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Not my experience. I've used LLMs to write highly specific scientific/niche code and they did great, but obviously I had to feed them the right context (compiled from various websites and books convered to markdown in my case) to understand the problem well enough. That adds additional work on my part, but the net productivity is still very much positive because it's one-time setup cost.
Telling LLMs which files they should look at was indeed necessary 1-2 years ago in early models, but I have not done that for the last half year or so, and I'm working on codebases with millions of lines of code. I've also never had modern LLMs use nonexistent libraries. Sometimes they try to use outdated libraries, but it fails very quickly once they try to compile and they quickly catch the error and follow up with a web search (I use a custom web search provider) to find the most appropriate library.
I'm convinced that anybody who says that LLMs don't work for them just doesn't have a good mental model of HOW LLMs work, and thus can't use them effectively. Or their experience is just outdated.
That being said, the original issue that they don't always follow instructions from CLAUDE/AGENT.md files is quite true and can be somewhat annoying.
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