try a fix

app/api/me/projects/[namespace]/[repoId]/images/route.ts

@@ -2,8 +2,6 @@ import { NextRequest, NextResponse } from "next/server";
 import { RepoDesignation, spaceInfo, uploadFiles } from "@huggingface/hub";
 
 import { isAuthenticated } from "@/lib/auth";
-import Project from "@/models/Project";
-import dbConnect from "@/lib/mongodb";
 
 export async function POST(
   req: NextRequest,

components/editor/preview/index.tsx

@@ -735,7 +735,7 @@ export const Preview = ({
         <div
           className="cursor-pointer absolute bg-sky-500/10 border-[2px] border-dashed border-sky-500 rounded-r-lg rounded-b-lg p-3 z-10 pointer-events-none"
           style={{
-            top: hoveredElement.rect.top,
+            top: hoveredElement.rect.top + 40,
             left: hoveredElement.rect.left,
             width: hoveredElement.rect.width,
             height: hoveredElement.rect.height,
@@ -796,11 +796,7 @@ export const Preview = ({
               }
             )}
             src={
-              !currentCommit &&
-              !isNew &&
-              !hasUnsavedChanges &&
-              project?.space_id &&
-              !project?.private
+              currentCommit && project?.space_id && !project?.private
                 ? `https://${project.space_id.replaceAll(
                     "/",
                     "-"
@@ -809,14 +805,15 @@ export const Preview = ({
             }
             srcDoc={
               currentCommit
-                ? commitPages.length > 0 && previewPageData?.html
-                  ? injectAssetsIntoHtml(previewPageData.html, commitPages)
-                  : defaultHTML
-                : isNew || hasUnsavedChanges || project?.private
+                ? undefined
+                : isNew ||
+                  hasUnsavedChanges ||
+                  project?.private ||
+                  !project?.space_id
                 ? isNew
                   ? throttledHtml || defaultHTML
                   : stableHtml
-                : undefined
+                : stableHtml || defaultHTML
             }
             onLoad={() => {
               if (

hooks/useAi.ts

@@ -66,6 +66,7 @@ export const useAi = (onScrollToBottom?: () => void) => {
   });
   const setSelectedElement = (newSelectedElement: HTMLElement | null) => {
     client.setQueryData(["ai.selectedElement"], newSelectedElement);
+    setIsEditableModeEnabled(false);
   };
 
   const { data: isEditableModeEnabled = false } = useQuery({