fix: default OpenAI Compatible provider to XML protocol for better third-party proxy compatibility

packages/types/src/providers/openai.ts

@@ -551,7 +551,10 @@ export const openAiModelInfoSaneDefaults: ModelInfo = {
 	inputPrice: 0,
 	outputPrice: 0,
 	supportsNativeTools: true,
-	defaultToolProtocol: "native",
+	// Default to XML for OpenAI Compatible providers since third-party proxies
+	// have varying levels of support for native tool calling. Users who want
+	// native tool calling can explicitly enable it in Advanced Settings.
+	defaultToolProtocol: "xml",
 }
 
 // https://learn.microsoft.com/en-us/azure/ai-services/openai/api-version-deprecation

src/utils/__tests__/resolveToolProtocol.spec.ts

@@ -376,13 +376,15 @@ describe("resolveToolProtocol", () => {
 			expect(result).toBe(TOOL_PROTOCOL.XML) // Model default wins
 		})
 
-		it("should use native tools for OpenAI compatible provider with default model info", () => {
+		it("should use XML for OpenAI compatible provider with default model info", () => {
 			const settings: ProviderSettings = {
 				apiProvider: "openai",
 			}
-			// Using the actual openAiModelInfoSaneDefaults to verify the fix
+			// OpenAI Compatible defaults to XML protocol since third-party proxies
+			// have varying levels of support for native tool calling.
+			// Users who want native can explicitly enable it in Advanced Settings.
 			const result = resolveToolProtocol(settings, openAiModelInfoSaneDefaults)
-			expect(result).toBe(TOOL_PROTOCOL.NATIVE) // Should use native tools by default
+			expect(result).toBe(TOOL_PROTOCOL.XML) // Should use XML by default for better compatibility
 		})
 	})
 })

webview-ui/src/components/ui/hooks/__tests__/useSelectedModel.spec.ts

@@ -702,7 +702,8 @@ describe("useSelectedModel", () => {
 			expect(result.current.id).toBe("gpt-4o")
 			expect(result.current.info).toEqual(openAiModelInfoSaneDefaults)
 			expect(result.current.info?.supportsNativeTools).toBe(true)
-			expect(result.current.info?.defaultToolProtocol).toBe("native")
+			// OpenAI Compatible defaults to XML for better third-party proxy compatibility
+			expect(result.current.info?.defaultToolProtocol).toBe("xml")
 		})
 
 		it("should merge native tool defaults with custom model info", () => {
@@ -734,7 +735,8 @@ describe("useSelectedModel", () => {
 			}
 			expect(result.current.info).toEqual({ ...nativeToolDefaults, ...customModelInfo })
 			expect(result.current.info?.supportsNativeTools).toBe(true)
-			expect(result.current.info?.defaultToolProtocol).toBe("native")
+			// OpenAI Compatible defaults to XML for better third-party proxy compatibility
+			expect(result.current.info?.defaultToolProtocol).toBe("xml")
 		})
 
 		it("should allow custom model info to override native tool defaults", () => {