From c61c6fdb26079a90a83593a99bff59d03f53e676 Mon Sep 17 00:00:00 2001
From: 35C4n0r <work.jaykumar@gmail.com>
Date: Wed, 11 Mar 2026 17:16:13 +0530
Subject: [PATCH 01/12] chore: update installation script and bump agentapi
 version to 2.2.0

---
 registry/coder-labs/modules/copilot/main.tf   |  2 +-
 .../modules/copilot/scripts/install.sh        | 43 +++----------------
 2 files changed, 7 insertions(+), 38 deletions(-)

diff --git a/registry/coder-labs/modules/copilot/main.tf b/registry/coder-labs/modules/copilot/main.tf
index 2837961f5..c2ff48aca 100644
--- a/registry/coder-labs/modules/copilot/main.tf
+++ b/registry/coder-labs/modules/copilot/main.tf
@@ -271,7 +271,7 @@ resource "coder_env" "github_token" {
 
 module "agentapi" {
   source  = "registry.coder.com/coder/agentapi/coder"
-  version = "2.0.0"
+  version = "2.2.0"
 
   agent_id             = var.agent_id
   folder               = local.workdir
diff --git a/registry/coder-labs/modules/copilot/scripts/install.sh b/registry/coder-labs/modules/copilot/scripts/install.sh
index 44c480e3a..ea2d0b86e 100644
--- a/registry/coder-labs/modules/copilot/scripts/install.sh
+++ b/registry/coder-labs/modules/copilot/scripts/install.sh
@@ -19,31 +19,13 @@ ARG_EXTERNAL_AUTH_ID=${ARG_EXTERNAL_AUTH_ID:-github}
 ARG_COPILOT_VERSION=${ARG_COPILOT_VERSION:-0.0.334}
 ARG_COPILOT_MODEL=${ARG_COPILOT_MODEL:-claude-sonnet-4.5}
 
-validate_prerequisites() {
-  if ! command_exists node; then
-    echo "ERROR: Node.js not found. Copilot requires Node.js v22+."
-    echo "Install with: curl -fsSL https://deb.nodesource.com/setup_22.x | sudo -E bash - && sudo apt-get install -y nodejs"
-    exit 1
-  fi
-
-  if ! command_exists npm; then
-    echo "ERROR: npm not found. Copilot requires npm v10+."
-    exit 1
-  fi
-
-  node_version=$(node --version | sed 's/v//' | cut -d. -f1)
-  if [ "$node_version" -lt 22 ]; then
-    echo "WARNING: Node.js v$node_version detected. Copilot requires v22+."
-  fi
-}
-
 install_copilot() {
   if ! command_exists copilot; then
     echo "Installing GitHub Copilot CLI (version: ${ARG_COPILOT_VERSION})..."
     if [ "$ARG_COPILOT_VERSION" = "latest" ]; then
-      npm install -g @github/copilot
+      curl -fsSL https://gh.io/copilot-install | bash
     else
-      npm install -g "@github/copilot@${ARG_COPILOT_VERSION}"
+      VERSION="${ARG_COPILOT_VERSION}" curl -fsSL https://gh.io/copilot-install | bash
     fi
 
     if ! command_exists copilot; then
@@ -190,27 +172,15 @@ add_custom_mcp_servers() {
     local updated_config
     updated_config=$(jq --argjson custom "$custom_servers" '.mcpServers += $custom' "$mcp_config_file")
     echo "$updated_config" > "$mcp_config_file"
-  elif command_exists node; then
-    node -e "
-      const fs = require('fs');
-      const existing = JSON.parse(fs.readFileSync('$mcp_config_file', 'utf8'));
-      const input = JSON.parse(\`$ARG_MCP_CONFIG\`);
-      const custom = input.mcpServers || {};
-      existing.mcpServers = {...existing.mcpServers, ...custom};
-      fs.writeFileSync('$mcp_config_file', JSON.stringify(existing, null, 2));
-    "
   else
-    echo "WARNING: jq and node not available, cannot merge custom MCP servers"
+    echo "WARNING: jq not available, cannot merge custom MCP servers"
   fi
 }
 
 configure_copilot_model() {
-  if [ -n "$ARG_COPILOT_MODEL" ] && [ "$ARG_COPILOT_MODEL" != "claude-sonnet-4.5" ]; then
-    echo "Setting Copilot model to: $ARG_COPILOT_MODEL"
-    copilot config model "$ARG_COPILOT_MODEL" || {
-      echo "WARNING: Failed to set model via copilot config, will use environment variable fallback"
-      export COPILOT_MODEL="$ARG_COPILOT_MODEL"
-    }
+  if [[ -n "${ARG_COPILOT_MODEL}" ]]; then
+    echo "Setting Copilot model to: ${ARG_COPILOT_MODEL}"
+    export COPILOT_MODEL="${ARG_COPILOT_MODEL}"
   fi
 }
 
