The thing is, to do a proper fix it would really need all of the context (maybe the tool call that failed was for an edit to a file that was last touched way at the beginning of the context), so you'd need to either keep that smaller model running doing prompt processing all the time, or have a very long wait while it does prompt processing on your whole session.

And then also, sometimes the tool call errors are because of something like a file was changed out from under it; the larger model is probably going to do a better job of figuring that out and fixing it up.

Finally, in Pi, you can always just use the /tree command to skip back to before a series of failed tool calls, with a summary if you want to let the model know what happened. The Pi /tree command is pretty powerful in managing your context

I'm actually quite sure that directly retrying the tool call would often fix the edit-call already. But these models have been trained to "think" for a while for any problem solving, so they'll presume the problem of the edit is more fundamental and spend unnecessary tokens filling up the context.

I'll experiment more with the effectiveness of AGENTS.md rules for local Pi agents. I feel like smaller (local) LLMs just lack in attentiveness to elements in the context window, like precise instructions, compared to e.g. Claude models.