Context is the bottleneck for coding agents now

There's a misunderstanding here broadly. Context could be infinite, but the real bottleneck is understanding intent late in a multi-step operation. A human can effectively discard or disregard prior information as the narrow window of focus moves to a new task, LLMs seem incredibly bad at this.

Having more context, but leaving open an inability to effectively focus on the latest task is the real problem.

I think that's the real issue. If the LLM spends a lot of context investigating a bad solution and you redirect it, I notice it has trouble ignoring maybe 10K tokens of bad exploration context against my 10 line of 'No, don't do X, explore Y' instead.