Continue in Code Workspaces doesn't restart / doesn't load

In one of my Repo’s Code Workspaces - Continue can’t be restarted anymore.

I see this screen reloading forever:

And In the bottom I see:

What should I do? How can I get you better error logs?

Same issue here — found a workaround

I’ve been hitting the exact same problem in one of my OSDK React TypeScript repos. Continue crashes with “Remote Extension host terminated unexpectedly 3 times within the last 5 minutes” every time the workspace restarts. My other workspace with a nearly identical setup works fine.

Root cause (likely): Continue’s @codebase indexing choking on a large node_modules folder (~245MB). Even with plenty of workspace memory (247GB), the extension host process itself seems to hit a limit during indexing on startup.

What didn’t work:

  • Reloading the window
  • Closing/reopening the workspace
  • Clearing Continue’s globalStorage (rm -rf ~/.vscode-server-oss/data/User/globalStorage/continue.continue)

What works (temporary fix): Reinstalling Continue from the existing VSIX:

rm -rf ~/.vscode-server-oss/extensions/continue.continue-1.3.30 && rm -rf ~/.vscode-server-oss/data/User/globalStorage/continue.continue && rm -rf ~/.vscode-server-oss/data/User/workspaceStorage//continue.continue && rm -rf /tmp/continue && cd ~/.vscode-server-oss/extensions/ && mkdir continue.continue-1.3.30 && cd continue.continue-1.3.30 && python3 -c “import zipfile; z=zipfile.ZipFile(str(‘../Continue.continue-1.3.30@linux-x64.vsix’),‘r’); [z.extract(f) for f in z.namelist() if f.startswith(str(‘extension/’))]; z.close()” && mv extension/* . && rm -rf extension

Then reload the window. This fixes it but the crash returns on next workspace restart.

What appears to be the permanent fix: Disabling codebase indexing by removing the codebase context provider from ~/.continue/config.json. After the VSIX reinstall above, edit the config:

Remove this entry from the contextProviders array:

{“name”: “codebase”, “params”: {}}

Keep all other providers (code, diff, terminal, problems, folder). You lose @codebase search but everything else works — @filename, @folder, Palantir MCP, chat, etc.

Also recommended: Add a .continueignore file to your repo root:
node_modules/
.git/
dist/
build/

Important warning: Do NOT uninstall the Continue extension from a Foundry browser-based VS Code workspace. It cannot be reinstalled from the marketplace. If you accidentally do this, you’ll need to manually re-add it to ~/.vscode-server-oss/extensions/extensions.json.

After disabling codebase indexing, my workspace has survived restarts. Still monitoring but it looks like this is the fix.

Hope this helps — happy to share more details.