Unable to create a new project

[IBFCGirishMCT]

Does this occur consistently?
Repro steps:

Action: l.getChildren
Error type: c
Error Message: Failed to load Hosted Agents (Preview) for project GPT-5-Experiment: Failed to list hosted agents for project GPT-5-Experiment: 500: Internal Server Error

Version: 1.6.12
OS: win32
OS Arch: x64
OS Release: 10.0.26100
Product: Visual Studio Code
Product Version: 1.137.0
Language: en
UTC time: Sat, 12 Sep 2026 08:07:44 GMT

Call Stack

o.loadChildrenOnce extension.js:2418:61002
async o.loadUntilCurrent extension.js:2418:60391
async o.loadChildren extension.js:2418:60205
async o.getChildren extension.js:2418:59777
extension.js:2160:11354extension.js:2160:11354
async o extension.js:1908:19265
async o.<anonymous> extension.js:2160:11298
async a extension.js:5556:132227
async m.getFoundryAgentEntries extension.js:5556:134803
async m.getChildren extension.js:5556:134220
async r._fetchChildrenNodes extensionHostProcess.js:672:107752
async r.getChildren extensionHostProcess.js:672:103210
async wR.$getChildren extensionHostProcess.js:672:97625

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