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.

Not that this shouldn't be fixed in the model, but you can jump to an earlier point in claude code and on web chat interfaces to get it out of the context, just sometimes you have other important stuff you don't want it to lose.