an Assistant tool calling! Got {:?}",
-                    last_message.content
-                );
            }
        }

--- a/crates/assistant_tools/src/edit_agent/evals.rs
+++ b/crates/assistant_tools/src/edit_agent/evals.rs
@@ -1,11 +1,7 @@
 use super::*;
-use crate::{
-    ReadFileToolInput,
-    edit_file_tool::{EditFileMode, EditFileToolInput},
-    grep_tool::GrepToolInput,
-    list_directory_tool::ListDirectoryToolInput,
-};
+use crate::{ReadFileToolInput, edit_file_tool::EditFileToolInput, grep_tool::GrepToolInput};
 use Role::*;
+use anyhow::anyhow;
 use assistant_tool::ToolRegistry;
 use client::{Client, UserStore};
 use collections::HashMap;
@@ -14,11 +10,10 @@ use futures::{FutureExt, future::LocalBoxFuture};
 use gpui::{AppContext, TestAppContext};
 use indoc::{formatdoc, indoc};
 use language_model::{
-    LanguageModelRegistry, LanguageModelRequestTool, LanguageModelToolResult,
-    LanguageModelToolResultContent, LanguageModelToolUse, LanguageModelToolUseId, SelectedModel,
+    LanguageModelRegistry, LanguageModelRequestTool, LanguageModelToolResult, LanguageModelToolUse,
+    LanguageModelToolUseId,
 };
 use project::Project;
-use prompt_store::{ModelContext, ProjectContext, PromptBuilder, WorktreeContext};
 use rand::prelude::*;
 use reqwest_client::ReqwestClient;
 use serde_json::json;
@@ -26,7 +21,6 @@ use std::{
    cmp::Reverse,
    fmt::{self, Display},
    io::Write as _,
-    str::FromStr,
    sync::mpsc,
 };
 use util::path;
@@ -41,8 +35,8 @@ fn eval_extract_handle_command_output() {
    eval(
        100,
        0.95,
-        EvalInput::from_conversation(
-            vec![
+        EvalInput {
+            conversation: vec![
                message(
                    User,
                    [text(formatdoc! {"
@@ -77,14 +71,16 @@ fn eval_extract_handle_command_output() {
                        EditFileToolInput {
                            display_description: edit_description.into(),
                            path: input_file_path.into(),
-                            mode: EditFileMode::Edit,
+                            create_or_overwrite: false,
                        },
                    )],
                ),
            ],
-            Some(input_file_content.into()),
-            EvalAssertion::assert_eq(output_file_content),
-        ),
+            input_path: input_file_path.into(),
+            input_content: Some(input_file_content.into()),
+            edit_description: edit_description.into(),
+            assertion: EvalAssertion::assert_eq(output_file_content),
+        },
    );
 }

@@ -98,8 +94,8 @@ fn eval_delete_run_git_blame() {
    eval(
        100,
        0.95,
-        EvalInput::from_conversation(
-            vec![
+        EvalInput {
+            conversation: vec![
                message(
                    User,
                    [text(formatdoc! {"
@@ -131,14 +127,16 @@ fn eval_delete_run_git_blame() {
                        EditFileToolInput {
                            display_description: edit_description.into(),
                            path: input_file_path.into(),
-                            mode: EditFileMode::Edit,
+                            create_or_overwrite: false,
                        },
                    )],
                ),
            ],
-            Some(input_file_content.into()),
-            EvalAssertion::assert_eq(output_file_content),
-        ),
+            input_path: input_file_path.into(),
+            input_content: Some(input_file_content.into()),
+            edit_description: edit_description.into(),
+            assertion: EvalAssertion::assert_eq(output_file_content),
+        },
    );
 }

@@ -151,8 +149,8 @@ fn eval_translate_doc_comments() {
    eval(
        200,
        1.,
-        EvalInput::from_conversation(
-            vec![
+        EvalInput {
+            conversation: vec![
                message(
                    User,
                    [text(formatdoc! {"
@@ -184,14 +182,16 @@ fn eval_translate_doc_comments() {
                        EditFileToolInput {
                            display_description: edit_description.into(),
                            path: input_file_path.into(),
-                            mode: EditFileMode::Edit,
+                            create_or_overwrite: false,
                        },
                    )],
                ),
            ],
-            Some(input_file_content.into()),
-            EvalAssertion::judge_diff("Doc comments were translated to Italian"),
-        ),
+            input_path: input_file_path.into(),
+            input_content: Some(input_file_content.into()),
+            edit_description: edit_description.into(),
+            assertion: EvalAssertion::judge_diff("Doc comments were translated to Italian"),
+        },
    );
 }

@@ -205,8 +205,8 @@ fn eval_use_wasi_sdk_in_compile_parser_to_wasm() {
    eval(
        100,
        0.95,
-        EvalInput::from_conversation(
-            vec![
+        EvalInput {
+            conversation: vec![
                message(
                    User,
                    [text(formatdoc! {"
@@ -297,17 +297,19 @@ fn eval_use_wasi_sdk_in_compile_parser_to_wasm() {
                        EditFileToolInput {
                            display_description: edit_description.into(),
                            path: input_file_path.into(),
-                            mode: EditFileMode::Edit,
+                            create_or_overwrite: false,
                        },
                    )],
                ),
            ],
-            Some(input_file_content.into()),
-            EvalAssertion::judge_diff(indoc! {"
+            input_path: input_file_path.into(),
+            input_content: Some(input_file_content.into()),
+            edit_description: edit_description.into(),
+            assertion: EvalAssertion::judge_diff(indoc! {"
                - The compile_parser_to_wasm method has been changed to use wasi-sdk
                - ureq is used to download the SDK for current platform and architecture
            "}),
-        ),
+        },
    );
 }

@@ -318,10 +320,10 @@ fn eval_disable_cursor_blinking() {
    let input_file_content = include_str!("evals/fixtures/disable_cursor_blinking/before.rs");
    let edit_description = "Comment out the call to `BlinkManager::enable`";
    eval(
-        100,
+        200,
        0.95,
-        EvalInput::from_conversation(
-            vec![
+        EvalInput {
+            conversation: vec![
                message(User, [text("Let's research how to cursor blinking works.")]),
                message(
                    Assistant,
@@ -370,18 +372,20 @@ fn eval_disable_cursor_blinking() {
                        EditFileToolInput {
                            display_description: edit_description.into(),
                            path: input_file_path.into(),
-                            mode: EditFileMode::Edit,
+                            create_or_overwrite: false,
                        },
                    )],
                ),
            ],
-            Some(input_file_content.into()),
-            EvalAssertion::judge_diff(indoc! {"
+            input_path: input_file_path.into(),
+            input_content: Some(input_file_content.into()),
+            edit_description: edit_description.into(),
+            assertion: EvalAssertion::judge_diff(indoc! {"
                - Calls to BlinkManager in `observe_window_activation` were commented out
                - The call to `blink_manager.enable` above the call to show_cursor_names was commented out
                - All the edits have valid indentation
            "}),
-        ),
+        },
    );
 }

@@ -394,8 +398,8 @@ fn eval_from_pixels_constructor() {
    eval(
        100,
        0.95,
-        EvalInput::from_conversation(
-            vec![
+        EvalInput {
+            conversation: vec![
                message(
                    User,
                    [text(indoc! {"
@@ -562,17 +566,19 @@ fn eval_from_pixels_constructor() {
                        EditFileToolInput {
                            display_description: edit_description.into(),
                            path: input_file_path.into(),
-                            mode: EditFileMode::Edit,
+                            create_or_overwrite: false,
                        },
                    )],
                ),
            ],
-            Some(input_file_content.into()),
-            EvalAssertion::judge_diff(indoc! {"
-                    - The diff contains a new `from_pixels` constructor
-                    - The diff contains new tests for the `from_pixels` constructor
-                "}),
-        ),
+            input_path: input_file_path.into(),
+            input_content: Some(input_file_content.into()),
+            edit_description: edit_description.into(),
+            assertion: EvalAssertion::judge_diff(indoc! {"
+                - The diff contains a new `from_pixels` constructor
+                - The diff contains new tests for the `from_pixels` constructor
+            "}),
+        },
    );
 }

@@ -580,13 +586,12 @@ fn eval_from_pixels_constructor() {
 #[cfg_attr(not(feature = "eval"), ignore)]
 fn eval_zode() {
    let input_file_path = "root/zode.py";
-    let input_content = None;
    let edit_description = "Create the main Zode CLI script";
    eval(
        200,
        1.,
-        EvalInput::from_conversation(
-            vec![
+        EvalInput {
+            conversation: vec![
                message(User, [text(include_str!("evals/fixtures/zode/prompt.md"))]),
                message(
                    Assistant,
@@ -638,14 +643,16 @@ fn eval_zode() {
                            EditFileToolInput {
                                display_description: edit_description.into(),
                                path: input_file_path.into(),
-                                mode: EditFileMode::Create,
+                                create_or_overwrite: true,
                            },
                        ),
                    ],
                ),
            ],
-            input_content,
-            EvalAssertion::new(async move |sample, _, _cx| {
+            input_path: input_file_path.into(),
+            input_content: None,
+            edit_description: edit_description.into(),
+            assertion: EvalAssertion::new(async move |sample, _, _cx| {
                let invalid_starts = [' ', '`', '\n'];
                let mut message = String::new();
                for start in invalid_starts {
@@ -669,7 +676,7 @@ fn eval_zode() {
                    })
                }
            }),
-        ),
+        },
    );
 }

