Refactor tools and remove deprecated features

- Renamed 'codebase_trace' to 'exp_codebase_trace' for clarity.
- Deleted the 'dragrace' tool due to redundancy and lack of use.
- Updated index to remove reference to the deleted 'dragrace' tool.
- Added new 'elicitation-demo' tool to demonstrate MCP Elicitation feature with various field types.
- Renamed 'file_edit' to 'exp_file_edit' and 'file_read' to 'exp_file_read' for consistency.
- Removed the 'wait' tool as it was deemed unnecessary.
- Updated tools aggregation to include the new 'elicitation-demo' tool.

Author: AndyLiner13

docs/mcp-vs-lm-tools.md

@@ -0,0 +1,97 @@
+# MCP Tools vs LM Tools
+
+## Overview
+
+VS Code DevTools exposes two distinct toolsets, each serving a different role and running in a different VS Code context.
+
+## LM Tools (Language Model Tools)
+
+**Context:** Host workspace (production VS Code instance)
+**Purpose:** Stable, production-ready tools registered via `vscode.lm.registerTool()`
+**Target audience:** Copilot and other language model agents working in the main VS Code session
+
+### Available LM Tools
+
+| Tool | Description |
+|------|-------------|
+| `output_read` | Read VS Code output channel logs from Host and Client sessions |
+| `terminal_read` | Read terminal output, state, and detect prompts |
+| `terminal_execute` | Execute commands in the terminal or send input to waiting terminals |
+| `wait` | Wait for a specified duration (0–30000ms) before continuing |
+
+### Characteristics
+
+- Run **inside the Host VS Code process** with full VS Code API access
+- Registered unconditionally at extension activation
+- Can be individually enabled/disabled via VS Code's native **Configure Tools...** button in Copilot Chat
+- Declared in `package.json` → `contributes.languageModelTools`
+- Implemented in `extension/services/`
+
+## MCP Tools (Model Context Protocol)
+
+**Context:** Client workspace (Extension Development Host)
+**Purpose:** Experimental and browser-automation tools served via the MCP server
+**Target audience:** MCP clients (Inspector, Claude Desktop, etc.) connected to the stdio MCP server
+
+### Standard MCP Tools
+
+These tools interact with the Client's browser/webview and are considered stable:
+
+| Tool | Description |
+|------|-------------|
+| `keyboard_hotkey` | Press key combinations |
+| `keyboard_type` | Type text into inputs |
+| `mouse_click` | Click elements |
+| `mouse_drag` | Drag elements |
+| `mouse_hover` | Hover over elements |
+| `mouse_scroll` | Scroll elements |
+| `take_snapshot` | Take an accessibility tree snapshot |
+| `take_screenshot` | Take a screenshot |
+| `read_console` | Read browser console messages |
+
+### Experimental MCP Tools (exp_ prefix)
+
+These tools are under active development and may change significantly:
+
+| Tool | Description |
+|------|-------------|
+| `exp_codebase_map` | Get a structural map of the codebase |
+| `exp_codebase_trace` | Trace a symbol through the codebase |
+| `exp_codebase_lint` | Find dead code and quality issues |
+| `exp_file_read` | Read files with flexible targeting |
+| `exp_file_edit` | Edit files in the workspace |
+| `exp_elicitation_demo` | Demonstrate MCP elicitation (SDK preview) |
+
+### Characteristics
+
+- Run in the **MCP server process** (Node.js, outside VS Code)
+- Communicate with the Client VS Code via named pipes
+- Served over MCP stdio transport (JSON-RPC)
+- All tools available when the MCP server is connected
+- Experimental tools prefixed with `exp_` to signal instability
+
+## Key Differences
+
+| Aspect | LM Tools | MCP Tools |
+|--------|----------|-----------|
+| Runtime | VS Code extension (Host) | MCP server process |
+| Protocol | VS Code Language Model API | MCP (JSON-RPC over stdio) |
+| Context | Host workspace | Client workspace |
+| Toggle | Native VS Code tool config | Always available when connected |
+| Stability | Production-ready | Standard + experimental |
+| Naming | Plain names | Standard or `exp_` prefixed |
+
+## Configuration
+
+### Workspace Selection
+
+The active workspace for MCP tools is configured via:
+
+1. CLI: `--test-workspace /path/to/workspace`
+2. Config: `.devtools/devtools.jsonc` → `"testWorkspace": "relative/or/absolute/path"`
+
+The sidebar **Workspace Root** panel shows all Git repositories discovered by VS Code's Git extension. Selecting a repository writes its relative path to `.devtools/devtools.jsonc`.
+
+### LM Tool Toggles
+
+LM tools are registered unconditionally at extension startup. Users can enable/disable individual tools using VS Code's native **Configure Tools...** button in Copilot Chat.

package.json

@@ -19,6 +19,8 @@
     "docs:generate": "node --experimental-strip-types scripts/generate-docs.ts",
     "start": "pnpm run build && node build/src/index.js",
     "start-debug": "DEBUG=mcp:* DEBUG_COLORS=false pnpm run build && node build/src/index.js",
+    "inspect": "pnpm run build && npx @modelcontextprotocol/inspector node build/src/index.js --test-workspace ../test-workspace --extension ../extension",
+    "inspect:cli": "pnpm run build && npx @modelcontextprotocol/inspector --cli node build/src/index.js --test-workspace ../test-workspace --extension ../extension",
     "test": "pnpm run build && node scripts/test.mjs",
     "test:no-build": "node scripts/test.mjs",
     "test:only": "pnpm run build && node scripts/test.mjs --test-only",
@@ -34,7 +36,6 @@
   "license": "Apache-2.0",
   "devDependencies": {
     "@eslint/js": "^10.0.1",
-    "@modelcontextprotocol/sdk": "1.26.0",
     "@rollup/plugin-commonjs": "^29.0.0",
     "@rollup/plugin-json": "^6.1.0",
     "@rollup/plugin-node-resolve": "^16.0.3",
@@ -68,6 +69,7 @@
     "node": "^20.19.0 || ^22.12.0 || >=23"
   },
   "dependencies": {
+    "@modelcontextprotocol/sdk": "1.27.0",
     "get-port": "^7.1.0",
     "jsonc-parser": "^3.3.0",
     "logpare": "^0.1.0",