[BUG] Thinking blocks not visible in UI with Claude Opus 4.7

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?

Extended thinking is enabled, but the thinking content is no longer displayed
in the conversation UI when using Claude Opus 4.7. Switching to Sonnet 4.6
shows thinking blocks correctly. (yes I tried clicking on it, doesn't work)

Steps to reproduce

1. Set model to claude-opus-4-7 via /model
2. Enable extended thinking
3. Send any message — thinking is not shown

Expected behavior
Thinking blocks visible inline, as they were before the recent update.

Actual behavior
Thinking runs (spinner shows) but content is hidden/not rendered.

Environment

• Claude Code VSCode extension
• Model: claude-opus-4-7 (1M context)
• Works on: claude-sonnet-4-6

What Should Happen?

show the thinking process again, when expanded.

Error Messages/Logs

Steps to Reproduce

1. Set model to claude-opus-4-7 via /model
2. Enable extended thinking
3. Send any message — thinking is not shown

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

Opus 4.6

Claude Code Version

2.1.74

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_