diff --git a/graphify/build.py b/graphify/build.py
index 258036f8f..2de02b2ae 100644
--- a/graphify/build.py
+++ b/graphify/build.py
@@ -666,7 +666,15 @@ def deduplicate_by_label(nodes: list[dict], edges: list[dict]) -> tuple[list[dic
     """Merge nodes that share a normalised label, rewriting edge references.
 
     Prefers IDs without chunk suffixes (_c\\d+) and shorter IDs when tied.
-    Drops self-loops created by the merge. Called in build() automatically.
+    Drops self-loops created by the merge.
+
+    Dormant: this is NOT wired into ``build()`` — the active dedup path is
+    ``deduplicate_entities`` (imported and called in ``build``), which supersedes
+    it. The previous "Called in build() automatically" note was never true. It
+    also merges by label alone with no ``file_type`` guard, so it must not be
+    enabled for code nodes: same-label symbols from different files/packages
+    (e.g. two ``Account`` types) would collapse into one — the cross-file
+    conflation ``deduplicate_entities`` deliberately avoids for code (#1205).
     """
     _CHUNK_SUFFIX = re.compile(r"_c\d+$")
     canonical: dict[str, dict] = {}  # norm_label -> surviving node