VS Code Codex extension hangs on Local mode and repeatedly fails with "local-environments is not supported in the extension" #14917

What version of the IDE extension are you using?

openai.chatgpt-26.313.41514-darwin-x64

What subscription do you have?

ChatGPT subscription

Which IDE are you using?

Visual Studio Code (desktop)

What platform is your computer?

macOS Tahoe 26.1 MacBook Pro (16-inch, 2019) 2.4 GHz 8-core Intel Core i9 Intel UHD Graphics 630 1536 MB 64 GB 2667 MHz DDR4

What issue are you seeing?

The Codex extension hangs indefinitely in Local mode and never returns a response, even for the smallest prompts such as "hello" or "who are you" in an empty folder.

I fully cleaned the local environment before retrying:

• removed Codex CLI
• removed extension caches and configs
• removed local Codex-related data
• reinstalled the OpenAI ChatGPT/Codex extension
• reinstalled VS Code
• disabled other chat/agent extensions
• reproduced again in an empty folder

Only Local mode is available in the extension UI.

The extension activates and starts the local app-server and desktop bridge, but conversation turns do not complete.

Relevant logs repeatedly show:

Error fetching errorMessage="local-environments is not supported in the extension"
url=vscode://codex/local-environments

Other related logs:

• latestTurnStatus=interrupted
• Failed to generate title error="Error: Timed out waiting for structured result."
• No promise for request ID ...
• [IpcClient] Received broadcast but no handler is configured method=thread-stream-state-changed

This appears to be an extension/runtime bug rather than a local cache or project issue.

What steps can reproduce the bug?

1. Install the OpenAI ChatGPT / Codex extension in VS Code on macOS.
2. Sign in successfully.
3. Open an empty local folder.
4. Start a new Codex thread.
5. Make sure only Local mode is available/selected.
6. Send a minimal prompt such as:
   • hello
   • who are you
7. Observe that the UI stays on "Thinking" indefinitely and never returns a result.

I reproduced this after:

• removing Codex CLI
• removing Codex configs and caches
• reinstalling the extension
• reinstalling VS Code
• disabling other chat/agent extensions
• testing again in an empty folder

What is the expected behavior?

No response

Additional information

Environment:

• Machine: MacBook Pro (16-inch, 2019)
• CPU: 2.4 GHz 8-core Intel Core i9
• GPU: Intel UHD Graphics 630 1536 MB
• Memory: 64 GB 2667 MHz DDR4
• OS: macOS Tahoe 26.1