fix(coding-agent): complete usage-aware fallback integration

2026-08-03 16:33:46 +00:00
parent 01c1f91ff5
commit db97103c32
20 changed files with 1369 additions and 241 deletions
@@ -5,6 +5,7 @@
 ## [17.2.6] - 2026-08-03

 ### Fixed
+- Preserved queued steering and follow-up messages when a continuation is cancelled before or during pre-dequeue hooks, and propagated the caller's cancellation signal through every continuation model-call loop.

 - Fixed an issue where peer-IRC interrupts (such as subagent messages) incorrectly skipped non-interruptible tool calls queued in the same batch.
 - Improved interruption messaging to clearly distinguish between parent-agent steering and system-advisory interruptions.
@@ -1016,7 +1016,7 @@ async function runLoopBody(
 		// Skip when the run is already externally aborted — dequeuing would strand
 		// the messages in a run that is about to die.
 		try {
-			pendingMessages = signal?.aborted ? [] : (await config.getSteeringMessages?.()) || [];
+			pendingMessages = signal?.aborted ? [] : (await config.getSteeringMessages?.(signal)) || [];
 		} catch (error) {
 			stream.push({ type: "turn_start" });
 			emitInputMessages(stream, messagesToEmit);
@@ -1075,7 +1075,7 @@ async function runLoopBody(
 				let gateResult: AgentPreModelCallResult;
 				try {
 					if (config.syncContextBeforeModelCall) {
-						await config.syncContextBeforeModelCall(currentContext);
+						await config.syncContextBeforeModelCall(currentContext, signal);
 					}

 					if (!directiveResolvedForTurn) {
@@ -1421,7 +1421,7 @@ async function runLoopBody(
 				// instantly aborts — message lands in history, agent never responds. The
 				// mid-batch interrupt poll only peeks (hasSteeringMessages), so the queue
 				// still owns every message until this dequeue.
-				const steering = signal?.aborted ? [] : (await config.getSteeringMessages?.()) || [];
+				const steering = signal?.aborted ? [] : (await config.getSteeringMessages?.(signal)) || [];
 				if (hasMoreToolCalls) {
 					// Mid-work: fold any non-interrupting asides into the next turn alongside steering.
 					const asides = signal?.aborted ? [] : resolveAsides(await config.getAsideMessages?.());
@@ -1450,9 +1450,9 @@ async function runLoopBody(
 			// Re-poll steering too: a steer can land between the stop-boundary dequeue
 			// above and this yield point (e.g. queued while onBeforeYield ran). Without
 			// this poll it would strand in the queue until the next manual prompt.
-			const lateSteering = signal?.aborted ? [] : (await config.getSteeringMessages?.()) || [];
+			const lateSteering = signal?.aborted ? [] : (await config.getSteeringMessages?.(signal)) || [];
 			const asideMessages = signal?.aborted ? [] : resolveAsides(await config.getAsideMessages?.());
-			const followUpMessages = signal?.aborted ? [] : (await config.getFollowUpMessages?.()) || [];
+			const followUpMessages = signal?.aborted ? [] : (await config.getFollowUpMessages?.(signal)) || [];
 			if (lateSteering.length > 0 || asideMessages.length > 0 || followUpMessages.length > 0) {
 				// Set as pending so the inner loop processes them before stopping.
 				pendingMessages = [...lateSteering, ...asideMessages, ...followUpMessages];
@@ -426,6 +426,8 @@ export class Agent {
 	#asideMessageProvider?: () => AsideMessage[] | Promise<AsideMessage[]>;
 	#telemetry?: AgentLoopConfig["telemetry"];
 	#appendOnlyContext?: AppendOnlyContextManager;
+	#beforeQueuedMessageDequeueHooks = new Set<(signal?: AbortSignal) => Promise<void> | void>();
+	#beforeModelCallHooks = new Set<(signal?: AbortSignal) => Promise<void> | void>();

 	/** Buffered Cursor tool results with text length at time of call (for correct ordering) */
 	#cursorToolResultBuffer: CursorToolResultEntry[] = [];
@@ -784,6 +786,40 @@ export class Agent {
 		return () => this.#listeners.delete(fn);
 	}

+	/** Register an independently removable hook that runs before queued messages are consumed. */
+	addBeforeQueuedMessageDequeueHook(hook: (signal?: AbortSignal) => Promise<void> | void): () => void {
+		const registration = (signal?: AbortSignal) => hook(signal);
+		this.#beforeQueuedMessageDequeueHooks.add(registration);
+		return () => this.#beforeQueuedMessageDequeueHooks.delete(registration);
+	}
+
+	/** Register an independently removable hook that runs immediately before each model call. */
+	addBeforeModelCallHook(hook: (signal?: AbortSignal) => Promise<void> | void): () => void {
+		const registration = (signal?: AbortSignal) => hook(signal);
+		this.#beforeModelCallHooks.add(registration);
+		return () => this.#beforeModelCallHooks.delete(registration);
+	}
+
+	async #runBeforeModelCallHooks(signal?: AbortSignal): Promise<void> {
+		for (const hook of this.#beforeModelCallHooks) await hook(signal);
+	}
+
+	async #runBeforeQueuedMessageDequeueHooks(signal?: AbortSignal): Promise<void> {
+		for (const hook of this.#beforeQueuedMessageDequeueHooks) await hook(signal);
+	}
+
+	async #dequeueSteeringMessagesAfterHooks(signal?: AbortSignal): Promise<AgentMessage[]> {
+		if (signal?.aborted || this.#steeringQueue.length === 0) return [];
+		await this.#runBeforeQueuedMessageDequeueHooks(signal);
+		return signal?.aborted ? [] : this.#dequeueSteeringMessages();
+	}
+
+	async #dequeueFollowUpMessagesAfterHooks(signal?: AbortSignal): Promise<AgentMessage[]> {
+		if (signal?.aborted || this.#followUpQueue.length === 0) return [];
+		await this.#runBeforeQueuedMessageDequeueHooks(signal);
+		return signal?.aborted ? [] : this.#dequeueFollowUpMessages();
+	}
+
 	setProviderResponseInterceptor(fn: SimpleStreamOptions["onResponse"] | undefined): void {
 		this.#onResponse = fn;
 	}
@@ -1137,11 +1173,26 @@ export class Agent {
 	/**
 	 * Continue from current context (used for retries and resuming queued messages).
 	 */
-	async continue() {
+	#continuationDequeueSignal(signal?: AbortSignal): AbortSignal | undefined {
+		if (this.#deadline === undefined) return signal;
+		const delay = this.#deadline - Date.now();
+		let deadlineSignal: AbortSignal;
+		if (delay <= 0) {
+			const controller = new AbortController();
+			controller.abort(new DOMException("Deadline exceeded", "TimeoutError"));
+			deadlineSignal = controller.signal;
+		} else {
+			deadlineSignal = AbortSignal.timeout(delay);
+		}
+		return signal ? AbortSignal.any([signal, deadlineSignal]) : deadlineSignal;
+	}
+
+	async continue(signal?: AbortSignal) {
 		if (this.#state.isStreaming) {
 			throw new AgentBusyError();
 		}

+		const dequeueSignal = this.#continuationDequeueSignal(signal);
 		const messages = this.#state.messages;
 		if (messages.length === 0) {
 			// An empty transcript has nothing to resume, but a queued steer/follow-up
@@ -1150,35 +1201,35 @@ export class Agent {
 			// callers (AgentSession#scheduleQueuedMessageDrain) re-arm continue() on every
 			// microtask because hasQueuedMessages() never clears, spinning an unbounded
 			// allocation loop until OOM (issue #6344).
-			const queuedSteering = this.#dequeueSteeringMessages();
+			const queuedSteering = await this.#dequeueSteeringMessagesAfterHooks(dequeueSignal);
 			if (queuedSteering.length > 0) {
-				await this.#runLoop(queuedSteering, { skipInitialSteeringPoll: true });
+				await this.#runLoop(queuedSteering, { skipInitialSteeringPoll: true }, signal);
 				return;
 			}
-			const queuedFollowUp = this.#dequeueFollowUpMessages();
+			const queuedFollowUp = await this.#dequeueFollowUpMessagesAfterHooks(dequeueSignal);
 			if (queuedFollowUp.length > 0) {
-				await this.#runLoop(queuedFollowUp);
+				await this.#runLoop(queuedFollowUp, undefined, signal);
 				return;
 			}
 			throw new Error("No messages to continue from");
 		}
 		if (messages[messages.length - 1].role === "assistant") {
-			const queuedSteering = this.#dequeueSteeringMessages();
+			const queuedSteering = await this.#dequeueSteeringMessagesAfterHooks(dequeueSignal);
 			if (queuedSteering.length > 0) {
-				await this.#runLoop(queuedSteering, { skipInitialSteeringPoll: true });
+				await this.#runLoop(queuedSteering, { skipInitialSteeringPoll: true }, signal);
 				return;
 			}

