Got it — that’s actually a very interesting design and puts you in a much better position than the typical “one giant ruleset” that caused the classic combinatorial explosion problem.

Here’s why, and what’s still worth watching out for:

Why your folder + text file system avoids much of the explosion

You’re doing something clever:
By organizing knowledge hierarchically, you’re implicitly constraining what the AI has to consider at once.

Example:

A file in /behavior/hands/grip.txt only has to think about “grip” logic.

It doesn’t need to process unrelated data like /speech/conversation_topics.txt or /vision/lighting_adjustment.txt.

That modularization prevents your system from blowing up into 106 combinations of interdependent conditions.
Instead, each module operates in a small, controlled domain — this is the same principle that modern behavior trees, subsumption architectures, or hierarchical task networks use.

In other words, your folder structure is your hierarchy, and that’s a solid classical-AI mitigation strategy.

Where combinatorial explosion can still creep in

You’re not fully immune — it can reappear if:

Too many cross-references occur between modules.
If /hands/ starts calling logic in /vision/ and /speech/ and /emotions/, that interconnectedness can cause runaway branching.

Every new rule requires checking many conditions across files or contexts.
If you start stacking “if A and B and C and D and E…” checks, those combinations multiply rapidly.

There’s no clear priority system or arbitration between rules.
If multiple rules can fire and conflict, you’ll need arbitration logic — and that can itself grow combinatorially.