[FEATURE] Render LaTeX math (KaTeX) in the VSCode extension chat panel

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 often work with mathematical expression but the communication between Claude is limited by math fonts not fully expressible.
The Claude Code VSCode extension's chat panel renders markdown (bold, headers, lists, code blocks) but does not render LaTeX math in $…$, $$…$$, \(…\), or \[…\] delimiters. Math currently displays as literal text with dollar signs and backslashes, which is hard to read for technical conversations.

Use case
I work with Claude Code on LaTeX manuscripts for economics research. Every reply involves notation like $\theta \in \Theta_I$, $V|X,A \sim F$, integrals, supremums, etc. Reading these as raw LaTeX source in the chat makes longer math-heavy discussions hard to follow. The web surface (claude.ai/code) renders these properly — so the model output is fine; it's the VSCode panel's renderer that strips math.

Proposed Solution

Requested behavior
Enable KaTeX (or MathJax) rendering in the chat panel, matching what the web app already does. Inline $…$ and display $$…$$ delimiters would cover 99% of cases. A setting like claudeCode.renderMath (default true) would let users opt out if they prefer literal text.

Alternative Solutions

Alternatives considered
Switching to claude.ai/code gives correct rendering but is a web app — it doesn't work with local repos not pushed to GitHub (e.g., files that live only in Dropbox). Switching claudeCode.preferredLocation between "panel" and "sidebar" does not change rendering behavior; same simplified renderer in both.

Priority

Medium - Would be very helpful

Feature Category

CLI commands and flags

Use Case Example

_No response_

Additional Context

_No response_