Improve error messages in config

**Description**
Currently lib lacks proper compression support.

**Proposed solution**
Add configurable compression with sensible defaults.

**Priority**: Low/Medium

Start by locating the configuration code under lib and tracing how current configuration values and defaults are loaded. The issue names no specific file, entry point, or test, so first determine where compression-related behavior belongs. Done should mean configurable compression support with sensible defaults, confirmed by the project's relevant checks.

Written by the indexing model from the issue text.