whale-code 6.5.5 → 6.5.7

package/dist/server/lib/server-agent-loop.js

@@ -8,689 +8,962 @@
  * Consolidates: streaming, prompt caching, context management betas, compaction,
  * loop detection, parallel tool execution, subagent delegation, retry, cost tracking.
  */
-import { LoopDetector, getContextManagement, getMaxOutputTokens, getThinkingConfig, addPromptCaching, estimateCostUsd, isRetryableError, sanitizeError, routeModel, resolveToolChoice, emitCostWarningIfNeeded, demoteSubagentModel, COMPACTION_TOTAL_BUDGET, DEFAULT_SESSION_COST_BUDGET_USD, } from "../../shared/agent-core.js";
+
+import { LoopDetector, getContextManagement, getMaxOutputTokens, getThinkingConfig, addPromptCaching, estimateCostUsd, isRetryableError, sanitizeError, routeModel, resolveToolChoice, emitCostWarningIfNeeded, demoteSubagentModel, COMPACTION_TOTAL_BUDGET, DEFAULT_SESSION_COST_BUDGET_USD, AGENT_DEFAULTS } from "../../shared/agent-core.js";
 import { processStreamWithCallbacks } from "../../shared/sse-parser.js";
 import { MODELS } from "../../shared/constants.js";
 import { dispatchTools, buildAssistantContent } from "../../shared/tool-dispatch.js";
 import { getCachedToolDefs, getFullToolSchemas } from "../tool-router.js";
 import { queueSpan, auditRowToSpan } from "./clickhouse-buffer.js";
-import { DELEGATE_TASK_TOOL_DEF, runServerSubagent, } from "./server-subagent.js";
+import { DELEGATE_TASK_TOOL_DEF, runServerSubagent } from "./server-subagent.js";
 import { handleTranscribe } from "../handlers/transcription.js";
 import { preCompact } from "./compaction-service.js";
 import { providerFailover } from "./provider-failover.js";
 import { saveCheckpoint } from "./session-checkpoint.js";
 import { createLogger } from "./logger.js";
 const log = createLogger("agent-loop");
+
+// ============================================================================
+// TYPES
+// ============================================================================
+
+// Re-export for consumers
+
 // ============================================================================
 // CONSTANTS
 // ============================================================================
+
 const MAX_RETRIES = 3;
 const RETRY_BASE_DELAY_MS = 1000;
 const DEFAULT_MAX_CONCURRENT_TOOLS = 7;
+
 // ============================================================================
 // TOOL CHOICE MAPPING — convert ToolChoice to provider-specific format
 // ============================================================================
+
 /**
  * Map ToolChoice to Anthropic API `tool_choice` format.
  * Returns undefined if tools should be omitted entirely.
  */
 function mapToolChoiceForAnthropic(tc) {
-    if (tc === "auto")
-        return { toolChoice: { type: "auto" } };
-    if (tc === "any")
-        return { toolChoice: { type: "any" } };
-    if (tc === "none")
-        return { omitTools: true };
-    if (typeof tc === "object" && tc.type === "tool") {
-        return { toolChoice: { type: "tool", name: tc.name } };
+  if (tc === "auto") return {
+    toolChoice: {
+      type: "auto"
+    }
+  };
+  if (tc === "any") return {
+    toolChoice: {
+      type: "any"
     }
-    return { toolChoice: { type: "auto" } };
+  };
+  if (tc === "none") return {
+    omitTools: true
+  };
+  if (typeof tc === "object" && tc.type === "tool") {
+    return {
+      toolChoice: {
+        type: "tool",
+        name: tc.name
+      }
+    };
+  }
+  return {
+    toolChoice: {
+      type: "auto"
+    }
+  };
 }
+
 // ============================================================================
 // UNIFIED AGENT LOOP
 // ============================================================================
+
 export async function runServerAgentLoop(opts) {
-    const { anthropic, model, systemPrompt, messages, tools: inputTools, maxTurns, temperature, enableDelegation = true, enablePromptCaching = true, enableStreaming = true, enableModelRouting = true, maxConcurrentTools = DEFAULT_MAX_CONCURRENT_TOOLS, maxCostUsd: maxCostUsdOpt, onText, onToolStart, onCitation, documents, clientDisconnected = { value: false }, startedAt = Date.now(), maxDurationMs = 15 * 60 * 1000, } = opts;
-    // Resolve cost budget: context_config > explicit opt > env var > default
-    const ctxOverrides = opts.contextOverrides;
-    const envBudget = parseFloat(process.env.WHALE_COST_BUDGET_USD || "");
-    const maxCostUsd = ctxOverrides?.session_cost_budget_usd
-        ?? maxCostUsdOpt
-        ?? (isFinite(envBudget) ? envBudget : DEFAULT_SESSION_COST_BUDGET_USD);
-    // Resolve compaction budget from overrides (used for compaction exhaustion checks)
-    const effectiveCompactionTrigger = ctxOverrides?.compaction_trigger_tokens ?? 150_000;
-    const effectiveCompactionBudget = ctxOverrides?.compaction_total_budget ?? COMPACTION_TOTAL_BUDGET;
-    // Auto-inject delegate_task for all models (subagents always use Claude Haiku/Sonnet)
-    // activeTools is mutable — discover_tools adds to it during the session
-    const activeTools = [...inputTools];
-    if (enableDelegation) {
-        if (!activeTools.some((t) => t.name === "delegate_task")) {
-            activeTools.push(DELEGATE_TASK_TOOL_DEF);
-        }
+  const {
+    anthropic,
+    model,
+    systemPrompt,
+    messages,
+    tools: inputTools,
+    maxTurns,
+    temperature,
+    enableDelegation = true,
+    enablePromptCaching = true,
+    enableStreaming = true,
+    enableModelRouting = true,
+    maxConcurrentTools = DEFAULT_MAX_CONCURRENT_TOOLS,
+    maxCostUsd: maxCostUsdOpt,
+    onText,
+    onToolStart,
+    onCitation,
+    documents,
+    clientDisconnected = {
+      value: false
+    },
+    startedAt = Date.now(),
+    maxDurationMs = 15 * 60 * 1000
+  } = opts;
+
+  // Resolve cost budget: context_config > explicit opt > env var > default
+  const ctxOverrides = opts.contextOverrides;
+  const envBudget = parseFloat(process.env.WHALE_COST_BUDGET_USD || "");
+  const maxCostUsd = ctxOverrides?.session_cost_budget_usd ?? maxCostUsdOpt ?? (isFinite(envBudget) ? envBudget : DEFAULT_SESSION_COST_BUDGET_USD);
+
+  // Resolve compaction budget from overrides (used for compaction exhaustion checks)
+  const effectiveCompactionTrigger = ctxOverrides?.compaction_trigger_tokens ?? 150_000;
+  const effectiveCompactionBudget = ctxOverrides?.compaction_total_budget ?? COMPACTION_TOTAL_BUDGET;
+
+  // Auto-inject delegate_task for all models (subagents always use Claude Haiku/Sonnet)
+  // activeTools is mutable — discover_tools adds to it during the session
+  const activeTools = [...inputTools];
+  if (enableDelegation) {
+    if (!activeTools.some(t => t.name === "delegate_task")) {
+      activeTools.push(DELEGATE_TASK_TOOL_DEF);
     }
-    // Per-conversation tracking of discovered tools — accumulates tool names
-    // activated via discover_tools so they persist across turns within this session.
-    // If extendedTools were provided (from a previous session or pre-load), we
-    // don't inject them yet (that defeats lazy loading), but we keep the full
-    // list available for the executor to reference.
-    const discoveredToolNames = new Set();
-    // Alias for backward compat within this function
-    const tools = activeTools;
-    const loopDetector = new LoopDetector();
-    // Model routing: extract first user message for complexity estimation
-    const firstUserMsg = messages.find((m) => m.role === "user");
-    const firstUserText = firstUserMsg
-        ? typeof firstUserMsg.content === "string"
-            ? firstUserMsg.content
-            : Array.isArray(firstUserMsg.content)
-                ? firstUserMsg.content
-                    .filter((b) => b.type === "text" && b.text)
-                    .map((b) => b.text)
-                    .join(" ")
-                : ""
-        : "";
-    // Pre-computed tool defs — reused across turns, only rebuilt when tools array changes
-    let cachedToolDefsForSession = getCachedToolDefs(tools);
-    let lastToolCount = tools.length;
-    // Accumulators
-    let turnCount = 0;
-    let toolCallCount = 0;
-    let totalIn = 0;
-    let totalOut = 0;
-    let cacheCreationTokens = 0;
-    let cacheReadTokens = 0;
-    let sessionCostUsd = 0;
-    let compactionCount = 0;
-    let finalResponse = "";
-    let lastStopReason = "end_turn";
-    const allTextResponses = [];
-    const allToolNames = [];
-    const allCitations = [];
-    const turnMetrics = [];
-    const costWarningsEmitted = new Set();
-    while (turnCount < maxTurns) {
-        // Abort checks
-        if (clientDisconnected.value) {
-            log.info("client disconnected, stopping");
-            break;
-        }
-        if (Date.now() - startedAt > maxDurationMs) {
-            onText?.("[Request timeout exceeded]");
-            break;
-        }
-        // Cost budget enforcement — prevent runaway spending (skip if unlimited)
-        if (isFinite(maxCostUsd) && sessionCostUsd >= maxCostUsd) {
-            log.warn({ sessionCostUsd, maxCostUsd }, "cost budget exceeded");
-            onText?.(`\n[Session cost budget reached ($${sessionCostUsd.toFixed(2)}/$${maxCostUsd.toFixed(2)}). Wrapping up.]`);
-            break;
-        }
-        turnCount++;
-        loopDetector.resetTurn();
-        // Route model on the FIRST turn only — subsequent turns use the requested model
-        // since the conversation may have become complex after tool results.
