Copilot Chat Extension Version: 0.38.2026021602
VS Code Version: 1.110.0-insider
OS Version: Windows 11 10.0.26200 Build 26200
Feature: Agent mode
Selected model: All models (the image path is not included in the prompt regardless of model selection)

Steps to Reproduce:

1. Open VS Code Copilot with Agent mode
2. Paste or attach an image file
3. Prompt the agent to move the image to any folder or ask it what the file path is of the image
4. The agent responds that they cannot complete the task and that the user needs to either tell the agent the path or to manually transfer the image into a folder in the workspace themselves.

Expected Behavior:

When an image is attached via paste or file picker, the agent should be able to see the file path alongside the image data. This would allow it to copy, move, or reference the image file in the user's project.

Actual Behavior:

The agent tells the user it cannot move or copy the image and asks the user to provide a path or to do it themselves.

Fix:

I've made a fix for this in my own fork that works, PR to follow.