[FEATURE] Show live/streaming bash command output in VS Code chat panel

Problem

When Claude Code runs bash commands in the VS Code extension's graphical chat panel, output is only shown after the command completes. There is no live/streaming output while the command is running. This makes it difficult to monitor progress of long-running commands (builds, tests, installs, servers, etc.) without switching to terminal mode.

The CLI and terminal mode both support live streaming output. The graphical chat panel does not.

Proposed Solution

Stream bash command output incrementally into the chat panel as it is produced, rather than buffering and displaying it only on completion.

This would make the chat panel experience consistent with the CLI/terminal mode for command visibility, without requiring users to leave the graphical interface.

Desired Behavior

• Long-running commands (e.g. npm install, pytest, cargo build) show output lines as they are emitted
• The final tool result reflects the complete output
• Behavior is consistent with what the CLI already provides

Current Workarounds

• Switch to terminal mode (Claude: Open in Terminal) — loses the graphical chat UI
• Run commands manually in the integrated terminal and reference output with @terminal

Neither workaround allows using the graphical chat panel with live output.

Environment

• Claude Code VS Code extension (chat panel / side bar mode)
• macOS / Linux / Windows

Related Issues

• #31449 — Bash tool stdout not captured at all on Windows (related but separate)
• #32261 — Feature: "Run in Terminal" button for code blocks

🤖 Generated with Claude Code