@@ -227,7 +197,6 @@ configure_coder_integration() {
   fi
 }
 
-validate_prerequisites
 install_copilot
 check_github_authentication
 setup_copilot_configurations

From 45d3d8ee19ad15a3a9d5ebbf42a89dd4f3facc41 Mon Sep 17 00:00:00 2001
From: 35C4n0r <work.jaykumar@gmail.com>
Date: Wed, 11 Mar 2026 18:46:42 +0530
Subject: [PATCH 02/12] chore: adjust terminal dimensions in start.sh for
 copilot server

---
 registry/coder-labs/modules/copilot/scripts/start.sh | 8 ++++----
 1 file changed, 4 insertions(+), 4 deletions(-)

diff --git a/registry/coder-labs/modules/copilot/scripts/start.sh b/registry/coder-labs/modules/copilot/scripts/start.sh
index 0aecb1feb..c7954f75f 100644
--- a/registry/coder-labs/modules/copilot/scripts/start.sh
+++ b/registry/coder-labs/modules/copilot/scripts/start.sh
@@ -186,16 +186,16 @@ start_agentapi() {
       echo "Using initial prompt with system context"
       if [ ${#COPILOT_ARGS[@]} -gt 0 ]; then
         echo "Copilot arguments: ${COPILOT_ARGS[*]}"
-        agentapi server -I="$initial_prompt" --type copilot --term-width 120 --term-height 40 -- copilot "${COPILOT_ARGS[@]}"
+        agentapi server -I="$initial_prompt" --type copilot --term-width 67 --term-height 1190 -- copilot "${COPILOT_ARGS[@]}"
       else
-        agentapi server -I="$initial_prompt" --type copilot --term-width 120 --term-height 40 -- copilot
+        agentapi server -I="$initial_prompt" --type copilot --term-width 67 --term-height 1190 -- copilot
       fi
     else
       if [ ${#COPILOT_ARGS[@]} -gt 0 ]; then
         echo "Copilot arguments: ${COPILOT_ARGS[*]}"
-        agentapi server --type copilot --term-width 120 --term-height 40 -- copilot "${COPILOT_ARGS[@]}"
+        agentapi server --type copilot --term-width 67 --term-height 1190 -- copilot "${COPILOT_ARGS[@]}"
       else
-        agentapi server --type copilot --term-width 120 --term-height 40 -- copilot
+        agentapi server --type copilot --term-width 67 --term-height 1190 -- copilot
       fi
     fi
   fi

From b5e79685e61d153aea452b778e9229ff57e2ae22 Mon Sep 17 00:00:00 2001
From: 35C4n0r <work.jaykumar@gmail.com>
Date: Thu, 12 Mar 2026 22:11:54 +0530
Subject: [PATCH 03/12] feat: add allow_all variable to enable all tools
 without prompting

---
 registry/coder-labs/modules/copilot/main.tf   |  7 ++++++
 .../modules/copilot/scripts/start.sh          | 25 +++++++++----------
 2 files changed, 19 insertions(+), 13 deletions(-)

diff --git a/registry/coder-labs/modules/copilot/main.tf b/registry/coder-labs/modules/copilot/main.tf
index c2ff48aca..4604f11a1 100644
--- a/registry/coder-labs/modules/copilot/main.tf
+++ b/registry/coder-labs/modules/copilot/main.tf
@@ -155,6 +155,12 @@ variable "cli_app_display_name" {
   default     = "Copilot"
 }
 
+variable "allow_all" {
+  type        = bool
+  description = "Allow all tools without prompting (equivalent to --allow-all)."
+  default     = true
+}
+
 variable "resume_session" {
   type        = bool
   description = "Whether to automatically resume the latest Copilot session on workspace restart."
@@ -299,6 +305,7 @@ module "agentapi" {
     chmod +x /tmp/start.sh
 
     ARG_WORKDIR='${local.workdir}' \
+    ARG_ALLOW_ALL='${var.allow_all}' \
     ARG_AI_PROMPT='${base64encode(var.ai_prompt)}' \
     ARG_SYSTEM_PROMPT='${base64encode(local.final_system_prompt)}' \
     ARG_COPILOT_MODEL='${var.copilot_model}' \
diff --git a/registry/coder-labs/modules/copilot/scripts/start.sh b/registry/coder-labs/modules/copilot/scripts/start.sh
index c7954f75f..792a8ce2d 100644
--- a/registry/coder-labs/modules/copilot/scripts/start.sh
+++ b/registry/coder-labs/modules/copilot/scripts/start.sh
@@ -13,6 +13,7 @@ command_exists() {
 }
 
