getpaseo · mcowger · Aug 14, 2026 · Aug 14, 2026 · Aug 14, 2026 · Aug 14, 2026
diff --git a/packages/app/src/agent-stream/view.tsx b/packages/app/src/agent-stream/view.tsx
@@ -63,6 +63,7 @@ import {
   prepareToolCallHistory,
   projectToolCallDetailLevel,
 } from "@/tool-calls/detail-level/projection";
+import { formatThinkingText } from "@/utils/thinking-text-formatter";
 import { OverviewToolCallGroupView } from "@/tool-calls/detail-level/overview/view";
 import { type AgentStreamRenderModel, buildAgentStreamRenderModel } from "./model";
 import { resolveStreamRenderStrategy } from "./strategy-resolver";
@@ -663,16 +664,20 @@ const AgentStreamViewComponent = forwardRef<AgentStreamViewHandle, AgentStreamVi
 
     const renderThoughtItem = useCallback(
       (layoutItem: StreamLayoutItem, item: Extract<StreamItem, { kind: "thought" }>) => {
+        const isThoughtActive = item.status !== "ready";
+        const isExpanded =
+          autoExpandReasoning === "expanded" ||
+          (autoExpandReasoning === "expand_active" && isThoughtActive);
         return (
           <ToolCallSlot
             itemId={item.id}
             onInlineDetailsExpandedChangeByItemId={setInlineDetailsExpanded}
             toolName="thinking"
-            args={item.text}
+            args={formatThinkingText(item.text)}
             status={item.status === "ready" ? "completed" : "executing"}
             isLastInSequence={layoutItem.isLastInToolSequence}
-            defaultExpanded={autoExpandReasoning}
-            forceInline={autoExpandReasoning}
+            defaultExpanded={isExpanded}
+            forceInline={isExpanded}
           />
         );
       },

diff --git a/packages/app/src/components/message.tsx b/packages/app/src/components/message.tsx
@@ -3061,6 +3061,11 @@ export const ToolCall = memo(function ToolCall({
 }: ToolCallProps) {
   const { openToolCall } = useToolCallSheet();
   const [isExpanded, setIsExpanded] = useState(defaultExpanded ?? false);
+  const [prevDefaultExpanded, setPrevDefaultExpanded] = useState(defaultExpanded);
+  if (prevDefaultExpanded !== defaultExpanded) {
+    setPrevDefaultExpanded(defaultExpanded);
+    setIsExpanded(defaultExpanded ?? false);
+  }
 
   const isMobile = useIsCompactFormFactor();
   const shouldRenderInline = !isMobile || forceInline;

diff --git a/packages/app/src/components/tool-call-details.tsx b/packages/app/src/components/tool-call-details.tsx
@@ -21,6 +21,8 @@ import { HighlightedLines } from "./highlighted-content";
 import { DiffViewer } from "./diff-viewer";
 import { getCodeInsets } from "./code-insets";
 import { isWeb } from "@/constants/platform";
+import { formatThinkingText } from "@/utils/thinking-text-formatter";
+import { MarkdownRenderer } from "./markdown/renderer";
 
 const ScrollView = isWeb ? RNScrollView : GHScrollView;
 
@@ -506,6 +508,21 @@ function ScrollablePlainTextSection({ text, ds }: { text: string; ds: DetailStyl
   );
 }
 
