diff --git a/src/vs/workbench/contrib/chat/browser/actions/chatActions.ts b/src/vs/workbench/contrib/chat/browser/actions/chatActions.ts
index d5aa998..a7e4d57 100644
--- a/src/vs/workbench/contrib/chat/browser/actions/chatActions.ts
+++ b/src/vs/workbench/contrib/chat/browser/actions/chatActions.ts
@@ -183,3 +183,4 @@ abstract class OpenChatGlobalAction extends Action2 {
 				ChatContextKeys.Setup.hidden.negate(),
-				ChatContextKeys.Setup.disabled.negate()
+				ChatContextKeys.Setup.disabled.negate(),
+				ChatContextKeys.Setup.installed
 			)
@@ -1668,3 +1669,4 @@ MenuRegistry.appendMenuItem(MenuId.CommandCenter, {
 			ChatContextKeys.Setup.hidden.negate(),
-			ChatContextKeys.Setup.disabled.negate()
+			ChatContextKeys.Setup.disabled.negate(),
+			ChatContextKeys.Setup.installed
 		),
@@ -1685,3 +1687,4 @@ MenuRegistry.appendMenuItem(MenuId.TitleBar, {
 			ChatContextKeys.Setup.hidden.negate(),
-			ChatContextKeys.Setup.disabled.negate()
+			ChatContextKeys.Setup.disabled.negate(),
+			ChatContextKeys.Setup.installed
 		),
@@ -1702,3 +1705,4 @@ registerAction2(class ToggleCopilotControl extends ToggleTitleBarConfigAction {
 					ChatContextKeys.Setup.hidden.negate(),
-					ChatContextKeys.Setup.disabled.negate()
+					ChatContextKeys.Setup.disabled.negate(),
+					ChatContextKeys.Setup.installed
 				),
@@ -1843,3 +1847,4 @@ MenuRegistry.appendMenuItem(MenuId.EditorContext, {
 		ChatContextKeys.Setup.hidden.negate(),
-		ChatContextKeys.Setup.disabled.negate()
+		ChatContextKeys.Setup.disabled.negate(),
+		ChatContextKeys.Setup.installed
 	)
@@ -1876,3 +1881,3 @@ MenuRegistry.appendMenuItem(MenuId.EditorContext, {
 		ChatContextKeys.Setup.disabled.negate(),
-		ChatContextKeys.Setup.installed.negate(),
+		ChatContextKeys.Setup.installed,
 	);
diff --git a/src/vs/workbench/contrib/chat/browser/chat.contribution.ts b/src/vs/workbench/contrib/chat/browser/chat.contribution.ts
index dbd2125..bceed38 100644
--- a/src/vs/workbench/contrib/chat/browser/chat.contribution.ts
+++ b/src/vs/workbench/contrib/chat/browser/chat.contribution.ts
@@ -696,3 +696,3 @@ configurationRegistry.registerConfiguration({
 			description: nls.localize('chat.disableAIFeatures', "Disable and hide built-in AI features provided by GitHub Copilot, including chat, code completions and next edit suggestions."),
-			default: false,
+			default: true,
 			scope: ConfigurationScope.WINDOW
diff --git a/src/vs/workbench/contrib/chat/browser/chatParticipant.contribution.ts b/src/vs/workbench/contrib/chat/browser/chatParticipant.contribution.ts
index 391a4de..a1489b2 100644
--- a/src/vs/workbench/contrib/chat/browser/chatParticipant.contribution.ts
+++ b/src/vs/workbench/contrib/chat/browser/chatParticipant.contribution.ts
@@ -67,9 +67,8 @@ const chatViewDescriptor: IViewDescriptor[] = [{
 	ctorDescriptor: new SyncDescriptor(ChatViewPane, [{ location: ChatAgentLocation.Chat }]),
-	when: ContextKeyExpr.or(
-		ContextKeyExpr.or(
-			ChatContextKeys.Setup.hidden,
-			ChatContextKeys.Setup.disabled
-		)?.negate(),
+	when: ContextKeyExpr.and(
+		ChatContextKeys.Setup.installed,
+		ChatContextKeys.Setup.disabled.negate(),
+		ChatContextKeys.Setup.hidden.negate(),
 		ChatContextKeys.panelParticipantRegistered,
-		ChatContextKeys.extensionInvalid
+		ChatContextKeys.extensionInvalid.negate()
 	)
