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Yes, there is going to be a token and length limit for the free version. However, if you want to work around the length limit issue, you can try using another LLM with a higher limit. I faced the same problem with Claude and started looking for alternatives with a larger context window. I found that Grok 3 performs better in that regard.
Another way to solve this is by using a VS Code extension like Cline or AI-powered IDEs.
Hope this helps!