"is a sentence fragment." is a sentence fragment.
Awe, this I can wrap my head around.
What I see is one sentence.
I'm going to break this down into three parts, compare it to your simpler counter example, compare it to an altered counter example and finally relate this to the original example.
First, everything in quotes will be referred to as A.
Everything after the quotes will be referred to as B.
Finally, everything altogether will be referred to as C.
Thus:
A = "is a sentence fragment."
B = is a sentence fragment.
C = "is a sentence fragment." is a sentence fragment.
A is not a sentence.
B is not a sentence.
C is a sentence.
Between A, B, and C, there is only one sentence, and that's why I said that what I see is one sentence.
Now, I'm turning to your simpler counter example:
Instead of using A, B, and C, I will use D, E, and F:
Thus:
D = "contains three words."
E = contains three words.
F = "contains three words." contains three words.
D is not a sentence
E is not a sentence
F is a sentence.
Between D, E, and F, there is (again in this example) one sentence.
Now I will create another example:
"water is wet." is a true saying.
G = "water is wet."
H = is a true saying.
I = "water is wet." is a true saying.
There are a couple differences here. One difference, unlike the other examples, is that what's in the quotes is not the same as what's after the quotes (but more on that in a bit), and the second difference is that unlike the other examples, there are two sentences and not just one:
G is a sentence.
H is not a sentence.
I is a sentence.
So, when I look at I, although it is a sentence, it's not just a sentence but a sentence within a sentence. In other words, the sentence (I) contains a quote (G) which itself is a sentence.
Now, let's turn to the original example broken down in the same fashion:
J = "preceded by a copy of itself in quotation marks is a sentence that isn't true."
K = preceded by a copy of itself in quotation marks is a sentence that isn't true.
L = "preceded by a copy of itself in quotation marks is a sentence that isn't true." preceded by a copy of itself in quotation marks is a sentence that isn't true.
Now, let's make some sense of this (some comparative notes, if you will). I originally thought that L was a sentence containing a sentence (like I). Later, I thought L was two consecutive sentences. Now, I've come full circle and believe what I once thought (based on the assumption that your counter examples were meant to mimic the structure), so I believe L is a sentence. In fact, the third notation in every example, mine included, is a sentence; hence, C, F, I, and L are all sentences.
What I find particularly interesting is if J is a sentence, as purported by L, how come the first notation in every counter example (except mine) is not a sentence? Well, I know why mine isn't (not withstanding the quotes, G and H don't match), but that's a different matter.
I suppose what I'm getting at is if J is a sentence, then so is K, so the example has not one, not two, but three sentences (one main sentence containing two sentences, one of which is quoted).
Your thoughts?