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When Copilot in VS Code cannot read a file, write a build artifact, or run a command, first determine whether the block is an approval decision, a sandbox rule, or a network restriction. These controls are independent: choosing Allow all or Autopilot changes approval behavior, but an enabled sandbox still limits the paths and processes an agent can use.
For current Copilot Agent Host sessions, open the session’s Permissions menu, check Sandboxing for terminal, run /sandbox policy, and then adjust the effective file-system paths on the machine where the agent actually runs. The procedure below covers local and remote sessions, read-only versus read/write access, overlapping rules, managed policies, and the common differences between Agent Host and Local or custom terminal harnesses.
Why Copilot cannot access your files in VS Code
VS Code separates two questions that are easy to confuse:
- Approval: must you confirm a tool call, command, or edit before it runs?
- Sandboxing: which file-system and network locations are technically available to the agent process?
An approval prompt can be accepted, declined, or automated. Sandboxing is an access boundary. If the sandbox denies a path, accepting the prompt does not grant access to that path. This is why Allow all can still be followed by a “permission denied,” “path not accessible,” or similar failure. VS Code documents approvals separately from sandbox controls in Manage approvals and permissions and Sandbox Copilot Agent Host sessions.
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Before changing a setting, identify the execution harness. The Agent Host sandbox documentation applies to Copilot Agent Host’s built-in SDK tool implementation. A Local chat implementation or a custom terminal integration can have different behavior and settings. A remote Agent Host uses the connected host’s paths and policy, not necessarily the folders on your desktop.
Classify the failure before changing permissions
Use the symptom to choose the right branch. Widening file access will not fix a network block, and changing approvals will not remove a sandbox boundary.
| What you see | Likely control | First check |
|---|---|---|
| Copilot asks you to approve a command or edit | Approval policy | Review the session approval choice and the command’s scope. |
| Reading or writing a specific path is denied even after approval | File-system sandbox | Run /sandbox policy and inspect path rules. |
| A command cannot reach a website or API | Network sandbox | Check outbound, local-network, and domain restrictions. |
| The path works locally but fails in a remote session | Execution host mismatch | Check the remote machine’s working directory and configuration. |
| A setting is visible but cannot be changed | Organization-managed policy | Look for a locked or enforced value and contact your administrator. |
Check the active Agent Host sandbox
Open the session Permissions menu
- In the Copilot Agent Host session, open the session’s Permissions menu.
- Locate Sandboxing for terminal and note whether sandboxing is enabled for that session.
- Remember that a restored session can retain its previous choice. New sessions inherit the effective configuration on the execution host, subject to any managed restrictions.
This check tells you which session-level behavior is active; it does not by itself show every path rule.
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Run this command in the Agent Host session:
/sandbox policyThe output exposes the effective permissions, runtime defaults, and organization-managed restrictions. Use it as the authority for what the current session can do instead of relying on a remembered user or workspace setting.
Confirm the execution host and working directory
Agent Host automatically grants read/write access to its current working directory. If Copilot is operating in your project folder, files under that directory normally do not need an extra path entry. An “outside the workspace” error usually means the requested location is elsewhere, or that the working directory is not the folder you assumed.
For a remote session, all paths are interpreted on the connected host. A path such as /home/dev/shared on a remote Linux machine is not the same location as a similarly named folder on your local computer. Verify the remote operating system, current directory, mounted drives, and spelling before adding rules.
Grant the minimum file-system access
Additional paths are configured through chat.agent.sandbox.fileSystem.userConfiguredPaths. The setting has separate lists for readwritePaths, readonlyPaths, and deniedPaths. Add only the location required for the task.
Read-only access for inspection
If Copilot only needs to inspect a shared source tree, place that directory in readonlyPaths. This permits reading while avoiding write access to the shared files.
Read/write access for generated output
If a build, test, or code-generation step must create files outside the working directory, put the specific output directory in readwritePaths. Prefer a project build folder over a broad parent such as an entire home directory.
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Keep sensitive locations denied
Use deniedPaths for credentials, personal data, production configuration, or other locations the agent should never touch. A denial is useful even when a broader read/write rule exists, because denied access has higher precedence.
Understand overlapping-rule precedence
When one path appears in multiple lists, VS Code evaluates the rules in this order:
- Denied access wins over every other rule.
- Read-only wins over read/write.
- Read/write applies only when neither of the stronger rules matches.
Thus, adding a directory to readwritePaths will not help if that same path, or a matching parent rule, remains in deniedPaths. Remove an accidental denial or narrow it only when you are authorized to change the policy.
Example configuration shape
The exact JSON placement depends on your VS Code settings editor, but the path lists use this structure:
{
"chat.agent.sandbox.fileSystem.userConfiguredPaths": {
"readwritePaths": ["/work/project/build"],
"readonlyPaths": ["/work/shared-sources"],
"deniedPaths": ["/work/project/secrets"]
}
}Replace the example paths with paths on the execution host. On Windows, use the path syntax expected by that host and avoid assuming that a local drive letter exists in a remote environment.
