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Sometimes Suggested Code by AI is not properly diffed / replaced to current source code of your working files. #12894

Description

@avlcat

Before submitting your bug report

Relevant environment info

name: Main Config
version: 1.0.0
schema: v1
models:
  - name: Qwen2.5 Coder 32B
    provider: ollama
    model: qwen2.5-coder:32B
    apiBase: http://127.0.0.1:11434
    roles:
      - chat
      - edit
      - apply
  - name: Qwen2.5 Coder 1.5B (Autocomplete)
    provider: ollama
    model: qwen2.5-coder:7B
    apiBase: http://127.0.0.1:11434
    roles:
      - autocomplete
  - name: Qwen2.5 Coder 7B (Embeddings)
    provider: ollama
    model: qwen2.5-coder:7B
    apiBase: http://127.0.0.1:11434
    roles:
      - embed

Description

Sometimes Continue is not able to merge its suggestion to the original code.

To reproduce

I am using Qwen 2.5 32B, I am trying to work on a small C program with two C files. When I ask the LLM to do a refactoring on my code it shows the modification it needs to do and sometimes (not all the times) when I choose to "Apply" changes, his suggested code is not merged in my original C file. It says but is not able to modify the file.

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    area:inline-editRelates to the auto refactor featurekind:bugIndicates an unexpected problem or unintended behavior

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