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Managed Settings: add smoketest coverage #334560

Description

@rwoll

Establish a migration safety net proving standard VS Code policy, the legacy
Copilot-policy bridge, and direct managed settings produce the expected
behavior and compose restrictively.

Problem

VS Code has focused tests for policy and managed-settings components, but no
product smoke test proving that standard VS Code policy, legacy Copilot policy,
and Enterprise Managed Settings reach the expected client/runtime behavior.

Proposed coverage

Case Path Expected result
Standard non-chat policy VS Code policy service A conflicting user setting is overridden, locked, and visible in Policy Diagnostics
Legacy Copilot policy VS Code policy → compatibility bridge → SDK/runtime Shell approval and domain restrictions are enforced
Managed settings Managed-settings resolution → SDK/runtime Equivalent shell and domain restrictions are enforced
Mixed migration case Legacy policy + managed settings Sources compose toward the more restrictive result

Checklist

  • Add an isolated Policy Plumbing suite under test/smoke.
  • Cover one safe non-chat policy such as ExtensionsAutoUpdate="off".
  • Run one deterministic shell/domain scenario through the legacy policy path.
  • Run the same scenario through equivalent managed settings.
  • Assert Policy Diagnostics reports the expected source in each case.
  • Assert denied operations never execute and the agent session remains usable.
  • Add the mixed-source composition case after the parity cases are stable.
  • Isolate policy state and COPILOT_CACHE_HOME between variants.
Implementation pointers
  • Existing full-product agent flows:
    test/smoke/src/areas/agentsWindow/agentsWindow.test.ts
  • Smoke environment and runtime-state isolation: test/smoke/src/utils.ts
  • Legacy policy translation:
    src/vs/platform/agentHost/common/agentHostManagedSettings.ts
  • Managed-settings test setup:
    .github/skills/policy-and-managed-settings/local-testing.md
  • Policy Diagnostics:
    src/vs/workbench/browser/actions/developerActions.ts

🤖 Posted via Copilot.

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