[BUG] Scrollback issue in VS Code extension

Preflight Checklist

• [x] I have searched existing issues and this hasn't been reported yet
• [x] This is a single bug report (please file separate reports for different bugs)
• [x] I am using the latest version of Claude Code

What's Wrong?

I am not able to scroll back with the mouse wheel (and sometimes with the vertical scrollbar) in cursor in the vs code claude extension (not the terminal based version) when claude code is thinking (i.e. updating the screen). The scrollbar jumps back to the bottom if I try to scroll up with mouse wheel to view the history. This also happens if I drag the vertical scrollbar slightly upwards (if I move the vertical scrollbar quickly upwards it works fine, so it seem like it only happens when scrolling back a few lines). This makes it inconvenient to view recent history while claude code is working.

What Should Happen?

When scrolling back with the mouse wheel or with the scrollbar the display should be controlled by the user, not by the output from claude code. (The user can scroll down again if he needs to see the current output claude code. If he does this and releases the scrollbar at the absolute bottom position, the display should should again be controlled by claude code output to show the latest output from claude code. In this way the user has control over the display)

Error Messages/Logs

Steps to Reproduce

1. Open cursor version 2.0.69 (version number probably not important) on Ubuntu 25.10 (os version probably not important).
2. Install claude code extension in cursor
3. Start a claude code conversation in the app (not the terminal based version of the app)
4. Try to scroll back with mouse wheel while claude code is thinking and outputting to the screen

Claude Model

Sonnet (default)

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.0.37 (Claude Code)

Platform

Anthropic API

Operating System

Ubuntu/Debian Linux

Terminal/Shell

Other

Additional Information

_No response_