I think this is exactly the crux: there are two different UX targets that get conflated.

In operator/supervisor mode (interactive CLI), you need high-signal observability while it’s running so you can abort or re-scope when it’s reading the wrong area or compounding assumptions. In batch/autonomous mode (headless / “run overnight”), you don’t need a live scrollback feed, but you still need a complete trace for audit/debug after the fact.

Collapsing file paths into counters is a batch optimization leaking into operator mode. The fix isn’t “verbose vs not” so much as separating channels: keep a small status line/spine (phase, current target, last tool call), keep an event-level trace (file paths / commands / searches) that’s persisted and greppable, and keep a truly-verbose mode for people who want every hook/subagent detail.