This app is a complete shit-show #13323

Relevant environment info

• OS: macOS
• Continue version: 2.0.0
• IDE: Visual Studio Code (version not captured)
• Model: Local model through LM Studio; the exact model used for each failed request was not captured.
• Configuration: Filesystem MCP enabled.

Description

During a VS Code Agent session, file creation and editing repeatedly failed because required tool arguments were missing or empty. Errors included:

• filepath argument is required and must not be empty or whitespace-only
• Cannot read properties of undefined (reading 'trim')

The filesystem MCP also returned argument-validation errors. For example, list_directory received an undefined directory path. Reading Handoff.md returned ENOENT because that file did not yet exist.

After tool failures, the agent speculated about path quoting and retried instead of stopping to report the exact error. It repeated plans and intentions without reliably completing and verifying the requested file changes, so I had to restate the task several times.

The task involved PLAN.md and Handoff.md in /Volumes/Transcend/Scripts/Group_Insights/DirectorsDashboard/NewScripts. At the start, PLAN.md was confirmed empty and Handoff.md was missing. The agent did not initially complete a verified write-and-reread cycle.

To reproduce

1. In VS Code, start Continue in Agent mode with a local model and the filesystem MCP enabled.
2. Ask the agent to inspect and create or edit files, including a file that does not yet exist.
3. Observe whether it sends a tool call with a missing or empty required argument such as filepath or a directory path.
4. After the tool returns an error, observe whether the agent stops and reports it or repeatedly retries with speculative explanations and no verified file output.

Log output

create_new_file failed: `filepath` argument is required and must not be empty or whitespace-only.
Cannot read properties of undefined (reading 'trim')