VS Code panel: input area obscures response text, prevents reading long responses

Bug Description

In the Claude Code VS Code extension panel, when Claude gives a long response, the user's input/question area at the bottom of the panel overlaps and obscures the response text above it. The user cannot scroll to read Claude's full answer because the input area covers the content.

Steps to Reproduce

1. Open the Claude Code panel in VS Code
2. Ask a question that produces a long response
3. Observe that the bottom portion of the response is hidden behind the input area
4. Attempt to scroll — the obscured text remains unreadable

Observed Behavior

The response content renders behind/underneath the input area at the bottom of the panel. The user cannot scroll far enough to read the full response. In the observed instance, the user had to type "send this answer with md. i cant see it" because the response about a code fix was partially hidden behind the input area and was unreadable.

Expected Behavior

The response area should be fully scrollable regardless of the input area size. The input area should not overlap or cover response content — there should be proper separation so all response text is accessible via scrolling.

Environment

• Extension: Claude Code VS Code extension
• OS: macOS (Darwin 25.4.0)
• Architecture: Apple Silicon