[BUG] TODOs go back to the beginning after a context compaction

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?

After doing a compact context, the agent begins all the work from the start again instead of picking up where we left off.
It then starts to repeat mistakes I have already told it etc.
Basically it forgets everything and I have to bootstrap the session to get it to work again.

What Should Happen?

should carry on where we left off

Error Messages/Logs

Steps to Reproduce

work as normal until the context is full, weep silently

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

whatever the final 1.0x was

Claude Code Version

2.0.1

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

I'm using the default vs code extension