+function ScrollableMarkdownSection({ text, ds }: { text: string; ds: DetailStyles }) {
+  return (
+    <View style={styles.section}>
+      <ScrollView
+        style={ds.scrollAreaStyle}
+        contentContainerStyle={styles.scrollContent}
+        nestedScrollEnabled
+        showsVerticalScrollIndicator
+      >
+        <MarkdownRenderer text={text} compact enableHtmlish={false} />
+      </ScrollView>
+    </View>
+  );
+}
+
 interface SearchDetail {
   query?: string;
   content?: string;
@@ -582,7 +599,13 @@ function buildUnknownSections(detail: UnknownDetail, ds: DetailStyles, t: TFunct
     typeof detail.input === "string" && detail.output === null ? detail.input : null;
 
   if (plainInputText !== null) {
-    return [<ScrollablePlainTextSection key="unknown-plain-text" text={plainInputText} ds={ds} />];
+    return [
+      <ScrollableMarkdownSection
+        key="unknown-markdown-text"
+        text={formatThinkingText(plainInputText)}
+        ds={ds}
+      />,
+    ];
   }
 
   const sectionsFromTopLevel = [

diff --git a/packages/app/src/hooks/use-settings/storage.test.ts b/packages/app/src/hooks/use-settings/storage.test.ts
@@ -385,6 +385,45 @@ describe("appearance settings", () => {
     expect(result.toolCallDetailLevel).toBe("detailed");
   });
 
+  it("loads thinking display detail enum values or migrates legacy boolean values", async () => {
+    const depsTrue = makeDeps({
+      storage: createInMemoryKeyValueStorage({
+        [APP_SETTINGS_KEY]: JSON.stringify({ autoExpandReasoning: true }),
+      }),
+    });
+    expect((await loadAppSettingsFromStorage(depsTrue)).autoExpandReasoning).toBe("expanded");
+
+    const depsFalse = makeDeps({
+      storage: createInMemoryKeyValueStorage({
+        [APP_SETTINGS_KEY]: JSON.stringify({ autoExpandReasoning: false }),
+      }),
+    });
+    expect((await loadAppSettingsFromStorage(depsFalse)).autoExpandReasoning).toBe("collapsed");
+
+    const depsActive = makeDeps({
+      storage: createInMemoryKeyValueStorage({
+        [APP_SETTINGS_KEY]: JSON.stringify({ autoExpandReasoning: "expand_active" }),
+      }),
+    });
+    expect((await loadAppSettingsFromStorage(depsActive)).autoExpandReasoning).toBe(
+      "expand_active",
+    );
+
+    const depsExpanded = makeDeps({
+      storage: createInMemoryKeyValueStorage({
+        [APP_SETTINGS_KEY]: JSON.stringify({ autoExpandReasoning: "expanded" }),
+      }),
+    });
+    expect((await loadAppSettingsFromStorage(depsExpanded)).autoExpandReasoning).toBe("expanded");
+
+    const depsInvalid = makeDeps({
+      storage: createInMemoryKeyValueStorage({
+        [APP_SETTINGS_KEY]: JSON.stringify({ autoExpandReasoning: "invalid" }),
+      }),
+    });
+    expect((await loadAppSettingsFromStorage(depsInvalid)).autoExpandReasoning).toBe("collapsed");
+  });
+
   it("migrates the enabled compact tool call preference to overview", async () => {
     const deps = makeDeps({
       storage: createInMemoryKeyValueStorage({

diff --git a/packages/app/src/hooks/use-settings/storage.ts b/packages/app/src/hooks/use-settings/storage.ts
@@ -27,6 +27,7 @@ export type ServiceUrlBehavior = "ask" | "in-app" | "external";
 export type WorkspaceTitleSource = "title" | "branch";
 /** What a sidebar workspace row shows in the space to the right of its title. */
 export type SidebarWorkspaceTrailing = "diff" | "timestamp" | "none";
+export type ThinkingDisplayDetail = "collapsed" | "expand_active" | "expanded";
 export type ToolCallDetailLevel = "overview" | "detailed";
 