@@ -682,8 +689,8 @@ fn eval_add_overwrite_test() {
    eval(
        200,
        0.5, // TODO: make this eval better
-        EvalInput::from_conversation(
-            vec![
+        EvalInput {
+            conversation: vec![
                message(
                    User,
                    [text(indoc! {"
@@ -881,99 +888,19 @@ fn eval_add_overwrite_test() {
                            EditFileToolInput {
                                display_description: edit_description.into(),
                                path: input_file_path.into(),
-                                mode: EditFileMode::Edit,
+                                create_or_overwrite: false,
                            },
                        ),
                    ],
                ),
            ],
-            Some(input_file_content.into()),
-            EvalAssertion::judge_diff(
+            input_path: input_file_path.into(),
+            input_content: Some(input_file_content.into()),
+            edit_description: edit_description.into(),
+            assertion: EvalAssertion::judge_diff(
                "A new test for overwritten files was created, without changing any previous test",
            ),
-        ),
-    );
-}
-
-#[test]
-#[cfg_attr(not(feature = "eval"), ignore)]
-fn eval_create_empty_file() {
-    // Check that Edit Agent can create a file without writing its
-    // thoughts into it. This issue is not specific to empty files, but
-    // it's easier to reproduce with them.
-    //
-    //
-    //  Model                          | Pass rate
-    // ============================================
-    //
-    // --------------------------------------------
-    //           Prompt version: 2025-05-21
-    // --------------------------------------------
-    //
-    //  claude-3.7-sonnet              |  1.00
-    //  gemini-2.5-pro-preview-03-25   |  1.00
-    //  gemini-2.5-flash-preview-04-17 |  1.00
-    //  gpt-4.1                        |  1.00
-    //
-    //
-    // TODO: gpt-4.1-mini errored 38 times:
-    // "data did not match any variant of untagged enum ResponseStreamResult"
-    //
-    let input_file_content = None;
-    let expected_output_content = String::new();
-    eval(
-        100,
-        0.99,
-        EvalInput::from_conversation(
-            vec![
-                message(User, [text("Create a second empty todo file ")]),
-                message(
-                    Assistant,
-                    [
-                        text(formatdoc! {"
-                        I'll help you create a second empty todo file.
-                        First, let me examine the project structure to see if there's already a todo file, which will help me determine the appropriate name and location for the second one.
-                        "}),
-                        tool_use(
-                            "toolu_01GAF8TtsgpjKxCr8fgQLDgR",
-                            "list_directory",
-                            ListDirectoryToolInput {
-                                path: "root".to_string(),
-                            },
-                        ),
-                    ],
-                ),
-                message(
-                    User,
-                    [tool_result(
-                        "toolu_01GAF8TtsgpjKxCr8fgQLDgR",
-                        "list_directory",
-                        "root/TODO\nroot/TODO2\nroot/new.txt\n",
-                    )],
-                ),
-                message(
-                    Assistant,
-                    [
-                        text(formatdoc! {"
-                        I can see there's already a `TODO` file in the `root` directory. Let me create a second empty todo file called `TODO3` in the same directory:
-                    "}),
-                        tool_use(
-                            "toolu_01Tb3iQ9griqSYMmVuykQPWU",
-                            "edit_file",
-                            EditFileToolInput {
-                                display_description: "Create empty TODO3 file".to_string(),
-                                mode: EditFileMode::Create,
-                                path: "root/TODO3".into(),
-                            },
-                        ),
-                    ],
-                ),
-            ],
-            input_file_content,
-            // Bad behavior is to write something like
-            // "I'll create an empty TODO3 file as requested."
-            EvalAssertion::assert_eq(expected_output_content),
-        ),
+        },
    );
 }

@@ -1024,7 +951,7 @@ fn tool_result(
        tool_use_id: LanguageModelToolUseId::from(id.into()),
        tool_name: name.into(),
        is_error: false,
-        content: LanguageModelToolResultContent::Text(result.into()),
+        content: result.into(),
        output: None,
    })
 }
@@ -1032,46 +959,12 @@ fn tool_result(
 #[derive(Clone)]
 struct EvalInput {
    conversation: Vec<LanguageModelRequestMessage>,
-    edit_file_input: EditFileToolInput,
+    input_path: PathBuf,
    input_content: Option<String>,
+    edit_description: String,
    assertion: EvalAssertion,
 }

-impl EvalInput {
-    fn from_conversation(
-        conversation: Vec<LanguageModelRequestMessage>,
-        input_content: Option<String>,
-        assertion: EvalAssertion,
-    ) -> Self {
-        let msg = conversation.last().expect("Conversation must not be empty");
-        if msg.role != Role::Assistant {
-            panic!("Conversation must end with an assistant message");
-        }
-        let tool_use = msg
-            .content
-            .iter()
-            .flat_map(|content| match content {
-                MessageContent::ToolUse(tool_use) if tool_use.name == "edit_file".into() => {
-                    Some(tool_use)
-                }
-                _ => None,
-            })
-            .next()
-            .expect("Conversation must end with an edit_file tool use")
-            .clone();
-
-        let edit_file_input: EditFileToolInput =
-            serde_json::from_value(tool_use.input.clone()).unwrap();
-
-        EvalInput {
-            conversation,
-            edit_file_input,
-            input_content,
-            assertion,
-        }
-    }
-}
-
 #[derive(Clone)]
 struct EvalSample {
    text: String,
@@ -1179,7 +1072,10 @@ impl EvalAssertion {
                }
            }

-            anyhow::bail!("No score found in response. Raw output: {output}");
+            Err(anyhow!(
+                "No score found in response. Raw output: {}",
+                output
+            ))
        })
    }

@@ -1316,7 +1212,7 @@ fn report_progress(evaluated_count: usize, failed_count: usize, iterations: usiz
        passed_count as f64 / evaluated_count as f64
    };
    print!(
-        "\r\x1b[KEvaluated {}/{} ({:.2}% passed)",
+        "\r\x1b[KEvaluated {}/{} ({:.2}%)",
        evaluated_count,
        iterations,
        passed_ratio * 100.0
@@ -1355,21 +1251,13 @@ impl EditAgentTest {

        fs.insert_tree("/root", json!({})).await;
        let project = Project::test(fs.clone(), [path!("/root").as_ref()], cx).await;
-        let agent_model = SelectedModel::from_str(
-            &std::env::var("ZED_AGENT_MODEL")
-                .unwrap_or("anthropic/claude-3-7-sonnet-latest".into()),
-        )
-        .unwrap();
-        let judge_model = SelectedModel::from_str(
-            &std::env::var("ZED_JUDGE_MODEL")
-                .unwrap_or("anthropic/claude-3-7-sonnet-latest".into()),
-        )
-        .unwrap();
        let (agent_model, judge_model) = cx
            .update(|cx| {
                cx.spawn(async move |cx| {
-                    let agent_model = Self::load_model(&agent_model, cx).await;
-                    let judge_model = Self::load_model(&judge_model, cx).await;
+                    let agent_model =
+                        Self::load_model("anthropic", "claude-3-7-sonnet-latest", cx).await;
+                    let judge_model =
+                        Self::load_model("anthropic", "claude-3-7-sonnet-latest", cx).await;
                    (agent_model.unwrap(), judge_model.unwrap())
                })
            })
@@ -1384,17 +1272,15 @@ impl EditAgentTest {
    }

