[BUG] Explanatory output style insights don't display correctly 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?

When I have the Explanatory output style enabled, Claude attempts to add insights to the output, but the insight markers are formatted as inline code.

What Should Happen?

The insights should be formatted in a similar style to Claude in the terminal.

Error Messages/Logs

Steps to Reproduce

1. Run Claude Code in the chat window rather than terminal mode
2. Enable the Explanatory output style
3. Run a query that results in an insight being generated

Claude Model

Sonnet (default)

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.0.37

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

Chat Window:

<img width="407" height="210" alt="Image" src="https://github.com/user-attachments/assets/574915fa-eb1f-40a6-86fd-04708776d685" />

Terminal:

<img width="1171" height="172" alt="Image" src="https://github.com/user-attachments/assets/9b1734e6-f69f-4404-9d17-3ffe21d7a61f" />