VS Code extension: no opt-out for IDE context sharing (opened files, selections)

Problem

The Claude Code VS Code extension automatically sends the currently opened file name and any highlighted text selection to the API as part of the system prompt context (ide_opened_file and ide_selection tags). There is no setting to disable this behavior.

If a user has a sensitive or personal document open in another editor tab while interacting with Claude Code, the filename and selection content are silently transmitted without explicit consent.

Steps to reproduce

1. Open a personal or sensitive file in a VS Code tab (medical notes, personal journal, private correspondence, etc.)
2. Switch to the Claude Code panel in another tab
3. Send any message to Claude
4. The system prompt automatically includes <ide_opened_file> with the filename and <ide_selection> with any highlighted text from the other tab

Expected behavior

There should be a setting to disable automatic IDE context sharing. Users should be able to opt out of sharing editor state with the API entirely.

For example:

{
  "claudeCode.sendEditorContext": false
}

Or more granular options:

{
  "claudeCode.sendOpenedFileName": false,
  "claudeCode.sendEditorSelection": false
}

Why this matters

• Users may have sensitive documents open (medical, legal, personal, financial) while using Claude Code for development work in the same editor window
• The context is sent unconditionally. There is no consent prompt, no visual indicator, and no setting to disable it
• The DISABLE_TELEMETRY and DO_NOT_TRACK environment variables do not affect this, as it is part of the core API request, not telemetry
• Users in regulated industries or with strict personal privacy requirements have no way to prevent this data from being transmitted

Environment

• Claude Code extension version: 2.1.159
• IDE: VSCodium (also affects VS Code)
• OS: Linux