Unclear When this placeholder is used is not established.
What
Hooks are commands you can set to run at certain points while Claude works. When a hook runs for an account memory tool, Claude Code shows "(output withheld: this hook ran for an account memory tool, whose text stays out of the conversation)" instead of the hook's output.
Why
Text from account memory tools stays out of the conversation even when a hook runs on them.
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When this placeholder is used is not established.