They do. Think of it like a very intelligent but somewhat unreliable engineer you can hire to look at your code. They have no context about the codebase beyond what’s written in the source code, or any docs you give them.
What I meant was the docs might provide explanations about the problems the codebase solves, design decisions, the abstractions chosen, etc that wouldn’t live in a particular source file. Any discussion someone has with an LLM about the codebase will lack this context in the explanations given if docs don’t exist.