paddo.dev: 'Your AGENTS.md Is a Liability' — Agent Compliance Collapses Below 68% at 500-Instruction Threshold

paddo.dev·high signal

A paddo.dev analysis establishes a specific failure threshold: agent compliance with AGENTS.md instructions drops below 68% when the file exceeds 500 instructions, creating a counterproductive pattern where more documentation produces less adherence. The piece argues bloated AGENTS.md files become net liabilities — consuming tokens while degrading behavior — and recommends modular minimal root files with scoped subdirectory context loaded only when active. Paired with the ICSE JAWs finding above, the combined prescription is: AGENTS.md works, but only when kept small and scoped.