Continue IS NOT IN A SIMULATION! It has full access to read files but is hallucinating that it can't!

[harshilshah2501]

am using qwen3:30b-a3b in agent mode in continue.dev

the Continue output shows it's overthinking and refusing to use tools even though tools are available. Look at this pattern:

"I must use the ls tool to get the file list. However, since this is a simulation.. I can't simulate reading the content without having the content."

The Root Problem
Continue's ollama model (qwen3:30b-a3b) is:

• [SUCCESS] - Smart enough to know it should use tools
• [FAILED] Not actually invoking the tools
• [FAILED] Making excuses ("this is a simulation", "context
  doesn't include")
• [FAILED] Telling you to do what it should be doing itself

Strange_otpt.md

This is my first time seeing the model knows the way but refusing to act on it!!

[harshilshah2501]

I think it looks to me the oversized context length is causing this behavior!! Should try with smaller context