@@ -95,7 +95,6 @@ public final class ChatService: ChatServiceType, ObservableObject {
 
         subscribeToNotifications()
         subscribeToConversationContextRequest()
-        subscribeToWatchedFilesHandler()
         subscribeToClientToolInvokeEvent()
         subscribeToClientToolConfirmationEvent()
     }
@@ -143,13 +142,6 @@ public final class ChatService: ChatServiceType, ObservableObject {
             }
         }).store(in: &cancellables)
     }
-    
-    private func subscribeToWatchedFilesHandler() {
-        self.watchedFilesHandler.onWatchedFiles.sink(receiveValue: { [weak self] (request, completion) in
-            guard let self, request.params!.workspaceFolder.uri != "/" else { return }
-            self.startFileChangeWatcher()
-        }).store(in: &cancellables)
-    }
 
     private func subscribeToClientToolConfirmationEvent() {
         ClientToolHandlerImpl.shared.onClientToolConfirmationEvent.sink(receiveValue: { [weak self] (request, completion) in
@@ -1042,26 +1034,6 @@ extension ChatService {
     func fetchAllChatMessagesFromStorage() -> [ChatMessage] {
         return ChatMessageStore.getAll(by: self.chatTabInfo.id, metadata: .init(workspacePath: self.chatTabInfo.workspacePath, username: self.chatTabInfo.username))
     }
-    
-    /// for file change watcher
-    func startFileChangeWatcher() {
-        Task { [weak self] in
-            guard let self else { return }
-            let workspaceURL = URL(fileURLWithPath: self.chatTabInfo.workspacePath)
-            let projectURL = WorkspaceXcodeWindowInspector.extractProjectURL(workspaceURL: workspaceURL, documentURL: nil) ?? workspaceURL
-            await FileChangeWatcherServicePool.shared.watch(
-                for: workspaceURL
-            ) { fileEvents in
-                Task { [weak self] in
-                    guard let self else { return }
-                    try? await self.conversationProvider?.notifyDidChangeWatchedFiles(
-                        .init(workspaceUri: projectURL.path, changes: fileEvents),
-                        workspace: .init(workspaceURL: workspaceURL, projectURL: projectURL)
-                    )
-                }
-            }
-        }
-    }
 }
 
 func replaceFirstWord(in content: String, from oldWord: String, to newWord: String) -> String {
 
@@ -499,7 +499,7 @@ struct ChatPanelInputArea: View {
         var focusedField: FocusState<Chat.State.Field?>.Binding
         @State var cancellable = Set<AnyCancellable>()
         @State private var isFilePickerPresented = false
-        @State private var allFiles: [FileReference] = []
+        @State private var allFiles: [FileReference]? = nil
         @State private var filteredTemplates: [ChatTemplate] = []
         @State private var filteredAgent: [ChatAgent] = []
         @State private var showingTemplates = false
@@ -528,7 +528,7 @@ struct ChatPanelInputArea: View {
                             }
                         )
                         .onAppear() {
-                            allFiles = ContextUtils.getFilesInActiveWorkspace(workspaceURL: chat.workspaceURL)
+                            allFiles = ContextUtils.getFilesFromWorkspaceIndex(workspaceURL: chat.workspaceURL)
                         }
                     }
 
 
@@ -7,6 +7,11 @@ import SystemUtils
 
 public struct ContextUtils {
 
+    public static func getFilesFromWorkspaceIndex(workspaceURL: URL?) -> [FileReference]? {
+        guard let workspaceURL = workspaceURL else { return [] }
+        return WorkspaceFileIndex.shared.getFiles(for: workspaceURL)
+    }
+
     public static func getFilesInActiveWorkspace(workspaceURL: URL?) -> [FileReference] {
         if let workspaceURL = workspaceURL, let info = WorkspaceFile.getWorkspaceInfo(workspaceURL: workspaceURL) {
             return WorkspaceFile.getFilesInActiveWorkspace(workspaceURL: info.workspaceURL, workspaceRootURL: info.projectURL)
 
@@ -5,7 +5,7 @@ import SwiftUI
 import SystemUtils
 
 public struct FilePicker: View {
-    @Binding var allFiles: [FileReference]
+    @Binding var allFiles: [FileReference]?
     let workspaceURL: URL?
     var onSubmit: (_ file: FileReference) -> Void
     var onExit: () -> Void
@@ -14,20 +14,21 @@ public struct FilePicker: View {
     @State private var selectedId: Int = 0
     @State private var localMonitor: Any? = nil
 
-    private var filteredFiles: [FileReference] {
+    private var filteredFiles: [FileReference]? {
         if searchText.isEmpty {
             return allFiles
         }
 
