Xcode 26.0 beta 7 - AI - Create files? Client (Xcode) timing out?

I didn't check this out specifically on earlier betas, but AI is allowed to create new .swift files, yes? I'm only seeing proposals to create files (as opposed to code which it can change automatically), and the CREATE FILE button to the right of any proposed file creation does nothing.

Next I'll mention running local models, but file creation does not seem to happen for neither ChatGPT nor any local model.

Also I'm experimenting with LM Studio and it is reporting my client is timing out. So I guess Xcode is not waiting long enough for a response? The local models are slow, yes. But is there a setting for the AI timeout value?

I told the LLM "Every 1 minute send me an update so I know you are still working so my client does not time out" which seems to have no visible effect, it hasn't timed out yet, but I don't visibly see that message.

I have no idea why some files can be created and others are just PROPOSALs. I asked ChatGPT (via Xcode) to create a slew of code, and after 5 files were created the rest were just proposals. They were all in the root of the project. They all looked the same to me.

Xcode 26.0 beta 7 - AI - Create files? Client (Xcode) timing out?
 
 
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