[BUG] Claude Code VSCode extension is NOT streaming response since 2.1.37

Preflight Checklist

• [x] I have searched existing issues and this hasn't been reported yet
• [x] This is a single bug report (please file separate reports for different bugs)
• [x] I am using the latest version of Claude Code

What's Wrong?

There're already multiple posts about this and they're all automatically closed -- since 2.1.37, how is this not something drawing enough attention? Is everyone enjoying the huge dump of response at the very end?
Where did the streaming go(just like claude.ai and every other LLM interaction is like?)????
Where did it go and WHO decided it's a good idea to dump the huge blob of text at the very end?

I'm on Win11 WSL2, 2.1.37 is what keeps me going right now, all the newer versions just keep dumping all response once it's done.

Please bring it back!!

What Should Happen?

The response should present in a progressive way including the thinking process, just like claude.ai

Error Messages/Logs

N/A

Steps to Reproduce

1. be on win11
2. be on wsl2
3. install claude code vscode extension in vscode or cursor
4. use it
5. experience no-stream response

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.37

Claude Code Version

2.1.97

Platform

Other

Operating System

Windows

Terminal/Shell

WSL (Windows Subsystem for Linux)

Additional Information

_No response_