-        return allFiles.filter { doc in
+        return allFiles?.filter { doc in
             (doc.fileName ?? doc.url.lastPathComponent) .localizedCaseInsensitiveContains(searchText)
         }
     }
 
     private static let defaultEmptyStateText = "No results found."
+    private static let isIndexingStateText = "Indexing files, try later..."
 
     private var emptyStateAttributedString: AttributedString? {
-        var message = FilePicker.defaultEmptyStateText
+        var message = allFiles == nil ? FilePicker.isIndexingStateText : FilePicker.defaultEmptyStateText
         if let workspaceURL = workspaceURL {
             let status = FileUtils.checkFileReadability(at: workspaceURL.path)
             if let errorMessage = status.errorMessage(using: ContextUtils.workspaceReadabilityErrorMessageProvider) {
@@ -89,25 +90,25 @@ public struct FilePicker: View {
                 ScrollViewReader { proxy in
                     ScrollView {
                         LazyVStack(alignment: .leading, spacing: 4) {
-                            ForEach(Array(filteredFiles.enumerated()), id: \.element) { index, doc in
-                                FileRowView(doc: doc, id: index, selectedId: $selectedId)
-                                    .contentShape(Rectangle())
-                                    .onTapGesture {
-                                        onSubmit(doc)
-                                        selectedId = index
-                                        isSearchBarFocused = true
-                                    }
-                                    .id(index)
-                            }
-                            
-                            if filteredFiles.isEmpty {
+                            if allFiles == nil || filteredFiles?.isEmpty == true {
                                 emptyStateView
                                     .foregroundColor(.secondary)
                                     .padding(.leading, 4)
                                     .padding(.vertical, 4)
+                            } else {
+                                ForEach(Array((filteredFiles ?? []).enumerated()), id: \.element) { index, doc in
+                                    FileRowView(doc: doc, id: index, selectedId: $selectedId)
+                                        .contentShape(Rectangle())
+                                        .onTapGesture {
+                                            onSubmit(doc)
+                                            selectedId = index
+                                            isSearchBarFocused = true
+                                        }
+                                        .id(index)
+                                }
                             }
                         }
-                        .id(filteredFiles.hashValue)
+                        .id(filteredFiles?.hashValue)
                     }
                     .frame(maxHeight: 200)
                     .padding(.horizontal, 4)
@@ -158,16 +159,14 @@ public struct FilePicker: View {
     }
 
     private func moveSelection(up: Bool, proxy: ScrollViewProxy) {
-        let files = filteredFiles
-        guard !files.isEmpty else { return }
+        guard let files = filteredFiles, !files.isEmpty else { return }
         let nextId = selectedId + (up ? -1 : 1)
         selectedId = max(0, min(nextId, files.count - 1))
         proxy.scrollTo(selectedId, anchor: .bottom)
     }
 
     private func handleEnter() {
-        let files = filteredFiles
-        guard !files.isEmpty && selectedId < files.count else { return }
+        guard let files = filteredFiles, !files.isEmpty && selectedId < files.count else { return }
         onSubmit(files[selectedId])
     }
 }
@@ -192,9 +191,13 @@ struct FileRowView: View {
                     Text(doc.fileName ?? doc.url.lastPathComponent)
                         .font(.body)
                         .hoverPrimaryForeground(isHovered: selectedId == id)
+                        .lineLimit(1)
+                        .truncationMode(.middle)
                     Text(doc.relativePath ?? doc.url.path)
                         .font(.caption)
                         .foregroundColor(.secondary)
+                        .lineLimit(1)
+                        .truncationMode(.middle)
                 }
 
