Feature request: persistent verbose/compact toggle + collapsible Edit diffs

Feature Request

Current Behavior

• Ctrl+O toggles verbose/compact mode but is session-only — resets every new session
• Edit/Update tool diffs always show inline regardless of the toggle state
• This creates a mixed experience where some tool outputs are collapsed and others (Edit diffs) are always expanded

Desired Behavior

1. Persistent default setting — e.g., outputVerbosity: "compact" in settings.json so it survives across sessions
2. Edit diffs should respect the toggle — in compact mode, show only Added 11 lines, removed 3 lines without the inline diff. The diff is still reviewable via Ctrl+O or Ctrl+E when needed.

Why

When working on a long session with many file edits, the expanded diffs make it harder to follow the conversation flow. The user already approved the edit — the diff is useful for review but shouldn't dominate the scrollback by default.

Suggested Implementation

• Add a setting like verboseOutput: true | false in .claude/settings.json
• Have Ctrl+O still toggle within the session, but default to the setting value on session start
• Treat Edit/Update diffs like other tool outputs — collapsible based on the toggle

🤖 Generated with Claude Code