[Bug] Auto-Compact causes context loss and degraded performance

Bug Description
auto compact is the worst. every time it happens i feel like claude code has forgotten everything -- whats the point of the auto-compact if it functionally makes everything worse? somehow cursor solved this, but i prefer claude code... can you fix auto-compact please?

Environment Info

• Platform: darwin
• Terminal: cursor
• Version: 2.0.58
• Feedback ID: ab0a364d-ed26-4745-8cc0-272ba1e62727

Errors

[{"error":"AxiosError: timeout of 5000ms exceeded\n    at hz.<anonymous> (file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:29:10442)\n    at hz.emit (node:events:519:28)\n    at hz.emit (node:domain:489:12)\n    at Timeout.<anonymous> (file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:28:3285)\n    at listOnTimeout (node:internal/timers:588:17)\n    at process.processTimers (node:internal/timers:523:7)\n    at xVA.request (file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:31:2130)\n    at runNextTicks (node:internal/process/task_queues:65:5)\n    at listOnTimeout (node:internal/timers:549:9)\n    at process.processTimers (node:internal/timers:523:7)\n    at async $K0 (file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:4275:8674)","timestamp":"2025-12-04T23:35:05.362Z"},{"error":"Error: Request was aborted.\n    at Et._createMessage (file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:463:3151)\n    at process.processTicksAndRejections (node:internal/process/task_queues:105:5)","timestamp":"2025-12-04T23:42:03.355Z"},{"error":"Error: Request was aborted.\n    at RT.makeRequest (file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:1319:3939)\n    at process.processTicksAndRejections (node:internal/process/task_queues:105:5)","timestamp":"2025-12-05T00:07:13.075Z"},{"error":"Error: Request was aborted.\n    at AbortSignal.I (file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:2149:1477)\n    at [nodejs.internal.kHybridDispatch] (node:internal/event_target:845:20)\n    at AbortSignal.dispatchEvent (node:internal/event_target:778:26)\n    at runAbort (node:internal/abort_controller:486:10)\n    at abortSignal (node:internal/abort_controller:457:3)\n    at AbortController.abort (node:internal/abort_controller:505:5)\n    at file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:3638:273\n    at file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:889:648\n    at B.batchedUpdates (file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:764:51121)\n    at Bp.Y (file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:889:628)","timestamp":"2025-12-05T00:20:56.163Z"},{"error":"Error: getaddrinfo ENOTFOUND http-intake.logs.datadoghq.com\n    at J2A.from (file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:11:14602)\n    at hz.<anonymous> (file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:29:10022)\n    at hz.emit (node:events:531:35)\n    at hz.emit (node:domain:489:12)\n    at UF1.<computed> (file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:28:1117)\n    at ClientRequest.emit (node:events:531:35)\n    at ClientRequest.emit (node:domain:489:12)\n    at emitErrorEvent (node:_http_client:107:11)\n    at TLSSocket.socketErrorListener (node:_http_client:574:5)\n    at TLSSocket.emit (node:events:519:28)\n    at xVA.request (file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:31:2130)\n    at process.processTicksAndRejections (node:internal/process/task_queues:105:5)\n    at async $K0 (file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:4275:8674)","timestamp":"2025-12-05T00:21:11.169Z"}]