[Bug] Read tool content collapsed by default - regression in visibility

Bug Description

Read tool output is now collapsed by default, showing only "Read 1 file (ctrl+o to expand)" with no content visible. Users must manually press ctrl+o to see what was actually read.

This is a significant UX regression - previously file contents were visible inline.

Environment

• Platform: Windows 11
• Version: 2.1.29
• Terminal: Windows Terminal

Screenshot

Shows "Read 1 file (ctrl+o to expand)" with no content visible.

Expected Behavior

File contents should be visible by default (at least partially), especially for single-file reads. The whole point of seeing what Claude reads is to follow along and catch any issues.

Current Behavior

• Content completely hidden behind ctrl+o expand
• No indication of what file was read (just "1 file")
• User must manually expand every Read operation to verify what was read

Impact

• Can't follow Claude's actions in real-time
• Can't verify Claude read the correct file/section
• Workflow constantly interrupted by having to expand collapsed blocks
• Defeats the purpose of transparent tool usage

Related

• #21202 requests showing file path inline (but doesn't address content visibility)
• This is more severe - entire content is hidden, not just the path

Suggested Fix

At minimum, show:

1. The file path (not just "1 file")
2. First N lines of content by default
3. Option in settings to control default collapse behavior