diff --git a/extensions/cli/package-lock.json b/extensions/cli/package-lock.json
index 5ee422523d2..e645f43949d 100644
--- a/extensions/cli/package-lock.json
+++ b/extensions/cli/package-lock.json
@@ -184,6 +184,7 @@
         "system-ca": "^1.0.3",
         "tar": "^7.4.3",
         "tree-sitter-wasms": "^0.1.11",
+        "untildify": "^6.0.0",
         "uuid": "^9.0.1",
         "vectordb": "^0.4.20",
         "web-tree-sitter": "^0.21.0",
@@ -274,7 +275,7 @@
         "@aws-sdk/credential-providers": "^3.840.0",
         "@continuedev/config-types": "^1.0.14",
         "@continuedev/config-yaml": "^1.14.0",
-        "@continuedev/fetch": "^1.1.0",
+        "@continuedev/fetch": "^1.5.0",
         "dotenv": "^16.5.0",
         "google-auth-library": "^10.1.0",
         "json-schema": "^0.4.0",
diff --git a/extensions/cli/src/session.test.ts b/extensions/cli/src/session.test.ts
index 0fb5f452537..9ca3b4bd597 100644
--- a/extensions/cli/src/session.test.ts
+++ b/extensions/cli/src/session.test.ts
@@ -360,7 +360,7 @@ describe("SessionManager", () => {
       const firstSession = createSession();
       const firstSessionId = firstSession.sessionId;
 
-      vi.mocked(uuidv4).mockReturnValue("new-uuid-456" as any);
+      vi.mocked(uuidv4).mockReturnValue("new-uuid-456");
 
       const secondSession = startNewSession();
 
@@ -381,7 +381,7 @@ describe("SessionManager", () => {
         },
       ];
 
-      vi.mocked(uuidv4).mockReturnValue("new-uuid-789" as any);
+      vi.mocked(uuidv4).mockReturnValue("new-uuid-789");
 
       const session = startNewSession(history);
 
@@ -392,7 +392,7 @@ describe("SessionManager", () => {
     it("should set the new session as current", () => {
       const originalSession = createSession();
 
-      vi.mocked(uuidv4).mockReturnValue("new-session-id" as any);
+      vi.mocked(uuidv4).mockReturnValue("new-session-id");
 
       const newSession = startNewSession();
       const currentSession = getCurrentSession();
@@ -401,4 +401,100 @@ describe("SessionManager", () => {
       expect(currentSession).not.toBe(originalSession);
     });
   });
+
+  describe("session isolation", () => {
+    it("should not pollute new sessions with previous session history", () => {
+      // Simulate first CLI session
+      vi.mocked(uuidv4).mockReturnValue("session-1");
+      const session1 = createSession();
+      const history1: ChatHistoryItem[] = [
+        {
+          message: {
+            role: "user",
+            content: "Tell me about dogs",
+          },
+          contextItems: [],
+        },
+        {
+          message: {
+            role: "assistant",
+            content: "Dogs are loyal companions...",
+          },
+          contextItems: [],
+        },
+      ];
+      updateSessionHistory(history1);
+
+      // Simulate starting a new CLI session (without --resume)
+      vi.mocked(uuidv4).mockReturnValue("session-2");
+      const session2 = startNewSession([]);
+
+      // New session should have clean state
+      expect(session2.sessionId).toBe("session-2");
+      expect(session2.sessionId).not.toBe(session1.sessionId);
+      expect(session2.history).toEqual([]);
+      expect(session2.history.length).toBe(0);
+    });
+
+    it("should create independent sessions for concurrent operations", () => {
+      // Create first session with some data
+      vi.mocked(uuidv4).mockReturnValue("concurrent-1");
+      const session1 = createSession();
+      updateSessionTitle("Session 1");
+      updateSessionHistory([
+        {
+          message: {
+            role: "user",
+            content: "First session message",
+          },
+          contextItems: [],
+        },
+      ]);
+
+      // Start a new session
+      vi.mocked(uuidv4).mockReturnValue("concurrent-2");
+      const session2 = startNewSession([]);
+
+      // Verify session2 is clean
+      expect(session2.title).toBe("Untitled Session");
+      expect(session2.history).toEqual([]);
+      expect(session2.sessionId).not.toBe(session1.sessionId);
+    });
+
+    it("should properly clear session state when transitioning between sessions", () => {
+      // First session with complex history
+      vi.mocked(uuidv4).mockReturnValue("complex-session-1");
+      const session1 = createSession();
+      updateSessionTitle("Complex Session");
+      const complexHistory: ChatHistoryItem[] = [
+        {
+          message: {
+            role: "user",
+            content: "What were we discussing?",
+          },
+          contextItems: [],
+        },
+        {
+          message: {
+            role: "assistant",
+            content: "We were discussing dogs earlier.",
+          },
+          contextItems: [],
+        },
+      ];
+      updateSessionHistory(complexHistory);
+
+      // Verify first session has data
+      expect(getCurrentSession().history.length).toBe(2);
+
+      // Start fresh session
+      vi.mocked(uuidv4).mockReturnValue("fresh-session-2");
+      const session2 = startNewSession([]);
+
+      // Verify clean state
+      expect(session2.history.length).toBe(0);
+      expect(session2.title).toBe("Untitled Session");
+      expect(getCurrentSession().sessionId).toBe("fresh-session-2");
+    });
+  });
 });