Even though they brought back text threads, the context is no longer included (or include-able!) as context in the inline assist. That means that you can no longer select code, hit ctrl+enter, and type "use the new code" or whatever.
I wish there was a way to just disable the agent panel entirely. I'm so uninterested in magical shit like cursor (though claude code is tasteful IMO).
There is also the "+" button to add files, threads etc, though it would be nice if it could also be done through slash commands.
I opened a previous agent thread and it gave me the option to include both threads to the context of the inline prompt (the old text thread was included and I had to click to exclude it, the new thread was grayed out and I had to click to include it).
edit: yup, they fixed it 2 days ago
It looks like I was 2 days out of date, and updating fixed it for me.