VS Code Extension: Real-time activity panel for tool call visibility

Problem

When I use Claude Code in the VS Code extension I do not have a view of what the AI agent is doing. The agent makes tool calls, reads and edits files and runs commands but all of this happens behind the scenes. I only see the result in the chat panel.

In comparison tools like Cursor show what is happening in the terminal in time. This makes it clear what the AI is doing. Gives me confidence in the process.

This is especially important for three things:

• Trust. I want to see what the agent is reading, writing and executing in time

• Debugging. I need to understand why something did not work

• Learning. I want to watch how the agent solves problems

Proposed Solution

I think the VS Code extension should have a real-time activity panel*. This panel would show what is happening as it happens like the CLIs verbose or debug mode. This panel should show:

1. Tool calls as they happen. File reads, edits and bash commands

1. File paths being accessed. Which files the agent is reading or writing

1. Terminal commands. The exact commands being run and what they output

1. Usage. How many tokens are used for each message

1. Timing. How long each operation takes

UX Suggestion

• I think there should be a Activity" tab in the Claude Code sidebar next to the chat panel

• Or maybe a panel at the bottom that can be turned on or off like a terminal

• This should be something users can choose to turn on so the interface stays clean for users who do not need it

Context

The terminal CLI already shows this level of detail when I use the claude --verbose or claude --debug commands. The VS Code extension should work the way.

As someone who switched from Cursor after a year and a half this is the difference in user experience for me. Everything else, about the VS Code extension is better. It uses tokens efficiently has a better context window and the model is better.. This one feature would make it complete.

Environment

• I am using the Claude Code VS Code Extension

• My operating system is macOS, which is based on Darwin

• I have the Max plan, which's 20 times the normal plan