-        // enableModelRouting=false prevents downgrade (e.g. Opus agents that should stay Opus)
-        const effectiveModel = (turnCount === 1 && enableModelRouting)
-            ? routeModel(firstUserText, model)
-            : model;
-        if (turnCount === 1 && effectiveModel !== model) {
-            log.info({ from: model, to: effectiveModel }, "model routed");
-        }
-        // Per-turn model config — uses effectiveModel so routed models get correct settings
-        const maxTokens = opts.maxTokens ?? getMaxOutputTokens(effectiveModel);
-        const ctxMgmt = getContextManagement(effectiveModel, opts.contextOverrides);
-        const thinkingCfg = getThinkingConfig(effectiveModel, true);
-        // Prepare tool definitions — use pre-computed cache, only rebuild when tools change
-        // (discover_tools can add tools mid-session, detected via length change)
-        if (tools.length !== lastToolCount) {
-            cachedToolDefsForSession = getCachedToolDefs(tools);
-            lastToolCount = tools.length;
-        }
-        // Pre-compaction: mechanically strip redundant data before LLM call
-        // Runs every turn but only modifies messages when there's significant bloat
-        const { messages: preCompacted, bytesRemoved } = preCompact(messages);
-        if (bytesRemoved > 10000) {
-            log.info({ bytesRemoved, bytesRemovedKB: Math.round(bytesRemoved / 1024) }, "pre-compaction applied");
-            // Replace messages in-place so the outer array reference stays valid
-            messages.length = 0;
-            messages.push(...preCompacted);
+  }
+
+  // Per-conversation tracking of discovered tools — accumulates tool names
+  // activated via discover_tools so they persist across turns within this session.
+  // If extendedTools were provided (from a previous session or pre-load), we
+  // don't inject them yet (that defeats lazy loading), but we keep the full
+  // list available for the executor to reference.
+  const discoveredToolNames = new Set();
+
+  // Alias for backward compat within this function
+  const tools = activeTools;
+  const loopDetector = new LoopDetector(opts.loopDetectorConfig);
+
+  // Model routing: extract first user message for complexity estimation
+  const firstUserMsg = messages.find(m => m.role === "user");
+  const firstUserText = firstUserMsg ? typeof firstUserMsg.content === "string" ? firstUserMsg.content : Array.isArray(firstUserMsg.content) ? firstUserMsg.content.filter(b => b.type === "text" && b.text).map(b => b.text).join(" ") : "" : "";
+
+  // Pre-computed tool defs — reused across turns, only rebuilt when tools array changes
+  let cachedToolDefsForSession = getCachedToolDefs(tools);
+  let lastToolCount = tools.length;
+
+  // Accumulators
+  let turnCount = 0;
+  let toolCallCount = 0;
+  let totalIn = 0;
+  let totalOut = 0;
+  let cacheCreationTokens = 0;
+  let cacheReadTokens = 0;
+  let sessionCostUsd = 0;
+  let compactionCount = 0;
+  let consecutiveCompactions = 0;
+  let finalResponse = "";
+  let lastStopReason = "end_turn";
+  const allTextResponses = [];
+  const allToolNames = [];
+  const allCitations = [];
+  const turnMetrics = [];
+  const costWarningsEmitted = new Set();
+  const effectiveMaxTurns = maxTurns === 0 ? Infinity : maxTurns;
+  while (turnCount < effectiveMaxTurns) {
+    // Abort checks
+    if (clientDisconnected.value) {
+      log.info("client disconnected, stopping");
+      break;
+    }
+    if (Date.now() - startedAt > maxDurationMs) {
+      onText?.("[Request timeout exceeded]");
+      break;
+    }
+    // Cost budget enforcement — prevent runaway spending (skip if unlimited)
+    if (isFinite(maxCostUsd) && sessionCostUsd >= maxCostUsd) {
+      log.warn({
+        sessionCostUsd,
+        maxCostUsd
+      }, "cost budget exceeded");
+      onText?.(`\n[Session cost budget reached ($${sessionCostUsd.toFixed(2)}/$${maxCostUsd.toFixed(2)}). Wrapping up.]`);
+      break;
+    }
+    turnCount++;
+    loopDetector.resetTurn();
+
+    // Route model on the FIRST turn only — subsequent turns use the requested model
+    // since the conversation may have become complex after tool results.
+    // enableModelRouting=false prevents downgrade (e.g. Opus agents that should stay Opus)
+    const effectiveModel = turnCount === 1 && enableModelRouting ? routeModel(firstUserText, model) : model;
+    if (turnCount === 1 && effectiveModel !== model) {
+      log.info({
+        from: model,
+        to: effectiveModel
+      }, "model routed");
+    }
+
+    // Per-turn model config — uses effectiveModel so routed models get correct settings
+    const maxTokens = opts.maxTokens ?? getMaxOutputTokens(effectiveModel);
+    const ctxMgmt = getContextManagement(effectiveModel, opts.contextOverrides);
+    const thinkingCfg = getThinkingConfig(effectiveModel, true);
+
+    // Prepare tool definitions — use pre-computed cache, only rebuild when tools change
+    // (discover_tools can add tools mid-session, detected via length change)
+    if (tools.length !== lastToolCount) {
+      cachedToolDefsForSession = getCachedToolDefs(tools);
+      lastToolCount = tools.length;
+    }
+
+    // Pre-compaction: mechanically strip redundant data before LLM call
+    // Runs every turn but only modifies messages when there's significant bloat
+    const {
+      messages: preCompacted,
+      bytesRemoved
+    } = preCompact(messages);
+    if (bytesRemoved > 10000) {
+      log.info({
+        bytesRemoved,
+        bytesRemovedKB: Math.round(bytesRemoved / 1024)
+      }, "pre-compaction applied");
+      // Replace messages in-place so the outer array reference stays valid
+      messages.length = 0;
+      messages.push(...preCompacted);
+    }
+
+    // Prompt caching: tools + turn boundary
+    let finalToolDefs = cachedToolDefsForSession;
+    let finalMessages = messages;
+    if (enablePromptCaching) {
+      const cached = addPromptCaching(cachedToolDefsForSession, messages);
+      finalToolDefs = cached.tools;
+      finalMessages = cached.messages;
+    }
+
+    // System prompt: cached block + dynamic cost context (skip cost line if unlimited budget)
+    const costContext = isFinite(maxCostUsd) ? `Session cost: $${sessionCostUsd.toFixed(2)} / $${maxCostUsd.toFixed(2)}` : `Session cost: $${sessionCostUsd.toFixed(2)}`;
+    const system = enablePromptCaching ? [{
+      type: "text",
+      text: systemPrompt,
+      cache_control: {
+        type: "ephemeral"
+      }
+    }, {
+      type: "text",
+      text: costContext
+    }] : [{
+      type: "text",
+      text: systemPrompt
+    }, {
+      type: "text",
+      text: costContext
+    }];
+
+    // Resolve tool_choice for this turn
+    const recentToolUses = turnMetrics.slice(-3).flatMap(t => t.toolsUsed);
+    let resolvedToolChoice = resolveToolChoice({
+      toolChoice: opts.toolChoice,
+      turnCount,
+      recentToolUses,
+      availableToolNames: tools.map(t => t.name),
+      userMessage: firstUserText
+    });
+    // Anthropic API: forced tool_choice ("any" or specific tool) is incompatible with thinking — downgrade to "auto"
+    if (thinkingCfg.thinking.type !== "disabled" && resolvedToolChoice !== "auto" && resolvedToolChoice !== "none") {
+      resolvedToolChoice = "auto";
+    }
+    const {
+      toolChoice: anthropicToolChoice,
+      omitTools
+    } = mapToolChoiceForAnthropic(resolvedToolChoice);
+    if (omitTools) {
+      log.info({
+        turn: turnCount,
+        resolvedToolChoice
+      }, "tool_choice=none — omitting tools");
+    }
+
+    // Provider failover check — route to healthy provider (capability-aware)
+    const failoverResult = providerFailover.getActiveProvider(effectiveModel, opts.requiredCapabilities);
+    const activeModel = failoverResult.model;
+    const activeProvider = failoverResult.provider;
+    let turnFailoverInfo;
+    if (failoverResult.failedOver) {
+      turnFailoverInfo = {
+        originalProvider: failoverResult.originalProvider,
+        activeProvider: failoverResult.provider,
+        model: failoverResult.model
+      };
+      // Re-compute model config for the failover model
+      // (context management, thinking, max tokens may differ)
+    }
+
+    // API call with retry