diff --git a/src/vs/workbench/contrib/chat/browser/chatSetup.ts b/src/vs/workbench/contrib/chat/browser/chatSetup.ts
index 4325d48..de10415 100644
--- a/src/vs/workbench/contrib/chat/browser/chatSetup.ts
+++ b/src/vs/workbench/contrib/chat/browser/chatSetup.ts
@@ -953,7 +953,9 @@ export class ChatSetupContribution extends Disposable implements IWorkbenchContr
 					f1: true,
-					precondition: ContextKeyExpr.or(
-						ChatContextKeys.Setup.hidden,
-						ChatContextKeys.Setup.disabled,
-						ChatContextKeys.Setup.untrusted,
-						ChatContextKeys.Setup.installed.negate(),
+					precondition: ContextKeyExpr.and(
+						ContextKeyExpr.or(
+							ChatContextKeys.Setup.hidden,
+							ChatContextKeys.Setup.disabled,
+							ChatContextKeys.Setup.untrusted,
+						),
+						ChatContextKeys.Setup.installed,
 						ChatContextKeys.Entitlement.canSignUp
@@ -1069,3 +1071,3 @@ export class ChatSetupContribution extends Disposable implements IWorkbenchContr
 							ChatContextKeys.Setup.hidden.negate(),
-							ChatContextKeys.Setup.installed.negate(),
+							ChatContextKeys.Setup.installed,
 							ChatContextKeys.Entitlement.signedOut
@@ -1096,2 +1098,3 @@ export class ChatSetupContribution extends Disposable implements IWorkbenchContr
 						ChatContextKeys.Setup.hidden.negate(),
+						ChatContextKeys.Setup.installed,
 						ContextKeyExpr.or(
@@ -1152,2 +1155,3 @@ export class ChatSetupContribution extends Disposable implements IWorkbenchContr
 						ChatContextKeys.Setup.hidden.negate(),
+						ChatContextKeys.Setup.installed,
 						ContextKeyExpr.or(
@@ -1350,3 +1354,3 @@ export class ChatTeardownContribution extends Disposable implements IWorkbenchCo
 						ChatContextKeys.Setup.hidden.negate(),
-						ChatContextKeys.Setup.installed.negate()
+						ChatContextKeys.Setup.installed
 					),
@@ -1356,3 +1360,3 @@ export class ChatTeardownContribution extends Disposable implements IWorkbenchCo
 						order: 1,
-						when: ChatContextKeys.Setup.installed.negate()
+						when: ChatContextKeys.Setup.installed
 					}
diff --git a/src/vs/workbench/contrib/chat/browser/chatStatus.ts b/src/vs/workbench/contrib/chat/browser/chatStatus.ts
index 05f6f0e..7fe62fd 100644
--- a/src/vs/workbench/contrib/chat/browser/chatStatus.ts
+++ b/src/vs/workbench/contrib/chat/browser/chatStatus.ts
@@ -132,2 +132,7 @@ export class ChatStatusBarEntry extends Disposable implements IWorkbenchContribu
 
+		const context = chatEntitlementService.context?.value;
+		if (!context) {
+			return; // disabled
+		}
+
 		this.update();
diff --git a/src/vs/workbench/contrib/chat/common/chatContextKeys.ts b/src/vs/workbench/contrib/chat/common/chatContextKeys.ts
index 4877407..fa134a7 100644
--- a/src/vs/workbench/contrib/chat/common/chatContextKeys.ts
+++ b/src/vs/workbench/contrib/chat/common/chatContextKeys.ts
@@ -104,4 +104,4 @@ export namespace ChatContextKeyExprs {
 	 */
-	export const chatSetupTriggerContext = ContextKeyExpr.or(
-		ChatContextKeys.Setup.installed.negate(),
+	export const chatSetupTriggerContext = ContextKeyExpr.and(
+		ChatContextKeys.Setup.installed,
 		ChatContextKeys.Entitlement.canSignUp
diff --git a/src/vs/workbench/contrib/mcp/browser/mcpServersView.ts b/src/vs/workbench/contrib/mcp/browser/mcpServersView.ts
index 5a12c9d..f62c111 100644
