[FEATURE] word wrap support in the command IN/OUT sections of the VS Code extension

Preflight Checklist

• [x] I have searched existing requests and this feature hasn't been requested yet
• [x] This is a single feature request (not multiple features)

Problem Statement

When using the Claude Code VS Code extension, the input (IN) and output (OUT) sections of tool calls (Bash commands, file reads, etc.) display text in a single horizontal line without word wrapping. Long lines are clipped by the panel width, making it impossible to read the full content without horizontal scrolling or copy-pasting.

This is especially problematic for:

Long shell command outputs (e.g., build logs, test results, grep output)
File contents displayed in Read tool results
Error messages and stack traces that exceed the panel width

Proposed Solution

Expected behavior:

Text in command IN/OUT sections should wrap to fit the panel width, or there should be a user-configurable setting (e.g., claude-code.wordWrap) to toggle wrapping on/off.

Current workaround:

Manually selecting and copying text to view full content
Using the terminal-based CLI (claude) instead, where wrapping works natively

Alternative Solutions

_No response_

Priority

Medium - Would be very helpful

Feature Category

Configuration and settings

Use Case Example

_No response_

Additional Context

_No response_