So hilariously, I hadn't actually read those docs yet, I just knew they added the feature. It seems like the docs may not be up to date, as when I read them in response to your reply here, I was like "wait, I thought it was more sophisticated than that!"

The answer seems to be both yes and no: see their announcement on youtube yesterday: https://www.youtube.com/watch?v=Yct0MvNtdfU&t=181s

It's still ultimately file-based, but it can create non-Claude.md files in a directory it treats more specially. So it's less sophisticated than I expected, but more sophisticated than the previous "add this to claude.md" feature they've had for a while.

Thanks for the nudge to take the time to actually dig into the details :)