+    if (enableStreaming) {
+      // ---- STREAMING PATH ----
+      let stream = null;
+      for (let attempt = 0; attempt <= MAX_RETRIES; attempt++) {
+        try {
+          // Cast through unknown: context_management.edits is Record<string, unknown>[]
+          // from getContextManagement() but SDK expects specific edit union types
+          const streamBetas = [...ctxMgmt.betas];
+          if (thinkingCfg.beta) streamBetas.push(thinkingCfg.beta);
+          // Citations API: add beta when source documents are provided
+          if (documents?.length && !streamBetas.includes("citations-2025-04-15")) {
+            streamBetas.push("citations-2025-04-15");
+          }
+          stream = await anthropic.beta.messages.create({
+            model: activeModel,
+            max_tokens: maxTokens,
+            temperature: thinkingCfg.thinking.type !== "disabled" ? 1 : temperature,
+            system,
+            ...(omitTools ? {} : {
+              tools: finalToolDefs
+            }),
+            ...(anthropicToolChoice && !omitTools ? {
+              tool_choice: anthropicToolChoice
+            } : {}),
+            messages: finalMessages,
+            stream: true,
+            thinking: thinkingCfg.thinking,
+            betas: streamBetas,
+            context_management: ctxMgmt.config,
+            ...(documents?.length ? {
+              documents
+            } : {})
+          });
+          providerFailover.recordSuccess(activeProvider);
+          break;
+        } catch (err) {
+          providerFailover.recordFailure(activeProvider);
+          if (attempt < MAX_RETRIES && isRetryableError(err)) {
+            const delay = RETRY_BASE_DELAY_MS * Math.pow(2, attempt);
+            log.warn({
+              attempt: attempt + 1,
+              maxRetries: MAX_RETRIES,
+              delayMs: delay,
+              err: sanitizeError(err)
+            }, "retrying API call");
+            await new Promise(resolve => setTimeout(resolve, delay));
+            continue;
+          }
+          throw err;
         }
-        // Prompt caching: tools + turn boundary
-        let finalToolDefs = cachedToolDefsForSession;
-        let finalMessages = messages;
-        if (enablePromptCaching) {
-            const cached = addPromptCaching(cachedToolDefsForSession, messages);
-            finalToolDefs = cached.tools;
-            finalMessages = cached.messages;
+      }
+      if (!stream) throw new Error("Failed to get response after retries");
+
+      // Process stream events via unified parser
+      const streamResult = await processStreamWithCallbacks(stream, {
+        onText,
+        onToolStart,
+        onCitation
+      });
+      const currentText = streamResult.text;
+      const toolUseBlocks = streamResult.toolUseBlocks;
+      const compactionContent = streamResult.compactionContent;
+
+      // Accumulate citations from this turn
+      if (streamResult.citations.length > 0) {
+        allCitations.push(...streamResult.citations);
+      }
+
+      // Accumulate per-turn tokens into session totals
+      const turnIn = streamResult.usage.inputTokens;
+      const turnOut = streamResult.usage.outputTokens;
+      const turnCacheRead = streamResult.usage.cacheReadTokens;
+      const turnCacheCreation = streamResult.usage.cacheCreationTokens;
+      totalIn += turnIn;
+      totalOut += turnOut;
+      cacheCreationTokens += turnCacheCreation;
+      cacheReadTokens += turnCacheRead;
+
+      // Update cost (include cache tokens for accurate pricing)
+      sessionCostUsd = estimateCostUsd(totalIn, totalOut, model, 0, cacheReadTokens, cacheCreationTokens);
+
+      // Graduated cost warnings — give the LLM visibility into spend
+      emitCostWarningIfNeeded(sessionCostUsd, maxCostUsd, costWarningsEmitted, onText);
+
+      // Record per-turn metrics for observability
+      const turnToolNames = toolUseBlocks.map(b => b.name);
+      turnMetrics.push({
+        turn: turnCount,
+        inputTokens: turnIn,
+        outputTokens: turnOut,
+        cacheRead: turnCacheRead,
+        cacheCreation: turnCacheCreation,
+        toolsUsed: turnToolNames,
+        costUsd: estimateCostUsd(turnIn, turnOut, model, 0, turnCacheRead, turnCacheCreation),
+        ...(turnFailoverInfo ? {
+          failover: turnFailoverInfo
+        } : {})
+      });
+      if (currentText) allTextResponses.push(currentText);
+
+      // Compaction handling — API paused after generating summary.
+      // Preserve last 2 messages (1 user + 1 assistant turn) for continuity,
+      // then resume. This is NOT a new turn — just context compression.
+      lastStopReason = streamResult.stopReason || "end_turn";
+      if (streamResult.stopReason === "compaction" && compactionContent) {
+        compactionCount++;
+        consecutiveCompactions++;
+        log.info({
+          compactionCount,
+          consecutiveCompactions
+        }, "compaction — rebuilding context from summary");
+
+        // Circuit breaker + budget enforcement
+        const MAX_CONSECUTIVE_COMPACTIONS = 3;
+        const shouldWrapUp = consecutiveCompactions > MAX_CONSECUTIVE_COMPACTIONS || compactionCount * effectiveCompactionTrigger >= effectiveCompactionBudget;
+        if (shouldWrapUp) {
+          log.warn({
+            compactionCount,
+            consecutiveCompactions,
+            triggerTokens: effectiveCompactionTrigger
+          }, "compaction wrap-up triggered");
+          onText?.(consecutiveCompactions > MAX_CONSECUTIVE_COMPACTIONS ? "\n[Compaction loop detected — wrapping up.]" : "\n[Context budget reached — wrapping up.]");
         }
-        // System prompt: cached block + dynamic cost context (skip cost line if unlimited budget)
-        const costContext = isFinite(maxCostUsd)
-            ? `Session cost: $${sessionCostUsd.toFixed(2)} / $${maxCostUsd.toFixed(2)}`
-            : `Session cost: $${sessionCostUsd.toFixed(2)}`;
-        const system = enablePromptCaching
-            ? [
-                { type: "text", text: systemPrompt, cache_control: { type: "ephemeral" } },
-                { type: "text", text: costContext },
-            ]
-            : [
-                { type: "text", text: systemPrompt },
-                { type: "text", text: costContext },
-            ];
-        // Resolve tool_choice for this turn
-        const recentToolUses = turnMetrics.slice(-3).flatMap(t => t.toolsUsed);
-        let resolvedToolChoice = resolveToolChoice({
-            toolChoice: opts.toolChoice,
-            turnCount,
-            recentToolUses,
-            availableToolNames: tools.map(t => t.name),
-            userMessage: firstUserText,
-        });
-        // Anthropic API: forced tool_choice ("any" or specific tool) is incompatible with thinking — downgrade to "auto"
-        if (thinkingCfg.thinking.type !== "disabled" && resolvedToolChoice !== "auto" && resolvedToolChoice !== "none") {
-            resolvedToolChoice = "auto";
+        const compactedMessages = [{
+          role: "assistant",
+          content: [{
+            type: "compaction",
+            content: compactionContent
+          }]
+        }, {
+          role: "user",
+          content: [{
+            type: "text",
+            text: shouldWrapUp ? "You have reached the context budget. Please wrap up your current work and provide a final summary of what was accomplished and what remains." : "Continue with your task."
+          }]
+        }];
+        messages.length = 0;
+        messages.push(...compactedMessages);
+        turnCount--; // Don't count compaction as a turn
+        continue;
+      }
+
+      // No tool calls — check if truncated at max_tokens
+      if (toolUseBlocks.length === 0) {
+        if (streamResult.stopReason === "max_tokens") {
+          const assistantContent = buildAssistantContent({
+            text: currentText,
+            toolUseBlocks: [],
+            compactionContent
+          });
+          messages.push({
+            role: "assistant",
+            content: assistantContent
+          });
+          messages.push({
+            role: "user",
+            content: [{
+              type: "text",
+              text: "[Your response was truncated due to length. Please continue where you left off.]"
