[BUG] Permission-mode dropdown clips option labels when Claude panel is narrow (VS Code extension)

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?

Surface: VS Code extension (native), permission-mode dropdown (the popover triggered by ⇧+Tab — visible from the "+ tab to switch" hint top-right of the popover)
Symptom: dropdown overflows/clips on the left; first ~1–2 chars of every option label and description are cut off
Likely trigger: narrow Claude Code side panel — the popover seems to anchor to the input but isn't repositioning when there's no room to the left
Repro: shrink the Claude panel to a narrow width, then open the permission-mode picker

What Should Happen?

Expected: popover should flip/clamp so its content stays inside the panel viewport

Error Messages/Logs

Steps to Reproduce

Open VS Code on macOS with the Claude Code extension installed and signed in.
Open the Claude Code panel in the sidebar (e.g. via the activity bar icon or Cmd+Esc).
Drag the panel's inner divider to make the Claude panel narrow — roughly 350–450px wide (narrow enough that there isn't much horizontal room to the left of the input box, but the input itself is still usable).
Click into the prompt input at the bottom of the panel so it has focus.
Press Shift+Tab to open the permission-mode picker popover (the menu with "Ask before edits / Edit automatically / Plan mode / Auto mode"). The hint chip top-right of the popover reads ⇧ + tab to switch.
Observe the popover's contents.

Claude Model

Not sure / Multiple models

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.133

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

<img width="354" height="331" alt="Image" src="https://github.com/user-attachments/assets/46a66cd1-6dd3-4a6c-b804-44aa8df4743a" />