    async fn load_model(
-        selected_model: &SelectedModel,
+        provider: &str,
+        id: &str,
        cx: &mut AsyncApp,
    ) -> Result<Arc<dyn LanguageModel>> {
        let (provider, model) = cx.update(|cx| {
            let models = LanguageModelRegistry::read_global(cx);
            let model = models
                .available_models(cx)
-                .find(|model| {
-                    model.provider_id() == selected_model.provider
-                        && model.id() == selected_model.model
-                })
+                .find(|model| model.provider_id().0 == provider && model.id().0 == id)
                .unwrap();
            let provider = models.provider(&model.provider_id()).unwrap();
            (provider, model)
@@ -1407,7 +1293,7 @@ impl EditAgentTest {
        let path = self
            .project
            .read_with(cx, |project, cx| {
-                project.find_project_path(eval.edit_file_input.path, cx)
+                project.find_project_path(eval.input_path, cx)
            })
            .unwrap();
        let buffer = self
@@ -1415,68 +1301,31 @@ impl EditAgentTest {
            .update(cx, |project, cx| project.open_buffer(path, cx))
            .await
            .unwrap();
-        let tools = cx.update(|cx| {
-            ToolRegistry::default_global(cx)
-                .tools()
-                .into_iter()
-                .filter_map(|tool| {
-                    let input_schema = tool
-                        .input_schema(self.agent.model.tool_input_format())
-                        .ok()?;
-                    Some(LanguageModelRequestTool {
-                        name: tool.name(),
-                        description: tool.description(),
-                        input_schema,
-                    })
-                })
-                .collect::<Vec<_>>()
-        });
-        let tool_names = tools
-            .iter()
-            .map(|tool| tool.name.clone())
-            .collect::<Vec<_>>();
-        let worktrees = vec![WorktreeContext {
-            root_name: "root".to_string(),
-            rules_file: None,
-        }];
-        let prompt_builder = PromptBuilder::new(None)?;
-        let project_context = ProjectContext::new(worktrees, Vec::default());
-        let system_prompt = prompt_builder.generate_assistant_system_prompt(
-            &project_context,
-            &ModelContext {
-                available_tools: tool_names,
-            },
-        )?;
-
-        let has_system_prompt = eval
-            .conversation
-            .first()
-            .map_or(false, |msg| msg.role == Role::System);
-        let messages = if has_system_prompt {
-            eval.conversation
-        } else {
-            [LanguageModelRequestMessage {
-                role: Role::System,
-                content: vec![MessageContent::Text(system_prompt)],
-                cache: true,
-            }]
-            .into_iter()
-            .chain(eval.conversation)
-            .collect::<Vec<_>>()
-        };
-
        let conversation = LanguageModelRequest {
-            messages,
-            tools,
+            messages: eval.conversation,
+            tools: cx.update(|cx| {
+                ToolRegistry::default_global(cx)
+                    .tools()
+                    .into_iter()
+                    .filter_map(|tool| {
+                        let input_schema = tool
+                            .input_schema(self.agent.model.tool_input_format())
+                            .ok()?;
+                        Some(LanguageModelRequestTool {
+                            name: tool.name(),
+                            description: tool.description(),
+                            input_schema,
+                        })
+                    })
+                    .collect()
+            }),
            ..Default::default()
        };
-        let edit_output = if matches!(eval.edit_file_input.mode, EditFileMode::Edit) {
-            if let Some(input_content) = eval.input_content.as_deref() {
-                buffer.update(cx, |buffer, cx| buffer.set_text(input_content, cx));
-            }
+        let edit_output = if let Some(input_content) = eval.input_content.as_deref() {
+            buffer.update(cx, |buffer, cx| buffer.set_text(input_content, cx));
            let (edit_output, _) = self.agent.edit(
                buffer.clone(),
-                eval.edit_file_input.display_description,
+                eval.edit_description,
                &conversation,
                &mut cx.to_async(),
            );
@@ -1484,7 +1333,7 @@ impl EditAgentTest {
        } else {
            let (edit_output, _) = self.agent.overwrite(
                buffer.clone(),
-                eval.edit_file_input.display_description,
+                eval.edit_description,
                &conversation,
                &mut cx.to_async(),
            );
--- a/crates/assistant_tools/src/edit_agent/evals/fixtures/delete_run_git_blame/after.rs
+++ b/crates/assistant_tools/src/edit_agent/evals/fixtures/delete_run_git_blame/after.rs
@@ -98,21 +98,21 @@ impl BlameEntry {
        let sha = parts
            .next()
            .and_then(|line| line.parse::<Oid>().ok())
-            .with_context(|| format!("parsing sha from {line}"))?;
+            .ok_or_else(|| anyhow!("failed to parse sha"))?;

        let original_line_number = parts
            .next()
            .and_then(|line| line.parse::<u32>().ok())
-            .with_context(|| format!("parsing original line number from {line}"))?;
+            .ok_or_else(|| anyhow!("Failed to parse original line number"))?;
        let final_line_number = parts
            .next()
            .and_then(|line| line.parse::<u32>().ok())
-            .with_context(|| format!("parsing final line number from {line}"))?;
+            .ok_or_else(|| anyhow!("Failed to parse final line number"))?;

        let line_count = parts
            .next()
            .and_then(|line| line.parse::<u32>().ok())
-            .with_context(|| format!("parsing line count from {line}"))?;
+            .ok_or_else(|| anyhow!("Failed to parse final line number"))?;

        let start_line = final_line_number.saturating_sub(1);
        let end_line = start_line + line_count;
--- a/crates/assistant_tools/src/edit_agent/evals/fixtures/delete_run_git_blame/before.rs
+++ b/crates/assistant_tools/src/edit_agent/evals/fixtures/delete_run_git_blame/before.rs
@@ -80,7 +80,7 @@ async fn run_git_blame(
        .stdout(Stdio::piped())
        .stderr(Stdio::piped())
        .spawn()
-        .context("starting git blame process")?;
+        .map_err(|e| anyhow!("Failed to start git blame process: {}", e))?;

    let stdin = child
        .stdin
@@ -92,7 +92,10 @@ async fn run_git_blame(
    }
    stdin.flush().await?;

-    let output = child.output().await.context("reading git blame output")?;
+    let output = child
+        .output()
+        .await
+        .map_err(|e| anyhow!("Failed to read git blame output: {}", e))?;

    if !output.status.success() {
        let stderr = String::from_utf8_lossy(&output.stderr);
@@ -100,7 +103,7 @@ async fn run_git_blame(
        if trimmed == GIT_BLAME_NO_COMMIT_ERROR || trimmed.contains(GIT_BLAME_NO_PATH) {
            return Ok(String::new());
        }
-        anyhow::bail!("git blame process failed: {stderr}");
+        return Err(anyhow!("git blame process failed: {}", stderr));
    }

    Ok(String::from_utf8(output.stdout)?)
@@ -141,21 +144,21 @@ impl BlameEntry {
        let sha = parts
            .next()
            .and_then(|line| line.parse::<Oid>().ok())
-            .with_context(|| format!("parsing sha from {line}"))?;
+            .ok_or_else(|| anyhow!("failed to parse sha"))?;

        let original_line_number = parts
            .next()
            .and_then(|line| line.parse::<u32>().ok())
-            .with_context(|| format!("parsing original line number from {line}"))?;
+            .ok_or_else(|| anyhow!("Failed to parse original line number"))?;
        let final_line_number = parts
            .next()
            .and_then(|line| line.parse::<u32>().ok())
-            .with_context(|| format!("parsing final line number from {line}"))?;
+            .ok_or_else(|| anyhow!("Failed to parse final line number"))?;

        let line_count = parts
            .next()
            .and_then(|line| line.parse::<u32>().ok())
-            .with_context(|| format!("parsing line count from {line}"))?;
+            .ok_or_else(|| anyhow!("Failed to parse final line number"))?;

        let start_line = final_line_number.saturating_sub(1);
        let end_line = start_line + line_count;
--- a/crates/assistant_tools/src/edit_agent/evals/fixtures/disable_cursor_blinking/before.rs
+++ b/crates/assistant_tools/src/edit_agent/evals/fixtures/disable_cursor_blinking/before.rs
@@ -1249,7 +1249,7 @@ pub struct ActiveDiagnosticGroup {
 }

 #[derive(Debug, PartialEq, Eq)]
-
+#[allow(clippy::large_enum_variant)]
 pub(crate) enum ActiveDiagnostic {
    None,
    All,
@@ -5272,7 +5272,7 @@ impl Editor {
                task.await?;
            }

-            anyhow::Ok(())
+            Ok::<_, anyhow::Error>(())
        })
        .detach_and_log_err(cx);
    }
@@ -10369,8 +10369,8 @@ impl Editor {
                .map(|line| {
                    line.strip_prefix(&line_prefix)
                        .or_else(|| line.trim_start().strip_prefix(&line_prefix.trim_start()))
-                        .with_context(|| {
-                            format!("line did not start with prefix {line_prefix:?}: {line:?}")
+                        .ok_or_else(|| {
+                            anyhow!("line did not start with prefix {line_prefix:?}: {line:?}")
                        })
                })
                .collect::<Result<Vec<_>, _>>()
@@ -16944,7 +16944,7 @@ impl Editor {
            Err(err) => {
                let message = format!("Failed to copy permalink: {err}");

-                anyhow::Result::<()>::Err(err).log_err();
+                Err::<(), anyhow::Error>(err).log_err();

                if let Some(workspace) = workspace {
                    workspace
@@ -16999,7 +16999,7 @@ impl Editor {
            Err(err) => {
                let message = format!("Failed to open permalink: {err}");

-                anyhow::Result::<()>::Err(err).log_err();
+                Err::<(), anyhow::Error>(err).log_err();

                if let Some(workspace) = workspace {
                    workspace
--- a/crates/assistant_tools/src/edit_agent/evals/fixtures/extract_handle_command_output/after.rs
+++ b/crates/assistant_tools/src/edit_agent/evals/fixtures/extract_handle_command_output/after.rs
@@ -80,7 +80,7 @@ async fn run_git_blame(
        .stdout(Stdio::piped())
        .stderr(Stdio::piped())
        .spawn()
-        .context("starting git blame process")?;
+        .map_err(|e| anyhow!("Failed to start git blame process: {}", e))?;

    let stdin = child
        .stdin
@@ -92,7 +92,10 @@ async fn run_git_blame(
    }
    stdin.flush().await?;

