feat: add LexAI status bar and suggestion panel

- Implemented a status bar item for LexAI with dynamic status updates (ready, processing, notReady).
- Created a suggestion panel for displaying and interacting with AI-generated suggestions.
- Added functionality for accepting, regenerating, and discarding suggestions within the suggestion zone.
- Introduced configuration options for writing style, prompt patterns, personas, and formats.
- Integrated progress indicators for long-running tasks and improved user feedback.
- Established TypeScript configuration for the vscode package.

docs/PROGRESS.md

@@ -1,34 +1,30 @@
 # Progress board
 
-> For the owner. What works, how to see it, and what's waiting on you — plain language, no agent jargon. Refreshed at every phase seal and session end. `HANDOFF.md` speaks to the next agent; this page speaks to you.
+> For the owner. What works, how to see it, and what's waiting on you — plain language.
 
-**Updated:** 2026-08-12 · **Overall:** v1.1.0 released to `main` (Phase 1 + the 2026-07 fix wave + the Prompt Builder pattern upgrade + CHANGELOG-driven release notes); operating system on the gauntlet-loop/opus kit (2026-08-07 audit revision).
+**Updated:** 2026-08-13 · **Overall:** Chrome LexAI unchanged; VS Code LexAI v1 ready to try locally
 
 ## What works now
 
-- The extension itself: selection → floating toolbar → fix/rephrase/shorten/expand/explain/prompt → Replace or Copy; four providers (OpenAI/Anthropic/Groq/OpenRouter); encrypted BYO key; Options with live model listing; 64/64 unit tests, typecheck and build green (2026-08-12).
-- Prompt Builder now offers 12 named prompting patterns (grouped Direct / Reasoning / Agentic, plus "Auto"), each with a plain-English hint shown under the dropdown — in both the popup's Prompt tab and the in-page "Make Prompt" dialog you get from selecting text. Owner-verified by load-unpacked check.
-- Patterns like Few-shot Examples and ReAct now produce properly structured output (example blocks, step budgets) without getting cut off — a token-limit bug that truncated longer prompt patterns is fixed.
-- Any pattern you'd saved before this update carries over automatically — nothing to redo.
-- Releases now write real release notes: `CHANGELOG.md` tracks what shipped per version, and the Gitea release workflow pulls the matching section into the release body automatically when a version tag is pushed (falls back to a generic body if a section is missing).
-- The agent operating system: upgraded from the older fable kit — 13 specialists (incl. your custom `lexai-extension-dev`, kept and modernized) + 4 new ones (ux-ui-designer, ux-psychologist, and the fresh-eyes `gauntlet-critic` referee), 12 skills, all your lessons and security-auditor memory preserved. Lead is now `claude --agent opus-orchestrator`.
+- Chrome extension (existing): select on any page → AI action → Replace/Copy
+- VS Code extension (new): select in editor → LexAI context menu / Command Palette → selection replaced
+- Shared LLM core (`src/lib`) used by both; VS Code key lives in Secret Storage
 
-## See it yourself
+## See it yourself (VS Code) — about five minutes
 
-- `npm run build` → `chrome://extensions` → Load unpacked → `.output/chrome-mv3` → select text on any page → "Make Prompt" (or open the extension popup's Prompt tab).
-- Open `CLAUDE.md` — your repo rules and 9 codebase invariants are carried over intact; the gauntlet protocol is new in §3.
+1. From repo root: `npm run vscode:install` then `npm run vscode:build`
+2. Open `packages/vscode` in VS Code/Cursor → Run and Debug → **Run LexAI Extension** (F5), or `npm run vscode:package` and Install from VSIX
+3. Command Palette → **LexAI: Set API Key** → pick provider → paste key
+4. Select ≥10 characters in an editor → right-click → **LexAI** → Fix Grammar (or another action)
 
-## Waiting on you — each item blocks ONLY its own lane
+## Waiting on you
 
 | # | Decision | Options (recommended bold) | What it unblocks |
 | --- | --- | --- | --- |
-| 1 | Authorize the live Chrome Web Store publish for v1.1.0: `git tag v1.1.0 && git push origin v1.1.0` fires `deploy-chrome.yml` and publishes live | **tag now** / hold | the store listing goes live on v1.1.0 — nothing else is blocked meanwhile |
-| 2 | Supply reference-bar artifacts (screenshots/recording of Grammarly or your chosen benchmark → `docs/reference/`) | **Grammarly toolbar + card screenshots** / pick another benchmark / defer gauntlets | UI gauntlet rounds |
-| 3 | Approve the Replace-reliability site matrix in `docs/REFERENCE_BAR.md` (Gmail, GitHub, X, LinkedIn, Google Docs?, Reddit, Notion) | **approve as listed (Docs out of scope)** / edit the list | the behavioral gauntlet — can start without screenshots |
-| 4 | Set gauntlet budgets on `docs/GAUNTLET.md` | **modest budget on one part first** / several at once | looping |
-| 5 | Delete `_to_delete\` in the repo (replaced kit files + transfer archive parked there) | delete now / leave for later | nothing — housekeeping |
+| 1 | Confirm Cursor mid/strong model picker IDs | **Keep written IDs** / send exact picker strings | reliable Task dispatch for builders/critics |
+| 2 | Grammarly reference screenshots? | **Later** / capture into `docs/reference/` | Chrome UX gauntlet |
+| 3 | Publish VS Code extension to Marketplace? | **Stay local for now** / set publisher + publish | public install |
 
 ## Next up — proceeds without you
 
-- T-01 (`<all_urls>` narrowing) and T-02 (real key encryption) remain the ranked pre-release risks from `HANDOFF.md` — routable to security-auditor + lexai-extension-dev any time.
-- Nothing about the Prompt Builder update is blocked — it's complete pending item 1's owner check above.
+- Optional: VS Code Prompt Builder / style quick-pick / Marketplace packaging when you ask