 const VALID_THEMES = new Set<string>(THEME_OPTIONS.map((option) => option.name));
@@ -39,6 +40,11 @@ const VALID_SIDEBAR_WORKSPACE_TRAILINGS = new Set<SidebarWorkspaceTrailing>([
   "none",
 ]);
 const VALID_TOOL_CALL_DETAIL_LEVELS = new Set<ToolCallDetailLevel>(["overview", "detailed"]);
+const VALID_THINKING_DISPLAY_DETAILS = new Set<ThinkingDisplayDetail>([
+  "collapsed",
+  "expand_active",
+  "expanded",
+]);
 export const DEFAULT_TERMINAL_SCROLLBACK_LINES = 10_000;
 export const MIN_TERMINAL_SCROLLBACK_LINES = 0;
 export const MAX_TERMINAL_SCROLLBACK_LINES = 1_000_000;
@@ -66,7 +72,7 @@ export interface AppSettings {
   sidebarWorkspaceTrailing: SidebarWorkspaceTrailing;
   sidebarRowItems: SidebarRowItems;
   sidebarChecksDisplay: SidebarChecksDisplay;
-  autoExpandReasoning: boolean;
+  autoExpandReasoning: ThinkingDisplayDetail;
   toolCallDetailLevel: ToolCallDetailLevel;
   chatOutlineEnabled: boolean;
   vimKeybindings: boolean;
@@ -103,7 +109,9 @@ const StoredAppSettingsSchema = z.strictObject({
   sidebarWorkspaceTrailing: z.enum(["diff", "timestamp", "none"]).optional(),
   sidebarRowItems: SidebarRowItemsSchema.optional(),
   sidebarChecksDisplay: z.enum(["iconAndText", "icon", "none"]).optional(),
-  autoExpandReasoning: z.boolean().optional(),
+  autoExpandReasoning: z
+    .union([z.enum(["collapsed", "expand_active", "expanded"]), z.boolean()])
+    .optional(),
   toolCallDetailLevel: z.enum(["overview", "detailed"]).optional(),
   compactToolCalls: z.boolean().optional(),
   chatOutlineEnabled: z.boolean().optional(),
@@ -133,7 +141,7 @@ export const DEFAULT_CLIENT_SETTINGS: AppSettings = {
   sidebarWorkspaceTrailing: "diff",
   sidebarRowItems: DEFAULT_SIDEBAR_ROW_ITEMS,
   sidebarChecksDisplay: DEFAULT_SIDEBAR_CHECKS_DISPLAY,
-  autoExpandReasoning: false,
+  autoExpandReasoning: "collapsed",
   toolCallDetailLevel: "detailed",
   chatOutlineEnabled: true,
   vimKeybindings: false,
@@ -242,6 +250,21 @@ export function normalizeAppSettings(value: unknown): AppSettings {
   };
 }
 
+function parseThinkingDisplayDetail(stored: StoredAppSettings): ThinkingDisplayDetail | null {
+  if (stored.autoExpandReasoning !== undefined) {
+    if (
+      typeof stored.autoExpandReasoning === "string" &&
+      VALID_THINKING_DISPLAY_DETAILS.has(stored.autoExpandReasoning as ThinkingDisplayDetail)
+    ) {
+      return stored.autoExpandReasoning as ThinkingDisplayDetail;
+    }
+    if (typeof stored.autoExpandReasoning === "boolean") {
+      return stored.autoExpandReasoning ? "expanded" : "collapsed";
+    }
+  }
+  return null;
+}
+
 function parseToolCallDetailLevel(stored: StoredAppSettings): ToolCallDetailLevel | null {
   if (stored.toolCallDetailLevel !== undefined) {
     if (
@@ -362,8 +385,9 @@ function pickAppSettings(stored: StoredAppSettings): Partial<AppSettings> {
     result.codeFontSize = codeFontSize;
   }
   Object.assign(result, pickBooleanAppSettings(stored));
-  if (typeof stored.autoExpandReasoning === "boolean") {
-    result.autoExpandReasoning = stored.autoExpandReasoning;
+  const thinkingDisplayDetail = parseThinkingDisplayDetail(stored);
+  if (thinkingDisplayDetail !== null) {
+    result.autoExpandReasoning = thinkingDisplayDetail;
   }
   const toolCallDetailLevel = parseToolCallDetailLevel(stored);
   if (toolCallDetailLevel !== null) {

