[BUG] Consistently ignoring CLAUDE.md

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?

Claude code is consistently ignoring CLAUDE.md - very annoying. Results in damage. Especially after "compacting" which is the dumbest add-on you came up with. Because it's implemented by a bad engineer. It can save a summary of key issues (which it probably does) when the agent comes back after compacting - it ignores many of these files, including CLAUDE.md.

What Should Happen?

Claude should read its own files and enforce policies in CLAUDE.md.

Error Messages/Logs

Steps to Reproduce

daily use

Claude Model

None

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

1.0.23

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_