-			const queuedFollowUp = this.#dequeueFollowUpMessages();
+			const queuedFollowUp = await this.#dequeueFollowUpMessagesAfterHooks(dequeueSignal);
 			if (queuedFollowUp.length > 0) {
-				await this.#runLoop(queuedFollowUp);
+				await this.#runLoop(queuedFollowUp, undefined, signal);
 				return;
 			}

 			throw new Error("Cannot continue from message role: assistant");
 		}

-		await this.#runLoop(undefined);
+		await this.#runLoop(undefined, undefined, signal);
 	}

 	/**
@@ -1186,7 +1237,11 @@ export class Agent {
 	 * If messages are provided, starts a new conversation turn with those messages.
 	 * Otherwise, continues from existing context.
 	 */
-	async #runLoop(messages?: AgentMessage[], options?: AgentPromptOptions & { skipInitialSteeringPoll?: boolean }) {
+	async #runLoop(
+		messages?: AgentMessage[],
+		options?: AgentPromptOptions & { skipInitialSteeringPoll?: boolean },
+		continuationSignal?: AbortSignal,
+	) {
 		const model = this.#state.model;
 		if (!model) throw new Error("No model configured");

@@ -1197,6 +1252,9 @@ export class Agent {
 		this.#resolveRunningPrompt = resolve;

 		this.#abortController = new AbortController();
+		const loopSignal = continuationSignal
+			? AbortSignal.any([this.#abortController.signal, continuationSignal])
+			: this.#abortController.signal;
 		this.#state.isStreaming = true;
 		this.#state.streamMessage = null;
 		this.#state.error = undefined;
@@ -1315,7 +1373,8 @@ export class Agent {
 			onSseEvent: this.#onSseEvent,
 			getApiKey: this.getApiKey,
 			getToolContext: this.#getToolContext,
-			syncContextBeforeModelCall: async context => {
+			syncContextBeforeModelCall: async (context, signal) => {
+				await this.#runBeforeModelCallHooks(signal);
 				if (this.#listeners.size > 0) {
 					await Bun.sleep(0);
 				}
@@ -1362,12 +1421,12 @@ export class Agent {
 			getReasoning: () => this.#state.thinkingLevel,
 			getDisableReasoning: () => this.#state.disableReasoning,
 			getServiceTier: this.#serviceTierResolver,
-			getSteeringMessages: async () => {
+			getSteeringMessages: async signal => {
 				if (skipInitialSteeringPoll) {
 					skipInitialSteeringPoll = false;
 					return [];
 				}
-				return this.#dequeueSteeringMessages();
+				return this.#dequeueSteeringMessagesAfterHooks(signal);
 			},
 			hasSteeringMessages: () => {
 				if (this.#steeringQueue.length === 0) {
@@ -1392,7 +1451,7 @@ export class Agent {
 			},
 			waitForSteeringMessages: signal => this.#waitForSteeringMessages(signal),
 			hasIrcInterrupts: this.hasIrcInterrupts,
-			getFollowUpMessages: async () => this.#dequeueFollowUpMessages(),
+			getFollowUpMessages: signal => this.#dequeueFollowUpMessagesAfterHooks(signal),
 			getAsideMessages: async () => (await this.#asideMessageProvider?.()) ?? [],
 			onBeforeYield: () => this.#onBeforeYield?.(),
 			telemetry: this.#telemetry,
@@ -1404,8 +1463,8 @@ export class Agent {

 		try {
 			const stream = messages
-				? agentLoop(messages, context, config, this.#abortController.signal, this.streamFn)
-				: agentLoopContinue(context, config, this.#abortController.signal, this.streamFn);
+				? agentLoop(messages, context, config, loopSignal, this.streamFn)
+				: agentLoopContinue(context, config, loopSignal, this.streamFn);

 			for await (const event of stream) {
 				if (event.type === "turn_start") turnOpen = true;
@@ -1472,15 +1531,15 @@ export class Agent {
 				if (!onlyEmpty) {
 					this.appendMessage(partial);
 				} else {
-					if (this.#abortController?.signal.aborted) {
+					if (loopSignal.aborted) {
 						throw new Error("Request was aborted");
 					}
 				}
 			}
 		} catch (err) {
-			const stoppedForAbort = this.#abortController?.signal.aborted === true;
+			const stoppedForAbort = loopSignal.aborted;
 			const errorMessage = stoppedForAbort
-				? abortReasonText(this.#abortController?.signal)
+				? abortReasonText(loopSignal)
 				: err instanceof Error
 					? err.message
 					: String(err);
@@ -240,7 +240,7 @@ export interface AgentLoopConfig extends SimpleStreamOptions {
 	 * mid-batch interrupt poll uses {@link hasSteeringMessages} instead and
 	 * never consumes the queue.
 	 */
-	getSteeringMessages?: () => Promise<AgentMessage[]>;
+	getSteeringMessages?: (signal?: AbortSignal) => Promise<AgentMessage[]>;

 	/**
 	 * Peeks whether steering messages are queued, without consuming them.
@@ -285,7 +285,7 @@ export interface AgentLoopConfig extends SimpleStreamOptions {
 	 * If messages are returned, they're added to the context and the agent
 	 * continues with another turn.
 	 */
-	getFollowUpMessages?: () => Promise<AgentMessage[]>;
+	getFollowUpMessages?: (signal?: AbortSignal) => Promise<AgentMessage[]>;
 	/**
 	 * Returns non-interrupting "aside" messages to inject at a step boundary.
 	 *
@@ -319,7 +319,7 @@ export interface AgentLoopConfig extends SimpleStreamOptions {
 	 * Mutate the agent context here; use `beforeModelCall` to inspect the
 	 * provider-bound context.
 	 */
-	syncContextBeforeModelCall?: (context: AgentContext) => void | Promise<void>;
+	syncContextBeforeModelCall?: (context: AgentContext, signal?: AbortSignal) => void | Promise<void>;

 	/**
 	 * Asked after the complete provider context has been built, including
@@ -240,6 +240,106 @@ describe("Agent", () => {
 		}
 	});

