Unclear It is not clear which setting or view mode switches agent message folding on.
The list of messages Claude Code shows on screen can now fold together messages that come from agents. An agent here means a helper that Claude starts to work on part of a task. Folded messages are hidden from the list.
The "N new messages" divider marks where the messages you have not seen yet begin. It changes in one case:
- When the first unseen message has been folded away, the divider now appears at the next row that is still visible.
Prompts you typed are also checked for length before they are shown in labelled reply rows. This covers both prompts waiting in the queue and ordinary prompts.
Folding keeps the view shorter when several agents are producing messages, so your own conversation stays easier to follow. The divider change means the "new messages" marker still shows up in a visible place even when the message it pointed at is hidden.
It is not clear which setting or view mode switches agent message folding on.