Initialize project structure with core files, environment settings, and basic configurations

Co-authored-by: Copilot <copilot@github.com>

thoughts.md

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+# thoughts.md
+
+## Current Status
+- Scaffold complete: `charactergarden/` folder structure created per spec section 9
+- Core contracts defined in `app/src/types.ts`: Entity, Action, Verb, ValidationResult, StateChange, GameEvent, Turn, Belief, Summary
+- `docker-compose.yml` created; ollama service gated behind `--profile llm` (not required for MVP)
+- `.env` created with defaults
+- Nothing is implemented yet — no logic, no database, no server
+
+## Current Architecture Decisions
+- App: Node.js + Fastify + TypeScript
+- Frontend: React + Vite + TypeScript
+- Database: better-sqlite3 (synchronous, no ORM)
+- Ollama is optional; system must work without it (per section 14)
+- `Event` type renamed `GameEvent` in code to avoid collision with the DOM `Event` global
+
+## Next Steps
+1. Implement Truth Engine (`app/src/truthEngine.ts`) — pure validation, no I/O
+2. Add SQLite schema + db module (`app/src/db.ts`) with the 5 tables from section 7
+3. Implement App service / turn flow (`app/src/index.ts`) per section 6
+4. Add Fastify route `POST /turn` that executes the full pipeline
+5. Stub LLM adapter (`app/src/llmAdapter.ts`) with a fallback parser
+
+## Open Questions
+- Should room/location be an Entity attribute or a separate entity type?
+- What is the initial world state for the MVP (1–2 rooms, ≤3 characters)?
+
+## Session Notes
+- 2026-04-23: Project started. Scaffold and type contracts created. No logic yet.