[BUG] VS Code Extension: "Thinking" section text fails to wrap when resizing the panel width

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?

In the Claude Code VS Code extension, when I shrink (resize) the width of the extension panel/sidebar, the text inside the "Thinking" section does not wrap automatically. It remains on a single line or gets cut off. However, the standard (non-thinking) response text wraps correctly to fit the new width.

What Should Happen?

The text within the "Thinking" block should behave consistently with the rest of the interface. When the panel width is reduced, the thinking text should wrap to the next line so that it remains fully visible without needing horizontal scrolling or getting cut off.

Error Messages/Logs

No specific error logs are generated as this appears to be a CSS/UI rendering issue.

Steps to Reproduce

1. Open Visual Studio Code.
2. Launch the Claude Code extension.
3. Send a prompt that triggers "Thinking" (Extended Thinking) mode (e.g., using a model like Sonnet 3.7 or explicitly asking it to think).
4. Once the response begins and the "Thinking" block appears, expand it to view the text.
5. Click and drag the edge of the Claude Code panel to make it narrower (shrink the width).
6. Observe that the normal response text wraps to fit the new size, but the "Thinking" text does not wrap properly.

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.7

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

• This issue occurs specifically within the "Thinking" UI component.