The context window counts tokens across your instructions, pasted text, prior conversation, and the reply being generated. It is shared capacity, so every part competes with every other part.
What overflow looks like
You paste a forty-page report, add a detailed set of formatting rules, and then ask a question. If the total exceeds the window, the system may silently drop the opening pages. Your formatting rules survive because they came later, but the report section your question depends on may be gone. The answer can look confident and still miss the point, because the relevant tokens were never in play.
Treat the window as a budget. Decide what must be present, cut what is merely nice to have, and stage long tasks so only the distilled result carries forward.