What this error means
Context budget exhausted / blown by eagerly-materialized MCP tool schemas and skill listing is a Claude Code failure pattern reported for developers trying to fix excessive context consumption caused by eagerly loading full mcp tool schemas and skill listings into subagent context budget. Based on the imported evidence, treat this as a tool-specific troubleshooting page rather than a generic API error.
Why this happens
GitHub Issue #60141 in anthropics/claude-code, opened May 18 2026. Each MCP tool schema and skill listing entry consumes significant context tokens when eagerly materialized in subagent contexts, leading to premature context exhaustion. Category: AI Coding Tools (agents/mcp/tools area). Affects paid Claude Code users running complex agent workflows.
Common causes
- GitHub Issue #60141 in anthropics/claude-code, opened May 18 2026. Each MCP tool schema and skill listing entry consumes significant context tokens when eagerly materialized in subagent contexts, leading to premature context exhaustion. Category: AI Coding Tools (agents/mcp/tools area). Affects paid Claude Code users running complex agent workflows.
Quick fixes
- Confirm the exact error signature matches
Context budget exhausted / blown by eagerly-materialized MCP tool schemas and skill listing. - Check the Claude Code account, local tool state, and provider configuration involved in the failing workflow.
- Compare the failing environment with a known working setup, then change one configuration value at a time.
Platform/tool-specific checks
- Verify the command, editor, extension, or API client that produced the error.
- Compare local settings with CI, deployment, or editor-level settings when the error appears in only one environment.
- Avoid deleting credentials, local model data, or project settings until the failing scope is clear.
Step-by-step troubleshooting
- Capture the exact error message and the command, editor action, or request that triggered it.
- Check whether the failure is account/auth, quota/rate, model/provider, local runtime, or deployment configuration.
- Review the source evidence below and compare it with your environment.
- Apply one change at a time and rerun the smallest failing action.
- Keep the working fix documented for the team or deployment environment.
How to prevent it
- Keep provider/tool configuration documented.
- Record non-secret diagnostics such as tool version, provider name, model name, and command path.
- Add a lightweight check before CI or production workflows depend on the tool.