+            }]
+          });
+          continue;
         }
-        const { toolChoice: anthropicToolChoice, omitTools } = mapToolChoiceForAnthropic(resolvedToolChoice);
-        if (omitTools) {
-            log.info({ turn: turnCount, resolvedToolChoice }, "tool_choice=none — omitting tools");
+        finalResponse = currentText;
+        break;
+      }
+
+      // Reset — model is making progress (tool calls)
+      consecutiveCompactions = 0;
+
+      // Execute tools and build messages for next turn
+      const subagentTokens = {
+        input: 0,
+        output: 0,
+        costUsd: 0
+      };
+      const executor = makeToolExecutor(opts, tools, allToolNames, subagentTokens, discoveredToolNames);
+      const {
+        results: toolResults
+      } = await dispatchTools(toolUseBlocks, executor, {
+        loopDetector,
+        maxConcurrent: maxConcurrentTools,
+        batchErrorLimit: opts.batchErrorLimit ?? AGENT_DEFAULTS.loopBatchErrorLimit,
+        // maxResultChars removed — Anthropic context_management handles limits
+        transcribeAudio: opts.storeId ? async (base64, mediaType) => {
+          const result = await handleTranscribe(opts.supabase, opts.storeId, base64, mediaType);
+          if (!result.success || !result.transcript) {
+            throw new Error(result.error || "Transcription returned no transcript");
+          }
+          return result.transcript;
+        } : undefined
+      });
+      toolCallCount += toolUseBlocks.length;
+
+      // Aggregate subagent tokens into parent totals
+      totalIn += subagentTokens.input;
+      totalOut += subagentTokens.output;
+      sessionCostUsd = estimateCostUsd(totalIn, totalOut, model, 0, cacheReadTokens, cacheCreationTokens) + subagentTokens.costUsd;
+
+      // Cost warnings after subagent aggregation (subagents can be expensive)
+      emitCostWarningIfNeeded(sessionCostUsd, maxCostUsd, costWarningsEmitted, onText);
+      const assistantContent = buildAssistantContent({
+        text: currentText,
+        toolUseBlocks,
+        compactionContent
+      });
+      messages.push({
+        role: "assistant",
+        content: assistantContent
+      });
+      messages.push({
+        role: "user",
+        content: toolResults
+      });
+
+      // Session checkpoint — fire-and-forget, never blocks the loop
+      if (opts.conversationId) {
+        saveCheckpoint(opts.supabase, opts.conversationId, turnCount, messages, {
+          input: totalIn,
+          output: totalOut,
+          cacheRead: cacheReadTokens,
+          cacheCreation: cacheCreationTokens
+        }, sessionCostUsd, allToolNames).catch(() => {}); // swallow — saveCheckpoint already logs internally
+      }
+    } else {
+      // ---- NON-STREAMING PATH ----
+      let response = null;
+      for (let attempt = 0; attempt <= MAX_RETRIES; attempt++) {
+        try {
+          // Cast through unknown: context_management.edits is Record<string, unknown>[]
+          // from getContextManagement() but SDK expects specific edit union types
+          const nsBetas = [...ctxMgmt.betas];
+          if (thinkingCfg.beta) nsBetas.push(thinkingCfg.beta);
+          // Citations API: add beta when source documents are provided
+          if (documents?.length && !nsBetas.includes("citations-2025-04-15")) {
+            nsBetas.push("citations-2025-04-15");
+          }
+          response = await anthropic.beta.messages.create({
+            model: activeModel,
+            max_tokens: maxTokens,
+            temperature: thinkingCfg.thinking.type !== "disabled" ? 1 : temperature,
+            system,
+            ...(omitTools ? {} : {
+              tools: finalToolDefs
+            }),
+            ...(anthropicToolChoice && !omitTools ? {
+              tool_choice: anthropicToolChoice
+            } : {}),
+            messages: finalMessages,
+            thinking: thinkingCfg.thinking,
+            betas: nsBetas,
+            context_management: ctxMgmt.config,
+            ...(documents?.length ? {
+              documents
+            } : {})
+          });
+          providerFailover.recordSuccess(activeProvider);
+          break;
+        } catch (err) {
+          providerFailover.recordFailure(activeProvider);
+          if (attempt < MAX_RETRIES && isRetryableError(err)) {
+            const delay = RETRY_BASE_DELAY_MS * Math.pow(2, attempt);
+            log.warn({
+              attempt: attempt + 1,
+              maxRetries: MAX_RETRIES,
+              delayMs: delay,
+              err: sanitizeError(err)
+            }, "retrying API call");
+            await new Promise(resolve => setTimeout(resolve, delay));
+            continue;
+          }
+          throw err;
         }
-        // Provider failover check — route to healthy provider (capability-aware)
-        const failoverResult = providerFailover.getActiveProvider(effectiveModel, opts.requiredCapabilities);
-        const activeModel = failoverResult.model;
-        const activeProvider = failoverResult.provider;
-        let turnFailoverInfo;
-        if (failoverResult.failedOver) {
-            turnFailoverInfo = {
-                originalProvider: failoverResult.originalProvider,
-                activeProvider: failoverResult.provider,
-                model: failoverResult.model,
-            };
-            // Re-compute model config for the failover model
-            // (context management, thinking, max tokens may differ)
+      }
+      if (!response) throw new Error("Failed to get response after retries");
+
+      // Track tokens
+      const nsTurnIn = response.usage?.input_tokens || 0;
+      const nsTurnOut = response.usage?.output_tokens || 0;
+      const nsTurnCacheCreation = response.usage?.cache_creation_input_tokens ?? 0;
+      const nsTurnCacheRead = response.usage?.cache_read_input_tokens ?? 0;
+      totalIn += nsTurnIn;
+      totalOut += nsTurnOut;
+      cacheCreationTokens += nsTurnCacheCreation;
+      cacheReadTokens += nsTurnCacheRead;
+
+      // Extract text, tool_use, cite, and compaction blocks
+      let currentText = "";
+      let nsCompactionContent = null;
+      const toolUseBlocks = [];
+      for (const block of response.content) {
+        if (block.type === "text") {
+          currentText += block.text;
+          onText?.(block.text);
+        } else if (block.type === "tool_use") {
+          toolUseBlocks.push({
+            id: block.id,
+            name: block.name,
+            input: block.input
+          });
+          onToolStart?.(block.name, block.input);
+        } else if (block.type === "cite") {
+          const citeBlock = block;
+          const citation = {
+            type: "cite",
+            cited_text: citeBlock.cited_text ?? "",
+            document_index: citeBlock.document_index ?? 0,
+            start_char_index: citeBlock.start_char_index ?? 0,
+            end_char_index: citeBlock.end_char_index ?? 0,
+            ...(citeBlock.document_title ? {
+              document_title: citeBlock.document_title
+            } : {})
+          };
+          allCitations.push(citation);
+          onCitation?.(citation);
+        } else if (block.type === "compaction") {
+          nsCompactionContent = block.content || "";
         }
-        // API call with retry
-        if (enableStreaming) {
-            // ---- STREAMING PATH ----
-            let stream = null;
-            for (let attempt = 0; attempt <= MAX_RETRIES; attempt++) {
-                try {
-                    // Cast through unknown: context_management.edits is Record<string, unknown>[]
-                    // from getContextManagement() but SDK expects specific edit union types
-                    const streamBetas = [...ctxMgmt.betas];
-                    if (thinkingCfg.beta)
-                        streamBetas.push(thinkingCfg.beta);
-                    // Citations API: add beta when source documents are provided
-                    if (documents?.length && !streamBetas.includes("citations-2025-04-15")) {
-                        streamBetas.push("citations-2025-04-15");
-                    }
-                    stream = await anthropic.beta.messages.create({
-                        model: activeModel,
-                        max_tokens: maxTokens,
-                        temperature: thinkingCfg.thinking.type !== "disabled" ? 1 : temperature,
-                        system,
-                        ...(omitTools ? {} : { tools: finalToolDefs }),
-                        ...(anthropicToolChoice && !omitTools ? { tool_choice: anthropicToolChoice } : {}),
-                        messages: finalMessages,
-                        stream: true,
-                        thinking: thinkingCfg.thinking,
-                        betas: streamBetas,
-                        context_management: ctxMgmt.config,
-                        ...(documents?.length ? { documents } : {}),
-                    });
-                    providerFailover.recordSuccess(activeProvider);
-                    break;
-                }
-                catch (err) {
-                    providerFailover.recordFailure(activeProvider);
-                    if (attempt < MAX_RETRIES && isRetryableError(err)) {
-                        const delay = RETRY_BASE_DELAY_MS * Math.pow(2, attempt);
-                        log.warn({ attempt: attempt + 1, maxRetries: MAX_RETRIES, delayMs: delay, err: sanitizeError(err) }, "retrying API call");
-                        await new Promise((resolve) => setTimeout(resolve, delay));
-                        continue;
-                    }
-                    throw err;
-                }
-            }
-            if (!stream)
-                throw new Error("Failed to get response after retries");
-            // Process stream events via unified parser
-            const streamResult = await processStreamWithCallbacks(stream, { onText, onToolStart, onCitation });
-            const currentText = streamResult.text;
-            const toolUseBlocks = streamResult.toolUseBlocks;
-            const compactionContent = streamResult.compactionContent;
-            // Accumulate citations from this turn
-            if (streamResult.citations.length > 0) {
-                allCitations.push(...streamResult.citations);
-            }
-            // Accumulate per-turn tokens into session totals
-            const turnIn = streamResult.usage.inputTokens;
-            const turnOut = streamResult.usage.outputTokens;
-            const turnCacheRead = streamResult.usage.cacheReadTokens;
-            const turnCacheCreation = streamResult.usage.cacheCreationTokens;
-            totalIn += turnIn;
-            totalOut += turnOut;
-            cacheCreationTokens += turnCacheCreation;
-            cacheReadTokens += turnCacheRead;
-            // Update cost (include cache tokens for accurate pricing)
-            sessionCostUsd = estimateCostUsd(totalIn, totalOut, model, 0, cacheReadTokens, cacheCreationTokens);
-            // Graduated cost warnings — give the LLM visibility into spend
-            emitCostWarningIfNeeded(sessionCostUsd, maxCostUsd, costWarningsEmitted, onText);
-            // Record per-turn metrics for observability
-            const turnToolNames = toolUseBlocks.map(b => b.name);
-            turnMetrics.push({
-                turn: turnCount,
-                inputTokens: turnIn,
-                outputTokens: turnOut,
-                cacheRead: turnCacheRead,
-                cacheCreation: turnCacheCreation,
-                toolsUsed: turnToolNames,
-                costUsd: estimateCostUsd(turnIn, turnOut, model, 0, turnCacheRead, turnCacheCreation),
-                ...(turnFailoverInfo ? { failover: turnFailoverInfo } : {}),
-            });
-            if (currentText)
-                allTextResponses.push(currentText);
-            // Compaction handling — API paused after generating summary.
