Code Suggestions not available when using DAP with online license and self-hosted model
## Summary
Code Suggestions are not available when using GitLab Duo Agent Platform (DAP) with an online license and self-hosted model configuration. Despite having a proper DAP setup with self-hosted models (DAP Agents work without issues), Code Suggestions functionality is unavailable to users.
## Steps to reproduce
1. Set up a GitLab Self-Managed instance with an online license
2. Configure GitLab Duo Agent Platform (DAP)
3. Configure a self-hosted model for DAP features
4. Attempt to use Code Suggestions
## Current behavior
Code Suggestions are not available. The health check reports the following problem (see 1st screenshot below) : " License includes access to Code Suggestions, but you lack the necessary permissions to use this feature."
And Code Suggestions are actually not working in the IDE (see second screenshot below : error about "Duo license not assigned"
Note : We see this behavior at our customer who is running a DAP trial (on GL SM v18.9.2, there is no Duo Enterprise license) and I can reproduce the problem in my own setup (note: I have a Duo Enterprise license, but I reproduce the problem by not using the Duo Enterprise license seat. Code Suggestions work fine when I use a Duo Enterprise seat obviously, or when I use a GitLab managed LLM)
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## Expected behavior
Code Suggestions should be available and functional when:
- DAP is properly configured
- Self-hosted models are correctly set up and accessible
## Environment
**GitLab Version:** GitLab Self Managed v18.9.2
**Deployment Type:** Self-Managed
**License Type:**
- Online license (cloud-connected)
- License tier: Premium at customer, Ultimate in my own setup
- Add-on: no add-on in customer setup
**AI Gateway Configuration:**
- AI Gateway version: 18.9.0
- Deployment method: Docker
- Self-hosted model platform: vLLM
- Model being used: Mistral Codestral 22B v0.1 (tbc)
**IDE/Client:**
- IDE: VS Code
- GitLab extension version: 6.71.9
## Additional Context
**Related configurations:**
- Is Duo Chat working with the same self-hosted model configuration?
* Yes Duo (classic) chat works with the same self hosted LLM
- Are other DAP features (flows, agents) working?
* Yes Agentic chat and other agents like Planner work fine with same self hosted LLM
- Did Code Suggestions work before configuring self-hosted models?
* They work if using GitLab managed LLMs. Problem occurs when using a self hosted LLM
- Have you tested with GitLab-managed models (cloud-connected)?
* Yes: then Code Suggestions work. See above.
## Impact
**Severity:** \[Please indicate - S1/S2/S3/S4\]
- **S1: Blocker - Code Suggestions completely unavailable, blocking adoption (DAP trial ongoing)**
**Affected users:**
- Customer running the DAP trial
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