Bump version to 1.1.0

- Update changelog with all new features since 1.0.7
- Add Inline Diff Viewer section to README
- Update package.json version

🤖 Generated with [Claude Code](https://claude.com/claude-code)

Co-Authored-By: Claude <noreply@anthropic.com>

Author: andrepimenta

CHANGELOG.md

@@ -4,6 +4,38 @@ All notable changes to the "claude-code-chat" extension will be documented in th
 
 Check [Keep a Changelog](http://keepachangelog.com/) for recommendations on how to structure this file.
 
+## [1.1.0] - 2025-12-06
+
+### 🚀 Features Added
+- **Install Modal**: Added installation flow for users without Claude Code CLI
+  - Auto-detects when Claude Code is not installed
+  - One-click installation with progress indicator
+  - Platform-specific installation commands
+- **Diff Viewer Improvements**:
+  - Show full diff in Edit, MultiEdit, and Write tool use messages
+  - Add "Open Diff" button to open VS Code's native side-by-side diff editor
+  - Add truncation with expand button for long diffs
+  - Optimize diff storage and improve Open Diff button behavior
+- **Processing Indicator**: New morphing orange dot animation while Claude is working
+- **Subscription Detection**: Added usage badge to status bar showing plan type (Pro, Max) or API cost
+- **Conversation Compacting**: Handle `/compact` command in chat with status messages and token reset
+- **Permission System**: Migrated from MCP file-based to stdio-based permission prompts
+- **Plan Mode**: Now uses native `--permission-mode plan` CLI flag for cleaner implementation
+
+### 🐛 Bug Fixes
+- Fixed diff line alignment by removing ::before pseudo-elements
+- Fixed auto-scroll for diff tool results
+- Strip tool_use_error tags from error messages
+- Improved process termination handling
+
+### 🔧 Technical Improvements
+- Run /compact command in chat instead of spawning terminal
+- Improved terminal and UI experience
+- Updated diff icon colors
+
+### 📊 Analytics
+- Added Umami analytics events to track install flow (modal shown, started, success/failed)
+
 ## [1.0.7] - 2025-10-01
 
 ### 🚀 Features Added

README.md

@@ -47,6 +47,13 @@ Ditch the command line and experience Claude Code like never before. This extens
 - Real-time cost and token tracking
 - Session statistics and performance metrics
 
+### 📝 **Inline Diff Viewer** ⭐ **NEW IN V1.1**
+- **Full Diff Display** - See complete file changes directly in Edit, MultiEdit, and Write messages
+- **Open in VS Code Diff** - One-click button to open VS Code's native side-by-side diff editor
+- **Smart Truncation** - Long diffs are truncated with an expand button for better readability
+- **Syntax Highlighting** - Proper code highlighting in diff views
+- **Visual Change Indicators** - Clear green/red highlighting for additions and deletions
+
 ### 🔌 **MCP Server Management** ⭐ **NEW IN V1.0**
 - **Popular Servers Gallery** - One-click installation of common MCP servers
 - **Custom Server Creation** - Build and configure your own MCP servers

package.json

@@ -2,7 +2,7 @@
   "name": "claude-code-chat",
   "displayName": "Chat for Claude Code",
   "description": "Beautiful Claude Code Chat Interface for VS Code",
-  "version": "1.0.7",
+  "version": "1.1.0",
   "publisher": "AndrePimenta",
   "author": "Andre Pimenta",
   "repository": {