diff --git a/src/extension/chatSessions/vscode-node/copilotCLIChatSessionsContribution.ts b/src/extension/chatSessions/vscode-node/copilotCLIChatSessionsContribution.ts
index 8e3fb465c0..7c2529dae3 100644
--- a/src/extension/chatSessions/vscode-node/copilotCLIChatSessionsContribution.ts
+++ b/src/extension/chatSessions/vscode-node/copilotCLIChatSessionsContribution.ts
@@ -468,7 +468,8 @@ export class CopilotCLIChatSessionContentProvider extends Disposable implements
 const WAIT_FOR_NEW_SESSION_TO_GET_USED = 5 * 60 * 1000; // 5 minutes
 
 export class CopilotCLIChatSessionParticipant extends Disposable {
-	private CLI_INCLUDE_CHANGES = vscode.l10n.t('Include Changes');
+	private CLI_MOVE_CHANGES = vscode.l10n.t('Move Changes');
+	private CLI_COPY_CHANGES = vscode.l10n.t('Copy Changes');
 	private CLI_SKIP_CHANGES = vscode.l10n.t('Skip Changes');
 	private CLI_CANCEL = vscode.l10n.t('Cancel');
 	private readonly untitledSessionIdMapping = new Map<string, string>();
@@ -521,11 +522,10 @@ export class CopilotCLIChatSessionParticipant extends Disposable {
 			});
 
 			const confirmationResults = this.getAcceptedRejectedConfirmationData(request);
-			if (!chatSessionContext) {
-				// Invoked from a 'normal' chat or 'cloud button' without CLI session context
-				// Or cases such as delegating from Regular chat to CLI chat
-				// Handle confirmation data
-				return await this.handlePushConfirmationData(request, context, stream, token);
+			// Check if it was delegated from chat or cloud button or if it's the first iteration
+			const response = await this.generateConfirmationResponseIfNeeded(request, context, stream, token);
+			if (!chatSessionContext || chatSessionContext.isUntitled) {
+				return response || {};
 			}
 
 			const isUntitled = chatSessionContext.isUntitled;
@@ -730,7 +730,7 @@ export class CopilotCLIChatSessionParticipant extends Disposable {
 		}
 
 		// Get model from request.
-		const preferredModelInRequest = preferModelInRequest && request?.model.id ? await this.copilotCLIModels.resolveModel(request.model.id) : undefined;
+		const preferredModelInRequest = preferModelInRequest && request?.model?.id ? await this.copilotCLIModels.resolveModel(request.model.id) : undefined;
 		if (preferredModelInRequest) {
 			return preferredModelInRequest;
 		}
@@ -788,12 +788,12 @@ export class CopilotCLIChatSessionParticipant extends Disposable {
 		return {};
 	}
 
-	private async handlePushConfirmationData(
+	private async generateConfirmationResponseIfNeeded(
 		request: vscode.ChatRequest,
 		context: vscode.ChatContext,
 		stream: vscode.ChatResponseStream,
 		token: vscode.CancellationToken
-	): Promise<vscode.ChatResult | void> {
+	) {
 		// Check if this is a confirmation response
 		const confirmationResults = this.getAcceptedRejectedConfirmationData(request);
 		if (confirmationResults.length > 0) {
@@ -811,15 +811,25 @@ export class CopilotCLIChatSessionParticipant extends Disposable {
 		if (!hasUncommittedChanges) {
 			// No uncommitted changes, create worktree and proceed
 			return await this.createCLISessionAndSubmitRequest(request, undefined, request.references, context, undefined, true, stream, token);
+		} else {
+			return this.generateUncommittedChangesConfirmation(request, context, stream, token);
 		}
+	}
 