--- a/src/vs/workbench/contrib/mcp/browser/mcpServersView.ts
+++ b/src/vs/workbench/contrib/mcp/browser/mcpServersView.ts
@@ -530,3 +530,3 @@ export class McpServersViewsContribution extends Disposable implements IWorkbenc
 				ctorDescriptor: new SyncDescriptor(DefaultBrowseMcpServersView, [{}]),
-				when: ContextKeyExpr.and(DefaultViewsContext, HasInstalledMcpServersContext.toNegated(), ChatContextKeys.Setup.hidden.negate(), McpServersGalleryStatusContext.isEqualTo(McpGalleryManifestStatus.Available), ContextKeyExpr.or(ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceUrlConfig}`), ProductQualityContext.notEqualsTo('stable'), ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceEnablementConfig}`))),
+				when: ContextKeyExpr.and(DefaultViewsContext, HasInstalledMcpServersContext.toNegated(), ChatContextKeys.Setup.installed, ChatContextKeys.Setup.hidden.negate(), McpServersGalleryStatusContext.isEqualTo(McpGalleryManifestStatus.Available), ContextKeyExpr.or(ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceUrlConfig}`), ProductQualityContext.notEqualsTo('stable'), ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceEnablementConfig}`))),
 				weight: 40,
@@ -545,3 +545,3 @@ export class McpServersViewsContribution extends Disposable implements IWorkbenc
 				ctorDescriptor: new SyncDescriptor(DefaultBrowseMcpServersView, [{ showWelcome: true }]),
-				when: ContextKeyExpr.and(DefaultViewsContext, HasInstalledMcpServersContext.toNegated(), ChatContextKeys.Setup.hidden.negate(), McpServersGalleryStatusContext.isEqualTo(McpGalleryManifestStatus.Available), ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceUrlConfig}`).negate(), ProductQualityContext.isEqualTo('stable'), ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceEnablementConfig}`).negate()),
+				when: ContextKeyExpr.and(DefaultViewsContext, HasInstalledMcpServersContext.toNegated(), ChatContextKeys.Setup.installed, ChatContextKeys.Setup.hidden.negate(), McpServersGalleryStatusContext.isEqualTo(McpGalleryManifestStatus.Available), ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceUrlConfig}`).negate(), ProductQualityContext.isEqualTo('stable'), ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceEnablementConfig}`).negate()),
 				weight: 40,
diff --git a/src/vs/workbench/contrib/scm/browser/scm.contribution.ts b/src/vs/workbench/contrib/scm/browser/scm.contribution.ts
index a2d4dc9..a15ac03 100644
--- a/src/vs/workbench/contrib/scm/browser/scm.contribution.ts
+++ b/src/vs/workbench/contrib/scm/browser/scm.contribution.ts
@@ -659,3 +659,3 @@ registerAction2(class extends Action2 {
 					ChatContextKeys.Setup.disabled.negate(),
-					ChatContextKeys.Setup.installed.negate(),
+					ChatContextKeys.Setup.installed,
 					ContextKeyExpr.equals('git.activeResourceHasMergeConflicts', true)
diff --git a/src/vs/workbench/contrib/scm/browser/scmViewPane.ts b/src/vs/workbench/contrib/scm/browser/scmViewPane.ts
index d32554a..9257c26 100644
--- a/src/vs/workbench/contrib/scm/browser/scmViewPane.ts
+++ b/src/vs/workbench/contrib/scm/browser/scmViewPane.ts
@@ -1346,3 +1346,3 @@ registerAction2(class extends Action2 {
 					ChatContextKeys.Setup.disabled.negate(),
-					ChatContextKeys.Setup.installed.negate(),
+					ChatContextKeys.Setup.installed,
 					ContextKeyExpr.equals('scmProvider', 'git')