+	it("removes duplicate queued-message hooks independently", async () => {
+		const mock = createMockModel({ responses: [{ content: ["first"] }, { content: ["second"] }] });
+		const agent = new Agent({ streamFn: mock.stream });
+		agent.replaceMessages([createAssistantMessage([{ type: "text", text: "ready" }])]);
+		let calls = 0;
+		const signals: Array<AbortSignal | undefined> = [];
+		const hook = (signal?: AbortSignal) => {
+			calls++;
+			signals.push(signal);
+		};
+		const removeFirst = agent.addBeforeQueuedMessageDequeueHook(hook);
+		const removeSecond = agent.addBeforeQueuedMessageDequeueHook(hook);
+
+		const controller = new AbortController();
+		removeFirst();
+		agent.followUp({ role: "user", content: "first turn", timestamp: Date.now() });
+		await agent.continue(controller.signal);
+		expect(calls).toBe(1);
+		expect(signals).toEqual([controller.signal]);
+
+		removeSecond();
+		agent.followUp({ role: "user", content: "second turn", timestamp: Date.now() });
+		await agent.continue();
+		expect(calls).toBe(1);
+	});
+
+	it("continue() leaves queued messages owned when its signal is already aborted", async () => {
+		const agent = new Agent();
+		agent.replaceMessages([createAssistantMessage([{ type: "text", text: "ready" }])]);
+		agent.followUp({ role: "user", content: "stay queued", timestamp: Date.now() });
+		const controller = new AbortController();
+		controller.abort();
+
+		await expect(agent.continue(controller.signal)).rejects.toThrow("Cannot continue from message role: assistant");
+		expect(agent.peekFollowUpQueue()).toHaveLength(1);
+	});
+	it("keeps follow-up ownership when the deadline expires during a dequeue hook", async () => {
+		const mock = createMockModel({ responses: [{ content: ["done"] }] });
+		const agent = new Agent({ streamFn: mock.stream, deadline: Date.now() + 25 });
+		let hookSignal: AbortSignal | undefined;
+		agent.addBeforeQueuedMessageDequeueHook(async signal => {
+			if (!signal) throw new Error("Expected the active loop signal");
+			hookSignal = signal;
+			if (signal.aborted) return;
+			const { promise, resolve } = Promise.withResolvers<void>();
+			signal.addEventListener("abort", () => resolve(), { once: true });
+			await promise;
+		});
+		agent.followUp({ role: "user", content: "stay queued after deadline", timestamp: Date.now() });
+
+		await agent.prompt("start");
+
+		expect(hookSignal?.aborted).toBe(true);
+		expect(agent.peekFollowUpQueue()).toHaveLength(1);
+	});
+	it("keeps queued work when continue() reaches its deadline inside a dequeue hook", async () => {
+		const agent = new Agent({ deadline: Date.now() + 25 });
+		agent.replaceMessages([createAssistantMessage([{ type: "text", text: "ready" }])]);
+		agent.addBeforeQueuedMessageDequeueHook(async signal => {
+			if (!signal) throw new Error("Expected the deadline-aware dequeue signal");
+			if (signal.aborted) return;
+			const { promise, resolve } = Promise.withResolvers<void>();
+			signal.addEventListener("abort", () => resolve(), { once: true });
+			await promise;
+		});
+		agent.followUp({ role: "user", content: "stay queued before run loop", timestamp: Date.now() });
+
+		await expect(agent.continue()).rejects.toThrow("Cannot continue from message role: assistant");
+
+		expect(agent.peekFollowUpQueue()).toHaveLength(1);
+	});
+
+	it("classifies an in-flight continuation cancellation as aborted", async () => {
+		const providerStarted = Promise.withResolvers<AbortSignal>();
+		const agent = new Agent({
+			streamFn: (_model, _context, options) => {
+				const signal = options?.signal;
+				if (!signal) throw new Error("Expected provider abort signal");
+				providerStarted.resolve(signal);
+				const stream = new AssistantMessageEventStream();
+				signal.addEventListener("abort", () => stream.fail(new Error("provider aborted")), { once: true });
+				return stream;
+			},
+		});
+		agent.replaceMessages([createAssistantMessage([{ type: "text", text: "ready" }])]);
+		agent.followUp({ role: "user", content: "cancel this continuation", timestamp: Date.now() });
+		const controller = new AbortController();
+
+		const running = agent.continue(controller.signal);
+		await providerStarted.promise;
+		controller.abort("caller cancelled");
+		await running;
+
+		const finalMessage = agent.state.messages.at(-1);
+		expect(finalMessage?.role).toBe("assistant");
+		if (finalMessage?.role !== "assistant") throw new Error("Expected aborted assistant message");
+		expect(finalMessage.stopReason).toBe("aborted");
+		expect(finalMessage.errorMessage).toBe("caller cancelled");
+	});
+
 	it("continue() should process queued follow-up messages after an assistant turn", async () => {
 		const mock = createMockModel({ responses: [{ content: ["Processed"] }] });
 		const agent = new Agent({ streamFn: mock.stream });
@@ -276,6 +376,12 @@ describe("Agent", () => {
 			responses: [{ content: ["Processed 1"] }, { content: ["Processed 2"] }],
 		});
 		const agent = new Agent({ streamFn: mock.stream });
+		let dequeueHooks = 0;
+		const dequeueSignals: Array<AbortSignal | undefined> = [];
+		agent.addBeforeQueuedMessageDequeueHook(signal => {
+			dequeueHooks++;
+			dequeueSignals.push(signal);
+		});

 		agent.replaceMessages([
 			{
@@ -297,11 +403,16 @@ describe("Agent", () => {
 			timestamp: Date.now() + 1,
 		});

-		await expect(agent.continue()).resolves.toBeUndefined();
+		const controller = new AbortController();
+		await expect(agent.continue(controller.signal)).resolves.toBeUndefined();

 		const recentMessages = agent.state.messages.slice(-4);
 		expect(recentMessages.map(m => m.role)).toEqual(["user", "assistant", "user", "assistant"]);
 		expect(mock.calls.length).toBe(2);
+		expect(dequeueHooks).toBe(2);
+		expect(dequeueSignals).toHaveLength(2);
+		controller.abort();
+		expect(dequeueSignals.every(signal => signal?.aborted === true)).toBe(true);
 	});

 	it("delivers a steer that lands at the yield boundary instead of stranding it", async () => {
@@ -856,6 +967,10 @@ describe("Agent", () => {
 			},
 			streamFn: mock.stream,
 		});
+		let beforeModelCalls = 0;
+		agent.addBeforeModelCallHook(() => {
+			beforeModelCalls++;
+		});

 		const unsubscribe = agent.subscribe(event => {
 			if (event.type === "message_end" && event.message.role === "toolResult") {
@@ -875,6 +990,7 @@ describe("Agent", () => {
 			{ systemPrompt: "prompt-one", toolNames: ["alpha"] },
 			{ systemPrompt: "prompt-two", toolNames: ["alpha", "beta"] },
 		]);
+		expect(beforeModelCalls).toBe(2);
 	});

 	it("prompt() drops stale forced toolChoice after same-turn tool refresh", async () => {
@@ -9,6 +9,7 @@
 - Added profile-aware Bedrock Mantle region selection, authenticated model discovery, bearer-token or SigV4 authentication, and credential refresh handling for OpenAI Responses models.

 ### Fixed
+- Made model-scoped usage health ignore Codex accounts that cannot use the requested plan-gated model while retaining conservative unknown-state handling and independent usage-window resets.

 - Fixed an issue where Ollama requests without a user-role message would fail to generate output or silently fail with a misleading error.

@@ -3856,13 +3856,15 @@ export class AuthStorage {
 				: undefined;

 		const rankingContext: CredentialRankingContext = { modelId: options.modelId };
+		const planRequirement = resolveOpenAICodexPlanRequirement(provider, options.modelId);
+		const planEligibilityByCredential = new Map<number, boolean | undefined>();
 		const blockScope = strategy.blockScope?.(rankingContext);
 		const blockScopes = strategy.blockScopes?.(rankingContext) ?? (blockScope ? [blockScope] : []);
 		const reserveFraction = Number.isFinite(options.reserveFraction)
 			? Math.max(0, Math.min(1, options.reserveFraction))
 			: 0;
 		const nowMs = Date.now();
-		const accounts = await Promise.all(
+		let accounts = await Promise.all(
 			pool.map(async ({ entry, index }): Promise<ModelUsageAccountHealth> => {
 				const credentialType = entry.credential.type;
 				const providerKey = this.#getProviderTypeKey(provider, credentialType);
@@ -3890,6 +3892,9 @@ export class AuthStorage {
 					if (options.signal?.aborted) throw error;
 					report = null;
 				}
+				if (planRequirement !== "none") {
+					planEligibilityByCredential.set(entry.id, getOpenAICodexPlanEligibility(report, planRequirement));
+				}

 				if (provider === "openai-codex") {
 					blockedUntil = this.#getCredentialBlockedUntil(provider, providerKey, index, blockScopes);
@@ -3942,6 +3947,12 @@ export class AuthStorage {
 				};
 			}),
 		);
+		if (
+			planRequirement !== "none" &&
+			accounts.some(account => planEligibilityByCredential.get(account.credentialId) === true)
+		) {
+			accounts = accounts.filter(account => planEligibilityByCredential.get(account.credentialId) === true);
+		}
 		if (selectedCredentialId !== undefined) {
 			const selectedAccount = accounts.find(account => account.credentialId === selectedCredentialId);
 			if (selectedAccount) selectedAccount.selected = true;
@@ -2027,6 +2027,50 @@ describe("AuthStorage codex oauth ranking", () => {
 		expect(apiKey).toBe("api-acct-pro");
 	});

