If you're running a local AI now in LM Studio, there is a gear icon in the "Chats" tab of LM Studio. If you go into the "Developer" tab in the left panel and select your model in the center panel, the right panel has a "Load" tab where you can adjust the token length the local server will allow. Changing this value does require you to reload the model in LM studio (it gives you a button prompt for this), and bigger values require more CPU or GPU.
As far as resolving your entity behavior, I haven't looked _that_ deeply into the source code. I think the game only sends entities based on the player's location, and this goes out with the <LOCATION JSON DATA> placeholder in the various prompts. So if all 67 of your entities are in the same area, it might be part of why you're hitting some token limits.
I've had the "best" success by trying to define behaviors and states in the System prompt (I think I pasted an example for the Slime Core and Player Excretion above) and then mentioning those behaviors in the entity's AI instructions (second box on the Entity setup), but I've never had more than 4-5 "weird" behaviors in a scenario that I needed to explain as part of the instructions.