I agree with essentially everything you said, except for the final claim that managing context is incidental complexity. From what I know of cognitive science, I would argue that context management is a central facet of intelligence, and a lot of the success of humans in society is dependent on their ability to do so. Looking at it from the other side, executive function disorders such as ADHD offer significant challenges for many humans, and they seem to be not quite entirely unlike these context issues that Claude faces.