-    let output = child.output().await.context("reading git blame output")?;
+    let output = child
+        .output()
+        .await
+        .map_err(|e| anyhow!("Failed to read git blame output: {}", e))?;

    handle_command_output(output)
 }
@@ -104,7 +107,7 @@ fn handle_command_output(output: std::process::Output) -> Result<String> {
        if trimmed == GIT_BLAME_NO_COMMIT_ERROR || trimmed.contains(GIT_BLAME_NO_PATH) {
            return Ok(String::new());
        }
-        anyhow::bail!("git blame process failed: {stderr}");
+        return Err(anyhow!("git blame process failed: {}", stderr));
    }

    Ok(String::from_utf8(output.stdout)?)
@@ -145,21 +148,21 @@ impl BlameEntry {
        let sha = parts
            .next()
            .and_then(|line| line.parse::<Oid>().ok())
-            .with_context(|| format!("parsing sha from {line}"))?;
+            .ok_or_else(|| anyhow!("failed to parse sha"))?;

        let original_line_number = parts
            .next()
            .and_then(|line| line.parse::<u32>().ok())
-            .with_context(|| format!("parsing original line number from {line}"))?;
+            .ok_or_else(|| anyhow!("Failed to parse original line number"))?;
        let final_line_number = parts
            .next()
            .and_then(|line| line.parse::<u32>().ok())
-            .with_context(|| format!("parsing final line number from {line}"))?;
+            .ok_or_else(|| anyhow!("Failed to parse final line number"))?;

        let line_count = parts
            .next()
            .and_then(|line| line.parse::<u32>().ok())
-            .with_context(|| format!("parsing line count from {line}"))?;
+            .ok_or_else(|| anyhow!("Failed to parse final line number"))?;

        let start_line = final_line_number.saturating_sub(1);
        let end_line = start_line + line_count;
--- a/crates/assistant_tools/src/edit_agent/evals/fixtures/extract_handle_command_output/before.rs
+++ b/crates/assistant_tools/src/edit_agent/evals/fixtures/extract_handle_command_output/before.rs
@@ -80,7 +80,7 @@ async fn run_git_blame(
        .stdout(Stdio::piped())
        .stderr(Stdio::piped())
        .spawn()
-        .context("starting git blame process")?;
+        .map_err(|e| anyhow!("Failed to start git blame process: {}", e))?;

    let stdin = child
        .stdin
@@ -92,7 +92,10 @@ async fn run_git_blame(
    }
    stdin.flush().await?;

-    let output = child.output().await.context("reading git blame output")?;
+    let output = child
+        .output()
+        .await
+        .map_err(|e| anyhow!("Failed to read git blame output: {}", e))?;

    if !output.status.success() {
        let stderr = String::from_utf8_lossy(&output.stderr);
@@ -100,7 +103,7 @@ async fn run_git_blame(
        if trimmed == GIT_BLAME_NO_COMMIT_ERROR || trimmed.contains(GIT_BLAME_NO_PATH) {
            return Ok(String::new());
        }
-        anyhow::bail!("git blame process failed: {stderr}");
+        return Err(anyhow!("git blame process failed: {}", stderr));
    }

    Ok(String::from_utf8(output.stdout)?)
@@ -141,21 +144,21 @@ impl BlameEntry {
        let sha = parts
            .next()
            .and_then(|line| line.parse::<Oid>().ok())
-            .with_context(|| format!("parsing sha from {line}"))?;
+            .ok_or_else(|| anyhow!("failed to parse sha"))?;

        let original_line_number = parts
            .next()
            .and_then(|line| line.parse::<u32>().ok())
-            .with_context(|| format!("parsing original line number from {line}"))?;
+            .ok_or_else(|| anyhow!("Failed to parse original line number"))?;
        let final_line_number = parts
            .next()
            .and_then(|line| line.parse::<u32>().ok())
-            .with_context(|| format!("parsing final line number from {line}"))?;
+            .ok_or_else(|| anyhow!("Failed to parse final line number"))?;

        let line_count = parts
            .next()
            .and_then(|line| line.parse::<u32>().ok())
-            .with_context(|| format!("parsing line count from {line}"))?;
+            .ok_or_else(|| anyhow!("Failed to parse final line number"))?;

        let start_line = final_line_number.saturating_sub(1);
        let end_line = start_line + line_count;
--- a/crates/assistant_tools/src/edit_agent/evals/fixtures/use_wasi_sdk_in_compile_parser_to_wasm/before.rs
+++ b/crates/assistant_tools/src/edit_agent/evals/fixtures/use_wasi_sdk_in_compile_parser_to_wasm/before.rs
@@ -20,7 +20,7 @@ use std::{

 #[cfg(any(feature = "tree-sitter-highlight", feature = "tree-sitter-tags"))]
 use anyhow::Error;
-use anyhow::{Context as _, Result, anyhow};
+use anyhow::{Context, Result, anyhow};
 use etcetera::BaseStrategy as _;
 use fs4::fs_std::FileExt;
 use indoc::indoc;
@@ -875,13 +875,16 @@ impl Loader {

        FileExt::unlock(lock_file)?;
        fs::remove_file(lock_path)?;
-        anyhow::ensure!(
-            output.status.success(),
-            "Parser compilation failed.\nStdout: {}\nStderr: {}",
-            String::from_utf8_lossy(&output.stdout),
-            String::from_utf8_lossy(&output.stderr)
-        );
-        Ok(())
+
+        if output.status.success() {
+            Ok(())
+        } else {
+            Err(anyhow!(
+                "Parser compilation failed.\nStdout: {}\nStderr: {}",
+                String::from_utf8_lossy(&output.stdout),
+                String::from_utf8_lossy(&output.stderr)
+            ))
+        }
    }

    #[cfg(unix)]
@@ -938,13 +941,17 @@ impl Loader {
                        .map(|f| format!("  `{f}`"))
                        .collect::<Vec<_>>()
                        .join("\n");
-                    anyhow::bail!(format!(indoc! {"
-                        Missing required functions in the external scanner, parsing won't work without these!

-                        {missing}
+                    return Err(anyhow!(format!(
+                        indoc! {"
+                            Missing required functions in the external scanner, parsing won't work without these!

-                        You can read more about this at https://tree-sitter.github.io/tree-sitter/creating-parsers/4-external-scanners
-                    "}));
+                            {}
+
+                            You can read more about this at https://tree-sitter.github.io/tree-sitter/creating-parsers/4-external-scanners
+                        "},
+                        missing,
+                    )));
                }
            }
        }
@@ -1001,9 +1008,9 @@ impl Loader {
        {
            EmccSource::Podman
        } else {
-            anyhow::bail!(
+            return Err(anyhow!(
                "You must have either emcc, docker, or podman on your PATH to run this command"
-            );
+            ));
        };

        let mut command = match source {
@@ -1096,11 +1103,12 @@ impl Loader {
            .spawn()
            .with_context(|| "Failed to run emcc command")?
            .wait()?;
-        anyhow::ensure!(status.success(), "emcc command failed");
-        let source_path = src_path.join(output_name);
-        fs::rename(&source_path, &output_path).with_context(|| {
-            format!("failed to rename wasm output file from {source_path:?} to {output_path:?}")
-        })?;
+        if !status.success() {
+            return Err(anyhow!("emcc command failed"));
+        }
+
+        fs::rename(src_path.join(output_name), output_path)
+            .context("failed to rename wasm output file")?;

        Ok(())
    }
@@ -1177,8 +1185,11 @@ impl Loader {
                                    .map(|path| {
                                       let path = parser_path.join(path);
                                        // prevent p being above/outside of parser_path
-                                        anyhow::ensure!(path.starts_with(parser_path), "External file path {path:?} is outside of parser directory {parser_path:?}");
-                                        Ok(path)
+                                        if path.starts_with(parser_path) {
+                                            Ok(path)
+                                        } else {
+                                            Err(anyhow!("External file path {path:?} is outside of parser directory {parser_path:?}"))
+                                        }
                                    })
                                    .collect::<Result<Vec<_>>>()
                            }).transpose()?,
@@ -1313,8 +1324,11 @@ impl Loader {
        let name = GRAMMAR_NAME_REGEX
            .captures(&first_three_lines)
            .and_then(|c| c.get(1))
-            .with_context(|| {
-                format!("Failed to parse the language name from grammar.json at {grammar_path:?}")
+            .ok_or_else(|| {
+                anyhow!(
+                    "Failed to parse the language name from grammar.json at {}",
+                    grammar_path.display()
+                )
            })?;

        Ok(name.as_str().to_string())
@@ -1333,7 +1347,7 @@ impl Loader {
            {
                Ok(config.0)
            } else {
-                anyhow::bail!("Unknown scope '{scope}'")
+                Err(anyhow!("Unknown scope '{scope}'"))
            }
        } else if let Some((lang, _)) = self
            .language_configuration_for_file_name(path)
@@ -1357,7 +1371,7 @@ impl Loader {
        } else if let Some(lang) = self.language_configuration_for_first_line_regex(path)? {
            Ok(lang.0)
        } else {
-            anyhow::bail!("No language found");
+            Err(anyhow!("No language found"))
        }
    }

