Step 1: We must find the single incorrect statement about blind loop syndrome.
Step 2: The condition is fundamentally bacterial overgrowth in a stagnant loop of small intestine, confirming option a as true.
Step 3: Bacterial deconjugation of bile salts and B12 capture explain the steatorrhoea, megaloblastic anaemia and fat-soluble vitamin loss in option b, while the 14C-labelled xylose and cholylglycine breath tests in option d are well-known indirect screens for overgrowth.
Step 4: Although antibiotics and replacement therapy form the mainstay, an underlying structural lesion that creates the stagnant loop often needs surgical correction. Saying surgery is never needed is therefore false.
\[\boxed{\text{Surgery is not indicated}}\]