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There are A LOT of these. I have had good experience with https://pypi.org/project/git2md
Says "Support for .gitignore, .globalignore and .mdignore for local projects: Automatically excludes files/directories specified in .gitignore, .globalignore or .mdignore."
If you don't find what you like, I've also found it easy to ask LLMs to just write a tool customized to my use case, usually when I need to somehow condense the code base to make it fit in the context.
Sphinx's autodoc tool does gathering documentation and will traverse the whole package with the right config. It can read markdown with myst-parser. It provides HTML, TeX etc as output formats out of the box, however if you need markdown as output you many need an extension.
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