Hi @jak I think everything you are doing is correct, but there are some caveats when working with context that are important for your example:
When editing a component in the toddle-editor, you are editing it as a stand-alone and as if it was the root of the app. So it is impossible to actually have a real context provider when previewing a consumer component. Instead, subscribed contexts are faking themselves by feeding their initial values, usually based on the test-values. Calling workflows etc. will not update the values of the provider. This is likely a temporary limitation as we figure out a strong solution to previewing context in the editor, but there are some ugly edge-cases we must handle.
You can create a page/component with the provider and the consumer (as a child) to test with a real context provider. In your example, if you add a page with your provider context and the consumer usecontext as a child, I suspect it actually works both in the editor and in production!
Context is still a v1 feature, and we are still monitoring feedback (including yours 🙌 ) so we can make improvements.
Let me know if you still have any issues, perhaps I can set up a demo-project to showcase some basic context usage.