What works well in your AI coding setup, and what still causes you trouble?

A new Reddit user is seeking honest perspectives on AI coding setups. They have spent four months developing a VS Code-based IDE with bring-your-own-key (BYOK) support, initially intending it as a commercial product. However, given the current options available, they are reconsidering the viability of continuing development. The user is trying to understand what works well and what still causes trouble in existing setups to avoid building an unneeded product.

This post uniquely moves beyond product announcements to directly poll developers on their pain points and successful AI coding setups, unlike typical surveys.