[FEATURE] Inconsistent diff preview behavior across workspaces in VS Code with the same settings, user needs to be able to choose

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

I work with two different workspaces in VS Code, in one of them, the edits preview shows up as an in-chat panel inside the session, I have the option to expand it if I need to. In the other, it shows up as a new preview tab by default and I can't really switch back to the old behavior.

Proposed Solution

User has the option to switch between the two modes (each one is useful sometimes)

Alternative Solutions

_No response_

Priority

Medium - Would be very helpful

Feature Category

Other

Use Case Example

_No response_

Additional Context

<img width="1512" height="982" alt="Image" src="https://github.com/user-attachments/assets/5af269ba-30a7-4042-b3ed-e80372118bdd" />
<img width="1512" height="982" alt="Image" src="https://github.com/user-attachments/assets/da1073d1-5d48-4e06-8993-911dd301a289" />