[Bug] Severe performance degradation and unsafe decision-making near context limit

Bug Description
Claude code undergoes SEVERE degradation when nearing their context limit, which means they are operating nearly at unbearable performances nearly 1/3 of the time. The amount of degradation is legitimately unmatched; I have never seen anything like it. It is like I can certainly say (if I were a betting man) that when Claude code is faced with two decisions, one being superior and safer and one being inferior and unsafe ... even if the workload is the same... Claude code will default to the inferior/unsafe. This is VERY bad, and I really hope you guys take this seriously. Claude code has not shown any concerns when above 60% or more.

Environment Info

• Platform: darwin
• Terminal: iTerm.app
• Version: 2.1.70
• Feedback ID: 4aa5a790-3ee1-4d7e-9ec5-3a03e83857a3

Errors

[{"error":"Error: File does not exist. Note: your current working directory is /Users/zenmaster/0/cc-backend.\n    at call (/$bunfs/root/src/entrypoints/cli.js:1447:5979)\n    at async Os$ (/$bunfs/root/src/entrypoints/cli.js:3657:14914)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-03-06T20:22:16.069Z"},{"error":"Error: File does not exist. Note: your current working directory is /Users/zenmaster/0/cc-backend.\n    at call (/$bunfs/root/src/entrypoints/cli.js:1447:5979)\n    at async Os$ (/$bunfs/root/src/entrypoints/cli.js:3657:14914)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-03-06T20:37:29.687Z"}]