I'd highly recommend working top down, getting it to outline a sane architecture before it starts coding. Then if one of the modules starts getting fouled up, start with a clean sheet context (for that module) incorporating any cautions or lessons learned from the bad experience. LLMs are not yet good at working and reworking the same code, for the reasons you outline. But they are pretty good at a "Groundhog Day" approach of going through the implementation process over and over until they get it right.
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