The AI will randomly forget or replace information that it has previously established. One time it tried to gaslight me into thinking an NPC that was already established to be a person with a specific appearance, was instead a computer. I had to argue with the AI and force it to remember "No! This NPC comes from THIS place. It is a HUMAN. AND NO, THE CHARACTER IS NOT A LAPTOP, NOR TURNED INTO ONE AT ANY POINT OF THE GAME!!!"
... Other than that, the system has a fine foundation. It just has issues where it gives me a named NPC, but then proceeds to forget the rules it establishes. It randomly throws me into rooms even though it's established we're outside. It will say I'm in the middle of an ocean when I'm at a river. The usual.
Perhaps to fix that, a mechanic can be borrowed from The Perchance AI text adventure system?
That one had a list of notes the player could jot down so the AI wouldn't have this issue.
It also had a button to self-update, effectively acting as a refresh button.
Perhaps something similar can be introduced - either have an editable "notes" system, or perhaps allow the AI to add or edit entities and locations to the world while you're playing? That could probably help.
