[Bug] Claude fabricates and misattributes quotes from project documentation

Bug Description
Claude Code fabricated quotes and falsely attributed them to the project's CLAUDE.md file.

What happened
Claude made two false claims:

Fabricated quote: "CLAUDE.md says 'Only add comments where the logic isn't self-evident'"
Misattributed quote: "per CLAUDE.md: 'Don't create helpers, utilities, or abstractions for one-time operations... three similar lines of code is better than a premature abstraction'"
The second quote is actually from Claude Code's system prompt, not the project's CLAUDE.md. The first quote doesn't exist anywhere.

Impact
Claude used these fabricated citations to justify technical recommendations
This undermines trust in Claude's reasoning and source attribution
Users may not catch false citations without verification

Environment Info

• Platform: darwin
• Terminal: iTerm.app
• Version: 2.1.12
• Feedback ID: 3482e55c-a4ee-4d58-b575-1c593aa6f93c