+	private generateUncommittedChangesConfirmation(
+		request: vscode.ChatRequest,
+		context: vscode.ChatContext,
+		stream: vscode.ChatResponseStream,
+		token: vscode.CancellationToken
+	): vscode.ChatResult | void {
 		const message =
 			vscode.l10n.t('Background Agent will work in an isolated worktree to implement your requested changes.')
 			+ '\n\n'
 			+ vscode.l10n.t('This workspace has uncommitted changes. Should these changes be included in the new worktree?');
 
 		const buttons = [
-			this.CLI_INCLUDE_CHANGES,
+			this.CLI_COPY_CHANGES,
+			this.CLI_MOVE_CHANGES,
 			this.CLI_SKIP_CHANGES,
 			this.CLI_CANCEL
 		];
@@ -861,10 +871,11 @@ export class CopilotCLIChatSessionParticipant extends Disposable {
 			return {};
 		}
 
-		const includeChanges = selection.includes(this.CLI_INCLUDE_CHANGES.toUpperCase());
+		const moveChanges = selection === this.CLI_MOVE_CHANGES.toUpperCase();
+		const copyChanges = selection === this.CLI_COPY_CHANGES.toUpperCase();
 		const prompt = uncommittedChangesData.metadata.prompt;
 
-		if (includeChanges && this.worktreeManager.isSupported()) {
+		if ((moveChanges || copyChanges) && this.worktreeManager.isSupported()) {
 			// Create worktree first
 			stream.progress(vscode.l10n.t('Creating worktree...'));
 			const worktreePathValue = await this.worktreeManager.createWorktree(stream);
@@ -906,7 +917,7 @@ export class CopilotCLIChatSessionParticipant extends Disposable {
 					} else {
 						await this.gitService.migrateChanges(worktreeRepo.rootUri, activeRepository.rootUri, {
 							confirmation: false,
-							deleteFromSource: true,
+							deleteFromSource: moveChanges,
 							untracked: true
 						});
 						stream.markdown(vscode.l10n.t('Changes migrated to worktree.'));
diff --git a/src/extension/chatSessions/vscode-node/test/copilotCLIChatSessionParticipant.spec.ts b/src/extension/chatSessions/vscode-node/test/copilotCLIChatSessionParticipant.spec.ts
index 8d348f08e7..8b8be51dab 100644
--- a/src/extension/chatSessions/vscode-node/test/copilotCLIChatSessionParticipant.spec.ts
+++ b/src/extension/chatSessions/vscode-node/test/copilotCLIChatSessionParticipant.spec.ts
@@ -61,6 +61,7 @@ class FakeWorktreeManager extends mock<CopilotCLIWorktreeManager>() {
 	override getWorktreePath = vi.fn((_id: string) => undefined);
 	override getIsolationPreference = vi.fn(() => false);
 	override getDefaultIsolationPreference = vi.fn(() => false);
+	override isSupported = vi.fn(() => false);
 }
 
 class FakeModels implements ICopilotCLIModels {
@@ -285,10 +286,23 @@ describe('CopilotCLIChatSessionParticipant.handleRequest', () => {
 		expect(cloudProvider.delegate).toHaveBeenCalled();
 	});
 
-	it('handles /delegate command for new session', async () => {
+	it('handles /delegate command for new untitled session with uncomitted changes', async () => {
 		expect(manager.sessions.size).toBe(0);
 		git.activeRepository = { get: () => ({ changes: { indexChanges: [{ path: 'file.ts' }] } }) } as unknown as IGitService['activeRepository'];
 		const request = new TestChatRequest('/delegate Build feature');
+		const context = { chatSessionContext: undefined } as vscode.ChatContext;
+		const stream = new MockChatResponseStream();
+		const token = disposables.add(new CancellationTokenSource()).token;
+
+		await participant.createHandler()(request, context, stream, token);
+
+		expect(manager.sessions.size).toBe(0);
+	});
+
+	it('handles /delegate command for new session without uncommitted changes', async () => {
+		expect(manager.sessions.size).toBe(0);
+		git.activeRepository = { get: () => ({ changes: { indexChanges: [], workingTree: [] } }) } as unknown as IGitService['activeRepository'];
+		const request = new TestChatRequest('/delegate Build feature');
 		const context = createChatContext('existing-delegate', true);
 		const stream = new MockChatResponseStream();
 		const token = disposables.add(new CancellationTokenSource()).token;