diff --git a/packages/app/src/i18n/resources/ar.ts b/packages/app/src/i18n/resources/ar.ts
@@ -1841,8 +1841,14 @@ export const ar: TranslationResources = {
         accessibilityLabel: "خطوط التمرير Terminal",
       },
       autoExpandReasoning: {
-        label: "عرض التفكير دائماً",
-        description: "إظهار تفكير الوكيل وخطوات الاستدلال بشكل كامل بشكل افتراضي",
+        label: "عرض التفكير",
+        description: "كيفية ظهور كتل التفكير في المخطط الزمني",
+        accessibilityLabel: "تحديد عرض التفكير ({{value}})",
+        options: {
+          collapsed: "مطوي",
+          expandActive: "توسيع النشط",
+          expanded: "توسيع دائماً",
+        },
       },
       toolCallDetail: {
         label: "عرض استدعاءات الأدوات",

diff --git a/packages/app/src/i18n/resources/en.ts b/packages/app/src/i18n/resources/en.ts
@@ -1851,8 +1851,14 @@ export const en = {
         accessibilityLabel: "Terminal scrollback lines",
       },
       autoExpandReasoning: {
-        label: "Always expand reasoning",
-        description: "Show agent thinking and chain-of-thought blocks fully expanded by default",
+        label: "Thinking display",
+        description: "How agent thinking and chain-of-thought blocks appear in the timeline",
+        accessibilityLabel: "Select thinking display ({{value}})",
+        options: {
+          collapsed: "Collapsed",
+          expandActive: "Expand Active",
+          expanded: "Always expand",
+        },
       },
       toolCallDetail: {
         label: "Tool call display",

diff --git a/packages/app/src/i18n/resources/es.ts b/packages/app/src/i18n/resources/es.ts
@@ -1887,9 +1887,14 @@ export const es: TranslationResources = {
         accessibilityLabel: "Líneas del historial de terminal",
       },
       autoExpandReasoning: {
-        label: "Siempre expandir razonamiento",
-        description:
-          "Mostrar los bloques de pensamiento y razonamiento del agente totalmente expandidos de forma predeterminada",
+        label: "Visualización de pensamiento",
+        description: "Cómo aparecen los bloques de pensamiento del agente en la cronología",
+        accessibilityLabel: "Seleccionar visualización de pensamiento ({{value}})",
+        options: {
+          collapsed: "Plegado",
+          expandActive: "Expandir activo",
+          expanded: "Expandir siempre",
+        },
       },
       toolCallDetail: {
         label: "Visualización de llamadas a herramientas",

diff --git a/packages/app/src/i18n/resources/fr.ts b/packages/app/src/i18n/resources/fr.ts
@@ -1890,8 +1890,14 @@ export const fr: TranslationResources = {
         accessibilityLabel: "Lignes de défilementTerminal",
       },
       autoExpandReasoning: {
-        label: "Toujours afficher le raisonnement",
-        description: "Afficher le raisonnement de l'agent entièrement développé par défaut",
+        label: "Affichage de la réflexion",
+        description: "Comment les blocs de réflexion apparaissent dans la chronologie",
+        accessibilityLabel: "Sélectionner l'affichage de la réflexion ({{value}})",
+        options: {
+          collapsed: "Réduit",
+          expandActive: "Développer si actif",
+          expanded: "Toujours développer",
+        },
       },
       toolCallDetail: {
         label: "Affichage des appels d’outils",