 ARG_WORKDIR=${ARG_WORKDIR:-"$HOME"}
+ARG_ALLOW_ALL=${ARG_ALLOW_ALL:-true}
 ARG_AI_PROMPT=$(echo -n "${ARG_AI_PROMPT:-}" | base64 -d 2> /dev/null || echo "")
 ARG_SYSTEM_PROMPT=$(echo -n "${ARG_SYSTEM_PROMPT:-}" | base64 -d 2> /dev/null || echo "")
 ARG_COPILOT_MODEL=${ARG_COPILOT_MODEL:-}
@@ -73,6 +74,10 @@ build_copilot_args() {
       fi
     done
   fi
+
+  if [ "$ARG_ALLOW_ALL" = "true" ]; then
+    COPILOT_ARGS+=(--allow-all)
+  fi
 }
 
 check_existing_session() {
@@ -183,20 +188,14 @@ start_agentapi() {
     initial_prompt=$(build_initial_prompt)
 
     if [ -n "$initial_prompt" ]; then
-      echo "Using initial prompt with system context"
-      if [ ${#COPILOT_ARGS[@]} -gt 0 ]; then
-        echo "Copilot arguments: ${COPILOT_ARGS[*]}"
-        agentapi server -I="$initial_prompt" --type copilot --term-width 67 --term-height 1190 -- copilot "${COPILOT_ARGS[@]}"
-      else
-        agentapi server -I="$initial_prompt" --type copilot --term-width 67 --term-height 1190 -- copilot
-      fi
+      COPILOT_ARGS+=(-i "$initial_prompt")
+    fi
+
+    if [ ${#COPILOT_ARGS[@]} -gt 0 ]; then
+      echo "Copilot arguments: ${COPILOT_ARGS[*]}"
+      agentapi server --type copilot --term-width 67 --term-height 1190 -- copilot "${COPILOT_ARGS[@]}"
     else
-      if [ ${#COPILOT_ARGS[@]} -gt 0 ]; then
-        echo "Copilot arguments: ${COPILOT_ARGS[*]}"
-        agentapi server --type copilot --term-width 67 --term-height 1190 -- copilot "${COPILOT_ARGS[@]}"
-      else
-        agentapi server --type copilot --term-width 67 --term-height 1190 -- copilot
-      fi
+      agentapi server --type copilot --term-width 67 --term-height 1190 -- copilot
     fi
   fi
 }

From d6b490ecb2914703940d3d6d0249a88cd34b85d1 Mon Sep 17 00:00:00 2001
From: 35C4n0r <work.jaykumar@gmail.com>
Date: Thu, 12 Mar 2026 22:34:24 +0530
Subject: [PATCH 04/12] feat: add enable_state_persistence variable and update
 README for state management

---
 registry/coder-labs/modules/copilot/README.md | 19 ++++++++++--
 .../modules/copilot/copilot.tftest.hcl        | 29 +++++++++++++++++++
 registry/coder-labs/modules/copilot/main.tf   | 17 +++++++----
 3 files changed, 57 insertions(+), 8 deletions(-)

diff --git a/registry/coder-labs/modules/copilot/README.md b/registry/coder-labs/modules/copilot/README.md
index 7c0e56935..f67ad5600 100644
--- a/registry/coder-labs/modules/copilot/README.md
+++ b/registry/coder-labs/modules/copilot/README.md
@@ -13,7 +13,7 @@ Run [GitHub Copilot CLI](https://docs.github.com/copilot/concepts/agents/about-c
 ```tf
 module "copilot" {
   source   = "registry.coder.com/coder-labs/copilot/coder"
-  version  = "0.4.0"
+  version  = "0.5.0"
   agent_id = coder_agent.example.id
   workdir  = "/home/coder/projects"
 }
@@ -51,7 +51,7 @@ data "coder_parameter" "ai_prompt" {
 
 module "copilot" {
   source   = "registry.coder.com/coder-labs/copilot/coder"
-  version  = "0.4.0"
+  version  = "0.5.0"
   agent_id = coder_agent.example.id
   workdir  = "/home/coder/projects"
 
@@ -71,7 +71,7 @@ Customize tool permissions, MCP servers, and Copilot settings:
 ```tf
 module "copilot" {
   source   = "registry.coder.com/coder-labs/copilot/coder"
-  version  = "0.4.0"
+  version  = "0.5.0"
   agent_id = coder_agent.example.id
   workdir  = "/home/coder/projects"
 
@@ -215,6 +215,19 @@ By default, the module resumes the latest Copilot session when the workspace res
 > [!NOTE]
 > Session resumption requires persistent storage for the home directory or workspace volume. Without persistent storage, sessions will not resume across workspace restarts.
 
