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This sounds like another version of "As a chat becomes longer, the guardrails seem to become fuzzy". You can't use all of the context window bc at the end, the output would not respect the constraints (or guardrails) but to reliably produce production grade code you want the model to have expansive awareness which fills up the context window pretty quickly. It's like saying "Keep everything in mind from these 6 directories - and make this <insert ticket> change" - but keeping everything in mind already fills it's context window which makes it lose it's ability to follow the constraints (or guardrails).
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This is not a new problem though. This is why we started writing modular code, strict interfaces etc
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