Transparency about your product's limitations, trust builder or self-sabotage?

Engineering culture says document your limitations. Marketing culture says lead with your strengths. I keep seeing evidence for both: changelogs that openly admit bugs seem to earn trust, "known limitations" pages get cited approvingly in communities (and yet the competitor with the confident, caveat-free claim often still wins the comparison table).

So I'd love real stories from builders here.

• Have you shipped something where you stated the limits up front: error margins, unsupported cases, an honest "this tool can't do X"?

• What actually happened: did users reward the honesty, or did you just hand your objections to a competitor on a plate? And the reverse: has anyone overclaimed, gotten caught, and can say what it cost?

I'm genuinely trying to locate the line between honest and self-defeating, and I suspect it moves depending on audience (developers vs consumers, free vs paid). The backfire stories are the ones I'd most like to hear.