I'm not sure that anyone wants the scarlet letter of an AI coauthor on their code just because they used something simple like next edit suggestions or AI autocomplete. It seems like the "all" setting basically only exists for people that haven't figured out how to change it to something else yet.
(Funnily enough, I always commit through the command line in VS code anyways...not sure why. But I guess I would have avoided this annoyance, so that's a plus!)