-            // Preserve last 2 messages (1 user + 1 assistant turn) for continuity,
-            // then resume. This is NOT a new turn — just context compression.
-            lastStopReason = streamResult.stopReason || "end_turn";
-            if (streamResult.stopReason === "compaction" && compactionContent) {
-                compactionCount++;
-                log.info({ compactionCount }, "compaction — preserving last 2 messages, resuming");
-                // Budget enforcement: if cumulative compaction cost exceeds budget, force wrap-up
-                if (compactionCount * effectiveCompactionTrigger >= effectiveCompactionBudget) {
-                    log.warn({ compactionCount, triggerTokens: effectiveCompactionTrigger, estimatedTokens: compactionCount * effectiveCompactionTrigger }, "compaction budget exhausted");
-                    onText?.("\n[Context budget reached — wrapping up.]");
-                    // Rebuild messages: compaction summary + wrap-up instruction
-                    const compactedMessages = [
-                        { role: "assistant", content: [{ type: "compaction", content: compactionContent }] },
-                        { role: "user", content: [{ type: "text", text: "You have reached the context budget. Please wrap up your current work and provide a final summary of what was accomplished and what remains." }] },
-                    ];
-                    messages.length = 0;
-                    messages.push(...compactedMessages);
-                    continue;
-                }
-                // Normal compaction: preserve last 2 messages for continuity
-                const preserved = messages.slice(-2);
-                const compactedMessages = [
-                    { role: "assistant", content: [{ type: "compaction", content: compactionContent }] },
-                    ...preserved,
-                ];
-                messages.length = 0;
-                messages.push(...compactedMessages);
-                turnCount--; // Don't count compaction as a turn
-                continue;
-            }
-            // No tool calls — check if truncated at max_tokens
-            if (toolUseBlocks.length === 0) {
-                if (streamResult.stopReason === "max_tokens") {
-                    const assistantContent = buildAssistantContent({ text: currentText, toolUseBlocks: [], compactionContent });
-                    messages.push({ role: "assistant", content: assistantContent });
-                    messages.push({ role: "user", content: [{ type: "text", text: "[Your response was truncated due to length. Please continue where you left off.]" }] });
-                    continue;
-                }
-                finalResponse = currentText;
-                break;
-            }
-            // Execute tools and build messages for next turn
-            const subagentTokens = { input: 0, output: 0, costUsd: 0 };
-            const executor = makeToolExecutor(opts, tools, allToolNames, subagentTokens, discoveredToolNames);
-            const { results: toolResults } = await dispatchTools(toolUseBlocks, executor, {
-                loopDetector,
-                maxConcurrent: maxConcurrentTools,
-                // maxResultChars removed — Anthropic context_management handles limits
-                transcribeAudio: opts.storeId
-                    ? async (base64, mediaType) => {
-                        const result = await handleTranscribe(opts.supabase, opts.storeId, base64, mediaType);
-                        if (!result.success || !result.transcript) {
-                            throw new Error(result.error || "Transcription returned no transcript");
-                        }
-                        return result.transcript;
-                    }
-                    : undefined,
-            });
-            toolCallCount += toolUseBlocks.length;
-            // Aggregate subagent tokens into parent totals
-            totalIn += subagentTokens.input;
-            totalOut += subagentTokens.output;
-            sessionCostUsd = estimateCostUsd(totalIn, totalOut, model, 0, cacheReadTokens, cacheCreationTokens) + subagentTokens.costUsd;
-            // Cost warnings after subagent aggregation (subagents can be expensive)
-            emitCostWarningIfNeeded(sessionCostUsd, maxCostUsd, costWarningsEmitted, onText);
-            const assistantContent = buildAssistantContent({ text: currentText, toolUseBlocks, compactionContent });
-            messages.push({ role: "assistant", content: assistantContent });
-            messages.push({ role: "user", content: toolResults });
-            // Session checkpoint — fire-and-forget, never blocks the loop
-            if (opts.conversationId) {
-                saveCheckpoint(opts.supabase, opts.conversationId, turnCount, messages, { input: totalIn, output: totalOut, cacheRead: cacheReadTokens, cacheCreation: cacheCreationTokens }, sessionCostUsd, allToolNames).catch(() => { }); // swallow — saveCheckpoint already logs internally
-            }
+      }
+      sessionCostUsd = estimateCostUsd(totalIn, totalOut, model, 0, cacheReadTokens, cacheCreationTokens);
+
+      // Graduated cost warnings (non-streaming path)
+      emitCostWarningIfNeeded(sessionCostUsd, maxCostUsd, costWarningsEmitted, onText);
+
+      // Record per-turn metrics (non-streaming)
+      const nsTurnToolNames = toolUseBlocks.map(b => b.name);
+      turnMetrics.push({
+        turn: turnCount,
+        inputTokens: nsTurnIn,
+        outputTokens: nsTurnOut,
+        cacheRead: nsTurnCacheRead,
+        cacheCreation: nsTurnCacheCreation,
+        toolsUsed: nsTurnToolNames,
+        costUsd: estimateCostUsd(nsTurnIn, nsTurnOut, model, 0, nsTurnCacheRead, nsTurnCacheCreation),
+        ...(turnFailoverInfo ? {
+          failover: turnFailoverInfo
+        } : {})
+      });
+      if (currentText) allTextResponses.push(currentText);
+      lastStopReason = response.stop_reason || "end_turn";
+
+      // Compaction handling (non-streaming) — same logic as streaming path
+      if (response.stop_reason === "compaction" && nsCompactionContent !== null) {
+        compactionCount++;
+        consecutiveCompactions++;
+        log.info({
+          compactionCount,
+          consecutiveCompactions,
+          streaming: false
+        }, "compaction — rebuilding context from summary");
+        const MAX_CONSECUTIVE_COMPACTIONS = 3;
+        const shouldWrapUp = consecutiveCompactions > MAX_CONSECUTIVE_COMPACTIONS || compactionCount * effectiveCompactionTrigger >= effectiveCompactionBudget;
+        if (shouldWrapUp) {
+          onText?.(consecutiveCompactions > MAX_CONSECUTIVE_COMPACTIONS ? "\n[Compaction loop detected — wrapping up.]" : "\n[Context budget reached — wrapping up.]");
         }
-        else {
-            // ---- NON-STREAMING PATH ----
-            let response = null;
-            for (let attempt = 0; attempt <= MAX_RETRIES; attempt++) {
-                try {
-                    // Cast through unknown: context_management.edits is Record<string, unknown>[]
-                    // from getContextManagement() but SDK expects specific edit union types
-                    const nsBetas = [...ctxMgmt.betas];
-                    if (thinkingCfg.beta)
-                        nsBetas.push(thinkingCfg.beta);
-                    // Citations API: add beta when source documents are provided
-                    if (documents?.length && !nsBetas.includes("citations-2025-04-15")) {
-                        nsBetas.push("citations-2025-04-15");
-                    }
-                    response = await anthropic.beta.messages.create({
-                        model: activeModel,
-                        max_tokens: maxTokens,
-                        temperature: thinkingCfg.thinking.type !== "disabled" ? 1 : temperature,
-                        system,
-                        ...(omitTools ? {} : { tools: finalToolDefs }),
-                        ...(anthropicToolChoice && !omitTools ? { tool_choice: anthropicToolChoice } : {}),
-                        messages: finalMessages,
-                        thinking: thinkingCfg.thinking,
-                        betas: nsBetas,
-                        context_management: ctxMgmt.config,
-                        ...(documents?.length ? { documents } : {}),
-                    });
-                    providerFailover.recordSuccess(activeProvider);
-                    break;
-                }
-                catch (err) {
-                    providerFailover.recordFailure(activeProvider);
-                    if (attempt < MAX_RETRIES && isRetryableError(err)) {
