Distill external and tool data before it lands

When a tool returns a large payload (an API response, a long document, a database result), don't pour the raw firehose into context. Distill it: keep the decision-relevant fields, cap the long ones with a "there's more" flag, and offer a separate tool to fetch detail on demand. A giant unfiltered payload buries the signal and blows the budget. This is context engineering applied at the tool boundary, and it's where many agents quietly go wrong.