Feature: "Auto-updating..." status needs progress feedback & state clarity

Wanted to flag a small UX friction point — first time filing here, so I did my homework first. Searched existing issues (#5969, #2671, #5226, #13213) and found several auto-update bug reports but nothing addressing this specific ambiguity.

The Problem

When Claude Code launches and displays "Auto-updating..." in the status bar, it's genuinely unclear whether:

1. An update is actively happening right now (transient process), or
2. Auto-updates are enabled as a configuration setting (persistent state indicator)

My honest first reaction: _"Is this doing something, or just showing me my settings?"_ — and I'd guess other newer users have the same moment of pause.

On top of that, there's no progress feedback — no spinner, no version target, no sense of whether this will take 2 seconds or 2 minutes. The text just silently appears and eventually vanishes.

Suggested Improvements

Disambiguate the state — a small language tweak goes a long way:

• Active: "Checking for updates..." → "Downloading v2.1.105..." → "✓ Up to date"
• Config indicator (if shown): "Auto-updates: enabled"

Add lightweight progress feedback — a spinner, a version target, or phase indicator. Any signal that something is actively happening. (I'll leave the implementation to you — you know your status bar better than I do.)

Brief completion confirmation — a short flash of "✓ Up to date (v2.1.105)" before the indicator disappears, so users know it finished vs. silently vanishing.

Why This Matters

Claude Code's release cadence is remarkable — 30+ versions shipped in the March–April 2026 window alone. That means users see this indicator on nearly every launch. A small clarity investment here compounds across every session start for every user. It's the kind of micro-polish that turns a good CLI into one people rave about.

Environment

• Version: 2.1.104
• Platform: macOS (Darwin 25.5.0)
• Shell: zsh