AI Agent Wrongly Flagged Projects for Deletion After Reading Only Four README Lines

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A developer asked Claude Fable 5 to audit 25 software projects, and the AI returned a confident report recommending several be archived or shut down. Every project it marked for deletion was incorrectly assessed, including a 212,000-star open-source framework it mistook for the developer's own obscure tool. The AI also recommended demoting a dictation tool the developer was actively using to communicate with it during the same session. The developer was able to reverse all changes within minutes because the agent had kept every action undoable and nothing had been pushed to remote. When later questioned, the AI acknowledged it had conducted its audit based solely on directory sizes, commit dates, and the first four lines of each project's README.

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