[Bug] Claude Code ignores user preferences for web search and produces hallucinations about tool capabilities

Bug Description
I am really upset about the situation with confabulations vs. ground truth I've seen in Claude Code. I decided to subscribe to Pro and try Code after having a very good experience on Claude Desktop. There, Claude looked up when it wasn't sure, proactively flagged uncertainty, used good references, even before I fine-tuned this with my own preferences. I trusted that Claude Code would work the same, especially when I ported over my preferences, but I've had a very different situation. The confabulation/hallucination situation with Code has seemed so much worse. I have been using it primarily to configure things in an Obsidian vault, and despite the fact that there's vast amounts of information about the app and its plugins online, not to mention in the folder Claude is using, it makes stuff up. I've gone through multiple rabbit holes when it pointed at features/capabilities that just were not there. The latest was talking about Obsidian Bases, where it seemed to give some information based on Excel or something, without performing a single web search. When I found it was wrong, and told it to check again, I had to manually approve dozens of web search/fetch requests so it would come back and say "oh yeah oops I was wrong, guess I should've looked online." I would like to reiterate that this is when it ALREADY HAS guidance that tells it to look stuff up. The fact that it seems to ignore this more than desktop, and that I have to give permission for it to find the ground truth about a thing, on a one-by-one basis at first, is honestly BAFFLING to me.

This is supposed to be about code. Wrong answers here matter MORE than in chat. Claude Code should prefer to look things up, or at least make it easy for me to allow it to do so, ideally flagging something about it when I have preference settings that ASK FOR THAT SPECIFICALLY. If nothing else, having to set two separate permissions for this makes zero sense to me.

People use Claude because it's supposed to be reliable and trustable. This whole situation has severely impacted that for me.