It's neither of those things. The answer is in your quoted sentence. "model training"
Edit: This helps: https://arxiv.org/abs/2212.08073
At a high level, training takes in training data and produces model weights, and “test time” takes model weights and a prompt to produce output. Every end user has the same model weights, but different prompts. They’re saying that the constitution goes into the training data, while CLAUDE.md goes into the prompt.