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Compact fails in CLI and Codex VS Code Extension #19009

@douglasware

Description

@douglasware

What version of Codex CLI is running?

codex-cli 0.122.0

What subscription do you have?

Using Azure Foundry

Which model were you using?

gpt-5.3-codex, gpt-5.4

What platform is your computer?

Windows 11

What terminal emulator and version are you using (if applicable)?

VSCode, Windows Terminal

What issue are you seeing?

Yesterday this began appearing. When a chat gets to the compaction it fails 100% of the time and cannot be continued.

Error running remote compact task: We're currently experiencing high demand, which may cause temporary errors.

What steps can reproduce the bug?

Use Azure Foundry deployment.
Attempt manual compaction or hit the auto-compact threshold.

What is the expected behavior?

Be usable for long conversations without fatal conversation blocking failures.

Additional information

Chat works fine. Whatever this "remote" job is? Is not.
We presume it is in fact a data exfiltration and privacy issue. Why are you sending my conversation to some remote service that isn't using my deployments???

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    azureIssues related to the Azure-hosted OpenAI modelsbugSomething isn't workingcontextIssues related to context management (including compaction)

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