+	test("ignores plan-ineligible headroom when reporting Spark model health", async () => {
+		if (!authStorage) throw new Error("test setup failed");
+
+		await authStorage.set("openai-codex", [
+			{ type: "oauth", ...createCredential("acct-free", "free@example.com") },
+			{ type: "oauth", ...createCredential("acct-pro", "pro@example.com") },
+		]);
+		usageByAccount.set(
+			"acct-free",
+			addSparkUsage(
+				createCodexUsageReport({
+					accountId: "acct-free",
+					primary: { usedFraction: 0.05, resetInMs: 30 * 60 * 1000 },
+					secondary: { usedFraction: 0.05, resetInMs: 6 * 24 * 60 * 60 * 1000 },
+					metadata: { planType: "free", email: "free@example.com" },
+				}),
+				0.05,
+				0.05,
+			),
+		);
+		usageByAccount.set(
+			"acct-pro",
+			addSparkUsage(
+				createCodexUsageReport({
+					accountId: "acct-pro",
+					primary: { usedFraction: 1, resetInMs: 2 * HOUR_MS },
+					secondary: { usedFraction: 1, resetInMs: 6 * 24 * 60 * 60 * 1000 },
+					metadata: { planType: "pro", email: "pro@example.com", limitReached: true },
+				}),
+				1,
+				1,
+			),
+		);
+
+		const health = await authStorage.getModelUsageHealth("openai-codex", {
+			modelId: "gpt-5.3-codex-spark",
+			reserveFraction: 0.1,
+		});
+
+		expect(health.state).toBe("depleted");
+		expect(health.accounts).toHaveLength(1);
+		expect(health.accounts[0]?.state).toBe("depleted");
+	});
+
 	test("routes codex spark to a single Plus account when no Pro is connected", async () => {
 		if (!authStorage) throw new Error("test setup failed");

@@ -9,6 +9,7 @@
 - Added the `/reset` slash command to reset the conversation context in place: it drops the live messages, queued turns, and pending tool calls (and cancels the turn's async jobs, post-prompt continuations, and checkpoint/plan runtime state) while keeping the session id, title, cwd, model, and on-disk transcript. It records a durable reset boundary so the live transcript stays cleared across rebuilds (theme change, focus attach, `/shake`, resume) instead of resurrecting the pre-reset messages, while the full pre-reset history stays on disk ([#3580](https://github.com/can1357/oh-my-pi/issues/3580)).

 ### Fixed
+- Completed usage-aware model fallback across startup, queued turns, same-turn tool continuations, ACP/TUI confirmation cancellation, eligible account reselection, cooldown restoration, and isolated subagent settings so low-usage handoffs remain lossless and cannot consume cancelled queued work.

 - Fixed extension slash commands appearing as user prompts after being handled locally.
 - Preserved explicit session titles when branching from an earlier conversation turn.
@@ -2312,7 +2312,7 @@ export class AcpAgent implements Agent {
 			this.#clientCapabilities,
 		);
 		if (this.#clientCapabilities?.elicitation?.form != null) {
-			record.session.setUsageFallbackConfirmer(confirmation => {
+			record.session.setUsageFallbackConfirmer((confirmation, signal) => {
 				const reserve =
 					confirmation.remainingPercent === undefined
 						? "inside the configured reserve margin"
@@ -2320,6 +2320,7 @@ export class AcpAgent implements Agent {
 				return uiContext.confirm(
 					"Coding-plan reserve reached",
 					`${confirmation.from} has ${reserve}. Switch to ${confirmation.to}? Choose No to keep using the current plan.`,
+					{ signal },
 				);
 			});
 		}
@@ -128,7 +128,7 @@ export class ExtensionUiController {
 		};
 		this.ctx.setToolUIContext(uiContext, true);
 		this.#toolUIContext = uiContext;
-		this.ctx.session.setUsageFallbackConfirmer?.(confirmation => {
+		this.ctx.session.setUsageFallbackConfirmer?.((confirmation, signal) => {
 			const reserve =
 				confirmation.remainingPercent === undefined
 					? "inside the configured reserve margin"
@@ -136,6 +136,7 @@ export class ExtensionUiController {
 			return this.showHookConfirm(
 				"Coding-plan reserve reached",
 				`${confirmation.from} has ${reserve}. Switch to ${confirmation.to}? Choose No to keep using the current plan.`,
+				{ signal },
 			);
 		});

@@ -2283,9 +2283,10 @@ async function createAgentSessionScoped(options: CreateAgentSessionOptions): Pro
 					}
 				}
 				const usageReservePolicy = settings.get("retry.usageReservePolicy");
+				const modelFallbackEnabled = settings.get("retry.modelFallback");
 				if (
-					(hasUsageFallbackCandidate || usageReservePolicy === "fail-closed") &&
-					settings.get("retry.modelFallback") &&
+					((modelFallbackEnabled && (hasUsageFallbackCandidate || usageFallbackTriggered)) ||
+						usageReservePolicy === "fail-closed") &&
 					settings.get("retry.usageAwareFallback")
 				) {
 					let usageHealth: ModelUsageHealth | undefined;
@@ -2308,8 +2309,10 @@ async function createAgentSessionScoped(options: CreateAgentSessionOptions): Pro
 								`Usage depleted for ${primary.model.provider}/${primary.model.id}; reserve policy is fail-closed.`,
 							);
 						}
-						usageFallbackTriggered = true;
-						continue;
+						if (modelFallbackEnabled) {
+							usageFallbackTriggered = true;
+							continue;
+						}
 					}
 					if (usageHealth?.state === "reserve") {
 						if (usageReservePolicy === "fail-closed") {
@@ -2317,7 +2320,10 @@ async function createAgentSessionScoped(options: CreateAgentSessionOptions): Pro
 								`Usage reserve reached for ${primary.model.provider}/${primary.model.id}; reserve policy is fail-closed.`,
 							);
 						}
-						if (usageReservePolicy === "auto" || (!options.hasUI && !options.deferUsageReserveConfirmation)) {
+						if (
+							modelFallbackEnabled &&
+							(usageReservePolicy === "auto" || (!options.hasUI && !options.deferUsageReserveConfirmation))
+						) {
 							usageFallbackTriggered = true;
 							continue;
 						}
@@ -92,6 +92,8 @@ export interface UsageFallbackConfirmation {
 	remainingPercent: number | undefined;
 }

+export type UsageFallbackConfirmer = (confirmation: UsageFallbackConfirmation, signal: AbortSignal) => Promise<boolean>;
+
 /** Identifies a retry fallback chain already entered during startup model resolution. */
 export interface InitialRetryFallbackState {
 	/** Role whose configured primary was unavailable. */
@@ -58,7 +58,6 @@ import type {
 	ImageContent,
 	Message,
 	Model,
-	ModelUsageHealth,
 	OAuthAccountIdentity,
 	ProviderSessionState,
 	ResetCreditAccountStatus,
@@ -101,7 +100,7 @@ import { type AdvisorConfig, type AdvisorRuntimeStatus, loadAdvisorTranscriptCos
 import { type AsyncJob, AsyncJobManager } from "../async";
 import { shouldEnableAppendOnlyContext } from "../config/append-only-context-mode";
 import type { ModelRegistry } from "../config/model-registry";
-import { type ResolvedModelRoleValue, resolveModelOverride } from "../config/model-resolver";
+import type { ResolvedModelRoleValue } from "../config/model-resolver";
 import { expandPromptTemplate, type PromptTemplate } from "../config/prompt-templates";
 import { buildServiceTierByFamily } from "../config/service-tier";
 import type { Settings, SkillsSettings } from "../config/settings";
@@ -230,7 +229,7 @@ import type {
 	SessionHandoffOptions,
 	SessionOAuthAccountList,
 	SessionStats,
-	UsageFallbackConfirmation,
+	UsageFallbackConfirmer,
 } from "./agent-session-types";
 import {
 	ASYNC_INLINE_RESULT_MAX_CHARS,
@@ -312,7 +311,6 @@ import {
 	queueChipText,
 	toRestoredQueuedMessage,
 } from "./queued-messages";
-import { formatRetryFallbackSelector, type RetryFallbackSelector } from "./retry-fallback-chains";
 import { type AdvisorStats, SessionAdvisors, type SessionAdvisorsHost } from "./session-advisors";
 import type { BuildSessionContextOptions, SessionContext } from "./session-context";
 import { getRestorableSessionModels } from "./session-context";
@@ -558,9 +556,13 @@ export class AgentSession {

