It says "of course you're right" and may or may not refactor/fix/rewrite the issue correctly. More often than not it doesn't or misses some detail.

So you tell it again, "of course you are right", and the cycle repeats.

And then the context window gets exhausted. Compaction loses most of the details and degrades quality. You start a new session, but the new session has to re-learn the entire world from scratch and may or may not fix the issue.

And so the cycle continued.