Does this issue occur when all extensions are disabled?: n/a

• VS Code Version: 1.100.0-insider c90ebc2
• OS Version: client: Chrome on macOS, remote: Linux

When using the Continue On feature with a git repo that isn't yet published to GitHub, the first prompt users see isn't cancellable. See video for details. The cancel button does exit the modal, but the modal will just pop right back up. Pressing escape or using the "X" button doesn't work either.

Steps to Reproduce:

1. Go to https://insiders.vscode.dev/azure?azdTemplateUrl=https://github.com/Azure-Samples/rag-postgres-openai-python
2. Execute the "Continue Working On..." command from the palette. Then select "Clone Repository Locally and Open on Desktop..."
3. When you see the "Would you like to publish this repository to continue working on it elsewhere?" modal, click the "Cancel" button.

Expect, cancel the flow and able to return to your work. What happens currently is the modal pops up again. See video for details.