UI Bug : Chat horizontal overflow in sidebar, specifically within "thought" (reasoning) blocks

Before submitting your bug report

• I've tried finding an answer on the Continue docs site
• I'm not able to find an open issue that reports the same bug
• I've seen the troubleshooting guide on the Continue Docs

Relevant environment info

- OS: Windows 11
- Continue version: 2.0.0
- IDE version: VSCode 1.130.0

Description

When a prompt is sent in the Continue chat interface, the response content overflows the horizontal boundaries of the sidebar. This issue is particularly noticeable and triggered within the "thought" (reasoning) blocks of the model's response. The text/content breaks the sidebar layout and becomes unreadable because the container expands based on the total viewport width rather than the sidebar width.

To reproduce

1. Open the Continue extension in the VS Code sidebar.
2. Send a prompt to a model that uses reasoning/thought blocks (e.g., DeepSeek-R1, OpenAI o1).
3. Observe that the thought/reasoning block expands beyond the right edge of the sidebar, causing a horizontal overflow.

Log output

Start by reproducing the issue in the Continue chat interface in the VS Code sidebar with a model that emits thought or reasoning blocks, such as DeepSeek-R1 or OpenAI o1. Trace the rendering of the thought block and verify that its content stays within the sidebar width without causing horizontal overflow or unreadable layout.