 	// Model registry for API key resolution
 	#modelRegistry: ModelRegistry;
-	#usageFallbackConfirmer: ((confirmation: UsageFallbackConfirmation) => Promise<boolean>) | undefined;
-	#usageReserveApprovedSelector: string | undefined;
+	#usageFallbackConfirmer: UsageFallbackConfirmer | undefined;
 	#usagePreflightAbortControllers = new Set<AbortController>();
+	#queuedMessageDrainBlocked = false;
+	#usagePreflightReadyForNextModelCall = false;
+	#usagePreflightReadyModel: Model | undefined;
+	#detachUsageBeforeQueueDequeue: (() => void) | undefined;
+	#detachUsageBeforeModelCall: (() => void) | undefined;

 	#transformContext: (messages: AgentMessage[], signal?: AbortSignal) => AgentMessage[] | Promise<AgentMessage[]>;
 	#onPayload: SimpleStreamOptions["onPayload"] | undefined;
@@ -768,8 +770,10 @@ export class AgentSession {
 			!this.#canAutoContinueForFollowUp()
 				? [...this.agent.peekFollowUpQueue()]
 				: [];
+		const parkedQueueDrainBlocked = parkedFollowUps.length > 0 && this.#queuedMessageDrainBlocked;
 		if (parkedFollowUps.length > 0) {
 			this.agent.replaceQueues([...this.agent.peekSteeringQueue()], []);
+			if (parkedQueueDrainBlocked) this.#queuedMessageDrainBlocked = false;
 		}
 		let finishObservation: ((error?: unknown) => void | Promise<void>) | undefined;
 		try {
@@ -805,6 +809,7 @@ export class AgentSession {
 						[...this.agent.peekSteeringQueue()],
 						[...parkedFollowUps, ...this.agent.peekFollowUpQueue()],
 					);
+					this.#queuedMessageDrainBlocked ||= parkedQueueDrainBlocked;
 				}
 				this.#endInFlight(async () => {
 					try {
@@ -830,6 +835,7 @@ export class AgentSession {
 			steering.filter(m => !isAdvisorCard(m)),
 			followUp.filter(m => !isAdvisorCard(m)),
 		);
+		this.#reconcileQueuedMessageDrain();
 		return cards;
 	}

@@ -1050,6 +1056,31 @@ export class AgentSession {
 			withBashBranchTransition: operation => this.#bash.withBranchTransition(operation),
 		};
 		this.#recovery = new TurnRecovery(recoveryHost, { initialRetryFallback: config.initialRetryFallback });
+		this.#detachUsageBeforeQueueDequeue = this.agent.addBeforeQueuedMessageDequeueHook(async signal => {
+			if (
+				!this.settings.get("retry.usageAwareFallback") ||
+				(this.#usagePreflightReadyForNextModelCall && this.#usagePreflightReadyModel === this.model)
+			) {
+				return;
+			}
+			if (!(await this.#runQueuedUsageAwarePreflight(signal))) {
+				signal?.throwIfAborted();
+				throw new DOMException("Usage preflight cancelled", "AbortError");
+			}
+		});
+		this.#detachUsageBeforeModelCall = this.agent.addBeforeModelCallHook(async signal => {
+			if (!this.settings.get("retry.usageAwareFallback")) return;
+			if (this.#usagePreflightReadyForNextModelCall) {
+				const checkedModel = this.#usagePreflightReadyModel;
+				this.#usagePreflightReadyForNextModelCall = false;
+				this.#usagePreflightReadyModel = undefined;
+				if (checkedModel === this.model) return;
+			}
+			if (!(await this.#runUsageAwarePreflight(signal))) {
+				signal?.throwIfAborted();
+				throw new DOMException("Usage preflight cancelled", "AbortError");
+			}
+		});
 		const statsHost: SessionStatsTrackerHost = {
 			session: this,
 			agent: this.agent,
@@ -2967,19 +2998,17 @@ export class AgentSession {
 				this.#beginInFlight();
 				try {
 					await this.#recovery.maybeRestoreRetryFallbackPrimary();
-					if (
-						this.settings.get("retry.modelFallback") &&
-						this.settings.get("retry.usageAwareFallback") &&
-						!(await this.#runUsageAwarePreflight())
-					) {
-						this.#skipAgentContinue("session-unavailable", options);
-						return;
-					}
 					if (signal.aborted || this.#isDisposed) {
 						this.#skipAgentContinue("post-restore-unavailable", options);
 						return;
 					}
-					await this.agent.continue();
+					if (this.settings.get("retry.usageAwareFallback")) {
+						if (!(await this.#runQueuedUsageAwarePreflight(signal))) {
+							this.#skipAgentContinue("session-unavailable", options);
+							return;
+						}
+					}
+					await this.agent.continue(signal);
 				} catch (error) {
 					logger.warn("agent.continue failed after scheduling", {
 						error: error instanceof Error ? error.message : String(error),
@@ -2987,6 +3016,7 @@ export class AgentSession {
 					});
 					options?.onError?.(error);
 				} finally {
+					this.#usagePreflightReadyForNextModelCall = false;
 					this.#endInFlight();
 				}
 			},
@@ -3605,6 +3635,12 @@ export class AgentSession {
 	 */
 	beginDispose(): void {
 		this.#isDisposed = true;
+		this.#queuedMessageDrainBlocked = false;
+		this.#usagePreflightReadyForNextModelCall = false;
+		this.#detachUsageBeforeQueueDequeue?.();
+		this.#detachUsageBeforeQueueDequeue = undefined;
+		this.#detachUsageBeforeModelCall?.();
+		this.#detachUsageBeforeModelCall = undefined;
 		this.#memory.cancelLocalMemoryStartup();
 		this.#titleGenerationAbortController.abort();
 		this.#abortAutolearnCapture();
@@ -3927,176 +3963,63 @@ export class AgentSession {
 	}

 	/** Install the interactive decision surface for reserve-triggered model changes. */
-	setUsageFallbackConfirmer(
-		confirmer: ((confirmation: UsageFallbackConfirmation) => Promise<boolean>) | undefined,
-	): void {
+	setUsageFallbackConfirmer(confirmer: UsageFallbackConfirmer | undefined): void {
 		this.#usageFallbackConfirmer = confirmer;
 	}

-	async #runUsageAwarePreflight(): Promise<boolean> {
+	#allowQueuedMessageDrainRetry(): void {
+		this.#queuedMessageDrainBlocked = false;
+	}
+
+	#reconcileQueuedMessageDrain(): void {
+		if (!this.agent.hasQueuedMessages()) {
+			this.#queuedMessageDrainBlocked = false;
+		}
+	}
+
+	async #runQueuedUsageAwarePreflight(signal?: AbortSignal): Promise<boolean> {
+		try {
+			const allowed = await this.#runUsageAwarePreflight(signal);
+			this.#usagePreflightReadyForNextModelCall = allowed;
+			this.#usagePreflightReadyModel = allowed ? this.model : undefined;
+			this.#queuedMessageDrainBlocked = !allowed && this.agent.hasQueuedMessages();
+			return allowed;
+		} catch (error) {
+			this.#queuedMessageDrainBlocked = this.agent.hasQueuedMessages();
+			throw error;
+		}
+	}
+
+	async #runUsageAwarePreflightForNextModelCall(signal?: AbortSignal): Promise<boolean> {
+		const allowed = await this.#runUsageAwarePreflight(signal);
+		this.#usagePreflightReadyForNextModelCall = allowed;
+		this.#usagePreflightReadyModel = allowed ? this.model : undefined;
+		return allowed;
+	}
+
+	async #runUsageAwarePreflight(signal?: AbortSignal): Promise<boolean> {
+		if (signal?.aborted) return false;
 		const generation = this.#promptGeneration;
+
 		const controller = new AbortController();
+		const onAbort = () => controller.abort(signal?.reason);
+		signal?.addEventListener("abort", onAbort, { once: true });
 		this.#usagePreflightAbortControllers.add(controller);
 		try {
-			await this.#maybeApplyUsageAwareFallback(controller.signal);
-			return !controller.signal.aborted && this.#promptGeneration === generation;
+			const fallbackCommitted = await this.#recovery.maybeApplyUsageAwareFallback(
+				controller.signal,
+				this.#usageFallbackConfirmer,
+			);
+			return fallbackCommitted || (!controller.signal.aborted && this.#promptGeneration === generation);
 		} catch (error) {
 			if (controller.signal.aborted || this.#promptGeneration !== generation) return false;
 			throw error;
 		} finally {
+			signal?.removeEventListener("abort", onAbort);
 			this.#usagePreflightAbortControllers.delete(controller);
 		}
 	}

