When Copilot Chat Errors, it should RETRY instead of haltung

[intellectronica]

Does this issue occur when all extensions are disabled?: Yes/No

• VS Code Version: 1.108.1

When Copilot Chat in VSCode experiences an error from the model, it presents a scary error message to the user and stops, inviting the user to click retry. This is very disruptive in agentic coding scenarios. Instead, it should retry itself, reporting about the error to the user and to the service provider, but without stopping the flow. In most cases retrying manually works fine, suggesting that most agentic coding sessions can be easily rescued just by retrying.

[intellectronica]

@isidorn ^^^^^