--- a/crates/assistant_tools/src/edit_file_tool.rs
+++ b/crates/assistant_tools/src/edit_file_tool.rs
@@ -3,10 +3,9 @@ use crate::{
    edit_agent::{EditAgent, EditAgentOutput, EditAgentOutputEvent},
    schema::json_schema_for,
 };
-use anyhow::{Context as _, Result, anyhow};
+use anyhow::{Result, anyhow};
 use assistant_tool::{
-    ActionLog, AnyToolCard, Tool, ToolCard, ToolResult, ToolResultContent, ToolResultOutput,
-    ToolUseStatus,
+    ActionLog, AnyToolCard, Tool, ToolCard, ToolResult, ToolResultOutput, ToolUseStatus,
 };
 use buffer_diff::{BufferDiff, BufferDiffSnapshot};
 use editor::{Editor, EditorMode, MultiBuffer, PathKey};
@@ -22,7 +21,7 @@ use language::{
 };
 use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
 use markdown::{Markdown, MarkdownElement, MarkdownStyle};
-use project::{Project, ProjectPath};
+use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
 use settings::Settings;
@@ -38,7 +37,7 @@ use workspace::Workspace;

 pub struct EditFileTool;

-#[derive(Clone, Debug, Serialize, Deserialize, JsonSchema)]
+#[derive(Debug, Serialize, Deserialize, JsonSchema)]
 pub struct EditFileToolInput {
    /// A one-line, user-friendly markdown description of the edit. This will be
    /// shown in the UI and also passed to another model to perform the edit.
@@ -76,22 +75,12 @@ pub struct EditFileToolInput {
    /// </example>
    pub path: PathBuf,

-    /// The mode of operation on the file. Possible values:
-    /// - 'edit': Make granular edits to an existing file.
-    /// - 'create': Create a new file if it doesn't exist.
-    /// - 'overwrite': Replace the entire contents of an existing file.
+    /// If true, this tool will recreate the file from scratch.
+    /// If false, this tool will produce granular edits to an existing file.
    ///
-    /// When a file already exists or you just created it, prefer editing
+    /// When a file already exists or you just created it, always prefer editing
    /// it as opposed to recreating it from scratch.
-    pub mode: EditFileMode,
-}
-
-#[derive(Clone, Debug, Serialize, Deserialize, JsonSchema)]
-#[serde(rename_all = "lowercase")]
-pub enum EditFileMode {
-    Edit,
-    Create,
-    Overwrite,
+    pub create_or_overwrite: bool,
 }

 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
@@ -171,9 +160,12 @@ impl Tool for EditFileTool {
            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
        };

-        let project_path = match resolve_path(&input, project.clone(), cx) {
-            Ok(path) => path,
-            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.display()
+            )))
+            .into();
        };

        let card = window.and_then(|window| {
@@ -196,6 +188,16 @@ impl Tool for EditFileTool {
                })?
                .await?;

+            let exists = buffer.read_with(cx, |buffer, _| {
+                buffer
+                    .file()
+                    .as_ref()
+                    .map_or(false, |file| file.disk_state().exists())
+            })?;
+            if !input.create_or_overwrite && !exists {
+                return Err(anyhow!("{} not found", input.path.display()));
+            }
+
            let old_snapshot = buffer.read_with(cx, |buffer, _cx| buffer.snapshot())?;
            let old_text = cx
                .background_spawn({
@@ -204,15 +206,15 @@ impl Tool for EditFileTool {
                })
                .await;

-            let (output, mut events) = if matches!(input.mode, EditFileMode::Edit) {
-                edit_agent.edit(
+            let (output, mut events) = if input.create_or_overwrite {
+                edit_agent.overwrite(
                    buffer.clone(),
                    input.display_description.clone(),
                    &request,
                    cx,
                )
            } else {
-                edit_agent.overwrite(
+                edit_agent.edit(
                    buffer.clone(),
                    input.display_description.clone(),
                    &request,
@@ -279,21 +281,18 @@ impl Tool for EditFileTool {

            let input_path = input.path.display();
            if diff.is_empty() {
-                anyhow::ensure!(
-                    !hallucinated_old_text,
-                    formatdoc! {"
-                    Some edits were produced but none of them could be applied.
-                    Read the relevant sections of {input_path} again so that
-                    I can perform the requested edits.
-                "}
-                );
-                Ok("No edits were made.".to_string().into())
+                if hallucinated_old_text {
+                    Err(anyhow!(formatdoc! {"
+                        Some edits were produced but none of them could be applied.
+                        Read the relevant sections of {input_path} again so that
+                        I can perform the requested edits.
+                    "}))
+                } else {
+                    Ok("No edits were made.".to_string().into())
+                }
            } else {
                Ok(ToolResultOutput {
-                    content: ToolResultContent::Text(format!(
-                        "Edited {}:\n\n```diff\n{}\n```",
-                        input_path, diff
-                    )),
+                    content: format!("Edited {}:\n\n```diff\n{}\n```", input_path, diff),
                    output: serde_json::to_value(output).ok(),
                })
            }
@@ -332,71 +331,6 @@ impl Tool for EditFileTool {
    }
 }

-/// Validate that the file path is valid, meaning:
-///
-/// - For `edit` and `overwrite`, the path must point to an existing file.
-/// - For `create`, the file must not already exist, but it's parent dir must exist.
-fn resolve_path(
-    input: &EditFileToolInput,
-    project: Entity<Project>,
-    cx: &mut App,
-) -> Result<ProjectPath> {
-    let project = project.read(cx);
-
-    match input.mode {
-        EditFileMode::Edit | EditFileMode::Overwrite => {
-            let path = project
-                .find_project_path(&input.path, cx)
-                .context("Can't edit file: path not found")?;
-
-            let entry = project
-                .entry_for_path(&path, cx)
-                .context("Can't edit file: path not found")?;
-
-            anyhow::ensure!(entry.is_file(), "Can't edit file: path is a directory");
-            Ok(path)
-        }
-
-        EditFileMode::Create => {
-            if let Some(path) = project.find_project_path(&input.path, cx) {
-                anyhow::ensure!(
-                    project.entry_for_path(&path, cx).is_none(),
-                    "Can't create file: file already exists"
-                );
-            }
-
-            let parent_path = input
-                .path
-                .parent()
-                .context("Can't create file: incorrect path")?;
-
-            let parent_project_path = project.find_project_path(&parent_path, cx);
-
-            let parent_entry = parent_project_path
-                .as_ref()
-                .and_then(|path| project.entry_for_path(&path, cx))
-                .context("Can't create file: parent directory doesn't exist")?;
-
-            anyhow::ensure!(
-                parent_entry.is_dir(),
-                "Can't create file: parent is not a directory"
-            );
-
-            let file_name = input
-                .path
-                .file_name()
-                .context("Can't create file: invalid filename")?;
-
-            let new_file_path = parent_project_path.map(|parent| ProjectPath {
-                path: Arc::from(parent.path.join(file_name)),
-                ..parent
-            });
-
-            new_file_path.context("Can't create file")
-        }
-    }
-}
-
 pub struct EditFileToolCard {
    path: PathBuf,
    editor: Entity<Editor>,
@@ -428,9 +362,9 @@ impl EditFileToolCard {
            editor.set_show_gutter(false, cx);
            editor.disable_inline_diagnostics();
            editor.disable_expand_excerpt_buttons(cx);
-            editor.disable_scrollbars_and_minimap(window, cx);
            editor.set_soft_wrap_mode(SoftWrap::None, cx);
            editor.scroll_manager.set_forbid_vertical_scroll(true);
+            editor.set_show_scrollbars(false, cx);
            editor.set_show_indent_guides(false, cx);
            editor.set_read_only(true);
            editor.set_show_breakpoints(false, cx);
@@ -448,7 +382,7 @@ impl EditFileToolCard {
            diff_task: None,
            preview_expanded: true,
            error_expanded: None,
-            full_height_expanded: true,
+            full_height_expanded: false,
            total_lines: None,
        }
    }
@@ -703,7 +637,7 @@ impl ToolCard for EditFileToolCard {
                .p_3()
                .gap_1()
                .border_t_1()
-                .rounded_b_md()
+                .rounded_md()
                .border_color(border_color)
                .bg(cx.theme().colors().editor_background);

@@ -917,7 +851,6 @@ async fn build_buffer_diff(
 #[cfg(test)]
 mod tests {
    use super::*;
-    use client::TelemetrySettings;
    use fs::FakeFs;
    use gpui::TestAppContext;
    use language_model::fake_provider::FakeLanguageModel;
@@ -939,7 +872,7 @@ mod tests {
                let input = serde_json::to_value(EditFileToolInput {
                    display_description: "Some edit".into(),
                    path: "root/nonexistent_file.txt".into(),
-                    mode: EditFileMode::Edit,
+                    create_or_overwrite: false,
                })
                .unwrap();
                Arc::new(EditFileTool)
@@ -957,102 +890,10 @@ mod tests {
            .await;
        assert_eq!(
            result.unwrap_err().to_string(),
-            "Can't edit file: path not found"
+            "root/nonexistent_file.txt not found"
        );
    }

