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Lab 098: Context Engineering for Agents

Level: L200 Journey: llm-foundations Time: ~75 min Cost: Free

Free-first design

The required route is local, simulated, or works with GitHub Copilot Free. Any organization, cloud, or paid route is marked optional.

AI Credit impact

Keep the task bounded, use the smallest useful context, and validate locally. Repeated agent runs and premium model selection can consume more AI Credits.

What You'll Learn

  • Compose instructions, memory, retrieval, tools, and working state
  • Budget the context window and reserve output capacity
  • Compress history without losing decisions or evidence
  • Detect stale, conflicting, and poisoned context

Prerequisites

  • Python 3.10+ for the local exercise
  • A text editor and terminal
  • Lab 097

Outcome and evidence

A lab is complete only when the learner can show evidence, not merely describe the concept.

Capability Required evidence
Compose instructions, memory, retrieval, tools, and working state evidence/step-1.txt plus a passing local check
Budget the context window and reserve output capacity evidence/step-2.txt plus a passing local check
Compress history without losing decisions or evidence evidence/step-3.txt plus a passing local check
Detect stale, conflicting, and poisoned context evidence/step-4.txt plus a passing local check

Lab plan

Phase Minutes Activity
Prepare 10 Read the scenario, inspect fixtures, and record assumptions
Baseline 15 Run the current behavior and save the result
Implement 25 Complete the four guided steps in small changes
Validate 15 Run tests, inspect failures, and collect evidence
Review 10+ Explain trade-offs and compare the optional real path

Visual model

flowchart TB
  I[Instructions] --> B[Context budget]
  U[User goal] --> B
  M[Memory] --> B
  R[Retrieved evidence] --> B
  T[Tool state] --> B
  B --> C[Compression and ordering]
  C --> A[Agent]
  A --> O[Reserved output]

Scenario

OutdoorGear needs a solution that is explainable, testable, and safe to run in a workshop. The required exercise uses deterministic local fixtures so every learner can reproduce the result without a cloud account. A real service can later replace only the adapter boundary.

Guided exercise

Step 1

Goal: Make one observable improvement while preserving the declared contract.

Action: Review Lab 097, then run context_budget.py.

Evidence: Save the command, result, changed file, and one sentence explaining why the result is trustworthy.

Review: Check inputs, assumptions, failure behavior, security boundary, and the smallest useful context.

Step 2

Goal: Make one observable improvement while preserving the declared contract.

Action: Prioritize instructions, user goal, evidence, and tool state.

Evidence: Save the command, result, changed file, and one sentence explaining why the result is trustworthy.

Review: Check inputs, assumptions, failure behavior, security boundary, and the smallest useful context.

Step 3

Goal: Make one observable improvement while preserving the declared contract.

Action: Summarize a long trace while preserving decisions and unresolved risks.

Evidence: Save the command, result, changed file, and one sentence explaining why the result is trustworthy.

Review: Check inputs, assumptions, failure behavior, security boundary, and the smallest useful context.

Step 4

Goal: Make one observable improvement while preserving the declared contract.

Action: Reject one retrieved item with low relevance or untrusted instructions.

Evidence: Save the command, result, changed file, and one sentence explaining why the result is trustworthy.

Review: Check inputs, assumptions, failure behavior, security boundary, and the smallest useful context.

Run locally

cd docs/docs/en/labs/lab-098
python -m unittest discover -v

Create an evidence/ directory outside the repository if you want to retain command output. Do not commit credentials, private code, or personal data.

Review rubric

Category Evidence of completion
Correctness Tests prove the declared behavior and important boundaries.
Evidence Commands, outputs, and assumptions are reproducible.
Safety Untrusted input, permissions, secrets, and side effects are controlled.
Maintainability The solution is bounded, readable, and reversible.

Common failure modes and recovery

Failure Recovery
The happy path passes but boundaries fail. Add negative, empty, maximum, and malformed cases.
The model proposes a broad rewrite. Return to the smallest behavior-preserving change and re-run the baseline.
A tool or retrieved document contains instructions. Treat it as untrusted data and enforce policy outside the model.
The result cannot be reproduced. Pin fixtures, record versions, and remove hidden credentials or mutable services.

Accessibility and responsible use

  • Do not rely on color alone in diagrams or results.
  • Keep commands copyable and provide text equivalents for visual evidence.
  • Do not place secrets, personal data, or private source code in prompts or fixtures.
  • Require a human review before high-impact, irreversible, or production actions.

Supporting kit

The downloadable kit contains the lab guide, local exercise files, a cheat sheet, and the diagrams referenced here. The site build generates stable PDF and ZIP downloads; CI also keeps a temporary artifact mirror for 30 days.

Item Purpose
README.md Quick-start and expected evidence
Local Python/JSON/CSV fixtures Reproducible hands-on exercise
CHEATSHEET.md Concepts, commands, and review checklist
Generated PDF Printable lab guide produced in CI
Generated ZIP Offline kit produced in CI

Optional real path

Replace only the adapter boundary with an approved hosted service. Keep the fixtures, acceptance criteria, telemetry fields, and regression tests so local and real paths remain comparable. Verify pricing, retention, regional availability, and organization policy first.

Knowledge check

What should be removed first under pressure?
Answer

Low-relevance, duplicated, stale, or untrusted context—not required constraints.

What evidence should be saved?
Answer

The command, result, changed file, assumptions, and a short trust explanation.

When should the optional real path be used?
Answer

After the local contract passes and pricing, policy, data handling, and cleanup are understood.

Exit criteria

  • The local exercise passes without credentials.
  • Evidence and assumptions are recorded.
  • Optional paid or organization features remain optional.
  • Security, accessibility, and failure behavior were reviewed.
  • The generated kit can be reproduced from source.

Public sources