Note that for Claude Code, it looks like they added a new undocumented command line argument `--thinking-display summarized` to control this parameter, and that's the only way to get thinking summaries back there.
VS Code users can write a wrapper script which contains `exec "$@" --thinking-display summarized` and set that as their claudeCode.claudeProcessWrapper in VS Code settings in order to get thinking summaries back.
Here is additional discussion and hacks around trying to retain Thinking output in Claude Code (prior to this release):
https://github.com/anthropics/claude-code/issues/8477