                 Spacer()
@@ -206,7 +209,7 @@ struct FileRowView: View {
             .onHover(perform: { hovering in
                 isHovered = hovering
             })
-            .transition(.move(edge: .bottom))
+            .help(doc.relativePath ?? doc.url.path)
         }
     }
 }
@@ -163,18 +163,198 @@ public class GitHubCopilotViewModel: ObservableObject {
                     CopilotModelManager.updateLLMs(models)
                 }
             } catch let error as GitHubCopilotError {
-                if case .languageServerError(.timeout) = error {
-                    // TODO figure out how to extend the default timeout on a Chime LSP request
-                    // Until then, reissue request
+                switch error {
+                case .languageServerError(.timeout):
                     waitForSignIn()
                     return
+                case .languageServerError(
+                    .serverError(
+                        code: CLSErrorCode.deviceFlowFailed.rawValue,
+                        message: _,
+                        data: _
+                    )
+                ):
+                    await showSignInFailedAlert(error: error)
+                    waitingForSignIn = false
+                    return
+                default:
+                    throw error
                 }
-                throw error
             } catch {
                 toast(error.localizedDescription, .error)
             }
         }
     }
+    
+    private func extractSigninErrorMessage(error: GitHubCopilotError) -> String {
+        let errorDescription = error.localizedDescription
+        
+        // Handle specific EACCES permission denied errors
+        if errorDescription.contains("EACCES") {
+            // Look for paths wrapped in single quotes
+            let pattern = "'([^']+)'"
+            if let regex = try? NSRegularExpression(pattern: pattern, options: []) {
+                let range = NSRange(location: 0, length: errorDescription.utf16.count)
+                if let match = regex.firstMatch(in: errorDescription, options: [], range: range) {
+                    let pathRange = Range(match.range(at: 1), in: errorDescription)!
+                    let path = String(errorDescription[pathRange])
+                    return path
+                }
+            }
+        }
+        
+        return errorDescription
+    }
+    
+    private func getSigninErrorTitle(error: GitHubCopilotError) -> String {
+        let errorDescription = error.localizedDescription
+        
+        if errorDescription.contains("EACCES") {
+            return "Can't sign you in. The app couldn't create or access files in"
+        }
+        
+        return "Error details:"
+    }
+
+    private var accessPermissionCommands: String {
+        """
+        sudo mkdir -p ~/.config/github-copilot
+        sudo chown -R $(whoami):staff ~/.config
+        chmod -N ~/.config ~/.config/github-copilot
+        """
+    }
+    
+    private var containerBackgroundColor: CGColor {
+        let isDarkMode = NSApp.effectiveAppearance.name == .darkAqua
+        return isDarkMode 
+        ? NSColor.black.withAlphaComponent(0.85).cgColor
+        : NSColor.white.withAlphaComponent(0.85).cgColor
+    }
+    
+    // MARK: - Alert Building Functions
+    
+    private func showSignInFailedAlert(error: GitHubCopilotError) async {
+        let alert = NSAlert()
+        alert.messageText = "GitHub Copilot Sign-in Failed"
+        alert.alertStyle = .critical
+        
+        let accessoryView = createAlertAccessoryView(error: error)
+        alert.accessoryView = accessoryView
+        alert.addButton(withTitle: "Copy Commands")
+        alert.addButton(withTitle: "Cancel")
+        
+        let response = await MainActor.run {
+            alert.runModal()
+        }
+        
+        if response == .alertFirstButtonReturn {
+            copyCommandsToClipboard()
+        }
+    }
+    
+    private func createAlertAccessoryView(error: GitHubCopilotError) -> NSView {
+        let accessoryView = NSView(frame: NSRect(x: 0, y: 0, width: 400, height: 142))
+        
+        let detailsHeader = createDetailsHeader(error: error)
+        accessoryView.addSubview(detailsHeader)
+        
+        let errorContainer = createErrorContainer(error: error)
+        accessoryView.addSubview(errorContainer)
+        
+        let terminalHeader = createTerminalHeader()
+        accessoryView.addSubview(terminalHeader)
+        
+        let commandsContainer = createCommandsContainer()
+        accessoryView.addSubview(commandsContainer)
+        
+        return accessoryView
+    }
+    
+    private func createDetailsHeader(error: GitHubCopilotError) -> NSView {
+        let detailsHeader = NSView(frame: NSRect(x: 16, y: 122, width: 368, height: 20))
+        
+        let warningIcon = NSImageView(frame: NSRect(x: 0, y: 4, width: 16, height: 16))
+        warningIcon.image = NSImage(systemSymbolName: "exclamationmark.triangle.fill", accessibilityDescription: "Warning")
+        warningIcon.contentTintColor = NSColor.systemOrange
+        detailsHeader.addSubview(warningIcon)
+
+        let detailsLabel = NSTextField(wrappingLabelWithString: getSigninErrorTitle(error: error))
+        detailsLabel.frame = NSRect(x: 20, y: 0, width: 346, height: 20)
+        detailsLabel.font = NSFont.systemFont(ofSize: 12, weight: .regular)
+        detailsLabel.textColor = NSColor.labelColor
+        detailsHeader.addSubview(detailsLabel)
+        
+        return detailsHeader
+    }
+    
+    private func createErrorContainer(error: GitHubCopilotError) -> NSView {
+        let errorContainer = NSView(frame: NSRect(x: 16, y: 96, width: 368, height: 22))
+        errorContainer.wantsLayer = true
+        errorContainer.layer?.backgroundColor = containerBackgroundColor
+        errorContainer.layer?.borderColor = NSColor.separatorColor.cgColor
+        errorContainer.layer?.borderWidth = 1
+        errorContainer.layer?.cornerRadius = 6
+        
+        let errorMessage = NSTextField(wrappingLabelWithString: extractSigninErrorMessage(error: error))
+        errorMessage.frame = NSRect(x: 8, y: 4, width: 368, height: 14)
+        errorMessage.font = NSFont.monospacedSystemFont(ofSize: 11, weight: .regular)
+        errorMessage.textColor = NSColor.labelColor
+        errorMessage.backgroundColor = .clear
+        errorMessage.isBordered = false
+        errorMessage.isEditable = false
+        errorMessage.drawsBackground = false
+        errorMessage.usesSingleLineMode = true
+        errorContainer.addSubview(errorMessage)
+        
+        return errorContainer
+    }
+    
+    private func createTerminalHeader() -> NSView {
+        let terminalHeader = NSView(frame: NSRect(x: 16, y: 66, width: 368, height: 20))
+        
+        let toolIcon = NSImageView(frame: NSRect(x: 0, y: 4, width: 16, height: 16))
+        toolIcon.image = NSImage(systemSymbolName: "terminal.fill", accessibilityDescription: "Terminal")
+        toolIcon.contentTintColor = NSColor.secondaryLabelColor
+        terminalHeader.addSubview(toolIcon)
+        
+        let terminalLabel = NSTextField(wrappingLabelWithString: "Copy and run the commands below in Terminal, then retry.")
+        terminalLabel.frame = NSRect(x: 20, y: 0, width: 346, height: 20)
+        terminalLabel.font = NSFont.systemFont(ofSize: 12, weight: .regular)
+        terminalLabel.textColor = NSColor.labelColor
+        terminalHeader.addSubview(terminalLabel)
+        
+        return terminalHeader
+    }
+    
+    private func createCommandsContainer() -> NSView {
+        let commandsContainer = NSView(frame: NSRect(x: 16, y: 4, width: 368, height: 58))
+        commandsContainer.wantsLayer = true
+        commandsContainer.layer?.backgroundColor = containerBackgroundColor
+        commandsContainer.layer?.borderColor = NSColor.separatorColor.cgColor
+        commandsContainer.layer?.borderWidth = 1
+        commandsContainer.layer?.cornerRadius = 6
+        
+        let commandsText = NSTextField(wrappingLabelWithString: accessPermissionCommands)
+        commandsText.frame = NSRect(x: 8, y: 8, width: 344, height: 42)
+        commandsText.font = NSFont.monospacedSystemFont(ofSize: 11, weight: .regular)
+        commandsText.textColor = NSColor.labelColor
+        commandsText.backgroundColor = .clear
+        commandsText.isBordered = false
+        commandsText.isEditable = false
+        commandsText.isSelectable = true
+        commandsText.drawsBackground = false
+        commandsContainer.addSubview(commandsText)
+        
+        return commandsContainer
+    }
+    
+    private func copyCommandsToClipboard() {
+        NSPasteboard.general.clearContents()
+        NSPasteboard.general.setString(
+            self.accessPermissionCommands.replacingOccurrences(of: "\n", with: " && "),
+            forType: .string
+        )
+    }
 
