Fix confusing new conversation creation in 'distill and replace in place'

[exedev-shelley]

Author: tonezime
Channel: #shelley
Link: https://discord.com/channels/1405685085923049482/1450334528210993295/1487511405879099615

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Issue

"distill and replace in place" creates a new conversation in the UI at first, which is confusing to users.

Expected Behavior

The operation should replace the conversation in place without creating a new conversation entry in the UI.

Actual Behavior

A new conversation appears in the UI initially when using the "distill and replace in place" feature.

[hdp]

The flow is actually pretty reasonable when I understand it--new conversation created, previous conversation placed as, I guess, a subagent of the new conversation? (or something)

It takes a while to get to that point, though, during which time it looks like something has gone wrong.