[BUG] CLAUDE.md edits show collapsed "memory" UI instead of inline diffs like other files

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 Claude edits CLAUDE.md, the diff is hidden behind a collapsed "memory" UI element, whereas edits to all other files show inline diffs directly. This makes it harder to review what was actually changed.

Current behavior

When editing CLAUDE.md, the output shows:

⏺ Recalled 1 memory, searched memories, wrote 1 memory (ctrl+o to expand)

Pressing ctrl+o expands to show:

⏺ Update(CLAUDE.md)
  ⎿  Updated a memory

∴ Thinking…
  [thinking content]

⏺ [response text]

The actual edit (e.g., a new table row added) is not shown.

Why this matters

• CLAUDE.md is a regular file in the project, often checked into source control
• Users need to review what Claude wrote before committing
• The "memory" abstraction obscures the actual file changes
• Other files show diffs inline; CLAUDE.md should be consistent

Environment

• Claude Code version: 2.1.31 (latest)
• OS: macOS
• Terminal: iTerm2 / Zsh

Related issues

• #8214 - ctrl+o to expand doesn't expand Read
• #17092 - Bring back Ctrl-s to minimize/expand output

What Should Happen?

CLAUDE.md edits should display the same inline diff format as other file edits, showing the actual lines added/changed/removed. For example:

⏺ Update(CLAUDE.md)
  ⎿  Updated CLAUDE.md
     | `generators/pil_memory.py` | `replace_image()`, `ImageTracker`, `MeasurementDraw` — prevent PIL memory leaks |

Suggested fix:

Display CLAUDE.md edits with the same diff UI as other files. The "memory" terminology and collapsed display could be an optional view mode, but the default should show actual file changes for consistency and reviewability.

Error Messages/Logs

Steps to Reproduce

Ask Claude Code to make a change to CLAUDE.md, e.g. my specific request was "document (concisely!) your new helper in CLAUDE.md".

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.31

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

iTerm2 (macOS)

Additional Information

The only way to see the edit was to inspect the git diff to CLAUDE.md, which isn't quite the same since there may be other edits.