The context limit reached message has been simplified. When DISABLE_COMPACT is set, the message now says "Compaction is disabled." rather than suggesting /compact.
Evidence
Context limit message (search for "Context limit reached" and "Compaction is disabled.")
Strings lifted out of the shipped bundle, so the claim above can be checked against them.
How sure we are
One source agreesOne thing we can check says the same as this entry.
Anthropic's release notes agreeFixed CLAUDE_CODE_MAX_CONTEXT_TOKENS to honor DISABLE_COMPACT when it is set.