claude-code - 💡(How to fix) Fix Option to render Bash tool output in integrated terminal instead of editor tabs (VSCode extension)

Summary

Currently, when the Claude Code VSCode extension runs Bash tool calls, the command and its output are rendered inside the editor tabs area (the main editor section). It would be great to have a setting to redirect that output to the integrated terminal panel instead, similar to how GitHub Copilot Chat surfaces shell commands in the VSCode terminal.

Motivation

• The editor tabs area is meant for source files; routing transient command output there clutters the workspace and pushes code tabs out of view.
• The integrated terminal is the natural place for shell output — it preserves scrollback, supports terminal features (copy/paste, search, links), and matches developer muscle memory.
• Other AI coding tools in VSCode (e.g., Copilot Chat) already use the integrated terminal for command execution, which makes the Claude Code experience feel inconsistent by comparison.

Proposal

Add a setting such as:

"claudeCode.showToolOutputInTerminal": true

When enabled, Bash tool executions would stream into the integrated terminal panel instead of opening as editor tabs.

Environment

• Claude Code VSCode extension (not the CLI)
• Reported via Claude Code itself running inside the VSCode extension