Continue.dev VS Code extension unable to create files.

[twalker-RPCS]

I am working on creation of a platform, and need AI support for it. I am utilizing a local-run qwen3-coder:30B and qwen3-coder:480B-Cloud via continue.dev. I have all tools set to automatic. However, although there are no errors being reported in any area, Continue.dev is unable to actually make files even when VS Code is in admin mode. It believes it is, says it is, but nothing is being made. It can see the entire workspace but not create anything within it. What am I doing wrong?