-	async #confirmUsageFallback(confirmation: UsageFallbackConfirmation, signal: AbortSignal): Promise<boolean> {
-		const confirmer = this.#usageFallbackConfirmer;
-		if (!confirmer || signal.aborted) return false;
-		const aborted = Promise.withResolvers<boolean>();
-		const onAbort = () => aborted.resolve(false);
-		signal.addEventListener("abort", onAbort, { once: true });
-		try {
-			return await Promise.race([confirmer(confirmation), aborted.promise]);
-		} finally {
-			signal.removeEventListener("abort", onAbort);
-		}
-	}
-
-	async #maybeApplyUsageAwareFallback(signal: AbortSignal): Promise<void> {
-		if (!this.settings.get("retry.modelFallback") || !this.settings.get("retry.usageAwareFallback")) return;
-		const currentModel = this.model;
-		if (!currentModel) return;
-		const currentSelector = formatRetryFallbackSelector(currentModel, this.thinkingLevel);
-		let health: ModelUsageHealth;
-		try {
-			health = await this.#modelRegistry.authStorage.getModelUsageHealth(currentModel.provider, {
-				modelId: currentModel.id,
-				sessionId: this.sessionId,
-				baseUrl: currentModel.baseUrl,
-				reserveFraction: this.settings.get("retry.usageReservePct") / 100,
-				signal,
-			});
-		} catch (error) {
-			logger.debug("Usage-aware runtime preflight failed open", {
-				provider: currentModel.provider,
-				model: currentModel.id,
-				error: String(error),
-			});
-			return;
-		}
-		if (signal.aborted) return;
-
-		if (health.state === "healthy") {
-			this.#usageReserveApprovedSelector = undefined;
-			const selected = health.accounts.find(account => account.selected);
-			if (selected && selected.state !== "healthy" && health.accounts.some(account => account.state === "healthy")) {
-				this.#modelRegistry.authStorage.releaseSessionCredentialForReselection(
-					currentModel.provider,
-					this.sessionId,
-				);
-			}
-			return;
-		}
-		if (health.state === "unknown") {
-			this.#usageReserveApprovedSelector = undefined;
-			return;
-		}
-		const reservePolicy = this.settings.get("retry.usageReservePolicy");
-		if (reservePolicy === "fail-closed") {
-			const condition = health.state === "reserve" ? "reserve reached" : "usage depleted";
-			throw new Error(`${condition} for ${currentSelector}; reserve policy is fail-closed.`);
-		}
-
-		const role = this.#recovery.resolveRetryFallbackRole(currentSelector, currentModel);
-		if (!role) return;
-		let fallback: { selector: RetryFallbackSelector; apiKey: string } | undefined;
-		for (const candidate of this.#recovery.findRetryFallbackCandidates(role, currentSelector, currentModel)) {
-			if (this.#recovery.isRetryFallbackSelectorSuppressed(candidate)) continue;
-			const resolved = resolveModelOverride([candidate.raw], this.#modelRegistry, this.settings);
-			const candidateModel = resolved.model ?? this.#modelRegistry.find(candidate.provider, candidate.id);
-			if (!candidateModel) continue;
-			if (!this.#modelRegistry.hasConfiguredAuth(candidateModel)) continue;
-			try {
-				const candidateHealth = await this.#modelRegistry.authStorage.getModelUsageHealth(candidateModel.provider, {
-					modelId: candidateModel.id,
-					sessionId: this.sessionId,
-					baseUrl: candidateModel.baseUrl,
-					reserveFraction: this.settings.get("retry.usageReservePct") / 100,
-					signal,
-				});
-				if (signal.aborted) return;
-				if (candidateHealth.state === "depleted" || candidateHealth.state === "reserve") continue;
-				if (candidateHealth.state === "healthy") {
-					const selected = candidateHealth.accounts.find(account => account.selected);
-					if (
-						selected &&
-						selected.state !== "healthy" &&
-						candidateHealth.accounts.some(account => account.state === "healthy")
-					) {
-						this.#modelRegistry.authStorage.releaseSessionCredentialForReselection(
-							candidateModel.provider,
-							this.sessionId,
-						);
-					}
-				}
-			} catch {
-				if (signal.aborted) return;
-				// Unknown usage fails open for an otherwise valid fallback.
-			}
-			if (signal.aborted) return;
-			let apiKey: string | undefined;
-			try {
-				apiKey = await this.#modelRegistry.getApiKey(candidateModel, this.sessionId, { signal });
-			} catch {
-				if (signal.aborted) return;
-				continue;
-			}
-			if (signal.aborted) return;
-			if (!apiKey) continue;
-			fallback = { selector: candidate, apiKey };
-			break;
-		}
-		if (!fallback) return;
-
-		if (health.state === "reserve") {
-			if (reservePolicy === "confirm" && this.#usageFallbackConfirmer) {
-				if (this.#usageReserveApprovedSelector === currentSelector) return;
-				const selected = health.accounts.find(account => account.selected);
-				const remainingFraction =
-					selected?.remainingFraction ??
-					health.accounts.reduce<number | undefined>(
-						(minimum, account) =>
-							account.remainingFraction === undefined
-								? minimum
-								: minimum === undefined
-									? account.remainingFraction
-									: Math.min(minimum, account.remainingFraction),
-						undefined,
-					);
-				const shouldFallback = await this.#confirmUsageFallback(
-					{
-						from: currentSelector,
-						to: fallback.selector.raw,
-						remainingPercent: remainingFraction === undefined ? undefined : Math.max(0, remainingFraction * 100),
-					},
-					signal,
-				);
-				if (signal.aborted) return;
-				if (!shouldFallback) {
-					this.#usageReserveApprovedSelector = currentSelector;
-					return;
-				}
-			}
-		}
-
-		if (signal.aborted) return;
-		this.#usageReserveApprovedSelector = undefined;
-		await this.#recovery.applyRetryFallbackCandidate(role, fallback.selector, currentSelector, {
-			pinFallback: true,
-			apiKey: fallback.apiKey,
-			signal,
-		});
-	}
-
 	/** Effective thinking level applied to the agent (the resolved level when `auto`). */
 	get thinkingLevel(): ThinkingLevel | undefined {
 		return this.#models.thinkingLevel;
@@ -5027,7 +4950,7 @@ export class AgentSession {
 		if (this.isStreaming) {
 			const streamingBehavior = options?.streamingBehavior;
 			if (!streamingBehavior) throw new AgentBusyError();
-			if (!(await this.#runUsageAwarePreflight())) return false;
+
 			// Steer/follow-up the keyword notices BEFORE the queued user message so the
 			// model reads the steering notice ahead of the prompt it modifies.
 			for (const notice of keywordNotices) {
@@ -5122,7 +5045,7 @@ export class AgentSession {
 		if (options?.queueOnly) {
 			const streamingBehavior = options?.streamingBehavior;
 			if (!streamingBehavior) throw new AgentBusyError();
-			if (!(await this.#runUsageAwarePreflight())) return;
+
 			for (const notice of keywordNotices) {
 				await this.#queueCustomMessage(notice, streamingBehavior);
 			}
@@ -5132,7 +5055,7 @@ export class AgentSession {
 		if (this.isStreaming) {
 			const streamingBehavior = options?.streamingBehavior;
 			if (!streamingBehavior) throw new AgentBusyError();
-			if (!(await this.#runUsageAwarePreflight())) return;
+
 			for (const notice of keywordNotices) {
 				await this.#queueCustomMessage(notice, streamingBehavior);
 			}
@@ -5169,7 +5092,7 @@ export class AgentSession {
 		const generation = this.#promptGeneration;
 		try {
 			await this.#recovery.maybeRestoreRetryFallbackPrimary();
-			if (!(await this.#runUsageAwarePreflight())) return;
+			if (!(await this.#runUsageAwarePreflightForNextModelCall())) return;
 			// Flush any pending bash messages before the new prompt
 			await this.#bash.flushPending();
 			this.#eval.flushPending();
@@ -5380,6 +5303,7 @@ export class AgentSession {
 				await this.#waitForPostPromptRecovery(generation);
 			}
 		} finally {
+			this.#usagePreflightReadyForNextModelCall = false;
 			this.#endInFlight();
 		}
 	}
@@ -5545,7 +5469,6 @@ export class AgentSession {
 		}

