I've seen a lot of code that just assumes fread / fwrite succeeded without bothering to check the return value...

But in this case if the code was calling fread 65536 times in a loop and getting 64KiB each time it wouldn't be good either!

Sounds like the parent comment had to fix this with the internal cache thing to speed up the small freads. I think they meant the easy fix would have been swapping the args in the original / caller code.

There are no small freads in the story, whatever implements those freads supposedly split them up into many calls. But that sound more like a problem of that implementation than the fread callers as size == 1 is correct when you are reading a bag of bytes.