Feature request: option to display pasted multi-line text as-is in the input box

Description

A recent update changed how pasted multi-line text is displayed in the input box. Previously, pasting multi-line text would show it as-is, preserving line breaks and formatting. Now, pasted text is collapsed/compacted into a single line. This makes it impossible to review or edit the pasted content before submitting.

Use cases broken by this change

• Voice input correction: When using voice-to-text (e.g., Wispr Flow, macOS dictation), the transcribed input often spans multiple lines and contains transcription errors. Users need to review and correct these errors before submitting. With the collapsed view, there is no way to spot or fix mistakes inline.

• Inline editing of pasted content: When pasting text from documents, emails, or other sources, users often want to make quick edits -- trimming irrelevant parts, adding context, or fixing formatting -- before submitting. The collapsed single-line display prevents this.

• Pasting structured content: When pasting error logs, code snippets, or configuration blocks for Claude to analyze, users want to verify the paste captured the right content before submitting. The collapsed view makes verification impossible.

• Composing multi-part prompts: Users sometimes paste a base prompt and then want to append or modify parts of it directly in the input box before submitting.

Request

Add a setting (e.g., compactPaste: false) or a toggle to revert to the old multi-line display behavior, so users can view and edit pasted content inline before submitting. The compact display may be useful for some workflows, but having it as the only option removes important editing capabilities.