diff --git a/packages/kilo-vscode/src/services/autocomplete/AutocompleteCodeActionProvider.ts b/packages/kilo-vscode/src/services/autocomplete/AutocompleteCodeActionProvider.ts
index fde8fedea09..b94bb234d89 100644
--- a/packages/kilo-vscode/src/services/autocomplete/AutocompleteCodeActionProvider.ts
+++ b/packages/kilo-vscode/src/services/autocomplete/AutocompleteCodeActionProvider.ts
@@ -6,12 +6,20 @@ export class AutocompleteCodeActionProvider implements vscode.CodeActionProvider
     quickfix: vscode.CodeActionKind.QuickFix,
   }
 
+  private _enabled = false
+
+  public set enabled(value: boolean) {
+    this._enabled = value
+  }
+
   public provideCodeActions(
     document: vscode.TextDocument,
     range: vscode.Range | vscode.Selection,
     _context: vscode.CodeActionContext,
     _token: vscode.CancellationToken,
   ): vscode.ProviderResult<(vscode.CodeAction | vscode.Command)[]> {
+    if (!this._enabled) return []
+
     const action = new vscode.CodeAction(
       t("kilocode:autocomplete.codeAction.title"),
       this.providedCodeActionKinds["quickfix"],
diff --git a/packages/kilo-vscode/src/services/autocomplete/AutocompleteServiceManager.ts b/packages/kilo-vscode/src/services/autocomplete/AutocompleteServiceManager.ts
index 329240445d5..dbf5280f304 100644
--- a/packages/kilo-vscode/src/services/autocomplete/AutocompleteServiceManager.ts
+++ b/packages/kilo-vscode/src/services/autocomplete/AutocompleteServiceManager.ts
@@ -118,6 +118,7 @@ export class AutocompleteServiceManager {
   public async load() {
     this.settings = readSettings()
 
+    this.codeActionProvider.enabled = this.settings?.enableSmartInlineTaskKeybinding ?? false
     await this.updateGlobalContext()
     this.updateStatusBar()
     await this.ensureInlineCompletionProviderRegistration()
diff --git a/packages/kilo-vscode/src/services/code-actions/code-action-provider.ts b/packages/kilo-vscode/src/services/code-actions/code-action-provider.ts
index ddbaf025e87..d204521a0c3 100644
--- a/packages/kilo-vscode/src/services/code-actions/code-action-provider.ts
+++ b/packages/kilo-vscode/src/services/code-actions/code-action-provider.ts
@@ -23,7 +23,6 @@ export class KiloCodeActionProvider implements vscode.CodeActionProvider {
     if (hasDiagnostics) {
       const fix = new vscode.CodeAction("Fix with Kilo Code", vscode.CodeActionKind.QuickFix)
       fix.command = { command: "kilo-code.new.fixCode", title: "Fix with Kilo Code" }
-      fix.isPreferred = true
       actions.push(fix)
     }
 
diff --git a/packages/kilo-vscode/tests/unit/code-action-provider.test.ts b/packages/kilo-vscode/tests/unit/code-action-provider.test.ts
index 639c8fd2a09..07688c506a2 100644
--- a/packages/kilo-vscode/tests/unit/code-action-provider.test.ts
+++ b/packages/kilo-vscode/tests/unit/code-action-provider.test.ts
@@ -78,10 +78,10 @@ describe("KiloCodeActionProvider", () => {
         expect(result).toHaveLength(2)
       })
 
-      it("Fix action is preferred", () => {
+      it("Fix action is not preferred so it does not hijack auto-fix", () => {
         const result = provider.provideCodeActions({} as never, makeRange(false) as never, makeContext(1) as never)
         const fix = result.find((a) => a.title === "Fix with Kilo Code")
-        expect(fix?.isPreferred).toBe(true)
+        expect(fix?.isPreferred).toBeFalsy()
       })
 
       it("Fix action uses QuickFix kind", () => {