refactor: generalize remote URI handling and remove CLAUDE.md

- Remove WSL-specific check in favor of generic URI handling
- Support all vscode-remote:// URI schemes (WSL, SSH, dev-container)
- Prefer file:// URIs when available, fall back to remote URIs
- Add tests for various remote URI formats
- Remove CLAUDE.md per reviewer feedback (use AGENTS.md convention)

🤖 Generated with [Claude Code](https://claude.com/claude-code)

Co-Authored-By: Claude Opus 4.5 <noreply@anthropic.com>

CLAUDE.md

@@ -1,52 +0,0 @@
-# Continue Development Notes
-
-## WSL2 Development
-
-### Building VSIX from WSL2
-
-The VS Code extension VSIX built on Linux contains Linux-only native binaries (sqlite3, LanceDB, ripgrep). When VS Code runs in WSL remote mode, extensions can run in either:
-
-- **Windows extension host** - needs Windows binaries
-- **WSL extension host** - Linux binaries work
-
-If both hosts try to load the extension, the Windows host fails with:
-
-```
-Error: node_sqlite3.node is not a valid Win32 application
-```
-
-**Workaround for local testing:**
-
-1. Build VSIX normally: `npm run package` (in extensions/vscode)
-2. Install: `code --install-extension extensions/vscode/build/continue-*.vsix`
-3. Delete Windows installation to force WSL-only:
-   ```bash
-   rm -rf /mnt/c/Users/<username>/.vscode/extensions/continue.continue-*
-   ```
-4. Reload VS Code
-
-This forces Continue to run exclusively in WSL extension host where Linux binaries work.
-
-**Related:** GitHub Issue #9326
-
-### File Count and Extension Activation
-
-Large file counts (300K+) from node_modules and build artifacts can cause extension activation issues. If Continue fails to load:
-
-1. Delete build artifacts:
-   ```bash
-   rm -rf */node_modules */*/node_modules node_modules
-   rm -rf */dist */*/dist */out */*/out */build
-   ```
-2. Reload VS Code
-3. Rebuild only when needed for testing
-
-### Terminal Command Working Directory
-
-The `run_terminal_command` tool resolves workspace directories from VS Code URIs. In WSL2:
-
-- URIs are `vscode-remote://wsl+Ubuntu/path` (not `file://`)
-- Must parse with `new URL()` and extract pathname
-- Must `decodeURIComponent()` for paths with spaces/special chars
-
-See: `core/tools/implementations/runTerminalCommand.ts`

core/tools/implementations/runTerminalCommand.ts

@@ -48,19 +48,6 @@ import { getBooleanArg, getStringArg } from "../parseArgs";
  * Falls back to home directory or temp directory if no workspace is available.
  */
 function resolveWorkingDirectory(workspaceDirs: string[]): string {
-  // Handle vscode-remote://wsl+distro/path URIs (WSL2 remote workspaces)
-  const wslWorkspaceDir = workspaceDirs.find((dir) =>
-    dir.startsWith("vscode-remote://wsl"),
-  );
-  if (wslWorkspaceDir) {
-    try {
-      const url = new URL(wslWorkspaceDir);
-      return decodeURIComponent(url.pathname); // e.g., "/home/user/project"
-    } catch {
-      // Fall through to other handlers
-    }
-  }
-
   // Handle file:// URIs (local workspaces)
   const fileWorkspaceDir = workspaceDirs.find((dir) =>
     dir.startsWith("file:/"),
@@ -74,6 +61,19 @@ function resolveWorkingDirectory(workspaceDirs: string[]): string {
     }
   }
 
+  // Handle other URI schemes (vscode-remote://wsl, vscode-remote://ssh-remote, etc.)
+  const remoteWorkspaceDir = workspaceDirs.find(
+    (dir) => dir.includes("://") && !dir.startsWith("file:/"),
+  );
+  if (remoteWorkspaceDir) {
+    try {
+      const url = new URL(remoteWorkspaceDir);
+      return decodeURIComponent(url.pathname);
+    } catch {
+      // Fall through to other handlers
+    }
+  }
+
   // Default to user's home directory with fallbacks
   try {
     return process.env.HOME || process.env.USERPROFILE || process.cwd();

core/tools/implementations/runTerminalCommand.vitest.ts

@@ -553,6 +553,58 @@ describe("runTerminalCommandImpl", () => {
         // This demonstrates why the fix is needed - fileURLToPath throws on non-file URIs
         expect(() => fileURLToPath(nonFileUri)).toThrow();
       });
+
+      it("should handle vscode-remote URIs by extracting pathname", async () => {
+        // Various remote URI formats that VS Code uses
+        const remoteUris = [
+          "vscode-remote://wsl+Ubuntu/home/user/project",
+          "vscode-remote://ssh-remote+myserver/home/user/project",
+          "vscode-remote://dev-container+abc123/workspace",
+        ];
+
+        for (const uri of remoteUris) {
+          mockGetWorkspaceDirs.mockResolvedValue([uri]);
+
+          // Should not throw - the generic URI handler extracts the pathname
+          await expect(
+            runTerminalCommandImpl(
+              { command: "echo test", waitForCompletion: false },
+              createMockExtras(),
+            ),
+          ).resolves.toBeDefined();
+        }
+      });
+
+      it("should decode URI-encoded characters in remote workspace paths", async () => {
+        // Path with spaces and special characters
+        const encodedUri =
+          "vscode-remote://wsl+Ubuntu/home/user/my%20project%20%28test%29";
+        mockGetWorkspaceDirs.mockResolvedValue([encodedUri]);
+
+        // Should handle without throwing - decodeURIComponent is applied
+        await expect(
+          runTerminalCommandImpl(
+            { command: "echo test", waitForCompletion: false },
+            createMockExtras(),
+          ),
+        ).resolves.toBeDefined();
+      });
+
+      it("should prefer file:// URIs over remote URIs when both present", async () => {
+        const workspaceDirs = [
+          "vscode-remote://wsl+Ubuntu/home/user/remote-project",
+          "file:///home/user/local-project",
+        ];
+        mockGetWorkspaceDirs.mockResolvedValue(workspaceDirs);
+
+        // Should succeed, preferring the file:// URI
+        await expect(
+          runTerminalCommandImpl(
+            { command: "echo test", waitForCompletion: false },
+            createMockExtras(),
+          ),
+        ).resolves.toBeDefined();
+      });
     });
 
     describe("remote environment handling", () => {