Claude Code stores past conversations as JSON Lines files on disk, which can be resumed using a specific command. However, this session data is separate from the distilled knowledge Claude extracts and saves in memory files (like MEMORY.md) or project-specific instruction files (like CLAUDE.md). These memory and project files provide persistent context that can influence new sessions even if old transcripts are deleted, explaining how the AI can reference past information without direct access to old conversations. AI
IMPACT Provides insight into how AI tools manage and utilize conversational history for persistent context.
RANK_REASON Explains the internal workings of a specific product's feature.
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