There are limits to the AI, but in this case traits are never passed to the model. Using devtools to check the network request sent to chat completions, it shows all of the information that gets sent to the AI. As of 1.0.3, it sends the system prompt and however much of your story that fits in the context limit you set. For me this was set to 64k (model supports up to 128k), but setting it to 1k reduces the information sent to just the system prompt and latest action, so the system prompt isn't being thrown out. I'm sure it wouldn't be handled as consistently if the story context grew to outweigh the system prompt, but that's a separate issue inherent to how messages are weighted. The issue here is just that traits aren't included in the system prompt, so the AI never knows they exist to begin with. Adding "<TRAITS DESCRIPTION>" to the system prompt, similar to how world data and stat descriptions are handled doesn't add any trait information, so there's presumably no code to support it.