+## State Persistence
+
+AgentAPI can save and restore its conversation state to disk across workspace restarts. This complements `resume_session` (which resumes the Copilot CLI session) by also preserving the AgentAPI-level context. Enabled by default, requires agentapi >= v0.12.0 (older versions skip it with a warning).
+
+To disable:
+
+```tf
+module "copilot" {
+  # ... other config
+  enable_state_persistence = false
+}
+```
+
 ## Troubleshooting
 
 If you encounter any issues, check the log files in the `~/.copilot-module` directory within your workspace for detailed information.
diff --git a/registry/coder-labs/modules/copilot/copilot.tftest.hcl b/registry/coder-labs/modules/copilot/copilot.tftest.hcl
index 0ff2379a0..9fdf93708 100644
--- a/registry/coder-labs/modules/copilot/copilot.tftest.hcl
+++ b/registry/coder-labs/modules/copilot/copilot.tftest.hcl
@@ -347,3 +347,32 @@ run "aibridge_proxy_with_copilot_config" {
     error_message = "copilot_model environment variable should be set alongside proxy"
   }
 }
+
+run "enable_state_persistence_default" {
+  command = plan
+
+  variables {
+    agent_id = "test-agent"
+    workdir  = "/home/coder"
+  }
+
+  assert {
+    condition     = var.enable_state_persistence == true
+    error_message = "enable_state_persistence should default to true"
+  }
+}
+
+run "disable_state_persistence" {
+  command = plan
+
+  variables {
+    agent_id                 = "test-agent"
+    workdir                  = "/home/coder"
+    enable_state_persistence = false
+  }
+
+  assert {
+    condition     = var.enable_state_persistence == false
+    error_message = "enable_state_persistence should be false when explicitly disabled"
+  }
+}
diff --git a/registry/coder-labs/modules/copilot/main.tf b/registry/coder-labs/modules/copilot/main.tf
index 4604f11a1..9327fb877 100644
--- a/registry/coder-labs/modules/copilot/main.tf
+++ b/registry/coder-labs/modules/copilot/main.tf
@@ -119,6 +119,12 @@ variable "subdomain" {
   default     = false
 }
 
+variable "enable_state_persistence" {
+  type        = bool
+  description = "Enable AgentAPI conversation state persistence across restarts."
+  default     = true
+}
+
 variable "order" {
   type        = number
   description = "The order determines the position of app in the UI presentation."
@@ -291,11 +297,12 @@ module "agentapi" {
   cli_app_icon         = var.cli_app ? var.icon : null
   cli_app_display_name = var.cli_app ? var.cli_app_display_name : null
   agentapi_subdomain   = var.subdomain
-  module_dir_name      = local.module_dir_name
-  install_agentapi     = var.install_agentapi
-  agentapi_version     = var.agentapi_version
-  pre_install_script   = var.pre_install_script
-  post_install_script  = var.post_install_script
+  module_dir_name          = local.module_dir_name
+  install_agentapi         = var.install_agentapi
+  agentapi_version         = var.agentapi_version
+  enable_state_persistence = var.enable_state_persistence
+  pre_install_script       = var.pre_install_script
+  post_install_script      = var.post_install_script
 
   start_script = <<-EOT
     #!/bin/bash

From 496c29dda76ea899c374bb594155618ef0fac954 Mon Sep 17 00:00:00 2001
From: 35C4n0r <work.jaykumar@gmail.com>
Date: Thu, 12 Mar 2026 22:55:56 +0530
Subject: [PATCH 05/12] chore: add ARG_REPORT_TASKS to start.sh and update
 initial prompt logic

---
 registry/coder-labs/modules/copilot/main.tf   | 25 ++++++++++---------
 .../modules/copilot/scripts/start.sh          | 15 ++++++++---
 2 files changed, 24 insertions(+), 16 deletions(-)

diff --git a/registry/coder-labs/modules/copilot/main.tf b/registry/coder-labs/modules/copilot/main.tf
index 9327fb877..7a6f73f4e 100644
--- a/registry/coder-labs/modules/copilot/main.tf
+++ b/registry/coder-labs/modules/copilot/main.tf
@@ -285,18 +285,18 @@ module "agentapi" {
   source  = "registry.coder.com/coder/agentapi/coder"
   version = "2.2.0"
 