-    #[gpui::test]
-    async fn test_resolve_path_for_creating_file(cx: &mut TestAppContext) {
-        let mode = &EditFileMode::Create;
-
-        let result = test_resolve_path(mode, "root/new.txt", cx);
-        assert_resolved_path_eq(result.await, "new.txt");
-
-        let result = test_resolve_path(mode, "new.txt", cx);
-        assert_resolved_path_eq(result.await, "new.txt");
-
-        let result = test_resolve_path(mode, "dir/new.txt", cx);
-        assert_resolved_path_eq(result.await, "dir/new.txt");
-
-        let result = test_resolve_path(mode, "root/dir/subdir/existing.txt", cx);
-        assert_eq!(
-            result.await.unwrap_err().to_string(),
-            "Can't create file: file already exists"
-        );
-
-        let result = test_resolve_path(mode, "root/dir/nonexistent_dir/new.txt", cx);
-        assert_eq!(
-            result.await.unwrap_err().to_string(),
-            "Can't create file: parent directory doesn't exist"
-        );
-    }
-
-    #[gpui::test]
-    async fn test_resolve_path_for_editing_file(cx: &mut TestAppContext) {
-        let mode = &EditFileMode::Edit;
-
-        let path_with_root = "root/dir/subdir/existing.txt";
-        let path_without_root = "dir/subdir/existing.txt";
-        let result = test_resolve_path(mode, path_with_root, cx);
-        assert_resolved_path_eq(result.await, path_without_root);
-
-        let result = test_resolve_path(mode, path_without_root, cx);
-        assert_resolved_path_eq(result.await, path_without_root);
-
-        let result = test_resolve_path(mode, "root/nonexistent.txt", cx);
-        assert_eq!(
-            result.await.unwrap_err().to_string(),
-            "Can't edit file: path not found"
-        );
-
-        let result = test_resolve_path(mode, "root/dir", cx);
-        assert_eq!(
-            result.await.unwrap_err().to_string(),
-            "Can't edit file: path is a directory"
-        );
-    }
-
-    async fn test_resolve_path(
-        mode: &EditFileMode,
-        path: &str,
-        cx: &mut TestAppContext,
-    ) -> anyhow::Result<ProjectPath> {
-        init_test(cx);
-
-        let fs = FakeFs::new(cx.executor());
-        fs.insert_tree(
-            "/root",
-            json!({
-                "dir": {
-                    "subdir": {
-                        "existing.txt": "hello"
-                    }
-                }
-            }),
-        )
-        .await;
-        let project = Project::test(fs.clone(), [path!("/root").as_ref()], cx).await;
-
-        let input = EditFileToolInput {
-            display_description: "Some edit".into(),
-            path: path.into(),
-            mode: mode.clone(),
-        };
-
-        let result = cx.update(|cx| resolve_path(&input, project, cx));
-        result
-    }
-
-    fn assert_resolved_path_eq(path: anyhow::Result<ProjectPath>, expected: &str) {
-        let actual = path
-            .expect("Should return valid path")
-            .path
-            .to_str()
-            .unwrap()
-            .replace("\\", "/"); // Naive Windows paths normalization
-        assert_eq!(actual, expected);
-    }
-
    #[test]
    fn still_streaming_ui_text_with_path() {
        let input = json!({
@@ -1125,7 +966,6 @@ mod tests {
            let settings_store = SettingsStore::test(cx);
            cx.set_global(settings_store);
            language::init(cx);
-            TelemetrySettings::register(cx);
            Project::init_settings(cx);
        });
    }
--- a/crates/assistant_tools/src/find_path_tool.rs
+++ b/crates/assistant_tools/src/find_path_tool.rs
@@ -1,8 +1,6 @@
 use crate::{schema::json_schema_for, ui::ToolCallCardHeader};
 use anyhow::{Result, anyhow};
-use assistant_tool::{
-    ActionLog, Tool, ToolCard, ToolResult, ToolResultContent, ToolResultOutput, ToolUseStatus,
-};
+use assistant_tool::{ActionLog, Tool, ToolCard, ToolResult, ToolUseStatus};
 use editor::Editor;
 use futures::channel::oneshot::{self, Receiver};
 use gpui::{
@@ -40,12 +38,6 @@ pub struct FindPathToolInput {
    pub offset: usize,
 }

-#[derive(Debug, Serialize, Deserialize)]
-struct FindPathToolOutput {
-    glob: String,
-    paths: Vec<PathBuf>,
-}
-
 const RESULTS_PER_PAGE: usize = 50;

 pub struct FindPathTool;
@@ -119,18 +111,10 @@ impl Tool for FindPathTool {
                    )
                    .unwrap();
                }
-                let output = FindPathToolOutput {
-                    glob,
-                    paths: matches.clone(),
-                };
-
                for mat in matches.into_iter().skip(offset).take(RESULTS_PER_PAGE) {
                    write!(&mut message, "\n{}", mat.display()).unwrap();
                }
-                Ok(ToolResultOutput {
-                    content: ToolResultContent::Text(message),
-                    output: Some(serde_json::to_value(output)?),
-                })
+                Ok(message.into())
            }
        });

@@ -139,18 +123,6 @@ impl Tool for FindPathTool {
            card: Some(card.into()),
        }
    }
-
-    fn deserialize_card(
-        self: Arc<Self>,
-        output: serde_json::Value,
-        _project: Entity<Project>,
-        _window: &mut Window,
-        cx: &mut App,
-    ) -> Option<assistant_tool::AnyToolCard> {
-        let output = serde_json::from_value::<FindPathToolOutput>(output).ok()?;
-        let card = cx.new(|_| FindPathToolCard::from_output(output));
-        Some(card.into())
-    }
 }

 fn search_paths(glob: &str, project: Entity<Project>, cx: &mut App) -> Task<Result<Vec<PathBuf>>> {
@@ -208,15 +180,6 @@ impl FindPathToolCard {
            _receiver_task: Some(_receiver_task),
        }
    }
-
-    fn from_output(output: FindPathToolOutput) -> Self {
-        Self {
-            glob: output.glob,
-            paths: output.paths,
-            expanded: false,
-            _receiver_task: None,
-        }
-    }
 }

 impl ToolCard for FindPathToolCard {
--- a/crates/assistant_tools/src/grep_tool.rs
+++ b/crates/assistant_tools/src/grep_tool.rs
@@ -109,7 +109,7 @@ impl Tool for GrepTool {
        let input = match serde_json::from_value::<GrepToolInput>(input) {
            Ok(input) => input,
            Err(error) => {
-                return Task::ready(Err(anyhow!("Failed to parse input: {error}"))).into();
+                return Task::ready(Err(anyhow!("Failed to parse input: {}", error))).into();
            }
        };

@@ -122,7 +122,7 @@ impl Tool for GrepTool {
        ) {
            Ok(matcher) => matcher,
            Err(error) => {
-                return Task::ready(Err(anyhow!("invalid include glob pattern: {error}"))).into();
+                return Task::ready(Err(anyhow!("invalid include glob pattern: {}", error))).into();
            }
        };

@@ -752,9 +752,9 @@ mod tests {
        match task.output.await {
            Ok(result) => {
                if cfg!(windows) {
-                    result.content.as_str().unwrap().replace("root\\", "root/")
+                    result.content.replace("root\\", "root/")
                } else {
-                    result.content.as_str().unwrap().to_string()
+                    result.content
                }
            }
            Err(e) => panic!("Failed to run grep tool: {}", e),
--- a/crates/assistant_tools/src/move_path_tool.rs
+++ b/crates/assistant_tools/src/move_path_tool.rs
@@ -1,5 +1,5 @@
 use crate::schema::json_schema_for;
-use anyhow::{Context as _, Result, anyhow};
+use anyhow::{Result, anyhow};
 use assistant_tool::{ActionLog, Tool, ToolResult};
 use gpui::{AnyWindowHandle, App, AppContext, Entity, Task};
 use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
@@ -117,10 +117,17 @@ impl Tool for MovePathTool {
        });

        cx.background_spawn(async move {
-            let _ = rename_task.await.with_context(|| {
-                format!("Moving {} to {}", input.source_path, input.destination_path)
-            })?;
-            Ok(format!("Moved {} to {}", input.source_path, input.destination_path).into())
+            match rename_task.await {
+                Ok(_) => {
+                    Ok(format!("Moved {} to {}", input.source_path, input.destination_path).into())
+                }
+                Err(err) => Err(anyhow!(
+                    "Failed to move {} to {}: {}",
+                    input.source_path,
+                    input.destination_path,
+                    err
+                )),
+            }
        })
        .into()
    }
--- a/crates/assistant_tools/src/read_file_tool.rs
+++ b/crates/assistant_tools/src/read_file_tool.rs
@@ -1,17 +1,13 @@
 use crate::schema::json_schema_for;
-use anyhow::{Context as _, Result, anyhow};
+use anyhow::{Result, anyhow};
+use assistant_tool::outline;
 use assistant_tool::{ActionLog, Tool, ToolResult};
-use assistant_tool::{ToolResultContent, outline};
 use gpui::{AnyWindowHandle, App, Entity, Task};
-use project::{ImageItem, image_store};

