The correct option is Copilot sends your in-editor code and nearby context to a hosted large language model that was trained on public code and other data which then returns context aware completions.

With Copilot enabled in Visual Studio Code the extension securely transmits relevant portions of your current files and some surrounding project context to a hosted large language model. The model is trained on public code and other data and it uses your prompt which includes the code around the cursor to produce context aware completions that are returned over the network and displayed inline.

Copilot analyzes your starred GitHub repositories in addition to your file because it tailors suggestions to the projects you follow is incorrect because starred repositories are not part of the context used to generate completions. The suggestions are driven by the open editor content and nearby project files.

Copilot forwards your code to a Vertex AI endpoint in your Google Cloud project which generates snippets based on your organization policies is incorrect because Copilot uses models hosted by GitHub and Microsoft services and it does not route data to Vertex AI in a customer Google Cloud project.

Copilot compares your code against a local cache of your past projects and builds completions from patterns stored on your machine is incorrect because Copilot is a cloud backed service that generates suggestions from a hosted model rather than relying on a local cache of prior work.

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