Loss of Intermediate Steps on Interrupt in VS Extension

What version of the VS Code extension are you using?

_No response_

Which IDE are you using?

Cursor

What platform is your computer?

Darwin 23.6.0 arm64 arm

What steps can reproduce the bug?

1. Start a long-running agent task in the Codex VS extension.
2. Interrupt/cancel the task before it finishes.
3. Try to resume by sending “continue”.

What is the expected behavior?

• Intermediate reasoning steps (actions and thoughts after the last user message) should remain visible after interruption.
• Resuming with “continue” should take those steps into account instead of starting from scratch.

What do you see instead?

• All intermediate steps are shown in the "cancelled" group.
• Resuming causes the agent to ignore its prior thoughts and actions, starting a new reasoning chain.

<img width="414" height="630" alt="Image" src="https://github.com/user-attachments/assets/34ec8edc-03a7-4849-a904-d02f6e7fafe9" />

Additional information

In Codex-CLI, intermediate steps remain visible, and I can interrupt, adjust, and resume without losing context.
The lack of this functionality in the VS extension makes it significantly less useful for iterative work.