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To your last point - yes, that is a known bug that has been around for ages.
The chat history lasts for 2 weeks.
And, you also have chat logs stored in the account data page.
https://help.steampowered.com/en/accountdata/GetFriendMessagesLog
I was hoping otherwise but either way you confirmed my concerns. I looked and the only stuff I could find were threads from about 2 years ago that were outdated. Regardless though thank you for the answer.
It reappears without being minimized if I re-open the chatlog. Main reason I want to clear chat history.
What switch? In the options? The issue is me shrinking down a video isn't saving and it's annoying to minimize 3-4 videos each time.
Assuming I missed an option that actually saves this I'll have a look.
edit - Also to clarify I can minimize the posted stuff it just isn't saving. At least from what I can tell.
Open friends network > Click COG Icon > Chat > Don't embed media content > On.
That should fix the issue.
If you're on a web browser, you have to close the chat tab and re-open it.
That way, the change should take effect.
You won't have to minimize the thumbnail that parses for media content.
I must be blind because I don't remember that setting being there when the steam chat left beta. Doesn't necessarily resolve stuff not staying collapsed but it's the next best thing so it works.
Thanks for pointing that out.
chat is only retained for 2 weeks