-  agent_id             = var.agent_id
-  folder               = local.workdir
-  web_app_slug         = local.app_slug
-  web_app_order        = var.order
-  web_app_group        = var.group
-  web_app_icon         = var.icon
-  web_app_display_name = var.web_app_display_name
-  cli_app              = var.cli_app
-  cli_app_slug         = var.cli_app ? "${local.app_slug}-cli" : null
-  cli_app_icon         = var.cli_app ? var.icon : null
-  cli_app_display_name = var.cli_app ? var.cli_app_display_name : null
-  agentapi_subdomain   = var.subdomain
+  agent_id                 = var.agent_id
+  folder                   = local.workdir
+  web_app_slug             = local.app_slug
+  web_app_order            = var.order
+  web_app_group            = var.group
+  web_app_icon             = var.icon
+  web_app_display_name     = var.web_app_display_name
+  cli_app                  = var.cli_app
+  cli_app_slug             = var.cli_app ? "${local.app_slug}-cli" : null
+  cli_app_icon             = var.cli_app ? var.icon : null
+  cli_app_display_name     = var.cli_app ? var.cli_app_display_name : null
+  agentapi_subdomain       = var.subdomain
   module_dir_name          = local.module_dir_name
   install_agentapi         = var.install_agentapi
   agentapi_version         = var.agentapi_version
@@ -322,6 +322,7 @@ module "agentapi" {
     ARG_TRUSTED_DIRECTORIES='${join(",", var.trusted_directories)}' \
     ARG_EXTERNAL_AUTH_ID='${var.external_auth_id}' \
     ARG_RESUME_SESSION='${var.resume_session}' \
+    ARG_REPORT_TASKS='${var.report_tasks}' \
     ARG_ENABLE_AIBRIDGE_PROXY='${var.enable_aibridge_proxy}' \
     ARG_AIBRIDGE_PROXY_AUTH_URL='${var.aibridge_proxy_auth_url != null ? var.aibridge_proxy_auth_url : ""}' \
     ARG_AIBRIDGE_PROXY_CERT_PATH='${var.aibridge_proxy_cert_path != null ? var.aibridge_proxy_cert_path : ""}' \
diff --git a/registry/coder-labs/modules/copilot/scripts/start.sh b/registry/coder-labs/modules/copilot/scripts/start.sh
index 792a8ce2d..c7a1afb3d 100644
--- a/registry/coder-labs/modules/copilot/scripts/start.sh
+++ b/registry/coder-labs/modules/copilot/scripts/start.sh
@@ -23,27 +23,34 @@ ARG_DENY_TOOLS=${ARG_DENY_TOOLS:-}
 ARG_TRUSTED_DIRECTORIES=${ARG_TRUSTED_DIRECTORIES:-}
 ARG_EXTERNAL_AUTH_ID=${ARG_EXTERNAL_AUTH_ID:-github}
 ARG_RESUME_SESSION=${ARG_RESUME_SESSION:-true}
+ARG_REPORT_TASKS=${ARG_REPORT_TASKS:-true}
 ARG_ENABLE_AIBRIDGE_PROXY=${ARG_ENABLE_AIBRIDGE_PROXY:-false}
 ARG_AIBRIDGE_PROXY_AUTH_URL=${ARG_AIBRIDGE_PROXY_AUTH_URL:-}
 ARG_AIBRIDGE_PROXY_CERT_PATH=${ARG_AIBRIDGE_PROXY_CERT_PATH:-}
 
 validate_copilot_installation() {
   if ! command_exists copilot; then
-    echo "ERROR: Copilot not installed. Run: npm install -g @github/copilot"
+    echo "ERROR: Copilot not installed or not in PATH. Please ensure Copilot CLI is installed and accessible."
     exit 1
   fi
 }
 
 build_initial_prompt() {
   local initial_prompt=""
+  local task_prompt="$ARG_AI_PROMPT"
 
-  if [ -n "$ARG_AI_PROMPT" ]; then
+  # Add task reporting instruction when report_tasks is enabled
+  if [ -n "$ARG_AI_PROMPT" ] && [ "$ARG_REPORT_TASKS" = "true" ]; then
+    task_prompt="Every step of the way, report your progress using Coder.coder_report_task tool with proper summary and statuses. Your task at hand: $ARG_AI_PROMPT"
+  fi
+
+  if [ -n "$task_prompt" ]; then
     if [ -n "$ARG_SYSTEM_PROMPT" ]; then
       initial_prompt="$ARG_SYSTEM_PROMPT
 
-$ARG_AI_PROMPT"
+$task_prompt"
     else
-      initial_prompt="$ARG_AI_PROMPT"
+      initial_prompt="$task_prompt"
     fi
   fi
 

From 9e827d526e87752c888bb654991a3c92a3a000bd Mon Sep 17 00:00:00 2001
From: 35C4n0r <work.jaykumar@gmail.com>
Date: Fri, 13 Mar 2026 12:57:03 +0530
Subject: [PATCH 06/12] wip

