VSCode extension: diff/edit view auto-opens on every file edit, no setting to disable

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?

Extension: Claude Code for VS Code, v2.1.287
OS: Windows 11

Describe the bug
Every time Claude edits a file, a diff/side-by-side view automatically opens in the editor area, even when permission mode is set to auto-accept edits (not Manual review mode). This happens on every single edit and interrupts my workflow — I just want the edit applied without the view popping open each time.

Expected behavior
A setting to suppress the automatic diff-view opening on edits, independent of permission mode — e.g. claudeCode.showDiffOnEdit or similar, defaulting to current behavior but toggleable off.

Steps to reproduce

Open a project in VSCode with the Claude Code extension
Ask Claude to edit any file
Observe: a diff tab opens automatically in the editor area
I checked all current claudeCode.* settings (via the extension's package.json) and found no existing toggle for this — only claudeCode.initialPermissionMode, which is about permission gating, not view behavior, and didn't resolve it in my case.

What Should Happen?

Editing a file with Claude should not automatically open a diff/side-by-side view in the editor — the edit should just apply, with no extra tab opening, similar to how it previously behaved. Ideally this would be a togglable setting (e.g. claudeCode.showDiffOnEdit) independent of permission mode, since my permission mode already auto-accepts edits and the view still opens.

Error Messages/Logs

Steps to Reproduce

1. Open any project folder in VSCode with the Claude Code extension installed
2. Open the Claude Code chat panel (sidebar or tab)
3. Ask Claude to edit any existing file (e.g. "fix this typo in README.md")
4. Observe: before/while the edit applies, a diff/side-by-side comparison view automatically opens in the editor area

Note: this happens on every single file edit, even though the extension's permission mode is set to auto-apply edits (not Manual/review mode) — so it's not a confirmation step, just an automatically-opened view I didn't ask for.

Checked claudeCode.initialPermissionMode and all other claudeCode.* settings in the extension's package.json — found no existing toggle for this behavior.

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.92 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_