Why “Allow all” still blocks a command
Allow all and Autopilot control whether VS Code asks for confirmation. They do not switch off an enabled Agent Host sandbox. A command can therefore be approved and then rejected because it tries to read a denied directory, write to a read-only directory, or access a location outside the configured path grants.
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The safe fix is to identify the exact operation and add the smallest matching path rule, not to grant unrestricted access. If the command also contacts a service, treat that as a separate network investigation.
Check the current Agent Host defaults, carefully
The Agent Host reference checked on October 11, 2026, lists these defaults. They can change with future VS Code releases, so compare them with the documentation for your installed version:
| Setting | Documented default | What it controls |
|---|---|---|
chat.agent.sandbox.enabled |
Off | Whether the Agent Host sandbox is enabled. |
chat.agent.sandbox.network.allowNetwork |
True | General outbound network access. |
chat.agent.sandbox.network.allowLocalNetwork |
False | Access to local-network destinations. |
chat.agent.sandbox.network.allowedDomains |
Empty | Explicitly allowed domains when domain filtering is used. |
chat.agent.sandbox.network.deniedDomains |
Empty | Explicitly denied domains. |
chat.agent.sandbox.fileSystem.userConfiguredPaths |
Empty path lists | User-specified read/write, read-only, and denied locations. |
chat.agent.sandbox.fileSystem.allowDevToolAccess |
True | Automatic access to common developer tools, configuration, and caches. |
Even with empty user-configured path lists, the working directory receives automatic read/write access. The allowDevToolAccess grant can include configuration, caches, registry tokens, and write access to shared build caches. Disabling it may reduce that broad convenience, but you may then need to add narrower paths explicitly. Weigh the security benefit against the tools your project requires before changing it.
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Understand setting scope and session persistence
A value shown in the Settings editor is not always the value that governs a running agent. A restored Agent Host session can preserve its previous sandbox choice, while a newly created session receives the effective configuration of the execution host. User settings, workspace settings, session choices, and managed restrictions can therefore produce different results.
Use /sandbox policy after reopening a session or changing a setting. This catches a common mistake: editing a local workspace setting while the agent is running remotely, or assuming that a new session inherited a change made to an older one. If the policy output shows an organization restriction, treat that as authoritative rather than repeatedly changing local JSON.
Common path scenarios and the narrow fix
| Scenario | Recommended rule | Reason |
|---|---|---|
| Reviewing a sibling source repository | Add only that repository to readonlyPaths. |
Code review needs reads, not edits. |
| Writing generated documentation outside the project | Add the specific documentation output folder to readwritePaths. |
Generation needs writes but not access to the parent tree. |
| Building into a shared cache | Use the narrow cache directory and check whether developer-tool access already grants it. | Avoid granting an entire user profile for one build cache. |
| Protecting credentials under a broadly granted parent | Place the credential directory in deniedPaths. |
Denied rules override broader read/write rules. |
| Working through Remote SSH or another remote host | Configure the path as it exists on that host. | Local drive letters and mounts do not automatically carry over. |
After each change, test a harmless operation first: list the directory, read one representative file, or create a disposable file in the output folder. Only then rerun a full build, migration, or deployment command.
Fix a request for a folder outside the workspace
- Ask which exact file or directory the task needs and whether it needs read-only or write access.
- Check whether the path is on the local or remote execution host.
- Run
/sandbox policyto see whether an existing denial or read-only rule matches. - Add the path to
readonlyPathsfor inspection, orreadwritePathsfor edits and generated files. - Check that the path is not also covered by
deniedPaths. - Retry the smallest operation first, such as listing a directory or reading one file, before rerunning a destructive build or migration.
Do not make the entire home directory available as a first fix. Broad grants increase the amount of personal and credential data an agent process could read or alter.
Separate file-system errors from network errors
Agent Host file-system isolation and network isolation are separate controls. A script may be allowed to read a local configuration file yet be unable to call an API, or it may reach a domain while being unable to access a local service.
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For a network failure, inspect allowNetwork, allowLocalNetwork, allowedDomains, and deniedDomains. Change only the setting that corresponds to the destination. Allowing local-network access is broader than allowing a single external domain, so do not enable it merely because an internet request failed.
Windows loopback and proxy cases
VS Code’s documented Windows proxy and domain-filtering configuration can require local-network access for the host’s loopback proxy. Enable local-network access only when that proxy scenario applies, and understand that it expands the reachable network surface. A normal file permission error does not justify this change.
When organization policy overrides your setting
Administrators can require sandboxing, restrict network access, and prevent users from bypassing those controls. A locked setting or a policy shown by /sandbox policy cannot be overridden safely with a local preference.
- Record the denied path or destination, the session type, and the relevant policy output.
- Ask the administrator to approve the narrowest required path or domain.
- Do not copy policy values into a user setting in an attempt to override them.
If the work involves protected data, explain why read-only access is sufficient whenever possible. This gives an administrator a smaller, auditable change to approve.
