diff --git a/crates/agent_ui/src/acp/model_selector.rs b/crates/agent_ui/src/acp/model_selector.rs
index cff5334a00472fd6f49abcb17897b4ed3c9f590e..f3c07250de3cefc798b97d9ffad444489d153219 100644
--- a/crates/agent_ui/src/acp/model_selector.rs
+++ b/crates/agent_ui/src/acp/model_selector.rs
@@ -221,7 +221,7 @@ impl PickerDelegate for AcpModelPickerDelegate {
         cx: &mut Context<Picker<Self>>,
     ) -> Task<()> {
         let favorites = if self.selector.supports_favorites() {
-            Arc::new(AgentSettings::get_global(cx).favorite_model_ids())
+            AgentSettings::get_global(cx).favorite_model_ids()
         } else {
             Default::default()
         };
@@ -242,7 +242,7 @@ impl PickerDelegate for AcpModelPickerDelegate {
 
             this.update_in(cx, |this, window, cx| {
                 this.delegate.filtered_entries =
-                    info_list_to_picker_entries(filtered_models, favorites);
+                    info_list_to_picker_entries(filtered_models, &favorites);
                 // Finds the currently selected model in the list
                 let new_index = this
                     .delegate
@@ -406,7 +406,7 @@ impl PickerDelegate for AcpModelPickerDelegate {
 
 fn info_list_to_picker_entries(
     model_list: AgentModelList,
-    favorites: Arc<HashSet<ModelId>>,
+    favorites: &HashSet<ModelId>,
 ) -> Vec<AcpModelPickerEntry> {
     let mut entries = Vec::new();
 
@@ -572,13 +572,11 @@ mod tests {
         }
     }
 
-    fn create_favorites(models: Vec<&str>) -> Arc<HashSet<ModelId>> {
-        Arc::new(
-            models
-                .into_iter()
-                .map(|m| ModelId::new(m.to_string()))
-                .collect(),
-        )
+    fn create_favorites(models: Vec<&str>) -> HashSet<ModelId> {
+        models
+            .into_iter()
+            .map(|m| ModelId::new(m.to_string()))
+            .collect()
     }
 
     fn get_entry_model_ids(entries: &[AcpModelPickerEntry]) -> Vec<&str> {
@@ -609,7 +607,7 @@ mod tests {
         ]);
         let favorites = create_favorites(vec!["zed/gemini"]);
 
-        let entries = info_list_to_picker_entries(models, favorites);
+        let entries = info_list_to_picker_entries(models, &favorites);
 
         assert!(matches!(
             entries.first(),
@@ -625,7 +623,7 @@ mod tests {
         let models = create_model_list(vec![("zed", vec!["zed/claude", "zed/gemini"])]);
         let favorites = create_favorites(vec![]);
 
-        let entries = info_list_to_picker_entries(models, favorites);
+        let entries = info_list_to_picker_entries(models, &favorites);
 
         assert!(matches!(
             entries.first(),
@@ -641,7 +639,7 @@ mod tests {
         ]);
         let favorites = create_favorites(vec!["zed/claude"]);
 
-        let entries = info_list_to_picker_entries(models, favorites);
+        let entries = info_list_to_picker_entries(models, &favorites);
 
         for entry in &entries {
             if let AcpModelPickerEntry::Model(info, is_favorite) = entry {
@@ -662,7 +660,7 @@ mod tests {
         ]);
         let favorites = create_favorites(vec!["zed/gemini", "openai/gpt-5"]);
 
-        let entries = info_list_to_picker_entries(models, favorites);
+        let entries = info_list_to_picker_entries(models, &favorites);
         let model_ids = get_entry_model_ids(&entries);
 
         assert_eq!(model_ids[0], "zed/gemini");
@@ -683,7 +681,7 @@ mod tests {
 
         let favorites = create_favorites(vec!["zed/claude"]);
 
-        let entries = info_list_to_picker_entries(models, favorites);
+        let entries = info_list_to_picker_entries(models, &favorites);
         let labels = get_entry_labels(&entries);
 
         assert_eq!(
@@ -723,7 +721,7 @@ mod tests {
         ]);
         let favorites = create_favorites(vec!["zed/gemini"]);
 
-        let entries = info_list_to_picker_entries(models, favorites);
+        let entries = info_list_to_picker_entries(models, &favorites);
 
         assert!(matches!(
             entries.first(),