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.

Humans have a very strong tendency (and have made tremendous collective efforts) to compress context. I'm not a neuroscientist but I believe it's called "chunk."

Language itself is a highly compressed form of compressed context. Like when you read "hoist with one's own petard" you don't just think about literal petard but the context behind this phrase.

We don’t think of petards because no one knows what that is. :)