[FEATURE] Show something instead of just runing `Baking` while a big file is processing in VsCode

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 running in the Claude Code plugin for VS Code, it often gets stuck for several minutes or even more than ten minutes. I have no idea what’s happening, and waiting for the model’s output has become extremely frustrating and anxiety-inducing. I can’t tell whether it’s retrying or simply not producing any output.

Proposed Solution

I hope that while the VS Code plugin shows “Processing,” it can display some status indicating the model is generating output, just like the command-line version of Claude Code does. This would greatly reduce the anxiety of waiting. The output for many files can cost thousands or even tens of thousands of tokens, and waiting in the VS Code plugin under such circumstances is really unpleasant.

Alternative Solutions

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Priority

High - Significant impact on productivity

Feature Category

Performance and speed

Use Case Example

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Additional Context

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