Unclear Which sessions supply this budget is not stated.
What
When a tool returns a lot of output, Claude Code usually tries first to save it to a file on disk. A tool is an action Claude takes, such as running a command or reading a file. A session can now supply a budget for how much text to keep in the conversation. When it does, Claude Code skips saving to disk and cuts the output. It keeps whichever is larger: the usual size limit or that budget.
Why
This changes how large tool output is handled in sessions that set a budget.
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Which sessions supply this budget is not stated.