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Context Compactor is an essential context-engineering utility designed to handle long-running AI development sessions where token limits become a constraint. It intelligently analyzes session history using a priority-based scoring system to preserve critical information like architectural decisions, unresolved bugs, and the current feature state while discarding redundant tool outputs and stale search results. This ensures that Claude maintains high-quality reasoning and project continuity without performance degradation or unnecessary token expenditure, making it ideal for complex, multi-stage coding tasks.