-use assistant_tool::ToolResultOutput;
 use indoc::formatdoc;
 use itertools::Itertools;
 use language::{Anchor, Point};
-use language_model::{
-    LanguageModel, LanguageModelImage, LanguageModelRequest, LanguageModelToolSchemaFormat,
-};
+use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
 use project::{AgentLocation, Project};
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
@@ -90,7 +86,7 @@ impl Tool for ReadFileTool {
        _request: Arc<LanguageModelRequest>,
        project: Entity<Project>,
        action_log: Entity<ActionLog>,
-        model: Arc<dyn LanguageModel>,
+        _model: Arc<dyn LanguageModel>,
        _window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -104,42 +100,6 @@ impl Tool for ReadFileTool {
        };

        let file_path = input.path.clone();
-
-        if image_store::is_image_file(&project, &project_path, cx) {
-            if !model.supports_images() {
-                return Task::ready(Err(anyhow!(
-                    "Attempted to read an image, but Zed doesn't currently sending images to {}.",
-                    model.name().0
-                )))
-                .into();
-            }
-
-            let task = cx.spawn(async move |cx| -> Result<ToolResultOutput> {
-                let image_entity: Entity<ImageItem> = cx
-                    .update(|cx| {
-                        project.update(cx, |project, cx| {
-                            project.open_image(project_path.clone(), cx)
-                        })
-                    })?
-                    .await?;
-
-                let image =
-                    image_entity.read_with(cx, |image_item, _| Arc::clone(&image_item.image))?;
-
-                let language_model_image = cx
-                    .update(|cx| LanguageModelImage::from_image(image, cx))?
-                    .await
-                    .context("processing image")?;
-
-                Ok(ToolResultOutput {
-                    content: ToolResultContent::Image(language_model_image),
-                    output: None,
-                })
-            });
-
-            return task.into();
-        }
-
        cx.spawn(async move |cx| {
            let buffer = cx
                .update(|cx| {
@@ -152,7 +112,7 @@ impl Tool for ReadFileTool {
                    .as_ref()
                    .map_or(true, |file| !file.disk_state().exists())
            })? {
-                anyhow::bail!("{file_path} not found");
+                return Err(anyhow!("{} not found", file_path));
            }

            project.update(cx, |project, cx| {
@@ -322,10 +282,7 @@ mod test {
                    .output
            })
            .await;
-        assert_eq!(
-            result.unwrap().content.as_str(),
-            Some("This is a small file content")
-        );
+        assert_eq!(result.unwrap().content, "This is a small file content");
    }

    #[gpui::test]
@@ -365,7 +322,6 @@ mod test {
            })
            .await;
        let content = result.unwrap();
-        let content = content.as_str().unwrap();
        assert_eq!(
            content.lines().skip(4).take(6).collect::<Vec<_>>(),
            vec![
@@ -409,8 +365,6 @@ mod test {
            .collect::<Vec<_>>();
        pretty_assertions::assert_eq!(
            content
-                .as_str()
-                .unwrap()
                .lines()
                .skip(4)
                .take(expected_content.len())
@@ -454,10 +408,7 @@ mod test {
                    .output
            })
            .await;
-        assert_eq!(
-            result.unwrap().content.as_str(),
-            Some("Line 2\nLine 3\nLine 4")
-        );
+        assert_eq!(result.unwrap().content, "Line 2\nLine 3\nLine 4");
    }

    #[gpui::test]
@@ -497,7 +448,7 @@ mod test {
                    .output
            })
            .await;
-        assert_eq!(result.unwrap().content.as_str(), Some("Line 1\nLine 2"));
+        assert_eq!(result.unwrap().content, "Line 1\nLine 2");

        // end_line of 0 should result in at least 1 line
        let result = cx
@@ -520,7 +471,7 @@ mod test {
                    .output
            })
            .await;
-        assert_eq!(result.unwrap().content.as_str(), Some("Line 1"));
+        assert_eq!(result.unwrap().content, "Line 1");

        // when start_line > end_line, should still return at least 1 line
        let result = cx
@@ -543,7 +494,7 @@ mod test {
                    .output
            })
            .await;
-        assert_eq!(result.unwrap().content.as_str(), Some("Line 3"));
+        assert_eq!(result.unwrap().content, "Line 3");
    }

    fn init_test(cx: &mut TestAppContext) {
--- a/crates/assistant_tools/src/templates/create_file_prompt.hbs
+++ b/crates/assistant_tools/src/templates/create_file_prompt.hbs
@@ -1,13 +1,12 @@
 You are an expert engineer and your task is to write a new file from scratch.

-You MUST respond directly with the file's content, without explanations, additional text or triple backticks.
-The text you output will be saved verbatim as the content of the file.
-Tool calls have been disabled. You MUST start your response directly with the file's new content.
-
-<file_path>
+<file_to_edit>
 {{path}}
-</file_path>
+</file_to_edit>

 <edit_description>
 {{edit_description}}
 </edit_description>
+
+You MUST respond directly with the file's content, without explanations, additional text or triple backticks.
+The text you output will be saved verbatim as the content of the file.
--- a/crates/assistant_tools/src/terminal_tool.rs
+++ b/crates/assistant_tools/src/terminal_tool.rs
@@ -1,19 +1,14 @@
 use crate::schema::json_schema_for;
-use anyhow::{Context as _, Result, anyhow};
+use anyhow::{Context as _, Result, anyhow, bail};
 use assistant_tool::{ActionLog, Tool, ToolCard, ToolResult, ToolUseStatus};
 use futures::{FutureExt as _, future::Shared};
-use gpui::{
-    AnyWindowHandle, App, AppContext, Empty, Entity, EntityId, Task, TextStyleRefinement,
-    WeakEntity, Window,
-};
+use gpui::{AnyWindowHandle, App, AppContext, Empty, Entity, EntityId, Task, WeakEntity, Window};
 use language::LineEnding;
 use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
-use markdown::{Markdown, MarkdownElement, MarkdownStyle};
 use portable_pty::{CommandBuilder, PtySize, native_pty_system};
 use project::{Project, terminals::TerminalKind};
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
-use settings::Settings;
 use std::{
    env,
    path::{Path, PathBuf},
@@ -22,7 +17,6 @@ use std::{
    time::{Duration, Instant},
 };
 use terminal_view::TerminalView;
-use theme::ThemeSettings;
 use ui::{Disclosure, Tooltip, prelude::*};
 use util::{
    get_system_shell, markdown::MarkdownInlineCode, size::format_file_size,
@@ -125,24 +119,14 @@ impl Tool for TerminalTool {
            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
        };

-        let working_dir = match working_dir(&input, &project, cx) {
+        let input_path = Path::new(&input.cd);
+        let working_dir = match working_dir(&input, &project, input_path, cx) {
            Ok(dir) => dir,
            Err(err) => return Task::ready(Err(err)).into(),
        };
        let program = self.determine_shell.clone();
-        let command = if cfg!(windows) {
-            format!("$null | & {{{}}}", input.command.replace("\"", "'"))
-        } else if let Some(cwd) = working_dir
-            .as_ref()
-            .and_then(|cwd| cwd.as_os_str().to_str())
-        {
-            // Make sure once we're *inside* the shell, we cd into `cwd`
-            format!("(cd {cwd}; {}) </dev/null", input.command)
-        } else {
-            format!("({}) </dev/null", input.command)
-        };
-        let args = vec!["-c".into(), command];
-
+        let command = format!("({}) </dev/null", input.command);
+        let args = vec!["-c".into(), command.clone()];
        let cwd = working_dir.clone();
        let env = match &working_dir {
            Some(dir) => project.update(cx, |project, cx| {
@@ -227,21 +211,8 @@ impl Tool for TerminalTool {
            }
        });

-        let command_markdown = cx.new(|cx| {
-            Markdown::new(
-                format!("```bash\n{}\n```", input.command).into(),
-                None,
-                None,
-                cx,
-            )
-        });
-
        let card = cx.new(|cx| {
-            TerminalToolCard::new(
-                command_markdown.clone(),
-                working_dir.clone(),
-                cx.entity_id(),
-            )
+            TerminalToolCard::new(input.command.clone(), working_dir.clone(), cx.entity_id())
        });

        let output = cx.spawn({
@@ -325,13 +296,19 @@ fn process_content(
    } else {
        content
    };
-    let content = content.trim();
-    let is_empty = content.is_empty();
-    let content = format!("```\n{content}\n```");
+    let is_empty = content.trim().is_empty();
+
+    let content = format!(
+        "```\n{}{}```",
+        content,
+        if content.ends_with('\n') { "" } else { "\n" }
+    );
+
    let content = if should_truncate {
        format!(
-            "Command output too long. The first {} bytes:\n\n{content}",
+            "Command output too long. The first {} bytes:\n\n{}",
            content.len(),
+            content,
        )
    } else {
        content
@@ -371,48 +348,47 @@ fn process_content(
 fn working_dir(
    input: &TerminalToolInput,
    project: &Entity<Project>,
+    input_path: &Path,
    cx: &mut App,
 ) -> Result<Option<PathBuf>> {
    let project = project.read(cx);
-    let cd = &input.cd;

