The podcast explains how to effectively use context with Claude Code, an AI coding assistant, to improve its performance. It details how adding relevant files and images as context helps Claude Code understand the task at hand, using the example of adding variants to a button component and applying a 3D effect from an image. The podcast also warns against providing too much unnecessary context, which can confuse the AI. To manage context, the podcast introduces commands like `/clear`, `/compact`, and double escape to trim or reset the session history. Additionally, it mentions the `/exit` and `/resume` commands for managing different chat sessions and highlights the importance of staying within Claude Code's 200,000 token context window to maintain accuracy.
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