[FEATURE] Add minimize/collapse option for permission dialogs in VS Code extension

Feature Request

When using Claude Code in VS Code, the permission dialogs are modal and take up a significant portion of the screen (sometimes half), blocking the conversation view. Users cannot see the chat context while deciding whether to approve a command.

Problem

• Permission dialogs block the entire conversation area
• Users lose context of what was discussed before the permission request
• No way to temporarily collapse/minimize the dialog to review the conversation
• This is especially problematic for longer commands or multi-step operations

Proposed Solution

Add a minimize/collapse button to permission dialogs that would:

1. Collapse the dialog to a small indicator (e.g., a bar or icon)
2. Allow users to scroll through and read the conversation
3. Expand back to full dialog when ready to respond

Alternative Solutions

• Make the dialog draggable so users can reposition it
• Add a "peek" mode that shows conversation behind a semi-transparent dialog
• Split-pane view with dialog on one side, conversation on the other

Use Case

User is working on a multi-file refactoring task. Claude proposes a git commit. The permission dialog appears, but the user wants to review what changes were discussed before approving. Currently, they must either approve blindly or reject and lose context.

Environment

• VS Code extension
• All platforms (Windows, macOS, Linux)