Improve terminal output handling to hide output when not required

src/vs/workbench/contrib/chat/browser/widget/chatContentParts/toolInvocationParts/chatTerminalToolProgressPart.ts

@@ -360,8 +360,13 @@ export class ChatTerminalToolProgressPart extends BaseChatToolInvocationSubPart
 			() => this._terminalData.terminalCommandOutput,
 			() => this._commandText,
 			() => this._terminalData.terminalTheme,
+			!!this._terminalData.terminalToolSessionId,
 		));
-		elements.container.append(this._outputView.domNode);
+		// Only append the output section if there's a terminal session or stored output;
+		// display-only invocations with no output don't need the output area at all
+		if (this._terminalData.terminalToolSessionId || this._terminalData.terminalCommandOutput) {
+			elements.container.append(this._outputView.domNode);
+		}
 		this._register(this._outputView.onDidFocus(() => this._handleOutputFocus()));
 		this._register(this._outputView.onDidBlur(e => this._handleOutputBlur(e)));
 		this._register(toDisposable(() => this._handleDispose()));
@@ -1039,6 +1044,7 @@ class ChatTerminalToolOutputSection extends Disposable {
 		private readonly _getTerminalCommandOutput: () => IChatTerminalToolInvocationData['terminalCommandOutput'] | undefined,
 		private readonly _getCommandText: () => string,
 		private readonly _getStoredTheme: () => IChatTerminalToolInvocationData['terminalTheme'] | undefined,
+		private readonly _hasTerminalSession: boolean,
 		@IAccessibleViewService private readonly _accessibleViewService: IAccessibleViewService,
 		@IInstantiationService private readonly _instantiationService: IInstantiationService,
 		@ITerminalConfigurationService private readonly _terminalConfigurationService: ITerminalConfigurationService,
@@ -1219,6 +1225,10 @@ class ChatTerminalToolOutputSection extends Disposable {
 			return;
 		}
 
+		if (!this._hasTerminalSession) {
+			return;
+		}
+
 		this._renderUnavailableMessage(liveTerminalInstance);
 	}