diff --git a/package-lock.json b/package-lock.json
index eb7141005b..b7415befb1 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,12 +1,12 @@
 {
 	"name": "claude-dev",
-	"version": "3.1.11",
+	"version": "3.2.0",
 	"lockfileVersion": 3,
 	"requires": true,
 	"packages": {
 		"": {
 			"name": "claude-dev",
-			"version": "3.1.11",
+			"version": "3.2.0",
 			"license": "Apache-2.0",
 			"dependencies": {
 				"@anthropic-ai/bedrock-sdk": "^0.10.2",
@@ -53,7 +53,7 @@
 				"@types/mocha": "^10.0.7",
 				"@types/node": "20.x",
 				"@types/should": "^11.2.0",
-				"@types/vscode": "^1.96.0",
+				"@types/vscode": "^1.84.0",
 				"@typescript-eslint/eslint-plugin": "^7.14.1",
 				"@typescript-eslint/parser": "^7.11.0",
 				"@vscode/test-cli": "^0.0.9",
@@ -4641,9 +4641,9 @@
 			"license": "MIT"
 		},
 		"node_modules/@types/vscode": {
-			"version": "1.96.0",
-			"resolved": "https://registry.npmjs.org/@types/vscode/-/vscode-1.96.0.tgz",
-			"integrity": "sha512-qvZbSZo+K4ZYmmDuaodMbAa67Pl6VDQzLKFka6rq+3WUTY4Kro7Bwoi0CuZLO/wema0ygcmpwow7zZfPJTs5jg==",
+			"version": "1.84.0",
+			"resolved": "https://registry.npmjs.org/@types/vscode/-/vscode-1.84.0.tgz",
+			"integrity": "sha512-lCGOSrhT3cL+foUEqc8G1PVZxoDbiMmxgnUZZTEnHF4mC47eKAUtBGAuMLY6o6Ua8PAuNCoKXbqPmJd1JYnQfg==",
 			"dev": true,
 			"license": "MIT"
 		},
diff --git a/package.json b/package.json
index 89e139fb0b..075ee7e765 100644
--- a/package.json
+++ b/package.json
@@ -171,7 +171,7 @@
 		"@types/mocha": "^10.0.7",
 		"@types/node": "20.x",
 		"@types/should": "^11.2.0",
-		"@types/vscode": "^1.96.0",
+		"@types/vscode": "^1.84.0",
 		"@typescript-eslint/eslint-plugin": "^7.14.1",
 		"@typescript-eslint/parser": "^7.11.0",
 		"@vscode/test-cli": "^0.0.9",
diff --git a/src/api/providers/vscode-lm.ts b/src/api/providers/vscode-lm.ts
index 8c138a9102..f28075f1da 100644
--- a/src/api/providers/vscode-lm.ts
+++ b/src/api/providers/vscode-lm.ts
@@ -7,6 +7,98 @@ import { convertToVsCodeLmMessages } from "../transform/vscode-lm-format"
 import { SELECTOR_SEPARATOR, stringifyVsCodeLmModelSelector } from "../../shared/vsCodeSelectorUtils"
 import { ApiHandlerOptions, ModelInfo, openAiModelInfoSaneDefaults } from "../../shared/api"
 
