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Build with Copilot Chat does not clearly indicate whether it will modify the current workspace or create a new project #5158

Description

@v-amyang

OS: Win 11
Build Version: 20260811.1

Repro Steps:

  1. Open an existing Azure Functions project in VS Code
  2. Open Template Gallery
  3. Navigate to Build with Copilot Chat
  4. Select an example prompt such as HTTP API with Cosmos DB
  5. Click Open in Copilot Chat
    Approve the generated plan and allow Copilot to proceed

Expect:
Before scaffolding begins, Copilot should clearly indicate the target location of project creation. If an Azure Functions project is already open, the user should be informed whether the current workspace will be modified, or a new project/workspace will be created

Actual:
Copilot proceeds with project generation without clearly indicating whether it will modify the currently opened project or create a new Azure Functions project/workspace

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