From fb5726baa8ca220ba83b442c3c199d779ab826d4 Mon Sep 17 00:00:00 2001
From: Aiden Cline <aidenpcline@gmail.com>
Date: Thu, 9 Jul 2026 19:06:18 -0500
Subject: [PATCH] refactor(core): simplify compaction recovery

---
 packages/core/src/session/compaction.ts   |  3 +--
 packages/core/test/session-runner.test.ts | 25 +----------------------
 2 files changed, 2 insertions(+), 26 deletions(-)

diff --git a/packages/core/src/session/compaction.ts b/packages/core/src/session/compaction.ts
index 6646e02651..d680ff8f16 100644
--- a/packages/core/src/session/compaction.ts
+++ b/packages/core/src/session/compaction.ts
@@ -232,8 +232,6 @@ const make = (dependencies: Dependencies) => {
               type: event.classification === "context-overflow" ? "provider.invalid-request" : "provider.error",
               message: event.message,
             }
-          if (LLMEvent.is.finish(event) && event.reason === "length")
-            failure = { type: "compaction.failed", message: "Compaction reached the model output limit" }
           if (LLMEvent.is.textDelta(event)) {
             chunks.push(event.text)
             return dependencies.events.publish(SessionEvent.Compaction.Delta, {
@@ -311,6 +309,7 @@ const make = (dependencies: Dependencies) => {
       messages: input.messages,
       model: input.request.model,
       reason: "auto",
+      output: input.request.generation?.maxTokens ?? input.request.model.route.defaults.limits?.output ?? 0,
     })
   })
   const compactManual = Effect.fn("SessionCompaction.compactManual")(function* (input: CompactInput) {
diff --git a/packages/core/test/session-runner.test.ts b/packages/core/test/session-runner.test.ts
index cab496733e..36f3b8d5f8 100644
--- a/packages/core/test/session-runner.test.ts
+++ b/packages/core/test/session-runner.test.ts
@@ -1623,28 +1623,6 @@ describe("SessionRunnerLLM", () => {
     }),
   )
 
-  it.effect("rejects a manual compaction truncated by the model output limit", () =>
-    Effect.gen(function* () {
-      const session = yield* setup
-      response = reply.text("Earlier answer", "text-manual-length-history")
-      yield* admit(session, "Earlier question")
-      yield* session.resume(sessionID)
-
-      response = [
-        LLMEvent.textDelta({ id: "summary", text: "Partial summary" }),
-        LLMEvent.finish({ reason: "length" }),
-      ]
-      const compaction = yield* session.compact({ sessionID })
-      yield* session.resume(sessionID)
-
-      expect((yield* session.messages({ sessionID })).find((message) => message.id === compaction.id)).toMatchObject({
-        type: "compaction",
-        status: "failed",
-        error: { type: "compaction.failed", message: "Compaction reached the model output limit" },
-      })
-    }),
-  )
-
   it.effect("settles an admitted manual compaction when pre-start resolution throws", () =>
     Effect.gen(function* () {
       const session = yield* setup
@@ -1770,7 +1748,7 @@ describe("SessionRunnerLLM", () => {
     }),
   )
 
-  it.effect("recovers from provider context overflow despite an undersized configured limit", () =>
+  it.effect("recovers from provider context overflow despite an undersized configured context limit", () =>
     Effect.gen(function* () {
       const session = yield* setupOverflowRecovery
       currentModel = undersizedContextModel
@@ -1783,7 +1761,6 @@ describe("SessionRunnerLLM", () => {
       yield* session.resume(sessionID)
 
       expect(requests).toHaveLength(3)
-      expect(requests[1].generation?.maxTokens).toBe(1_000)
       expect(yield* session.context(sessionID)).toMatchObject([
         { type: "compaction", summary: "## Objective\n- Recover undersized limit" },
         { type: "assistant", finish: "stop" },