+// Cline does not update VSCode type definitions or engine requirements to maintain compatibility.
+// This declaration (as seen in src/integrations/TerminalManager.ts) provides types for the Language Model API in newer versions of VSCode.
+// Extracted from https://github.com/microsoft/vscode/blob/131ee0ef660d600cd0a7e6058375b281553abe20/src/vscode-dts/vscode.d.ts
+declare module "vscode" {
+	enum LanguageModelChatMessageRole {
+		User = 1,
+		Assistant = 2,
+	}
+	enum LanguageModelChatToolMode {
+		Auto = 1,
+		Required = 2,
+	}
+	interface LanguageModelChatSelector {
+		vendor?: string
+		family?: string
+		version?: string
+		id?: string
+	}
+	interface LanguageModelChatTool {
+		name: string
+		description: string
+		inputSchema?: object
+	}
+	interface LanguageModelChatRequestOptions {
+		justification?: string
+		modelOptions?: { [name: string]: any }
+		tools?: LanguageModelChatTool[]
+		toolMode?: LanguageModelChatToolMode
+	}
+	class LanguageModelTextPart {
+		value: string
+		constructor(value: string)
+	}
+	class LanguageModelToolCallPart {
+		callId: string
+		name: string
+		input: object
+		constructor(callId: string, name: string, input: object)
+	}
+	interface LanguageModelChatResponse {
+		stream: AsyncIterable<LanguageModelTextPart | LanguageModelToolCallPart | unknown>
+		text: AsyncIterable<string>
+	}
+	interface LanguageModelChat {
+		readonly name: string
+		readonly id: string
+		readonly vendor: string
+		readonly family: string
+		readonly version: string
+		readonly maxInputTokens: number
+
+		sendRequest(
+			messages: LanguageModelChatMessage[],
+			options?: LanguageModelChatRequestOptions,
+			token?: CancellationToken,
+		): Thenable<LanguageModelChatResponse>
+		countTokens(text: string | LanguageModelChatMessage, token?: CancellationToken): Thenable<number>
+	}
+	class LanguageModelPromptTsxPart {
+		value: unknown
+		constructor(value: unknown)
+	}
+	class LanguageModelToolResultPart {
+		callId: string
+		content: Array<LanguageModelTextPart | LanguageModelPromptTsxPart | unknown>
+		constructor(callId: string, content: Array<LanguageModelTextPart | LanguageModelPromptTsxPart | unknown>)
+	}
+	class LanguageModelChatMessage {
+		static User(
+			content: string | Array<LanguageModelTextPart | LanguageModelToolResultPart>,
+			name?: string,
+		): LanguageModelChatMessage
+		static Assistant(
+			content: string | Array<LanguageModelTextPart | LanguageModelToolCallPart>,
+			name?: string,
+		): LanguageModelChatMessage
+
+		role: LanguageModelChatMessageRole
+		content: Array<LanguageModelTextPart | LanguageModelToolResultPart | LanguageModelToolCallPart>
+		name: string | undefined
+
+		constructor(
+			role: LanguageModelChatMessageRole,
+			content: string | Array<LanguageModelTextPart | LanguageModelToolResultPart | LanguageModelToolCallPart>,
+			name?: string,
+		)
+	}
+	namespace lm {
+		function selectChatModels(selector?: LanguageModelChatSelector): Thenable<LanguageModelChat[]>
+	}
+}
+
 /**
  * Handles interaction with VS Code's Language Model API for chat-based operations.
  * This handler implements the ApiHandler interface to provide VS Code LM specific functionality.
diff --git a/webview-ui/src/components/settings/ApiOptions.tsx b/webview-ui/src/components/settings/ApiOptions.tsx
index b2073a8df6..54b6b04621 100644
--- a/webview-ui/src/components/settings/ApiOptions.tsx
+++ b/webview-ui/src/components/settings/ApiOptions.tsx
@@ -40,7 +40,7 @@ import { ExtensionMessage } from "../../../../src/shared/ExtensionMessage"
 import { useExtensionState } from "../../context/ExtensionStateContext"
 import { vscode } from "../../utils/vscode"
 import VSCodeButtonLink from "../common/VSCodeButtonLink"
-import OpenRouterModelPicker, { ModelDescriptionMarkdown, OPENROUTER_MODEL_PICKER_Z_INDEX } from "./OpenRouterModelPicker"
+import OpenRouterModelPicker, { ModelDescriptionMarkdown } from "./OpenRouterModelPicker"
 import styled from "styled-components"
 import * as vscodemodels from "vscode"
 
@@ -104,6 +104,15 @@ const DropdownContainer = styled.div`
 	}
 `
 
+declare module "vscode" {
+	interface LanguageModelChatSelector {
+		vendor?: string
+		family?: string
+		version?: string
+		id?: string
+	}
+}
+
 const ApiOptions = ({
 	showModelOptions,
 	apiErrorMessage,