-                        const delay = RETRY_BASE_DELAY_MS * Math.pow(2, attempt);
-                        log.warn({ attempt: attempt + 1, maxRetries: MAX_RETRIES, delayMs: delay, err: sanitizeError(err) }, "retrying API call");
-                        await new Promise((resolve) => setTimeout(resolve, delay));
-                        continue;
-                    }
-                    throw err;
-                }
-            }
-            if (!response)
-                throw new Error("Failed to get response after retries");
-            // Track tokens
-            const nsTurnIn = response.usage?.input_tokens || 0;
-            const nsTurnOut = response.usage?.output_tokens || 0;
-            const nsTurnCacheCreation = response.usage?.cache_creation_input_tokens ?? 0;
-            const nsTurnCacheRead = response.usage?.cache_read_input_tokens ?? 0;
-            totalIn += nsTurnIn;
-            totalOut += nsTurnOut;
-            cacheCreationTokens += nsTurnCacheCreation;
-            cacheReadTokens += nsTurnCacheRead;
-            // Extract text, tool_use, cite, and compaction blocks
-            let currentText = "";
-            let nsCompactionContent = null;
-            const toolUseBlocks = [];
-            for (const block of response.content) {
-                if (block.type === "text") {
-                    currentText += block.text;
-                    onText?.(block.text);
-                }
-                else if (block.type === "tool_use") {
-                    toolUseBlocks.push({
-                        id: block.id,
-                        name: block.name,
-                        input: block.input,
-                    });
-                    onToolStart?.(block.name, block.input);
-                }
-                else if (block.type === "cite") {
-                    const citeBlock = block;
-                    const citation = {
-                        type: "cite",
-                        cited_text: citeBlock.cited_text ?? "",
-                        document_index: citeBlock.document_index ?? 0,
-                        start_char_index: citeBlock.start_char_index ?? 0,
-                        end_char_index: citeBlock.end_char_index ?? 0,
-                        ...(citeBlock.document_title ? { document_title: citeBlock.document_title } : {}),
-                    };
-                    allCitations.push(citation);
-                    onCitation?.(citation);
-                }
-                else if (block.type === "compaction") {
-                    nsCompactionContent = block.content || "";
-                }
-            }
-            sessionCostUsd = estimateCostUsd(totalIn, totalOut, model, 0, cacheReadTokens, cacheCreationTokens);
-            // Graduated cost warnings (non-streaming path)
-            emitCostWarningIfNeeded(sessionCostUsd, maxCostUsd, costWarningsEmitted, onText);
-            // Record per-turn metrics (non-streaming)
-            const nsTurnToolNames = toolUseBlocks.map(b => b.name);
-            turnMetrics.push({
-                turn: turnCount,
-                inputTokens: nsTurnIn,
-                outputTokens: nsTurnOut,
-                cacheRead: nsTurnCacheRead,
-                cacheCreation: nsTurnCacheCreation,
-                toolsUsed: nsTurnToolNames,
-                costUsd: estimateCostUsd(nsTurnIn, nsTurnOut, model, 0, nsTurnCacheRead, nsTurnCacheCreation),
-                ...(turnFailoverInfo ? { failover: turnFailoverInfo } : {}),
-            });
-            if (currentText)
-                allTextResponses.push(currentText);
-            lastStopReason = response.stop_reason || "end_turn";
-            // Compaction handling (non-streaming) — same logic as streaming path
-            if (response.stop_reason === "compaction" && nsCompactionContent !== null) {
-                compactionCount++;
-                log.info({ compactionCount, streaming: false }, "compaction — preserving last 2 messages");
-                if (compactionCount * effectiveCompactionTrigger >= effectiveCompactionBudget) {
-                    onText?.("\n[Context budget reached — wrapping up.]");
-                    const compactedMessages = [
-                        { role: "assistant", content: [{ type: "compaction", content: nsCompactionContent }] },
-                        { role: "user", content: [{ type: "text", text: "You have reached the context budget. Please wrap up your current work and provide a final summary." }] },
-                    ];
-                    messages.length = 0;
-                    messages.push(...compactedMessages);
-                    continue;
-                }
-                const preserved = messages.slice(-2);
-                const compactedMessages = [
-                    { role: "assistant", content: [{ type: "compaction", content: nsCompactionContent }] },
-                    ...preserved,
-                ];
-                messages.length = 0;
-                messages.push(...compactedMessages);
-                turnCount--;
-                continue;
-            }
-            // No tool calls — check if truncated at max_tokens
-            if (toolUseBlocks.length === 0) {
-                if (response.stop_reason === "max_tokens") {
-                    const assistantContent = buildAssistantContent({ text: currentText, toolUseBlocks: [] });
-                    messages.push({ role: "assistant", content: assistantContent });
-                    messages.push({ role: "user", content: [{ type: "text", text: "[Your response was truncated due to length. Please continue where you left off.]" }] });
-                    continue;
-                }
-                finalResponse = currentText;
-                break;
-            }
-            // Execute tools
-            const nonStreamSubTokens = { input: 0, output: 0, costUsd: 0 };
-            const nsExecutor = makeToolExecutor(opts, tools, allToolNames, nonStreamSubTokens, discoveredToolNames);
-            const { results: toolResults } = await dispatchTools(toolUseBlocks, nsExecutor, {
-                loopDetector,
-                maxConcurrent: maxConcurrentTools,
-                // maxResultChars removed — Anthropic context_management handles limits
-            });
-            toolCallCount += toolUseBlocks.length;
-            // Aggregate subagent tokens into parent totals
-            totalIn += nonStreamSubTokens.input;
-            totalOut += nonStreamSubTokens.output;
-            sessionCostUsd = estimateCostUsd(totalIn, totalOut, model, 0, cacheReadTokens, cacheCreationTokens) + nonStreamSubTokens.costUsd;
-            // Cost warnings after subagent aggregation (non-streaming)
-            emitCostWarningIfNeeded(sessionCostUsd, maxCostUsd, costWarningsEmitted, onText);
-            const assistantContent = buildAssistantContent({ text: currentText, toolUseBlocks });
-            messages.push({ role: "assistant", content: assistantContent });
-            messages.push({ role: "user", content: toolResults });
-            // Session checkpoint — fire-and-forget, never blocks the loop
-            if (opts.conversationId) {
-                saveCheckpoint(opts.supabase, opts.conversationId, turnCount, messages, { input: totalIn, output: totalOut, cacheRead: cacheReadTokens, cacheCreation: cacheCreationTokens }, sessionCostUsd, allToolNames).catch(() => { }); // swallow — saveCheckpoint already logs internally
-            }
+        const compactedMessages = [{
+          role: "assistant",
+          content: [{
+            type: "compaction",
+            content: nsCompactionContent
+          }]
+        }, {
+          role: "user",
+          content: [{
+            type: "text",
+            text: shouldWrapUp ? "You have reached the context budget. Please wrap up your current work and provide a final summary." : "Continue with your task."
+          }]
+        }];
+        messages.length = 0;
+        messages.push(...compactedMessages);
+        turnCount--;
+        continue;
+      }
+
+      // No tool calls — check if truncated at max_tokens
+      if (toolUseBlocks.length === 0) {
+        if (response.stop_reason === "max_tokens") {
+          const assistantContent = buildAssistantContent({
+            text: currentText,
+            toolUseBlocks: []
+          });
+          messages.push({
+            role: "assistant",
+            content: assistantContent
+          });
+          messages.push({
+            role: "user",
+            content: [{
+              type: "text",
+              text: "[Your response was truncated due to length. Please continue where you left off.]"
