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Project State: the settled facts of a project
A project accumulates decisions, and most of them get revised. Project State holds only what is true now: one current value per label, with everything it replaced kept underneath it.
So a label like Visual direction holds the look you actually settled on, and the two you tried before it are still readable but plainly marked as superseded. A price works the same way, but it is rarely the fact that hurts. What drifts is a character's hair, the voice a brand writes in, the approach you ruled out in week two.
This is what an AI tool reads first over MCP. Without it, the model has to infer the current answer from a pile of notes written at different times, which is exactly how it ends up confidently telling you last month's price.
An assistant can record facts here too, and this is where it stops being an ordinary notes field. If nothing is recorded under that label yet, it is simply recorded. If it contradicts a value the project already holds, nothing changes: the existing value stays in force and the suggestion waits for you, with both versions side by side.
Only a contradiction stops to ask. Anything the project did not already know is recorded without interrupting you. A list that fills up with everything an assistant saved is one that gets cleared without being read, which would leave the approval step worth less than no approval step at all.