Changing TraceingLevel to Verbose and LowLevelTracing to true in the UiPath.settings file has no affect on what will show in the Output Panel. Further, even with these settings, the execution log does not contain a line for each activity executed.
So, from what I can see, there is currently no way to AUTOMATICALLY log every activity executed and show each activity in the Output panel, DURING A DEBUG execution.
Please update this post if my conclusion is wrong.