[FEATURE] Allow collapsing the code preview in permission prompts (VS Code extension)

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

When the Claude Code VS Code extension asks for permission to run a tool call (e.g., a Bash command, file edit, or similar), the code/diff preview is rendered inline and pinned to the decision UI. On non-trivial actions the preview can be tall enough to push the preceding conversation and tool-call history off-screen.

The moment the permission prompt appears is exactly when I want to review the session history above — the commentary and prior tool calls that led to the proposed action — before deciding to approve or deny. With the preview expanded and pinned, scrolling back through that history is awkward, and on longer previews it's effectively not possible without losing my place in the prompt itself.

Proposed Solution

Add a user-initiated collapse toggle on the permission prompt's code preview in the VS Code extension. Concretely:

A small caret/chevron (or Collapse / Show preview affordance) on the preview panel that lets me minimize it to a one-line summary (e.g., Bash: <first line of command> or Edit: <file path>).
While collapsed, the conversation history above is fully readable and scrollable.
Expanding restores the full preview. The approve/deny buttons remain available in either state.
Ideally the collapsed/expanded state is remembered for the session, or is a setting (claude-code.permissionPrompt.defaultCollapsed), so users who want history-first review don't have to toggle on every prompt.

Alternative Solutions

_No response_

Priority

High - Significant impact on productivity

Feature Category

Developer tools/SDK

Use Case Example

_No response_

Additional Context

_No response_