Option to suppress/collapse file edit diffs in terminal output

Feature Request

Add a configuration option to suppress or collapse code change / content diff output shown in the terminal after file edits.

Problem

When Claude Code edits files, the full diff is displayed in the terminal. For large or frequent edits, this creates a lot of visual noise and makes it harder to follow the conversational flow. There's currently no way to hide or minimize these diffs.

Proposed Solution

A setting (e.g., showDiffs: false or diffVerbosity: "collapsed") that controls whether file edit diffs are shown inline in the terminal output. Options could include:

• full (default, current behavior) — show the complete diff
• collapsed — show a one-line summary (e.g., "Edited src/foo.ts — 12 lines changed") that can be expanded
• none — suppress diff output entirely

This could be configured via:

• settings.json ("diffDisplay": "collapsed")
• CLI flag (--diff-display=none)
• Or both

Use Case

• Users working on large refactors or multi-file changes where diffs dominate the output
• Scripted/automated workflows where diff output is unnecessary
• Users who trust Claude's edits and prefer a cleaner conversational flow, reviewing changes via git diff instead

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