+            }]
+          });
+          continue;
         }
+        finalResponse = currentText;
+        break;
+      }
+
+      // Reset — model is making progress (tool calls)
+      consecutiveCompactions = 0;
+
+      // Execute tools
+      const nonStreamSubTokens = {
+        input: 0,
+        output: 0,
+        costUsd: 0
+      };
+      const nsExecutor = makeToolExecutor(opts, tools, allToolNames, nonStreamSubTokens, discoveredToolNames);
+      const {
+        results: toolResults
+      } = await dispatchTools(toolUseBlocks, nsExecutor, {
+        loopDetector,
+        maxConcurrent: maxConcurrentTools,
+        batchErrorLimit: opts.batchErrorLimit ?? AGENT_DEFAULTS.loopBatchErrorLimit
+        // maxResultChars removed — Anthropic context_management handles limits
+      });
+      toolCallCount += toolUseBlocks.length;
+
+      // Aggregate subagent tokens into parent totals
+      totalIn += nonStreamSubTokens.input;
+      totalOut += nonStreamSubTokens.output;
+      sessionCostUsd = estimateCostUsd(totalIn, totalOut, model, 0, cacheReadTokens, cacheCreationTokens) + nonStreamSubTokens.costUsd;
+
+      // Cost warnings after subagent aggregation (non-streaming)
+      emitCostWarningIfNeeded(sessionCostUsd, maxCostUsd, costWarningsEmitted, onText);
+      const assistantContent = buildAssistantContent({
+        text: currentText,
+        toolUseBlocks
+      });
+      messages.push({
+        role: "assistant",
+        content: assistantContent
+      });
+      messages.push({
+        role: "user",
+        content: toolResults
+      });
+
+      // Session checkpoint — fire-and-forget, never blocks the loop
+      if (opts.conversationId) {
+        saveCheckpoint(opts.supabase, opts.conversationId, turnCount, messages, {
+          input: totalIn,
+          output: totalOut,
+          cacheRead: cacheReadTokens,
+          cacheCreation: cacheCreationTokens
+        }, sessionCostUsd, allToolNames).catch(() => {}); // swallow — saveCheckpoint already logs internally
+      }
     }
-    const fullText = allTextResponses.join("\n\n") || finalResponse;
-    return {
-        finalText: fullText,
-        allTextResponses,
-        turnCount,
-        toolCallCount,
-        toolsUsed: [...new Set(allToolNames)],
-        tokens: {
-            input: totalIn,
-            output: totalOut,
-            cacheCreation: cacheCreationTokens,
-            cacheRead: cacheReadTokens,
-        },
-        costUsd: sessionCostUsd,
-        loopDetectorStats: loopDetector.getSessionStats(),
-        turns: turnMetrics,
-        citations: allCitations,
-        stopReason: lastStopReason,
-    };
+  }
+  const fullText = allTextResponses.join("\n\n") || finalResponse;
+  return {
+    finalText: fullText,
+    allTextResponses,
+    turnCount,
+    toolCallCount,
+    toolsUsed: [...new Set(allToolNames)],
+    tokens: {
+      input: totalIn,
+      output: totalOut,
+      cacheCreation: cacheCreationTokens,
+      cacheRead: cacheReadTokens
+    },
+    costUsd: sessionCostUsd,
+    loopDetectorStats: loopDetector.getSessionStats(),
+    turns: turnMetrics,
+    citations: allCitations,
+    stopReason: lastStopReason
+  };
 }
+
 // ============================================================================
 // TOOL EXECUTOR FACTORY — creates executor for dispatchTools with delegation
 // ============================================================================
+
 function makeToolExecutor(opts, tools, allToolNames, subagentTokens, discoveredToolNames) {
-    const { anthropic, supabase, storeId, traceId, userId, userEmail, conversationId, agentId, executeTool, onToolResult, onToolProgress, onSubagentProgress, clientDisconnected = { value: false }, startedAt = Date.now(), maxDurationMs = 15 * 60 * 1000, } = opts;
-    return async (name, input) => {
-        allToolNames.push(name);
-        // Subagent delegation — demote models to control cost (sub-agents should never run Opus)
-        if (name === "delegate_task") {
-            const subPrompt = String(input.prompt || "");
-            const subModel = demoteSubagentModel(input.model ? String(input.model) : undefined);
-            const defaultSubMaxTurns = opts.subagentMaxTurns ?? 6;
-            const subMaxTurns = Math.min(Math.max(1, Number(input.max_turns) || defaultSubMaxTurns), 12);
-            const subTools = tools.filter((t) => t.name !== "delegate_task");
-            const subId = `sub-${Date.now().toString(36)}`;
-            onSubagentProgress?.({ subagentId: subId, event: "started", model: subModel });
-            const subStartTime = Date.now();
-            const subResult = await runServerSubagent({
-                anthropic, supabase, storeId, prompt: subPrompt, model: subModel,
-                maxTurns: subMaxTurns, tools: subTools,
-                executeTool: async (toolName, args) => executeTool(toolName, args, "server_subagent"),
-                onProgress: onSubagentProgress, clientDisconnected, startedAt, maxDurationMs,
-                maxOutputTokens: opts.subagentMaxTokens,
-                temperature: opts.subagentTemperature,
+  const {
+    anthropic,
+    supabase,
+    storeId,
+    traceId,
+    userId,
+    userEmail,
+    conversationId,
+    agentId,
+    executeTool,
+    onToolResult,
+    onToolProgress,
+    onSubagentProgress,
+    clientDisconnected = {
+      value: false
+    },
+    startedAt = Date.now(),
+    maxDurationMs = 15 * 60 * 1000
+  } = opts;
+  return async (name, input) => {
+    allToolNames.push(name);
+
+    // Subagent delegation — demote models to control cost (sub-agents should never run Opus)
+    if (name === "delegate_task") {
+      const subPrompt = String(input.prompt || "");
+      const subModel = demoteSubagentModel(input.model ? String(input.model) : undefined);
+      const defaultSubMaxTurns = opts.subagentMaxTurns ?? AGENT_DEFAULTS.subagentMaxTurns;
+      const subMaxTurns = Math.min(Math.max(1, Number(input.max_turns) || defaultSubMaxTurns), 12);
+      const subTools = tools.filter(t => t.name !== "delegate_task");
+      const subId = `sub-${Date.now().toString(36)}`;
+      onSubagentProgress?.({
+        subagentId: subId,
+        event: "started",
+        model: subModel
+      });
+      const subStartTime = Date.now();
+      const subResult = await runServerSubagent({
+        anthropic,
+        supabase,
+        storeId,
+        prompt: subPrompt,
+        model: subModel,
+        maxTurns: subMaxTurns,
+        tools: subTools,
+        executeTool: async (toolName, args) => executeTool(toolName, args, "server_subagent"),
+        onProgress: onSubagentProgress,
+        clientDisconnected,
+        startedAt,
+        maxDurationMs,
+        maxOutputTokens: opts.subagentMaxTokens,
+        temperature: opts.subagentTemperature
+      });
+      onSubagentProgress?.({
+        subagentId: subId,
+        event: "done",
+        output: subResult.output
+      });
+
+      // Audit log
+      const subDurationMs = Date.now() - subStartTime;
+      const subModelId = subModel === "opus" ? MODELS.OPUS : subModel === "sonnet" ? MODELS.SONNET : MODELS.HAIKU;
+      try {
+        const subEndTime = Date.now();
+        queueSpan(auditRowToSpan({
+          action: "chat.subagent_complete",
+          severity: "info",
+          store_id: storeId || null,
+          resource_type: "chat_subagent",
+          resource_id: agentId || null,
+          request_id: traceId || null,
+          conversation_id: conversationId || null,
+          source: "server_subagent",
+          user_id: userId || null,
+          user_email: userEmail || null,
+          input_tokens: subResult.tokensUsed.input,
+          output_tokens: subResult.tokensUsed.output,
+          total_cost: subResult.costUsd,
+          model: subModelId,
+          duration_ms: subDurationMs,
+          trace_id: traceId || null,
+          span_kind: "INTERNAL",
+          service_name: "agent-server",
+          status_code: subResult.success ? "OK" : "ERROR",
+          start_time: new Date(subEndTime - subDurationMs).toISOString(),
+          end_time: new Date(subEndTime).toISOString(),
+          stop_reason: subResult.stopReason || undefined,
+          turn_number: subResult.turnCount || 1,
+          parent_conversation_id: conversationId || undefined,
+          details: {
+            subagent_model: subModel,
+            turn_count: subResult.turnCount,
+            tool_calls: subResult.toolsUsed.length,
+            tool_names: subResult.toolsUsed,
+            cost_usd: subResult.costUsd,
+            success: subResult.success,
+            prompt_preview: subPrompt.substring(0, 200),
+            "gen_ai.request.model": subModelId,
+            "gen_ai.usage.input_tokens": subResult.tokensUsed.input,
+            "gen_ai.usage.output_tokens": subResult.tokensUsed.output,
+            "gen_ai.usage.cache_read_tokens": subResult.tokensUsed.cacheRead || 0,
+            "gen_ai.usage.cache_creation_tokens": subResult.tokensUsed.cacheCreation || 0,
+            "gen_ai.usage.cost": subResult.costUsd
+          }
+        }));
+      } catch (err) {
+        log.error({
+          err: err.message
+        }, "failed to log subagent delegation audit");
+      }
+      subagentTokens.input += subResult.tokensUsed.input;
+      subagentTokens.output += subResult.tokensUsed.output;
+      subagentTokens.costUsd += subResult.costUsd;
+      allToolNames.push(...subResult.toolsUsed);
+      return {
+        success: subResult.success,
+        output: subResult.output
+      };
+    }
+
+    // Regular tool execution — pass onToolProgress for streaming tools (kali)
+    const result = await executeTool(name, input, undefined, onToolProgress);
+    onToolResult?.(name, result.success, result.success ? result.data : result.error);
+
+    // discover_tools: dynamically add discovered tools to the active set
+    if (name === "discover_tools" && result.success && result.data) {
+      const refreshRequested = !!input.refresh;
+      const discovered = result.data?.tools;
+
+      // If refresh requested, remove previously-discovered tools so they can be re-loaded
+      // with fresh schemas from DB. Core tools and delegate_task are never removed.
