Are you using the Anthropic API or another provider? It seems in your screenshot that it does work for a little while before the error comes, is it with some specific tool call that it happens?
Do the errors mostly happen in the Editor chat panel or also in the AI manager?
Turn on the experimental feature Enable On-Demand System Prompts and use only the AI manager, the new experimental option will cost less tokens and the AI manager can do all edits by itself instead of delegating it to the Editor AI assistant. This also costs fewer premium requests with Github Copilot.