VS Code Extension: Expanding a diff card opens a modal, blocking the chat input — want in-place inline expansion instead

Preflight Checklist

• [x] I have searched existing requests and this feature hasn't been requested yet
• [x] This is a single feature request (not multiple features)

Problem Statement

The compact Edit/MultiEdit diff card in the VS Code extension's chat panel is good — collapsed, inline, exactly the density you want while reviewing a fast stream of changes. But clicking "more" to see the full diff opens it as a modal overlay rather than expanding the card in place within the chat's own scroll.

While that modal is open, you can't scroll the rest of the conversation and you can't type into the prompt input — so you lose the ability to write a comment or follow-up prompt while still looking at the diff, breaking continuity of thought. This matters most exactly when code is being generated at a high pace: review speed needs to keep up with generation speed, and a modal that blocks input while reviewing is a direct tax on that.

Checked zeyutang/claude-code-ui-patch (a third-party settings patch for this extension) for a workaround — it only adjusts the diff card's font size, line numbers, and theme sync; it doesn't touch the modal-vs-inline behavior.

Proposed Solution

Expand the diff card in place within the normal chat scroll (push the rest of the conversation down, the same way a long text response does), not as a modal — so the prompt input stays focusable and the chat stays scrollable while a full diff is open.

Alternative Solutions

Currently, reviewing a full diff means closing the modal first to get the input box back, then reopening it if you need to look again while composing a comment.

Priority

Medium - Would be very helpful

Feature Category

Configuration and settings

Use Case Example

1. Claude Code makes several edits in quick succession during a fast-paced session.
2. I click "more" on one diff card to review it fully.
3. Today: a modal opens, covering the chat; I can't scroll to the next card or type a note about this one without closing the modal first.
4. With this feature: the card expands in place in the chat's own scroll; I can keep scrolling past it and type a comment in the prompt box while still looking at the diff — the same way I'd annotate a document while reading it.

Additional Context

Related to, but distinct from, #29388 (Write-tool diffs opening in the main editor panel) and #33932 (no accept/reject review UI) — this is specifically about the inline chat-panel diff card's own expand interaction blocking continued use of the chat while expanded.