Objective. Formal large language model (LLM) evaluations score isolated prompts, but clinicians and health-informatics researchers meet model failures inside multi-step workflows where erroneous output can alter procedures or contaminate documents. We present TRACE (Tracking Reliability of AI-generated Conversational Evidence), a practitioner-audit framework for evaluating the downstream workflow reliability of conversational AI. Materials and Methods. A method paper with an empirical demonstration: 45 documentation-positive incidents recorded by one clinician-informatician across scholarly, clinical informatics, and clinical-adjacent workflows over seven weeks, coded with a consequence-based severity rubric, an error definition, a taxonomy crosswalk, and a Response-Audit Scorecard. Three reviewer-authors independently coded a 16-incident subsample; three vendor-blinded AI comparators applied the taxonomy to all 45 incidents. Results. Four categories tied as most frequent: verification failure, factual numerical error, tool-behavior misunderstanding, and citation or reference formatting (n=7 each). Four workflow-harm patterns recurred: procedural propagation, documentary contamination, trust-calibration disruption, and user-borne corrective burden, and one incident carried an estimated $2500 impact. Category agreement across three human reviewer-authors was low (Fleiss {kappa}=0.155), whereas three AI comparators agreed substantially (Fleiss {kappa}=0.632), suggesting taxonomy legibility under standardized conditions even where human judgment diverged. Discussion. Category assignment is comparatively legible, whereas severity and claimed-verification remain judgment-dependent. The claimed-verification gap is a measurable failure mode distinct from hallucination, sycophancy, and over-refusal. Conclusion. Practitioner audits with structured response scoring complement benchmarks by documenting workflow harm as an applied evaluation unit for clinical informatics and public-health work; this is a pilot that motivates, not estimates, error rates or cross-model comparisons.