+      if (refreshRequested) {
+        const coreNames = new Set((opts.tools || []).map(t => t.name));
+        coreNames.add("delegate_task");
+        for (let i = tools.length - 1; i >= 0; i--) {
+          if (discoveredToolNames.has(tools[i].name) && !coreNames.has(tools[i].name)) {
+            tools.splice(i, 1);
+          }
+        }
+        discoveredToolNames.clear();
+        log.info("discover_tools refresh — cleared previously discovered tools");
+      }
+      if (Array.isArray(discovered)) {
+        // Use getFullToolSchemas as authoritative source — supplements handler response
+        // with any schemas the handler returned, ensuring we have complete definitions.
+        const discoveredNames = discovered.filter(t => t.name).map(t => t.name);
+        const fullSchemas = getFullToolSchemas(discoveredNames);
+        // Build a map for O(1) lookup: prefer full schemas from cache, fall back to handler data
+        const schemaMap = new Map();
+        for (const t of discovered) {
+          if (t.name && t.input_schema) {
+            schemaMap.set(t.name, {
+              name: t.name,
+              description: t.description || t.name,
+              input_schema: t.input_schema
             });
-            onSubagentProgress?.({ subagentId: subId, event: "done", output: subResult.output });
-            // Audit log
-            const subDurationMs = Date.now() - subStartTime;
-            const subModelId = subModel === "opus" ? MODELS.OPUS
-                : subModel === "sonnet" ? MODELS.SONNET : MODELS.HAIKU;
-            try {
-                const subEndTime = Date.now();
-                queueSpan(auditRowToSpan({
-                    action: "chat.subagent_complete", severity: "info",
-                    store_id: storeId || null, resource_type: "chat_subagent",
-                    resource_id: agentId || null, request_id: traceId || null,
-                    conversation_id: conversationId || null, source: "server_subagent",
-                    user_id: userId || null,
-                    user_email: userEmail || null,
-                    input_tokens: subResult.tokensUsed.input, output_tokens: subResult.tokensUsed.output,
-                    total_cost: subResult.costUsd, model: subModelId, duration_ms: subDurationMs,
-                    trace_id: traceId || null,
-                    span_kind: "INTERNAL",
-                    service_name: "agent-server",
-                    status_code: subResult.success ? "OK" : "ERROR",
-                    start_time: new Date(subEndTime - subDurationMs).toISOString(),
-                    end_time: new Date(subEndTime).toISOString(),
-                    stop_reason: subResult.stopReason || undefined,
-                    turn_number: subResult.turnCount || 1,
-                    parent_conversation_id: conversationId || undefined,
-                    details: {
-                        subagent_model: subModel, turn_count: subResult.turnCount,
-                        tool_calls: subResult.toolsUsed.length, tool_names: subResult.toolsUsed,
-                        cost_usd: subResult.costUsd, success: subResult.success,
-                        prompt_preview: subPrompt.substring(0, 200),
-                        "gen_ai.request.model": subModelId,
-                        "gen_ai.usage.input_tokens": subResult.tokensUsed.input,
-                        "gen_ai.usage.output_tokens": subResult.tokensUsed.output,
-                        "gen_ai.usage.cache_read_tokens": subResult.tokensUsed.cacheRead || 0,
-                        "gen_ai.usage.cache_creation_tokens": subResult.tokensUsed.cacheCreation || 0,
-                        "gen_ai.usage.cost": subResult.costUsd,
-                    },
-                }));
-            }
-            catch (err) {
-                log.error({ err: err.message }, "failed to log subagent delegation audit");
-            }
-            subagentTokens.input += subResult.tokensUsed.input;
-            subagentTokens.output += subResult.tokensUsed.output;
-            subagentTokens.costUsd += subResult.costUsd;
-            allToolNames.push(...subResult.toolsUsed);
-            return { success: subResult.success, output: subResult.output };
+          }
         }
-        // Regular tool execution — pass onToolProgress for streaming tools (kali)
-        const result = await executeTool(name, input, undefined, onToolProgress);
-        onToolResult?.(name, result.success, result.success ? result.data : result.error);
-        // discover_tools: dynamically add discovered tools to the active set
-        if (name === "discover_tools" && result.success && result.data) {
-            const refreshRequested = !!input.refresh;
-            const discovered = result.data?.tools;
-            // If refresh requested, remove previously-discovered tools so they can be re-loaded
-            // with fresh schemas from DB. Core tools and delegate_task are never removed.
-            if (refreshRequested) {
-                const coreNames = new Set((opts.tools || []).map(t => t.name));
-                coreNames.add("delegate_task");
-                for (let i = tools.length - 1; i >= 0; i--) {
-                    if (discoveredToolNames.has(tools[i].name) && !coreNames.has(tools[i].name)) {
-                        tools.splice(i, 1);
-                    }
-                }
-                discoveredToolNames.clear();
-                log.info("discover_tools refresh — cleared previously discovered tools");
-            }
-            if (Array.isArray(discovered)) {
-                // Use getFullToolSchemas as authoritative source — supplements handler response
-                // with any schemas the handler returned, ensuring we have complete definitions.
-                const discoveredNames = discovered.filter((t) => t.name).map((t) => t.name);
-                const fullSchemas = getFullToolSchemas(discoveredNames);
-                // Build a map for O(1) lookup: prefer full schemas from cache, fall back to handler data
-                const schemaMap = new Map();
-                for (const t of discovered) {
-                    if (t.name && t.input_schema) {
-                        schemaMap.set(t.name, { name: t.name, description: t.description || t.name, input_schema: t.input_schema });
-                    }
-                }
-                for (const t of fullSchemas) {
-                    schemaMap.set(t.name, t); // Full cache schemas override handler data (more complete)
-                }
-                const activated = [];
-                const alreadyActive = [];
-                for (const [toolName, toolDef] of schemaMap) {
-                    // Track as discovered regardless of whether already active
-                    discoveredToolNames.add(toolName);
-                    if (!tools.some(existing => existing.name === toolName)) {
-                        tools.push(toolDef);
-                        activated.push(toolName);
-                    }
-                    else if (refreshRequested) {
-                        // Re-add after refresh cleared it, or update existing schema
-                        tools.push(toolDef);
-                        activated.push(toolName);
-                    }
-                    else {
-                        alreadyActive.push(toolName);
-                    }
-                }
-                if (activated.length > 0) {
-                    log.info({ activatedTools: activated, refreshed: refreshRequested }, "discover_tools activated");
-                }
-                // Return a cleaner message to the model
-                return {
-                    success: true,
-                    output: JSON.stringify({
-                        activated,
-                        already_active: alreadyActive,
-                        refreshed: refreshRequested,
-                        message: activated.length > 0
-                            ? `Activated ${activated.length} tool(s): ${activated.join(", ")}. You can now use them.`
-                            : "Requested tools were already active.",
-                        total_discovered: discoveredToolNames.size,
-                    }),
-                };
-            }
+        for (const t of fullSchemas) {
+          schemaMap.set(t.name, t); // Full cache schemas override handler data (more complete)
         }
+        const activated = [];
+        const alreadyActive = [];
+        for (const [toolName, toolDef] of schemaMap) {
+          // Track as discovered regardless of whether already active
+          discoveredToolNames.add(toolName);
+          if (!tools.some(existing => existing.name === toolName)) {
+            tools.push(toolDef);
+            activated.push(toolName);
+          } else if (refreshRequested) {
+            // Re-add after refresh cleared it, or update existing schema
+            tools.push(toolDef);
+            activated.push(toolName);
+          } else {
+            alreadyActive.push(toolName);
+          }
+        }
+        if (activated.length > 0) {
+          log.info({
+            activatedTools: activated,
+            refreshed: refreshRequested
+          }, "discover_tools activated");
+        }
+        // Return a cleaner message to the model
         return {
-            success: result.success,
-            output: JSON.stringify(result.success ? result.data : { error: result.error }),
+          success: true,
+          output: JSON.stringify({
+            activated,
+            already_active: alreadyActive,
+            refreshed: refreshRequested,
+            message: activated.length > 0 ? `Activated ${activated.length} tool(s): ${activated.join(", ")}. You can now use them.` : "Requested tools were already active.",
+            total_discovered: discoveredToolNames.size
+          })
         };
+      }
+    }
+    return {
+      success: result.success,
+      output: JSON.stringify(result.success ? result.data : {
+        error: result.error
+      })
     };
+  };
 }
+//# sourceMappingURL=server-agent-loop.js.map