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AI Agent Does Not Retain Conversation Context Between User Turns

Does Oracle AI Agent Studio maintain the conversation context between user turns?
The agent asks the user to select a value in Step 1. However, when the user provides the requested value in the next turn, the agent does not recognize it as the answer to the previous question and executes Step 1 again.
Is there any setting required to maintain the conversation session or context between turns?
Also, is it possible to check whether the second user input is being processed within the same conversation/session as the first turn?

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