It's kind of self-expanding/looping; fractal is just a cute name I like, but it's technically a directed cyclic graph (since you always have/want cycles).
I've always referred to it in UX terms. "Progressive Disclosure" -- It pulls more context as needed.
In this way, I tend to think of the context environment on an agent is the "agent nav" -- it presents context, allows progressive disclosure, and if poorly designed, makes the agent flounder as a poorly designed UI/UX does.