This episode breaks down Claude Code v2.1.197, where Sonnet 5 becomes the default and a native 1M-token context window opens up new possibilities for giant repos and agentic workflows.

We also cover the practical gotchas: prompt caching costs, cache-busting root config changes, recursive bash loops, and the latest quality-of-life fixes like clickable file paths, disabled mouse hijacking, and the new streaming watchdog.