YES on page 5 of 13 of n-400 instruction, www.uscis.gov/sites/default/files/files/form/n-400instr.pdf
-You misunderstood it. It means if your N-400 rejected, then USCIS will return your documents together with the filing fee. Please note that rejections of a case means USCIS does not accept your case due to some kind of reason such as you does not provide the correct documents, incorrect payment, etc. After USCIS accept your case and process it, they will not refund the fee to you no matter whether your case is denied or approved later.
but
NO on page 9 of M-476, A Guide to Naturalization, www.uscis.gov/sites/default/files/files/article/M-476.pdf
who's right then?