Events dropped due to telemetry buffer overflow under heavy tool usage

[anandgupta42]

Problem

During sessions with high tool call volume, the event buffer overflows and drops events silently. The error message logged is:

N events dropped due to buffer overflow

This means event counts are undercounted for power users, and we may be missing important failure/error events during the heaviest usage periods.

Impact by version

CLI Version	Occurrences	Total Events Dropped	Avg Dropped/Occurrence	Max Single Drop
0.5.7	167	36,968	221	3,901
0.5.1	43	7,614	177	706
0.5.3	14	2,691	192	646
0.5.2	9	931	103	290
0.5.4	7	511	73	283
0.5.5	2	9	5	5

Total: ~48,800 events dropped across all versions in the last 7 days.

Observations

• The problem is getting worse with newer versions — 0.5.7 accounts for 75% of all drops
• The worst single overflow dropped 3,901 events in one batch
• Overflows correlate with sessions that have very high tool_call volume (1,000+ calls in a session), especially sql_execute and todowrite heavy workflows
• 0.5.5 had the fewest drops (avg 5), suggesting something regressed in 0.5.7

Suggested investigation

1. Check the telemetry buffer size and flush interval — the current settings can't keep up with heavy sql_execute loops
2. Consider increasing buffer capacity or flushing more aggressively
3. Consider back-pressure or sampling instead of silent drops
4. Investigate why 0.5.7 is significantly worse than 0.5.5