---
 registry/coder-labs/modules/copilot/main.tf   |  1 -
 .../modules/copilot/scripts/install.sh        |  6 +-
 .../modules/copilot/scripts/start.sh          | 55 ++++++-------------
 3 files changed, 20 insertions(+), 42 deletions(-)

diff --git a/registry/coder-labs/modules/copilot/main.tf b/registry/coder-labs/modules/copilot/main.tf
index 7a6f73f4e..9194fa993 100644
--- a/registry/coder-labs/modules/copilot/main.tf
+++ b/registry/coder-labs/modules/copilot/main.tf
@@ -322,7 +322,6 @@ module "agentapi" {
     ARG_TRUSTED_DIRECTORIES='${join(",", var.trusted_directories)}' \
     ARG_EXTERNAL_AUTH_ID='${var.external_auth_id}' \
     ARG_RESUME_SESSION='${var.resume_session}' \
-    ARG_REPORT_TASKS='${var.report_tasks}' \
     ARG_ENABLE_AIBRIDGE_PROXY='${var.enable_aibridge_proxy}' \
     ARG_AIBRIDGE_PROXY_AUTH_URL='${var.aibridge_proxy_auth_url != null ? var.aibridge_proxy_auth_url : ""}' \
     ARG_AIBRIDGE_PROXY_CERT_PATH='${var.aibridge_proxy_cert_path != null ? var.aibridge_proxy_cert_path : ""}' \
diff --git a/registry/coder-labs/modules/copilot/scripts/install.sh b/registry/coder-labs/modules/copilot/scripts/install.sh
index ea2d0b86e..5a4658655 100644
--- a/registry/coder-labs/modules/copilot/scripts/install.sh
+++ b/registry/coder-labs/modules/copilot/scripts/install.sh
@@ -1,11 +1,9 @@
 #!/bin/bash
 
-if [ -f "$HOME/.bashrc" ]; then
-  source "$HOME"/.bashrc
-fi
-
 set -euo pipefail
 
+export PATH="$HOME/.local/bin:$PATH"
+
 command_exists() {
   command -v "$1" > /dev/null 2>&1
 }
diff --git a/registry/coder-labs/modules/copilot/scripts/start.sh b/registry/coder-labs/modules/copilot/scripts/start.sh
index c7a1afb3d..06a5546c1 100644
--- a/registry/coder-labs/modules/copilot/scripts/start.sh
+++ b/registry/coder-labs/modules/copilot/scripts/start.sh
@@ -1,9 +1,5 @@
 #!/bin/bash
 
-if [ -f "$HOME/.bashrc" ]; then
-  source "$HOME"/.bashrc
-fi
-
 set -euo pipefail
 
 export PATH="$HOME/.local/bin:$PATH"
@@ -23,7 +19,6 @@ ARG_DENY_TOOLS=${ARG_DENY_TOOLS:-}
 ARG_TRUSTED_DIRECTORIES=${ARG_TRUSTED_DIRECTORIES:-}
 ARG_EXTERNAL_AUTH_ID=${ARG_EXTERNAL_AUTH_ID:-github}
 ARG_RESUME_SESSION=${ARG_RESUME_SESSION:-true}
-ARG_REPORT_TASKS=${ARG_REPORT_TASKS:-true}
 ARG_ENABLE_AIBRIDGE_PROXY=${ARG_ENABLE_AIBRIDGE_PROXY:-false}
 ARG_AIBRIDGE_PROXY_AUTH_URL=${ARG_AIBRIDGE_PROXY_AUTH_URL:-}
 ARG_AIBRIDGE_PROXY_CERT_PATH=${ARG_AIBRIDGE_PROXY_CERT_PATH:-}
@@ -36,21 +31,15 @@ validate_copilot_installation() {
 }
 
 build_initial_prompt() {
-  local initial_prompt=""
-  local task_prompt="$ARG_AI_PROMPT"
-
-  # Add task reporting instruction when report_tasks is enabled
-  if [ -n "$ARG_AI_PROMPT" ] && [ "$ARG_REPORT_TASKS" = "true" ]; then
-    task_prompt="Every step of the way, report your progress using Coder.coder_report_task tool with proper summary and statuses. Your task at hand: $ARG_AI_PROMPT"
-  fi
+ local initial_prompt=""
 
-  if [ -n "$task_prompt" ]; then
+  if [ -n "$ARG_AI_PROMPT" ]; then
     if [ -n "$ARG_SYSTEM_PROMPT" ]; then
       initial_prompt="$ARG_SYSTEM_PROMPT
 
-$task_prompt"
+$ARG_AI_PROMPT"
     else
-      initial_prompt="$task_prompt"
+      initial_prompt="$ARG_AI_PROMPT"
     fi
   fi
 
