[Bug] Claude Code 4.7 regression: degraded reasoning and project context loss

Bug Description
absolutely horrible experience the last few days. i feel like 4.7 has taken a huge leap backwards. asking me absurd questions, regressing on progress on projects, just horrible.

Environment Info

• Platform: darwin
• Terminal: WarpTerminal
• Version: 2.1.120
• Feedback ID: 13e54f76-beba-45f5-852d-8f2df6b6781b

Errors

[{"error":"MaxFileReadTokenExceededError: File content (25088 tokens) exceeds maximum allowed tokens (25000). 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 ab7 (/$bunfs/root/src/entrypoints/cli.js:4834:12789)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-04-29T11:34:48.861Z"},{"error":"Error: File does not exist. Note: your current working directory is /Users/cyril/Library/CloudStorage/GoogleDrive-cyril.grosse.3@gmail.com/My Drive/Projects Merge/TSS/perimeterscope.\n    at call (/$bunfs/root/src/entrypoints/cli.js:4847:7658)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-04-29T11:35:11.775Z"},{"error":"Error: EISDIR: illegal operation on a directory, read '/Users/cyril/Library/CloudStorage/GoogleDrive-cyril.grosse.3@gmail.com/My Drive/Projects Merge/TSS/perimeterscope/backend/db'\n    at tOH (/$bunfs/root/src/entrypoints/cli.js:1700:144)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-04-29T12:06:59.567Z"},{"error":"Error: EISDIR: illegal operation on a directory, read '/Users/cyril/Dev/perimeterscope-mobile/src-tauri/src'\n    at tOH (/$bunfs/root/src/entrypoints/cli.js:1700:144)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-04-29T12:15:49.624Z"},{"error":"Error: 429 {\"type\":\"error\",\"error\":{\"type\":\"rate_limit_error\",\"message\":\"This request would exceed your account's rate limit. Please try again later.\"},\"request_id\":\"req_011CaY46iUjT5jQU39mqSYGi\"}\n    at generate (/$bunfs/root/src/entrypoints/cli.js:11:56975)\n    at makeRequest (/$bunfs/root/src/entrypoints/cli.js:50:4943)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-04-29T12:22:10.339Z"},{"error":"Error: 429 {\"type\":\"error\",\"error\":{\"type\":\"rate_limit_error\",\"message\":\"This request would exceed your account's rate limit. Please try again later.\"},\"request_id\":\"req_011CaY46jMZfzfPiFe7ujcpD\"}\n    at generate (/$bunfs/root/src/entrypoints/cli.js:11:56975)\n    at makeRequest (/$bunfs/root/src/entrypoints/cli.js:50:4943)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-04-29T12:22:10.575Z"},{"error":"Error: Failed to delete keychain entry: security: SecKeychainSearchCopyNext: The specified item could not be found in the keychain.\n    at sVq (/$bunfs/root/src/entrypoints/cli.js:254:287289)\n    at async z89 (/$bunfs/root/src/entrypoints/cli.js:407:898)\n    at async Wl6 (/$bunfs/root/src/entrypoints/cli.js:407:796)\n    at async RT_ (/$bunfs/root/src/entrypoints/cli.js:2738:2257)\n    at async mWH (/$bunfs/root/src/entrypoints/cli.js:2763:5940)\n    at async <anonymous> (/$bunfs/root/src/entrypoints/cli.js:2787:3410)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-04-29T15:56:20.407Z"},{"error":"Error: Failed to delete keychain entry: security: SecKeychainSearchCopyNext: The specified item could not be found in the keychain.\n    at sVq (/$bunfs/root/src/entrypoints/cli.js:254:287289)\n    at async z89 (/$bunfs/root/src/entrypoints/cli.js:407:898)\n    at async $x6 (/$bunfs/root/src/entrypoints/cli.js:406:16533)\n    at async Ox6 (/$bunfs/root/src/entrypoints/cli.js:254:278284)\n    at async mWH (/$bunfs/root/src/entrypoints/cli.js:2763:7283)\n    at async <anonymous> (/$bunfs/root/src/entrypoints/cli.js:2787:3410)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-04-29T15:56:21.922Z"},{"error":"AxiosError: timeout of 5000ms exceeded\n    at <anonymous> (/$bunfs/root/src/entrypoints/cli.js:114:13299)\n    at emit (node:events:92:22)\n    at <anonymous> (/$bunfs/root/src/entrypoints/cli.js:113:3321)\n    at request (/$bunfs/root/src/entrypoints/cli.js:116:2467)\n    at async doExport (/$bunfs/root/src/entrypoints/cli.js:2699:36263)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-04-29T17:38:08.928Z"},{"error":"Error: File does not exist. Note: your current working directory is /Users/cyril/Library/CloudStorage/GoogleDrive-cyril.grosse.3@gmail.com/My Drive/Projects Merge/TSS/perimeterscope.\n    at call (/$bunfs/root/src/entrypoints/cli.js:4847:7658)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-04-29T18:15:57.747Z"},{"error":"Error: File does not exist. Note: your current working directory is /Users/cyril/Library/CloudStorage/GoogleDrive-cyril.grosse.3@gmail.com/My Drive/Projects Merge/TSS/perimeterscope.\n    at call (/$…

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