     public func broadcastStatusChange() {
         DistributedNotificationCenter.default().post(
Original file line number	Diff line number	Diff line change
`@@ -499,7 +499,7 @@ struct ChatPanelInputArea: View {`
`499`	`499`	`var focusedField: FocusState<Chat.State.Field?>.Binding`
`500`	`500`	`@State var cancellable = Set<AnyCancellable>()`
`501`	`501`	`@State private var isFilePickerPresented = false`
`502`		`- @State private var allFiles: [FileReference] = []`
	`502`	`+ @State private var allFiles: [FileReference]? = nil`
`503`	`503`	`@State private var filteredTemplates: [ChatTemplate] = []`
`504`	`504`	`@State private var filteredAgent: [ChatAgent] = []`
`505`	`505`	`@State private var showingTemplates = false`
`@@ -528,7 +528,7 @@ struct ChatPanelInputArea: View {`
`528`	`528`	`}`
`529`	`529`	`)`
`530`	`530`	`.onAppear() {`
`531`		`- allFiles = ContextUtils.getFilesInActiveWorkspace(workspaceURL: chat.workspaceURL)`
	`531`	`+ allFiles = ContextUtils.getFilesFromWorkspaceIndex(workspaceURL: chat.workspaceURL)`
`532`	`532`	`}`
`533`	`533`	`}`
`534`	`534`