@@ -85,6 +74,16 @@ build_copilot_args() {
   if [ "$ARG_ALLOW_ALL" = "true" ]; then
     COPILOT_ARGS+=(--allow-all)
   fi
+
+  if check_existing_session; then
+    COPILOT_ARGS+=(--continue)
+  else
+    local initial_prompt
+    initial_prompt=$(build_initial_prompt)
+    if [[ -n "${initial_prompt}" ]]; then
+      COPILOT_ARGS+=(-i "${initial_prompt}")
+    fi
+  fi
 }
 
 check_existing_session() {
@@ -181,29 +180,11 @@ start_agentapi() {
 
   build_copilot_args
 
-  if check_existing_session; then
-    echo "Continuing latest Copilot session..."
-    if [ ${#COPILOT_ARGS[@]} -gt 0 ]; then
-      echo "Copilot arguments: ${COPILOT_ARGS[*]}"
-      agentapi server --type copilot --term-width 120 --term-height 40 -- copilot --continue "${COPILOT_ARGS[@]}"
-    else
-      agentapi server --type copilot --term-width 120 --term-height 40 -- copilot --continue
-    fi
+  if [ ${#COPILOT_ARGS[@]} -gt 0 ]; then
+    echo "Copilot arguments: ${COPILOT_ARGS[*]}"
+    agentapi server --type copilot --term-width 67 --term-height 1190 -- copilot "${COPILOT_ARGS[@]}"
   else
-    echo "Starting new Copilot session..."
-    local initial_prompt
-    initial_prompt=$(build_initial_prompt)
-
-    if [ -n "$initial_prompt" ]; then
-      COPILOT_ARGS+=(-i "$initial_prompt")
-    fi
-
-    if [ ${#COPILOT_ARGS[@]} -gt 0 ]; then
-      echo "Copilot arguments: ${COPILOT_ARGS[*]}"
-      agentapi server --type copilot --term-width 67 --term-height 1190 -- copilot "${COPILOT_ARGS[@]}"
-    else
-      agentapi server --type copilot --term-width 67 --term-height 1190 -- copilot
-    fi
+    agentapi server --type copilot --term-width 67 --term-height 1190 -- copilot
   fi
 }
 

From 2d8699b465272fc3846430a804571211cdd53d8a Mon Sep 17 00:00:00 2001
From: 35C4n0r <work.jaykumar@gmail.com>
Date: Fri, 13 Mar 2026 13:03:48 +0530
Subject: [PATCH 07/12] wip

---
 registry/coder-labs/modules/copilot/scripts/install.sh | 1 +
 1 file changed, 1 insertion(+)

diff --git a/registry/coder-labs/modules/copilot/scripts/install.sh b/registry/coder-labs/modules/copilot/scripts/install.sh
index 5a4658655..226f10dda 100644
--- a/registry/coder-labs/modules/copilot/scripts/install.sh
+++ b/registry/coder-labs/modules/copilot/scripts/install.sh
@@ -27,6 +27,7 @@ install_copilot() {
     fi
 
     if ! command_exists copilot; then
+      echo "PATH after installation: $PATH"
       echo "ERROR: Failed to install Copilot"
       exit 1
     fi

From c70954191ef0a0f275e5426b3003a785b3746f83 Mon Sep 17 00:00:00 2001
From: 35C4n0r <work.jaykumar@gmail.com>
Date: Fri, 13 Mar 2026 15:10:30 +0530
Subject: [PATCH 08/12] chore: update XDG_CONFIG_HOME default path in
 setup_copilot_config function

---
 registry/coder-labs/modules/copilot/scripts/install.sh | 2 +-
 1 file changed, 1 insertion(+), 1 deletion(-)

diff --git a/registry/coder-labs/modules/copilot/scripts/install.sh b/registry/coder-labs/modules/copilot/scripts/install.sh
index 226f10dda..f5f461d2a 100644
--- a/registry/coder-labs/modules/copilot/scripts/install.sh
+++ b/registry/coder-labs/modules/copilot/scripts/install.sh
@@ -76,7 +76,7 @@ setup_copilot_configurations() {
 }
 
 setup_copilot_config() {
-  export XDG_CONFIG_HOME="${XDG_CONFIG_HOME:-$HOME/.config}"
+  export XDG_CONFIG_HOME="${XDG_CONFIG_HOME:-$HOME}"
   local copilot_config_dir="$XDG_CONFIG_HOME/.copilot"
   local copilot_config_file="$copilot_config_dir/config.json"
   local mcp_config_file="$copilot_config_dir/mcp-config.json"

From 70f4d625b8822ea8d59be30ed4370bcc937db8c2 Mon Sep 17 00:00:00 2001
From: 35C4n0r <work.jaykumar@gmail.com>
Date: Fri, 13 Mar 2026 18:38:02 +0530
Subject: [PATCH 09/12] bun fmt

