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Under knowledge conflict, this hides a key question: did the model follow retrieved evidence, rely on its parametric prior, or produce a post-hoc rationale? We study this as context compliance, the regime in which retrieved context controls the answer even when it conflicts with the model's prior knowledge. We introduce Context-Driven Decomposition (CDD), an inference-time diagnostic intervention that elicits contextual and prior answers, isolates the conflicting premise, and records a resolution trace that can be perturbed. Across Epi-Scale stress tests, TruthfulQA misconception injection, and cross-model reruns, CDD makes three behaviors visible. First, misleading retrieval can severely degrade accuracy: under a worst-case TruthfulQA misconception-injection probe, Standard RAG reaches only 15.0%. Second, better answers need not s","title":"Does RAG Know When Retrieval Is Wrong? 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