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Session resume triggers background compaction that fails silently and hangs the process indefinitely (recurred 4x) #4138

Description

@MWG-Logan

Describe the bug

On session resume (not manual /compact), the CLI's background CompactionProcessor immediately attempts to compact the pre-existing conversation history. If that compaction call to the model returns an empty response, there is no retry or graceful fallback — the process hangs indefinitely with no further output, and must be force-killed (closing stdin) to recover. This has recurred 4 times across different sessions for me.

This differs from #2500 (session stops and asks the user to repeat their request) and #2861 (three failures on manual /compact, but the session remains usable and a later /compact succeeds) — in my case the process never recovers and never becomes responsive again.

Affected version

1.0.71-2

Steps to reproduce the behavior

  1. Have a session/chat with meaningful prior conversation history.
  2. Resume that session (e.g. reopening a chat in the desktop app, or copilot --resume).
  3. MCP servers reconnect (in my case ~9-10 MCPs, including one - Azure MCP via npx -y @azure/mcp@latest - that stalled 39s due to a Windows EPERM: operation not permitted, unlink ...azmcp.exe file-lock error from a stale/lingering azmcp.exe process).
  4. Background CompactionProcessor kicks off automatically against the resumed history.
  5. Observe two consecutive Compaction failed: received empty response from model entries in the process log.
  6. The process log goes silent afterward (no more entries) even though the process is technically still running - it never responds to input again.

Log excerpt (process-<ts>-<pid>.log):

15:09:15  session resume begins, MCPs reconnecting
15:09:56  Azure MCP connects (39127ms - EPERM unlink stall on azmcp.exe)
15:10:03  first completion request post-resume
15:10:10  CompactionProcessor: Compaction failed: received empty response from model
15:10:17  CompactionProcessor: Compaction failed: received empty response from model
(silence - process never recovers)
15:18:43  manual shutdown (stdin closed)

Expected behavior

Background compaction failures on resume should not hang the whole session. At minimum:

  • Retry with backoff, or fall back to serving the resumed session without a fresh compacted summary.
  • Surface the failure to the user/UI instead of silently hanging.
  • Ensure the process remains responsive to new input even if background compaction never succeeds.

Additional context

  • OS: Windows
  • Slow/stalled MCP connections (e.g. Azure MCP taking 30-40s to connect due to a stale azmcp.exe process holding a file lock) may be a contributing/confounding timing factor around when the first post-resume compaction request fires, but the core defect is the lack of retry/fallback/timeout on CompactionProcessor failure.
  • Ruled out as causes: total registered MCP tool schema count (~400+, shared with a healthy long-running session that never crashed) and accumulated tool-call-result payload size (the process log was only 26.2KB/142 lines at time of failure).
  • Related: Compaction killed the session #2500 (compaction on resume causing session confusion), Compaction failed: received empty response from model (3x retry, manual /compact on Opus 4.6) #2861 (manual /compact triple-failure, but recoverable).

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    area:context-memoryContext window, memory, compaction, checkpoints, and instruction loadingarea:sessionsSession management, resume, history, session picker, and session state

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