Moving a detailed literature survey in Appendix to reduce size of chapter?
For a thesis, you may as well include the full review. You've done the work, and a thesis typically has no particular length limit. Realistically, your examiners will probably just skim it anyway. I see no reason to move it to an appendix, though I also don't think it matters very much. If your advisor or university policies feel strongly, of course, do what they say.

When you publish papers based on your thesis, then you'll want to condense the review to focus on  the most important and relevant prior work.