[Bug] Inconsistent Response Quality and Hallucinations After 1M Context Window Update

Bug Description
Claude is consistently hallucinating, returning slop for answers. Clean CLAUDE.md, no context pollution, .... consistent lazy slop responses recurring frequently since recent 1m context window update.

Environment Info

• Platform: darwin
• Terminal: zed
• Version: 2.1.77
• Feedback ID: 4a9435b5-b8b5-4c8f-9d5e-1dd23d87a35b

Errors

[{"error":"FileTooLargeError: File content (371.9KB) exceeds maximum allowed size (256KB). Use offset and limit parameters to read specific portions of the file, or search for specific content instead of reading the whole file.\n    at WK_ (/$bunfs/root/src/entrypoints/cli.js:1382:268)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-03-17T15:28:07.783Z"},{"error":"FileTooLargeError: File content (403KB) exceeds maximum allowed size (256KB). Use offset and limit parameters to read specific portions of the file, or search for specific content instead of reading the whole file.\n    at WK_ (/$bunfs/root/src/entrypoints/cli.js:1382:268)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-03-17T15:28:08.203Z"}]