Very much this. I tried to get Claude to move some code from one file to another. Some of the code went missing. Some of it was modified along the way.
Humans have strategies for refactoring, e.g. "I'm going to start from the top of the file and Cut code that needs to be moved and Paste it in the new location". LLM don't have a clipboard (yet!) so they can't do this.
Claude can only reliably do this refactoring if it can keep the start and end files in context. This was a large file, so it got lost. Even then it needs direct supervision.