diff --git a/packages/app/src/i18n/resources/ja.ts b/packages/app/src/i18n/resources/ja.ts
@@ -1856,8 +1856,14 @@ export const ja: TranslationResources = {
         accessibilityLabel: "ターミナルスクロールバック行数",
       },
       autoExpandReasoning: {
-        label: "常に思考プロセスを展開",
-        description: "デフォルトでAIのエージェント思考・推論ブロックを完全に展開して表示します",
+        label: "思考プロセスの表示",
+        description: "タイムラインでの思考ブロックの表示方法",
+        accessibilityLabel: "思考プロセスの表示を選択 ({{value}})",
+        options: {
+          collapsed: "折りたたむ",
+          expandActive: "実行中のみ展開",
+          expanded: "常に展開",
+        },
       },
       toolCallDetail: {
         label: "ツール呼び出しの表示",

diff --git a/packages/app/src/i18n/resources/ko.ts b/packages/app/src/i18n/resources/ko.ts
@@ -1852,8 +1852,14 @@ export const ko: TranslationResources = {
         accessibilityLabel: "터미널 스크롤백 줄 수",
       },
       autoExpandReasoning: {
-        label: "추론 항상 펼치기",
-        description: "에이전트의 사고 및 추론 블록을 기본적으로 모두 펼쳐 표시합니다.",
+        label: "사고 과정 표시",
+        description: "타임라인에 에이전트 사고 블록이 표시되는 방식",
+        accessibilityLabel: "사고 과정 표시 선택({{value}})",
+        options: {
+          collapsed: "접음",
+          expandActive: "실행 중일 때만 펼치기",
+          expanded: "항상 펼치기",
+        },
       },
       toolCallDetail: {
         label: "도구 호출 표시",

diff --git a/packages/app/src/i18n/resources/pt-BR.ts b/packages/app/src/i18n/resources/pt-BR.ts
@@ -1871,9 +1871,14 @@ export const ptBR: TranslationResources = {
         accessibilityLabel: "Linhas do scrollback do terminal",
       },
       autoExpandReasoning: {
-        label: "Sempre expandir raciocínio",
-        description:
-          "Mostrar os blocos de pensamento e raciocínio do agente totalmente expandidos por padrão",
+        label: "Exibição de pensamento",
+        description: "Como os blocos de pensamento aparecem na linha do tempo",
+        accessibilityLabel: "Selecionar exibição de pensamento ({{value}})",
+        options: {
+          collapsed: "Recolhido",
+          expandActive: "Expandir ativo",
+          expanded: "Sempre expandir",
+        },
       },
       toolCallDetail: {
         label: "Exibição de chamadas de ferramentas",

diff --git a/packages/app/src/i18n/resources/ru.ts b/packages/app/src/i18n/resources/ru.ts
@@ -1875,9 +1875,14 @@ export const ru: TranslationResources = {
         accessibilityLabel: "Линии прокрутки Terminal",
       },
       autoExpandReasoning: {
-        label: "Всегда разворачивать размышления",
-        description:
-          "По умолчанию показывать блоки размышлений и логики агента полностью развернутыми",
+        label: "Отображение мышления",
+        description: "Как блоки рассуждений агента отображаются в таймлайне",
+        accessibilityLabel: "Выбор отображения мышления ({{value}})",
+        options: {
+          collapsed: "Свернуто",
+          expandActive: "Разворачивать активный",
+          expanded: "Всегда разворачивать",
+        },
       },
       toolCallDetail: {
         label: "Отображение вызовов инструментов",

diff --git a/packages/app/src/i18n/resources/zh-CN.ts b/packages/app/src/i18n/resources/zh-CN.ts
@@ -1819,8 +1819,14 @@ export const zhCN: TranslationResources = {
         accessibilityLabel: "终端回滚行数",
       },
       autoExpandReasoning: {
-        label: "始终展开推理过程",
-        description: "默认情况下完全展开 AI 的思考和推理过程",
+        label: "思考过程显示",
+        description: "智能体思考过程在时间线中的显示方式",
+        accessibilityLabel: "选择思考过程显示方式（{{value}}）",
+        options: {
+          collapsed: "折叠",
+          expandActive: "仅展开当前活动",
+          expanded: "始终展开",
+        },
       },
       toolCallDetail: {
         label: "工具调用显示",