ContextOverflowError kills session instead of triggering compaction

[praxstack]

Bug Description

When the LLM API returns a context overflow error (e.g., Bedrock Claude hitting context limit), the session dies permanently. Users must create a new session, losing all conversation context.

Root Cause

In processor.ts, the ContextOverflowError catch block has a // TODO: Handle context overflow error comment that does nothing. The error falls through to be treated as fatal (message.error = error, return 'stop').

Expected Behavior

The session should auto-compact (summarize conversation, reduce context) and continue, similar to how Codex and Cline handle context overflow.

Steps to Reproduce

1. Use a provider with limited context (e.g., Bedrock Claude)
2. Have a long conversation with many tool calls
3. Eventually hit context limit → session becomes unresponsive

Environment

• Provider: AWS Bedrock (Claude)
• Also affects any provider with context limits

[github-actions]

This issue might be a duplicate of existing issues. Please check:

• Request Entity Too Large with images blocks session — compaction also fails #14562: Covers the same root cause — the // TODO: Handle context overflow error in processor.ts with no implementation, causing context overflow to kill the session instead of triggering compaction. That report also proposes auto-compaction as the fix and references the same code paths.

If your issue is specifically about Bedrock/provider-agnostic context token limits (as opposed to 413 payload size errors), it may still be worth keeping open as a distinct scenario, but please review #14562 first and comment there if it covers your case.