Retrieval works on passages, not whole documents. Before you can search, you cut every document into pieces called chunks. A search returns the best chunks, and only those go to Claude.
Why not search whole documents? A 40-page manual is about everything at once, so it matches every question a little and none of them well. And if it wins, you're back to pasting 40 pages. Anthropic's guide puts typical chunks at a few hundred tokens. Embedding models can take much more (Voyage's current models take 32,000 tokens per input), so the limit isn't the model. It's how precise you want each match to be.