Persistent AI Hallucination and Context Truncation Across Claude Versions

Bug Description
there is nothing i can do, no prompt i can craft, no claude.md that exists, nothing that i can do to keep either claude version from lying, implementating fake, mock, facade any definition of fake, data or code. I have done everything possible under best practices and official documentation to try and resolve this but claude almost entirely ignores both the claude.md files that exist throughtout, but also largely ignores my piped in or provided data by truncating what its been told. compaction followup tasks fail to continue or operate sometimes after compaction.

Environment Info

• Platform: linux
• Terminal: cursor
• Version: 1.0.16
• Feedback ID: 53764486-5438-4480-8442-32a9ee0893df

Errors

[{"error":"Error: EACCES: permission denied, mkdir '/home/.claude'\n    at Module.mkdirSync (node:fs:1364:26)\n    at Object.mkdirSync (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:536:1508)\n    at Z3 (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:578:1105)\n    at y51 (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:552:2109)\n    at Di (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:552:4757)\n    at Object.X [as onChange] (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:1921:20244)\n    at Y0.isActive (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:698:19198)\n    at file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:698:1004\n    at A.Q.batchedUpdates (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:144:50760)\n    at EventEmitter.D (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:698:984)","timestamp":"2025-06-10T19:09:15.220Z"},{"error":"Error: EACCES: permission denied, mkdir '/home/.claude'\n    at Module.mkdirSync (node:fs:1364:26)\n    at Object.mkdirSync (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:536:1508)\n    at Z3 (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:578:1105)\n    at y51 (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:552:2109)\n    at Di (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:552:4757)\n    at Object.X [as onChange] (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:1921:20244)\n    at Y0.isActive (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:698:19198)\n    at file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:698:1004\n    at A.Q.batchedUpdates (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:144:50760)\n    at EventEmitter.D (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:698:984)","timestamp":"2025-06-10T19:09:46.577Z"},{"error":"Error: File content (647KB) exceeds maximum allowed size (256KB). Please use offset and limit parameters to read specific portions of the file, or use the GrepTool to search for specific content.\n    at Object.call (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:1413:4394)\n    at call.next (<anonymous>)\n    at nZ5 (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:1896:19170)\n    at process.processTicksAndRejections (node:internal/process/task_queues:105:5)\n    at async JK1 (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:1896:17756)\n    at async GK1 (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:1890:775)\n    at async iZ5 (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:1896:16918)\n    at async pZ5 (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:1896:16403)\n    at async UO (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:1896:15456)\n    at async UO (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:1896:16282)","timestamp":"2025-06-10T19:10:48.076Z"},{"error":"Error: 400 {\"type\":\"error\",\"error\":{\"type\":\"invalid_request_error\",\"message\":\"prompt is too long: 238364 tokens > 200000 maximum\"}}\n    at Y5.generate (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:1338:12578)\n    at Vw.makeStatusError (file:///home/agent/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:1353:2082)\n    at Vw.makeRequest (file:///home/agent/.claude/local/node_modu

Note: Error logs were truncated.