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Agent Host versus Local and custom terminal sessions
Use the Agent Host instructions only when the session is actually running the Agent Host tool implementation. Local chat harnesses and custom terminal overrides may interpret settings differently, and some older settings are no longer honored by Agent Host.
Legacy platform-specific settings
The current Agent Host documentation says these legacy settings are ignored by Agent Host:
chat.agent.sandbox.fileSystem.linuxchat.agent.sandbox.fileSystem.macchat.agent.sandbox.fileSystem.windows
Do not add them to a new Agent Host configuration expecting them to grant access. If a Local or custom implementation documents its own controls, follow that harness’s documentation and verify the effective behavior in that session.
What to do when the error message is ambiguous
Some failures use the same words for different controls. “Permission denied” can mean a sandbox rule, an operating-system file permission, or an organization policy. Start with the effective Agent Host policy, then verify that the operating-system account running the host can access the path at all. If the policy grants access but the host account lacks native permissions, changing sandbox lists will not repair the operating-system problem.
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Is there a cost or product requirement?
There is no hardware accessory, repair utility, or unrelated commercial product required to fix these errors. The supported remedies are configuration, policy inspection, and—when controls are managed—an administrator’s approval. Keep the change focused on VS Code and Copilot settings rather than installing a third-party cleaner, antivirus exception, or permission tool.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.A repeatable troubleshooting checklist
- Name the failed resource: capture the exact path, command, URL, or service that failed.
- Identify the harness: Agent Host, Local, or a custom terminal implementation.
- Identify the host: local machine or remote execution host.
- Classify the control: approval, file-system sandbox, network sandbox, operating-system permission, or managed policy.
- Inspect the session: open Permissions, review Sandboxing for terminal, and run
/sandbox policy. - Check automatic access: confirm the current working directory and whether developer-tool access is enabled.
- Apply the minimum rule: choose read-only or read/write and use the narrowest directory.
- Resolve precedence: remove an unintended denial before adding a weaker grant.
- Test safely: retry a non-destructive read or directory listing first.
- Escalate correctly: contact the administrator when the policy is locked or managed.
Security practices while troubleshooting
- Grant a folder, not an entire disk or home directory.
- Prefer
readonlyPathsfor source review and documentation lookup. - Keep secrets, token stores, production files, and personal records denied.
- Review the implications of
allowDevToolAccess, which can expose configuration, caches, registry tokens, and shared build-cache write access. - Use a remote host’s policy for a remote session; changing local paths will not protect or authorize files on that host.
- After a temporary exception, remove it or narrow it when the task is complete.
For broader context on agent trust boundaries and secure configuration, see VS Code’s Understand trust and safety for AI agents and Secure AI-assisted development in VS Code.
Bottom line
Fix Copilot file-access errors by matching the remedy to the control that failed. Approval choices govern confirmation; the Agent Host sandbox governs which paths and networks are reachable. Inspect the effective policy, verify the execution host, use the working-directory grant when it is sufficient, and add only the required external path with the correct read-only or read/write level. If a denial is managed by your organization, the administrator—not another local setting—is the correct way to resolve it.
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Why does Copilot still fail after I choose Allow all?
Allow all changes confirmation behavior only. An enabled Agent Host sandbox can still deny a path, prevent writes to a read-only location, or block a network destination. Check Permissions, Sandboxing for terminal, and /sandbox policy.
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How do I let Copilot access a folder outside my workspace?
Confirm the folder exists on the execution host, then add it to readonlyPaths for inspection or readwritePaths for edits and generated files. Check that no matching deniedPaths rule overrides it, and test with a harmless read first.
Where does a remote Agent Host look for configured paths?
It applies path rules on the connected execution host. Configure the remote machine’s actual paths, mounts, and operating-system syntax; changing a path on your desktop does not grant access to the remote host.
What happens when a path is in more than one list?
Denied access has highest precedence, followed by read-only, then read/write. A read/write entry cannot override a matching denial, and it cannot make a read-only match writable.
Should I disable allowDevToolAccess?
Only after weighing the tradeoff. It can provide access to developer tools, configuration, caches, registry tokens, and shared build-cache writes. Disabling it narrows automatic access but may require explicit path entries for tools your project needs.
Why can I see a sandbox setting but not change it?
An organization may enforce sandboxing, network restrictions, or no-bypass rules. If the value is locked or appears as managed in /sandbox policy, ask the administrator for the narrowest path or domain exception.
Do I need to install another program or buy hardware to fix this?
No. These failures are resolved through VS Code/Copilot configuration, policy inspection, and administrator action when controls are managed. Avoid unrelated permission utilities or broad security exceptions.
Are the old Linux, macOS, and Windows sandbox settings still valid for Agent Host?
Current Agent Host documentation says chat.agent.sandbox.fileSystem.linux, .mac, and .windows are ignored by Agent Host. Local and custom terminal implementations can differ, so follow the harness-specific documentation.
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The Bottom Line
Separate approval prompts from sandbox boundaries, verify the execution host, inspect /sandbox policy, and grant only the smallest required path. Use read-only access whenever possible, remember that denied rules win, and involve an administrator when policy is managed.
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