---
 registry/coder-labs/modules/copilot/scripts/start.sh | 2 +-
 1 file changed, 1 insertion(+), 1 deletion(-)

diff --git a/registry/coder-labs/modules/copilot/scripts/start.sh b/registry/coder-labs/modules/copilot/scripts/start.sh
index 06a5546c1..7c5d21c5b 100644
--- a/registry/coder-labs/modules/copilot/scripts/start.sh
+++ b/registry/coder-labs/modules/copilot/scripts/start.sh
@@ -31,7 +31,7 @@ validate_copilot_installation() {
 }
 
 build_initial_prompt() {
- local initial_prompt=""
+  local initial_prompt=""
 
   if [ -n "$ARG_AI_PROMPT" ]; then
     if [ -n "$ARG_SYSTEM_PROMPT" ]; then

From 90fe6a50a08e27986784acdd8a68ece6f812be19 Mon Sep 17 00:00:00 2001
From: 35C4n0r <work.jaykumar@gmail.com>
Date: Fri, 13 Mar 2026 18:57:02 +0530
Subject: [PATCH 10/12] fix: fix version installation

---
 registry/coder-labs/modules/copilot/scripts/install.sh | 2 +-
 1 file changed, 1 insertion(+), 1 deletion(-)

diff --git a/registry/coder-labs/modules/copilot/scripts/install.sh b/registry/coder-labs/modules/copilot/scripts/install.sh
index f5f461d2a..9c0c2d49a 100644
--- a/registry/coder-labs/modules/copilot/scripts/install.sh
+++ b/registry/coder-labs/modules/copilot/scripts/install.sh
@@ -23,7 +23,7 @@ install_copilot() {
     if [ "$ARG_COPILOT_VERSION" = "latest" ]; then
       curl -fsSL https://gh.io/copilot-install | bash
     else
-      VERSION="${ARG_COPILOT_VERSION}" curl -fsSL https://gh.io/copilot-install | bash
+      curl -fsSL https://gh.io/copilot-install | VERSION="${ARG_COPILOT_VERSION}" bash
     fi
 
     if ! command_exists copilot; then

From f73c20a50a792605f34b5c10d2a5abf4a7968d5a Mon Sep 17 00:00:00 2001
From: 35C4n0r <work.jaykumar@gmail.com>
Date: Fri, 13 Mar 2026 18:58:02 +0530
Subject: [PATCH 11/12] feat: remove version check

---
 registry/coder-labs/modules/copilot/scripts/install.sh | 6 +-----
 1 file changed, 1 insertion(+), 5 deletions(-)

diff --git a/registry/coder-labs/modules/copilot/scripts/install.sh b/registry/coder-labs/modules/copilot/scripts/install.sh
index 9c0c2d49a..4609376c3 100644
--- a/registry/coder-labs/modules/copilot/scripts/install.sh
+++ b/registry/coder-labs/modules/copilot/scripts/install.sh
@@ -20,11 +20,7 @@ ARG_COPILOT_MODEL=${ARG_COPILOT_MODEL:-claude-sonnet-4.5}
 install_copilot() {
   if ! command_exists copilot; then
     echo "Installing GitHub Copilot CLI (version: ${ARG_COPILOT_VERSION})..."
-    if [ "$ARG_COPILOT_VERSION" = "latest" ]; then
-      curl -fsSL https://gh.io/copilot-install | bash
-    else
-      curl -fsSL https://gh.io/copilot-install | VERSION="${ARG_COPILOT_VERSION}" bash
-    fi
+    curl -fsSL https://gh.io/copilot-install | VERSION="${ARG_COPILOT_VERSION}" bash
 
     if ! command_exists copilot; then
       echo "PATH after installation: $PATH"

From aa6c429a3cc809ae52ada3c209ff584e4b62cb3d Mon Sep 17 00:00:00 2001
From: 35C4n0r <work.jaykumar@gmail.com>
Date: Fri, 13 Mar 2026 19:23:14 +0530
Subject: [PATCH 12/12] feat: add warning in README.md

---
 registry/coder-labs/modules/copilot/README.md | 3 +++
 1 file changed, 3 insertions(+)

diff --git a/registry/coder-labs/modules/copilot/README.md b/registry/coder-labs/modules/copilot/README.md
index f67ad5600..7005e1ca3 100644
--- a/registry/coder-labs/modules/copilot/README.md
+++ b/registry/coder-labs/modules/copilot/README.md
@@ -19,6 +19,9 @@ module "copilot" {
 }
 ```
 
+> [!WARNING]
+> **Security Notice**: This module runs Copilot with `--allow-all` by default, which enables all permissions (equivalent to `--allow-all-tools --allow-all-paths --allow-all-urls`). This bypasses permission prompts and allows Copilot unrestricted access to tools, file paths, and URLs. Use this module _only_ in trusted environments.
+
 > [!IMPORTANT]
 > This example assumes you have [Coder external authentication](https://coder.com/docs/admin/external-auth) configured with `id = "github"`. If not, you can provide a direct token using the `github_token` variable or provide the correct external authentication id for GitHub by setting `external_auth_id = "my-github"`.