Looking at this error message, I can diagnose the issue:

**Root Cause:** The LLM inference engine is trying to allocate a 262,144 token context (262K tokens) but the GPU only has 1024 MiB of free memory available. This is a memory allocation failure where the requested memory exceeds available GPU memory.

**Next Two Actions:**

1. **Reduce the context window size** - Lower the context length parameter (e.g., from 262144 to 4096 or 8192) to fit within the available GPU memory. This is the most direct fix.

2. **Free up GPU memory** - Terminate any other processes using GPU memory, clear GPU cache, or restart the GPU driver to increase available memory for the llama-server process.

The error indicates a fundamental memory mismatch between what the model is requesting and what's physically available on the GPU.