Bug: Codex deleted unstaged changes outside the requested edit scope.

What version of the IDE extension are you using?

0.4.79

What subscription do you have?

I am not a paying user yet.

Which IDE are you using?

VS Code

What platform is your computer?

_No response_

What issue are you seeing?

I encountered a severe data loss issue where the extension performed a destructive overwrite of my local files. When I requested a localized edit for a specific code block, the tool completely discarded all my uncommitted Git changes (unstaged and staged) in the file/workspace, reverting or overwriting them without any confirmation or backup.

What steps can reproduce the bug?

It appears the tool might be relying on Git reference points to manage file states during edits. This is fragile when the workspace has "dirty" (uncommitted) changes. I‘m Not sure about the base logical of your coding IDE extension.

Instead of anchoring to Git, the extension should leverage the IDE's internal Document/Buffer model (similar to how 'Local History' functions). The AI's output should be treated as a partial buffer update rather than a full file overwrite based on the last known Git commit. This would ensure that localized edits remain localized and do not interfere with unstaged manual work.

What is the expected behavior?

_No response_

Additional information

The editing permissions should be very clear, rather than vaguely defined. I feel that Codex often oversteps its authority, which makes me very uneasy.