-    if cd == "." || cd == "" {
-        // Accept "." or "" as meaning "the one worktree" if we only have one worktree.
+    if input.cd == "." {
+        // Accept "." as meaning "the one worktree" if we only have one worktree.
        let mut worktrees = project.worktrees(cx);

        match worktrees.next() {
            Some(worktree) => {
-                anyhow::ensure!(
-                    worktrees.next().is_none(),
-                    "'.' is ambiguous in multi-root workspaces. Please specify a root directory explicitly.",
-                );
+                if worktrees.next().is_some() {
+                    bail!(
+                        "'.' is ambiguous in multi-root workspaces. Please specify a root directory explicitly.",
+                    );
+                }
                Ok(Some(worktree.read(cx).abs_path().to_path_buf()))
            }
            None => Ok(None),
        }
-    } else {
-        let input_path = Path::new(cd);
-
-        if input_path.is_absolute() {
-            // Absolute paths are allowed, but only if they're in one of the project's worktrees.
-            if project
-                .worktrees(cx)
-                .any(|worktree| input_path.starts_with(&worktree.read(cx).abs_path()))
-            {
-                return Ok(Some(input_path.into()));
-            }
-        } else {
-            if let Some(worktree) = project.worktree_for_root_name(cd, cx) {
-                return Ok(Some(worktree.read(cx).abs_path().to_path_buf()));
-            }
+    } else if input_path.is_absolute() {
+        // Absolute paths are allowed, but only if they're in one of the project's worktrees.
+        if !project
+            .worktrees(cx)
+            .any(|worktree| input_path.starts_with(&worktree.read(cx).abs_path()))
+        {
+            bail!("The absolute path must be within one of the project's worktrees");
        }

-        anyhow::bail!("`cd` directory {cd:?} was not in any of the project's worktrees.");
+        Ok(Some(input_path.into()))
+    } else {
+        let Some(worktree) = project.worktree_for_root_name(&input.cd, cx) else {
+            bail!("`cd` directory {:?} not found in the project", input.cd);
+        };
+
+        Ok(Some(worktree.read(cx).abs_path().to_path_buf()))
    }
 }

 struct TerminalToolCard {
-    input_command: Entity<Markdown>,
+    input_command: String,
    working_dir: Option<PathBuf>,
    entity_id: EntityId,
    exit_status: Option<ExitStatus>,
@@ -428,11 +404,7 @@ struct TerminalToolCard {
 }

 impl TerminalToolCard {
-    pub fn new(
-        input_command: Entity<Markdown>,
-        working_dir: Option<PathBuf>,
-        entity_id: EntityId,
-    ) -> Self {
+    pub fn new(input_command: String, working_dir: Option<PathBuf>, entity_id: EntityId) -> Self {
        Self {
            input_command,
            working_dir,
@@ -455,7 +427,7 @@ impl ToolCard for TerminalToolCard {
    fn render(
        &mut self,
        status: &ToolUseStatus,
-        window: &mut Window,
+        _window: &mut Window,
        _workspace: WeakEntity<Workspace>,
        cx: &mut Context<Self>,
    ) -> impl IntoElement {
@@ -599,25 +571,11 @@ impl ToolCard for TerminalToolCard {
            .rounded_lg()
            .overflow_hidden()
            .child(
-                v_flex()
-                    .p_2()
-                    .gap_0p5()
-                    .bg(header_bg)
-                    .text_xs()
-                    .child(header)
-                    .child(
-                        MarkdownElement::new(
-                            self.input_command.clone(),
-                            markdown_style(window, cx),
-                        )
-                        .code_block_renderer(
-                            markdown::CodeBlockRenderer::Default {
-                                copy_button: false,
-                                copy_button_on_hover: true,
-                                border: false,
-                            },
-                        ),
-                    ),
+                v_flex().p_2().gap_0p5().bg(header_bg).child(header).child(
+                    Label::new(self.input_command.clone())
+                        .buffer_font(cx)
+                        .size(LabelSize::Small),
+                ),
            )
            .when(self.preview_expanded && !should_hide_terminal, |this| {
                this.child(
@@ -636,27 +594,6 @@ impl ToolCard for TerminalToolCard {
    }
 }

-fn markdown_style(window: &Window, cx: &App) -> MarkdownStyle {
-    let theme_settings = ThemeSettings::get_global(cx);
-    let buffer_font_size = TextSize::Default.rems(cx);
-    let mut text_style = window.text_style();
-
-    text_style.refine(&TextStyleRefinement {
-        font_family: Some(theme_settings.buffer_font.family.clone()),
-        font_fallbacks: theme_settings.buffer_font.fallbacks.clone(),
-        font_features: Some(theme_settings.buffer_font.features.clone()),
-        font_size: Some(buffer_font_size.into()),
-        color: Some(cx.theme().colors().text),
-        ..Default::default()
-    });
-
-    MarkdownStyle {
-        base_text_style: text_style.clone(),
-        selection_background_color: cx.theme().players().local().selection,
-        ..Default::default()
-    }
-}
-
 #[cfg(test)]
 mod tests {
    use editor::EditorSettings;
@@ -728,8 +665,8 @@ mod tests {
            )
        });

-        let output = result.output.await.log_err().unwrap().content;
-        assert_eq!(output.as_str().unwrap(), "Command executed successfully.");
+        let output = result.output.await.log_err().map(|output| output.content);
+        assert_eq!(output, Some("Command executed successfully.".into()));
    }

    #[gpui::test]
@@ -762,13 +699,12 @@ mod tests {
                cx,
            );
            cx.spawn(async move |_| {
-                let output = headless_result.output.await.map(|output| output.content);
-                assert_eq!(
-                    output
-                        .ok()
-                        .and_then(|content| content.as_str().map(ToString::to_string)),
-                    expected
-                );
+                let output = headless_result
+                    .output
+                    .await
+                    .log_err()
+                    .map(|output| output.content);
+                assert_eq!(output, expected);
            })
        };

@@ -776,7 +712,7 @@ mod tests {
            check(
                TerminalToolInput {
                    command: "pwd".into(),
-                    cd: ".".into(),
+                    cd: "project".into(),
                },
                Some(format!(
                    "```\n{}\n```",
@@ -791,9 +727,12 @@ mod tests {
            check(
                TerminalToolInput {
                    command: "pwd".into(),
-                    cd: "other-project".into(),
+                    cd: ".".into(),
                },
-                None, // other-project is a dir, but *not* a worktree (yet)
+                Some(format!(
+                    "```\n{}\n```",
+                    tree.path().join("project").display()
+                )),
                cx,
            )
        })
--- a/crates/assistant_tools/src/web_search_tool.rs
+++ b/crates/assistant_tools/src/web_search_tool.rs
@@ -3,9 +3,7 @@ use std::{sync::Arc, time::Duration};
 use crate::schema::json_schema_for;
 use crate::ui::ToolCallCardHeader;
 use anyhow::{Context as _, Result, anyhow};
-use assistant_tool::{
-    ActionLog, Tool, ToolCard, ToolResult, ToolResultContent, ToolResultOutput, ToolUseStatus,
-};
+use assistant_tool::{ActionLog, Tool, ToolCard, ToolResult, ToolUseStatus};
 use futures::{Future, FutureExt, TryFutureExt};
 use gpui::{
    AnyWindowHandle, App, AppContext, Context, Entity, IntoElement, Task, WeakEntity, Window,
@@ -75,13 +73,9 @@ impl Tool for WebSearchTool {
            let search_task = search_task.clone();
            async move {
                let response = search_task.await.map_err(|err| anyhow!(err))?;
-                Ok(ToolResultOutput {
-                    content: ToolResultContent::Text(
-                        serde_json::to_string(&response)
-                            .context("Failed to serialize search results")?,
-                    ),
-                    output: Some(serde_json::to_value(response)?),
-                })
+                serde_json::to_string(&response)
+                    .context("Failed to serialize search results")
+                    .map(Into::into)
            }
        });

@@ -90,18 +84,6 @@ impl Tool for WebSearchTool {
            card: Some(cx.new(|cx| WebSearchToolCard::new(search_task, cx)).into()),
        }
    }
-
-    fn deserialize_card(
-        self: Arc<Self>,
-        output: serde_json::Value,
-        _project: Entity<Project>,
-        _window: &mut Window,
-        cx: &mut App,
-    ) -> Option<assistant_tool::AnyToolCard> {
-        let output = serde_json::from_value::<WebSearchResponse>(output).ok()?;
-        let card = cx.new(|cx| WebSearchToolCard::new(Task::ready(Ok(output)), cx));
-        Some(card.into())
-    }
 }

 #[derive(RegisterComponent)]
--- a/crates/audio/src/assets.rs
+++ b/crates/audio/src/assets.rs
@@ -1,6 +1,6 @@
 use std::{io::Cursor, sync::Arc};

-use anyhow::{Context as _, Result};
+use anyhow::Result;
 use collections::HashMap;
 use gpui::{App, AssetSource, Global};
 use rodio::{
@@ -44,8 +44,8 @@ impl SoundRegistry {
        let bytes = self
            .assets
            .load(&path)?
-            .map(anyhow::Ok)
-            .with_context(|| format!("No asset available for path {path}"))??
+            .map(Ok)
+            .unwrap_or_else(|| Err(anyhow::anyhow!("No such asset available")))?
            .into_owned();
        let cursor = Cursor::new(bytes);
        let source = Decoder::new(cursor)?.convert_samples::<f32>().buffered();
--- a/Show More
+++ b/Show More