[Bug] Auto-Compact loops continuously in v2.1.89

Bug Description
It looks like claude code v2.1.89 is constantly compacting and a lot of its output it continously trunucated

Environment Info

• Platform: darwin
• Terminal: ghostty
• Version: 2.1.89
• Feedback ID: 7b6d5a75-2307-400c-89b4-bbd90fc8f8a6

Errors

[{"error":"MaxFileReadTokenExceededError: File content (14120 tokens) exceeds maximum allowed tokens (10000). 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 r47 (/$bunfs/root/src/entrypoints/cli.js:4300:13161)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-04-01T02:00:06.488Z"},{"error":"MaxFileReadTokenExceededError: File content (91932 tokens) exceeds maximum allowed tokens (10000). Use offset and limit parameters to read specific portions of the file, or search for specific content instead of reading the whole file.\n    at r47 (/$bunfs/root/src/entrypoints/cli.js:4300:13161)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-04-01T02:08:29.746Z"},{"error":"Error: EISDIR: illegal operation on a directory, read '/Users/karinakeim/tiw-2026-website/src/data'\n    at i7H (/$bunfs/root/src/entrypoints/cli.js:3863:410)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-04-01T02:16:31.231Z"},{"error":"Error: Request was aborted.\n    at Kh_ (/$bunfs/root/src/entrypoints/cli.js:1248:17137)\n    at next (native:1:11)\n    at fy7 (/$bunfs/root/src/entrypoints/cli.js:7685:9029)\n    at next (native:1:11)\n    at Dy7 (/$bunfs/root/src/entrypoints/cli.js:7690:10775)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-04-01T02:27:04.796Z"},{"error":"Error: Request was aborted.\n    at Kh_ (/$bunfs/root/src/entrypoints/cli.js:1248:17137)\n    at next (native:1:11)\n    at fy7 (/$bunfs/root/src/entrypoints/cli.js:7685:9029)\n    at next (native:1:11)\n    at Dy7 (/$bunfs/root/src/entrypoints/cli.js:7690:10775)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-04-01T02:53:23.034Z"},{"error":"MaxFileReadTokenExceededError: File content (32491 tokens) exceeds maximum allowed tokens (10000). Use offset and limit parameters to read specific portions of the file, or search for specific content instead of reading the whole file.\n    at r47 (/$bunfs/root/src/entrypoints/cli.js:4300:13161)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-04-01T02:54:02.543Z"},{"error":"Error: EISDIR: illegal operation on a directory, read '/Users/karinakeim/Cowboy/memory/tiw'\n    at i7H (/$bunfs/root/src/entrypoints/cli.js:3863:410)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-04-01T02:54:13.530Z"},{"error":"Error: Request was aborted.\n    at makeRequest (/$bunfs/root/src/entrypoints/cli.js:50:3940)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-04-01T02:56:41.169Z"},{"error":"Error: Request was aborted.\n    at makeRequest (/$bunfs/root/src/entrypoints/cli.js:50:3940)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-04-01T03:00:32.394Z"},{"error":"AxiosError: Request failed with status code 404\n    at mg (/$bunfs/root/src/entrypoints/cli.js:108:1194)\n    at <anonymous> (/$bunfs/root/src/entrypoints/cli.js:113:12754)\n    at emit (node:events:92:22)\n    at endReadableNT (internal:streams/readable:861:50)\n    at processTicksAndRejections (native:7:39)\n    at request (/$bunfs/root/src/entrypoints/cli.js:115:2467)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-04-01T03:19:20.952Z"},{"error":"AxiosError: Request failed with status code 404\n    at mg (/$bunfs/root/src/entrypoints/cli.js:108:1194)\n    at <anonymous> (/$bunfs/root/src/entrypoints/cli.js:113:12754)\n    at emit (node:events:92:22)\n    at endReadableNT (internal:streams/readable:861:50)\n    at processTicksAndRejections (native:7:39)\n    at request (/$bunfs/root/src/entrypoints/cli.js:115:2467)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-04-01T03:19:27.372Z"},{"error":"AxiosError: Request failed with status code 403\n    at mg (/$bunfs/root/src/entrypoints/cli.js:108:1194)\n    at <anonymous> (/$bunfs/root/src/entrypoints/cli.js:113:12754)\n    at emit (node:events:92:22)\n    at endReadableNT (internal:streams/readable:861:50)\n    at processTicksAndRejections (native:7:39)\n    at request (/$bunfs/root/src/entrypoints/cli.js:115:2467)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-04-01T03:19:49.411Z"},{"error":"AxiosError: Request failed with status code 404\n    at mg (/$bunfs/root/src/entrypoints/cli.js:108:1194)\n    at <anonymous> (/$bunfs/root/src/entrypoints/cli.js:113:12754)\n    at emit (node:events:92:22)\n    at endReadableNT (internal:streams/readable:861:50)\n    at processTicksAndRejections (native:7:39)\n    at request (/$bunfs/root/src/entrypoints/cli.js:115:2467)\n   …

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