[Bug] Output token limit settings not being applied, agent output capped at 32k tokens

Resolved 💬 6 comments Opened Oct 31, 2025 by Pichardescu Closed Jan 10, 2026

## Bug Description

Environment variables for output token limits are not being respected by agent subprocesses. Agents consistently
hit the 32,000 token output limit despite explicit configuration attempts.

## Expected Behavior

Agents should respect the CLAUDE_CODE_MAX_OUTPUT_TOKENS environment variable and allow up to 100,000 output
tokens as configured.

## Actual Behavior

  • Agents process for 20+ minutes
  • Hit 32,000 token output limit
  • All processing output is lost
  • Configuration variables have no effect

## Impact

Critical for production workflows:

  • Loss of valuable synthesized information after long processing
  • Wasted computational tokens (input tokens consumed, no output saved)
  • Forces manual work-splitting or content reduction workarounds
  • Makes agent-based consolidation workflows unreliable

## Configuration Attempted

Tried setting in all configuration files (project-level and global):

```json
{
"env": {
"MAX_MCP_OUTPUT_TOKENS": "100000",
"CLAUDE_CODE_MAX_OUTPUT_TOKENS": "100000",
"MAX_THINKING_TOKENS": "20000"
}
}

Also attempted via PowerShell:
[System.Environment]::SetEnvironmentVariable('CLAUDE_CODE_MAX_OUTPUT_TOKENS', '100000', 'User')

Variable confirms as set:
PS> [System.Environment]::GetEnvironmentVariable('CLAUDE_CODE_MAX_OUTPUT_TOKENS', 'User')
100000

But agents still fail at 32K output tokens.

Steps to Reproduce

  1. Set CLAUDE_CODE_MAX_OUTPUT_TOKENS=100000 in config or environment
  2. Launch agent with Task tool for large synthesis task (e.g., consolidating 1,200 lines into single deliverable)
  3. Agent processes for 20+ minutes
  4. Observe error: "API Error: Claude's response exceeded the 32000 output token maximum"
  5. Verify config shows 100000, but limit is ignored

Environment

  • Platform: win32
  • Terminal: PowerShell
  • Claude Code Version: 2.0.30
  • Feedback ID: ca11bc04-3729-4a2a-8c62-f42c7711e180

Related Context

Error occurs specifically when using Task tool with subagent types (e.g., general-purpose, custom agents). The 32K
limit appears hardcoded for agent subprocesses and doesn't inherit parent environment configuration.

Suggested Fix

Ensure agent subprocesses inherit or explicitly receive the CLAUDE_CODE_MAX_OUTPUT_TOKENS environment variable
from:

  1. Parent process environment
  2. Project .claude/config.json
  3. Global config ~/.claude/config.json

---
Note: Error logs were truncated in feedback submission.

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