[BUG] Overlay too dark when showing options - previous conversation unreadable

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?

Bug Description

The overlay that appears when Claude Code presents multiple-choice options is excessively dark, making the previous conversation nearly impossible to read. This significantly impacts usability as users often need to reference earlier context to make informed decisions.

Environment

• VSCode Version: [1.105.1]
• Claude Code Version: [2.0.21]
• Operating System: Windows 11
• VSCode Theme: [Dark Modern - Default Dark Modern]

Actual Behavior

• Dark overlay appears over entire conversation history
• Overlay opacity appears to be ~80-90%
• Previous messages become extremely difficult to read
• Cannot easily reference earlier context when making decisions

Visual Evidence

Screenshot showing the issue:

As shown in the screenshot, the conversation above the options is so darkened that it's very difficult to read the context needed to make an informed choice.

Impact

Severity: Medium
Frequency: Every time options are presented
Affected Users: All users who need to reference conversation history

This UX issue affects:

• Decision-making process (can't see context)
• Workflow efficiency (need workarounds)
• Overall user experience

Current Workaround

Scrolling up provides minimal improvement, but overlay remains too dark throughout the conversation.

Suggested Solutions

1. Preferred: Reduce overlay opacity to 30-40%
2. Alternative 1: Use a lighter gray overlay instead of black
3. Alternative 2: Only apply overlay to area immediately around options
4. Alternative 3: Add user setting to control overlay opacity
5. Alternative 4: Remove overlay entirely, rely on visual separation

Additional Context

This appears to be a CSS styling issue with the overlay element. A simple opacity adjustment would likely resolve this without major refactoring.

What Should Happen?

• Previous conversation should remain readable while options are displayed
• Overlay should be subtle enough (30-50% opacity) to maintain context visibility
• Users should be able to scroll and read earlier messages clearly

Error Messages/Logs

Steps to Reproduce

1. Start a conversation with Claude Code in Dark Modern Theme
2. Continue until Claude presents multiple-choice options (e.g., "Which option would you like?")
3. Try to read previous messages in the conversation history
4. Observe that the dark overlay makes text nearly unreadable

Claude Model

Sonnet (default)

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

2.0.21

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

!Image