[BUG] 5-hour session quota is misleading — actual limit is token-based, not time-based

Preflight Checklist

• [x] I have searched existing issues and this hasn't been reported yet
• [x] This is a single bug report (please file separate reports for different bugs)
• [x] I am using the latest version of Claude Code

What's Wrong?

The session is labeled as a 5-hour quota, but in practice the limit is hit based on token/context usage, not elapsed time. On a project with a moderate-sized codebase, system prompts, and memory files, the limit can be reached in under an hour with only a handful of prompts.

The "5hr" label sets a false expectation. Users should be clearly informed that the quota is token-based, and the UI should reflect remaining context, not time.

What Should Happen?

Expected: Session lasts up to 5 hours as advertised
Actual: Session context exhausted in under 1 hour

Error Messages/Logs

Steps to Reproduce

Steps to reproduce:

Open Claude Code on a project with CLAUDE.md, memory files, and a multi-package monorepo
Run 3–5 prompts that involve file reads
Observe context percentage climbing rapidly — well under 1 hour

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

N/A using plugin in VSCode

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_