[FEATURE] Dynamic window title with status indicators (like Gemini CLI)

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

## Feature Description
Add dynamic terminal window title updates to indicate Claude Code's current status, similar to Gemini CLI's
ui.dynamicWindowTitle feature.

## Use Case
When working with Claude Code in a terminal with multiple tabs/windows, it's difficult to know at a glance whether
Claude is:

• Still processing/thinking
• Waiting for my input
• Which task it's currently working on

Gemini CLI solves this with automatic window title updates:

• ✦ Working: When processing or running tools
• ✋ Action Required: When waiting for user input

This is extremely helpful for workflow awareness, especially when context-switching between terminal windows.

Proposed Solution

Add a setting to ~/.claude/settings.json:

```json
{
"ui": {
"dynamicWindowTitle": true
}
}

When enabled, update the terminal window title to reflect status:

• ✦ Claude Working - [current task] - During tool execution, API calls, thinking
• ✋ Action Required - Waiting for input - When blocked on user input
• ✦ Claude Code - Default/idle state

Benefits

• Better UX for multi-window workflows
• Quick visual indicator of Claude's state without switching focus
• Parity with Gemini CLI's polished UX features

Environment

• Claude Code Version: 2.1.19
• Terminal: xterm-256color compatible
• OS: Linux Mint 22.3 (Ubuntu-based)

Additional Context

Gemini CLI has this feature via ui.dynamicWindowTitle and it's one of the most helpful UX improvements for CLI AI
assistants. Would love to see Claude Code adopt something similar!

Alternative Solutions

_No response_

Priority

Medium - Would be very helpful

Feature Category

Configuration and settings

Use Case Example

Use Case

When working with Claude Code in a terminal with multiple tabs/windows, it's difficult to know at a glance whether
Claude is:

• Still processing/thinking
• Waiting for my input
• Which task it's currently working on

Gemini CLI solves this with automatic window title updates:

• ✦ Working: When processing or running tools
• ✋ Action Required: When waiting for user input

This is extremely helpful for workflow awareness, especially when context-switching between terminal windows.

Additional Context

_No response_