In the case that both are shown at the same time, like the above example, the expected behavior is to use the ‘Enter’ key for the type autocomplete, and ‘Tab’ key for the ai autocomplete.
However currently ‘tab’ and ‘enter’ is both used by the type autocomplete and overrides the other option. The settings below shows the intended behavior.
Hello, thank you for the bug report. The behavior of tab when both (AI) Code Assist and traditional Autocomplete are present has gone through several iterations and we finally ended up deciding to give traditional autocomplete priority - so tab accepting the traditional autocomplete is not a bug when both are active. The setting you’re looking at for Autocomplete acceptance behavior does not control this priority - instead it changes how traditional autocomplete edits are applied.
With that said, I can certainly understand the desire for a setting to control this priority, and I will file a feature request to add one.