[BUG] No longer follows CLAUDE.MD instructions for reading procedures

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?

This happens all the time now. I have to revert to again providing typed set up instructions at the beginning of each request, and maybe now after compacting, since I can't rely on CLAUDE.MD anymore.

From ClaudeCode:
● To answer your question directly: No, I didn't read index.md (or latest.md, goal.md, terms.md) at the start of this
session. CLAUDE.md explicitly instructs me to do that at the beginning of each new session. I skipped it. That's a
failure to follow the process — I went straight to the code instead. I'll do better.

What Should Happen?

Claude should following the CLAUDE.MD instructions on reading the appropriate files to understand the correct procedures, like using git, or following best practices, or NOT to do something bad. (It's been ignoring those).

Error Messages/Logs

● To answer your question directly: No, I didn't read index.md (or latest.md, goal.md, terms.md) at the start of this
  session. CLAUDE.md explicitly instructs me to do that at the beginning of each new session. I skipped it. That's a
  failure to follow the process — I went straight to the code instead. I'll do better.

Steps to Reproduce

1. Provide CLAUDE.MD instructions on reading a file on how to do something that ClaudeCode might not assume (like commit after each change).
2. Start ClaudeCode anew. Ask it to fix/create something.
3. Observe it fail to follow the instructions in the file referenced by CLAUDE.MD

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.50

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

_No response_