 		const expandedText = expandPromptTemplate(text, [...this.#promptTemplates]);
-		if (!(await this.#runUsageAwarePreflight())) return;
 		await this.#queueUserMessage(expandedText, images, "steer");
 	}

@@ -5563,7 +5486,6 @@ export class AgentSession {

 		const expandedText =
 			options?.expandPromptTemplates === false ? text : expandPromptTemplate(text, [...this.#promptTemplates]);
-		if (!(await this.#runUsageAwarePreflight())) return;
 		if (!options?.synthetic) {
 			await this.#queueUserMessage(expandedText, images, "followUp");
 			return;
@@ -5580,6 +5502,7 @@ export class AgentSession {
 		const imageDescriptionNotice = normalizedImages?.length
 			? await this.#buildImageDescriptionNotice(normalizedImages)
 			: undefined;
+		this.#allowQueuedMessageDrainRetry();
 		if (imageDescriptionNotice) this.agent.followUp(imageDescriptionNotice);
 		this.agent.followUp({
 			role: "developer",
@@ -5609,6 +5532,7 @@ export class AgentSession {
 		const imageDescriptionNotice = normalizedImages?.length
 			? await this.#buildImageDescriptionNotice(normalizedImages)
 			: undefined;
+		this.#allowQueuedMessageDrainRetry();
 		if (mode === "followUp") {
 			if (imageDescriptionNotice) this.agent.followUp(imageDescriptionNotice);
 			this.agent.followUp({
@@ -5635,7 +5559,12 @@ export class AgentSession {
 	}

 	#scheduleQueuedMessageDrain(): void {
-		if (this.#queuedMessageDrainScheduled || !this.#canAutoContinueForFollowUp() || !this.agent.hasQueuedMessages()) {
+		if (
+			this.#queuedMessageDrainScheduled ||
+			this.#queuedMessageDrainBlocked ||
+			!this.#canAutoContinueForFollowUp() ||
+			!this.agent.hasQueuedMessages()
+		) {
 			return;
 		}
 		this.#queuedMessageDrainScheduled = true;
@@ -5649,6 +5578,7 @@ export class AgentSession {
 			},
 			onError: () => {
 				this.#queuedMessageDrainScheduled = false;
+				this.#queuedMessageDrainBlocked = this.agent.hasQueuedMessages();
 			},
 		});
 	}
@@ -5785,7 +5715,7 @@ export class AgentSession {
 	): Promise<void> {
 		this.#beginInFlight();
 		try {
-			if (!(await this.#runUsageAwarePreflight())) return;
+			if (!(await this.#runUsageAwarePreflightForNextModelCall())) return;
 			const acceptTerminalEmptyStop = options?.acceptTerminalEmptyStop === true;
 			if (acceptTerminalEmptyStop) {
 				this.#resetPromptMaintenanceState();
@@ -5794,6 +5724,7 @@ export class AgentSession {
 			await this.agent.prompt(message);
 			await this.#waitForPostPromptRecovery();
 		} finally {
+			this.#usagePreflightReadyForNextModelCall = false;
 			this.#recovery.setAcceptTerminalEmptyStop(false);
 			this.#endInFlight();
 		}
@@ -5825,6 +5756,7 @@ export class AgentSession {
 			timestamp: Date.now(),
 		};
 		const normalizedAppMessage = await this.#normalizeAgentMessageImages(appMessage);
+		this.#allowQueuedMessageDrainRetry();
 		if (deliverAs === "followUp") {
 			this.agent.followUp(normalizedAppMessage);
 		} else {
@@ -5881,7 +5813,7 @@ export class AgentSession {
 				this.#queueHiddenNextTurnMessage(normalizedAppMessage, options?.triggerTurn ?? false);
 				return false;
 			}
-			if (!(await this.#runUsageAwarePreflight())) return false;
+			this.#allowQueuedMessageDrainRetry();

 			if (options?.deliverAs === "followUp") {
 				this.agent.followUp(normalizedAppMessage);
@@ -5964,8 +5896,6 @@ export class AgentSession {
 			if (images.length === 0) images = undefined;
 		}

-		if (options?.deliverAs && !(await this.#runUsageAwarePreflight())) return;
-
 		if (options?.deliverAs === "followUp") {
 			await this.#queueUserMessage(text, images, "followUp");
 			return;
@@ -6005,6 +5935,7 @@ export class AgentSession {
 			? isAdvisorCard
 			: m => !isUserQueuedMessage(m) && !isHiddenUserCompanion(m);
 		this.agent.replaceQueues(steeringAll.filter(keep), followUpAll.filter(keep));
+		this.#reconcileQueuedMessageDrain();
 		return { steering, followUp };
 	}

@@ -6054,12 +5985,14 @@ export class AgentSession {
 		if (fromSteer >= 0) {
 			const removed = steering[fromSteer];
 			this.agent.replaceQueues(removeWithCompanions(steering, fromSteer), followUp.slice());
+			this.#reconcileQueuedMessageDrain();
 			return toRestoredQueuedMessage(removed);
 		}
 		const fromFollowUp = lastUserIndex(followUp);
 		if (fromFollowUp >= 0) {
 			const removed = followUp[fromFollowUp];
 			this.agent.replaceQueues(steering.slice(), removeWithCompanions(followUp, fromFollowUp));
+			this.#reconcileQueuedMessageDrain();
 			return toRestoredQueuedMessage(removed);
 		}
 		return undefined;
@@ -6349,6 +6282,8 @@ export class AgentSession {
 			await this.#memory.resetContextForNewTranscript();
 			this.#pendingNextTurnMessages = [];
 			this.#scheduledHiddenNextTurnGeneration = undefined;
+			this.#queuedMessageDrainBlocked = false;
+			this.#usagePreflightReadyForNextModelCall = false;

 			this.sessionManager.appendThinkingLevelChange(this.thinkingLevel, this.configuredThinkingLevel());
 			this.sessionManager.appendServiceTierChange(this.#models.serviceTierEntry());
@@ -7373,6 +7308,9 @@ export class AgentSession {
 		const previousFollowUpMessages = [...this.agent.peekFollowUpQueue()];
 		const previousPendingNextTurnMessages = [...this.#pendingNextTurnMessages];
 		const previousScheduledHiddenNextTurnGeneration = this.#scheduledHiddenNextTurnGeneration;
+		const previousQueuedMessageDrainBlocked = this.#queuedMessageDrainBlocked;
+		const previousUsagePreflightReadyForNextModelCall = this.#usagePreflightReadyForNextModelCall;
+		const previousUsagePreflightReadyModel = this.#usagePreflightReadyModel;
 		const previousModel = this.model;
 		const previousThinkingLevel = this.thinkingLevel;
 		const previousAutoThinking = this.isAutoThinking;
@@ -7397,6 +7335,9 @@ export class AgentSession {
 		this.agent.clearAllQueues();
 		this.#pendingNextTurnMessages = [];
 		this.#scheduledHiddenNextTurnGeneration = undefined;
+		this.#queuedMessageDrainBlocked = false;
+		this.#usagePreflightReadyForNextModelCall = false;
+		this.#usagePreflightReadyModel = undefined;

