Reduce cognitive complexity in history-overlay component

Problem

The buildLists function in history-overlay.tsx has high cognitive complexity due to:

• Multiple nested conditionals for handling different types of commands
• Complex string manipulation and path extraction
• Mixed responsibilities (command processing, file extraction, text formatting)
• Limited test coverage for edge cases

Proposed Solution

Refactor the code to:

1. Split the complex buildLists function into smaller, focused helper functions
2. Improve test coverage with comprehensive test cases
3. Maintain the same functionality while making the code more maintainable