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[BUG] Azure MCP All Tools Mode doesn't fit in 128k context size #2813

@g2vinay

Description

@g2vinay

Describe the bug

Running Azure MCP server in VS Code in all tools mode doesn't work with 128K context size.

Expected behavior

It should work with 128K context size

Actual behavior

No tools response is received, requires upgrading to 168K context size.

Reproduction Steps

Run VS Code latest pre-release Azure MCP server in all tools mode.

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