[BUG] CLAUDE.md memory files not automatically loaded at startup

Preflight Checklist

• [x] I have searched existing issues and this hasn't been reported yet
• [x] This is a single bug report (please file separate reports for different bugs)
• [x] I am using the latest version of Claude Code

What's Wrong?

Bug Report

Environment:

• Claude Code version: [check your version]
• OS: Windows (win32)
• Working directory: c:\cv_starter

Expected Behavior:
According to documentation at https://code.claude.com/docs/en/memory, CLAUDE.md files should be "automatically loaded into Claude Code's context when launched."

Actual Behavior:

• CLAUDE.md file exists at project root (126KB, confirmed present)
• Claude Code does NOT automatically read it at startup
• /memory command returns error: "Slash command memory is not a prompt-based command"
• No CLAUDE.md content appears in Claude's context
• Claude has no awareness of the file's existence unless manually told to read it

Impact:
The entire memory system documented by Anthropic appears non-functional, defeating the purpose of creating project context files.

Reproduction:

1. Create CLAUDE.md in project root
2. Launch Claude Code in that directory
3. Ask Claude what it knows about the project
4. Observe: Claude has no context from CLAUDE.md

What Should Happen?

should read the damn file!

Error Messages/Logs

Steps to Reproduce

launch a new instance

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.0.36

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_