In something like Cursor if it messes something up your can click 'undo'. I'd imagine a small snapshot would only persisted to the memory if you keep it's output and even then it's mostly just a summary.

There's probably lots of small signals of "the user is happy with the output" plus the longer the history the more it will converge on the middle of being what you want. Including when the user says "don't do [x]" which override past stuff.