My mental model is a bit different:

Context -> Attention Span

Model weights/Inference -> System 1 thinking (intuition)

Computer memory (files) -> Long term memory

Chain of thought/Reasoning -> System 2 thinking

Prompts/Tool Output -> Sensing

Tool Use -> Actuation

The system 2 thinking performance is heavily dependent on the system 1 having the right intuitive models for effective problem solving via tool use. Tools are also what load long term memories into attention.