I used to hear the pitch for context compression and think: sure, makes sense.

Smaller prompts. Lower latency. Lower cost. Same output quality.

Then I watched an agent blow a perfectly good debugging session because one field name disappeared from compressed memory.

That changed my opinion fast.

Three hours into a Claude Code run, the agent made the wrong API call with full confidence. The plan looked coherent. The reasoning looked clean. The summary of prior steps sounded smart.