 		try {
 			if (switchingToDifferentSession) {
@@ -7565,6 +7506,9 @@ export class AgentSession {
 			this.agent.replaceQueues(previousSteeringMessages, previousFollowUpMessages);
 			this.#pendingNextTurnMessages = previousPendingNextTurnMessages;
 			this.#scheduledHiddenNextTurnGeneration = previousScheduledHiddenNextTurnGeneration;
+			this.#queuedMessageDrainBlocked = previousQueuedMessageDrainBlocked;
+			this.#usagePreflightReadyForNextModelCall = previousUsagePreflightReadyForNextModelCall;
+			this.#usagePreflightReadyModel = previousUsagePreflightReadyModel;
 			this.#inheritedProviderPromptCacheKey = previousInheritedProviderPromptCacheKey;
 			this.#checkpointState = previousCheckpointState;
 			this.#pendingRewindReport = previousPendingRewindReport;
@@ -7653,6 +7597,8 @@ export class AgentSession {
 		// Clear pending messages (bound to old session state)
 		this.#pendingNextTurnMessages = [];
 		this.#scheduledHiddenNextTurnGeneration = undefined;
+		this.#queuedMessageDrainBlocked = false;
+		this.#usagePreflightReadyForNextModelCall = false;

 		await this.#bash.flushPending();
 		// Flush pending writes before branching
@@ -7780,6 +7726,8 @@ export class AgentSession {
 		this.#pendingNextTurnMessages = [];
 		this.#scheduledHiddenNextTurnGeneration = undefined;
 		this.agent.replaceQueues([], []);
+		this.#queuedMessageDrainBlocked = false;
+		this.#usagePreflightReadyForNextModelCall = false;
 		await this.#bash.flushPending();
 		await this.sessionManager.flush();
 		const bashTransition = this.#bash.beginSessionTransition();
@@ -13,6 +13,7 @@ import type {
 	CodexCompactionContext,
 	Effort,
 	Model,
+	ModelUsageHealth,
 	TextContent,
 	ToolChoice,
 } from "@oh-my-pi/pi-ai";
@@ -23,6 +24,7 @@ import { isFireworksFastModelId, toFireworksBaseModelId } from "@oh-my-pi/pi-cat
 import { extractRetryHint, logger, prompt } from "@oh-my-pi/pi-utils";
 import type { ModelRegistry } from "../config/model-registry";
 import { formatModelStringWithRouting, resolveModelOverride } from "../config/model-resolver";
+
 import type { Settings } from "../config/settings";
 import type { RecoveredRetryError } from "../extensibility/shared-events";
 import emptyStopRetryTemplate from "../prompts/system/empty-stop-retry.md" with { type: "text" };
@@ -35,7 +37,11 @@ import {
 	modelSupportsEffortCeiling,
 } from "../thinking";
 import type { AgentSessionEvent } from "./agent-session-events";
-import type { InitialRetryFallbackState } from "./agent-session-types";
+import type {
+	InitialRetryFallbackState,
+	UsageFallbackConfirmation,
+	UsageFallbackConfirmer,
+} from "./agent-session-types";
 import { isEmptyErrorTurn } from "./messages";
 import {
 	type ActiveRetryFallbackState,
@@ -64,6 +70,7 @@ const UNEXPECTED_STOP_TIMEOUT_MS = 4000;
 const EMPTY_STOP_MAX_RETRIES = 3;
 const SIBLING_UNBLOCK_BUFFER_MS = 1_000;
 const NON_WHITESPACE_RE = /\S/;
+const USAGE_PREFLIGHT_BLOCKED_PREFIX = "Usage preflight blocked:";

 function hasNonWhitespace(value: string): boolean {
 	return NON_WHITESPACE_RE.test(value);
@@ -172,6 +179,7 @@ export class TurnRecovery {
 	#retryPromise: Promise<void> | undefined;
 	#retryResolve: (() => void) | undefined;
 	#activeRetryFallback: ActiveRetryFallbackState | undefined;
+	#usageReserveApprovedSelector: string | undefined;
 	#pendingRecoveredRetryErrors: PendingRecoveredRetryError[] = [];
 	#usageLimitOutcomes = new WeakMap<AssistantMessage, Promise<UsageLimitOutcome>>();
 	#emptyStopRetryCount = 0;
@@ -298,6 +306,11 @@ export class TurnRecovery {
 		return this.#maybeRestoreRetryFallbackPrimary();
 	}

+	/** Applies model fallback policy from live usage health before a turn starts. */
+	maybeApplyUsageAwareFallback(signal: AbortSignal, confirmer?: UsageFallbackConfirmer): Promise<boolean> {
+		return this.#maybeApplyUsageAwareFallback(signal, confirmer);
+	}
+
 	/** Applies automatic retry, credential rotation, and model fallback policy. */
 	handleRetryableError(
 		message: AssistantMessage,
@@ -840,6 +853,9 @@ export class TurnRecovery {
 		return id;
 	}

+	#isUsagePreflightBlocked(message: AssistantMessage): boolean {
+		return message.errorMessage?.startsWith(USAGE_PREFLIGHT_BLOCKED_PREFIX) === true;
+	}
 	/**
 	 * Retry an empty, reason-less provider abort: a turn with no content that
 	 * carries the generic sentinel (bare `abort()`), whether the provider
@@ -883,6 +899,7 @@ export class TurnRecovery {
 	 */
 	isRetryableError(message: AssistantMessage): boolean {
 		if (message.stopReason !== "error") return false;
+		if (this.#isUsagePreflightBlocked(message)) return false;

 		const id = this.#classifyRetryMessage(message);
 		// Context overflow is handled by compaction, not retry
@@ -1008,7 +1025,6 @@ export class TurnRecovery {
 			modelLookup: this.#host.modelRegistry,
 		};
 	}
-
 	#getRetryFallbackChains(): RetryFallbackChains {
 		return getRetryFallbackChains(this.#host.settings);
 	}
@@ -1071,23 +1087,185 @@ export class TurnRecovery {
 		);
 	}

+	async #maybeApplyUsageAwareFallback(signal: AbortSignal, confirmer?: UsageFallbackConfirmer): Promise<boolean> {
+		if (!this.#host.settings.get("retry.usageAwareFallback")) return false;
+		const currentModel = this.#host.model();
+		if (!currentModel) return false;
+		const currentSelector = formatRetryFallbackSelector(currentModel, this.#host.thinkingLevel());
+		let health: ModelUsageHealth;
+		try {
+			health = await this.#host.modelRegistry.authStorage.getModelUsageHealth(currentModel.provider, {
+				modelId: currentModel.id,
+				sessionId: this.#host.sessionId(),
+				baseUrl: currentModel.baseUrl,
+				reserveFraction: this.#host.settings.get("retry.usageReservePct") / 100,
+				signal,
+			});
+		} catch (error) {
+			if (signal.aborted) return false;
+			logger.debug("Usage-aware runtime preflight failed open", {
+				provider: currentModel.provider,
+				model: currentModel.id,
+				error: String(error),
+			});
+			return false;
+		}
+		if (signal.aborted) return false;
+		const selectedAccount = health.accounts.find(account => account.selected);
+		if (health.state === "healthy") {
+			this.#usageReserveApprovedSelector = undefined;
+			if (
+				selectedAccount &&
+				selectedAccount.state !== "healthy" &&
+				health.accounts.some(account => account.state === "healthy")
+			) {
+				this.#host.modelRegistry.authStorage.releaseSessionCredentialForReselection(
+					currentModel.provider,
+					this.#host.sessionId(),
+				);
+			}
+			return false;
+		}
+		if (health.state === "unknown") {
+			this.#usageReserveApprovedSelector = undefined;
+			return false;
+		}
+		if (health.state !== "reserve") this.#usageReserveApprovedSelector = undefined;
+
+		const reservePolicy = this.#host.settings.get("retry.usageReservePolicy");
+		if (reservePolicy === "fail-closed") {
+			const condition = health.state === "reserve" ? "reserve reached" : "usage depleted";
+			throw new Error(
+				`${USAGE_PREFLIGHT_BLOCKED_PREFIX} ${condition} for ${currentSelector}; reserve policy is fail-closed.`,
+			);
+		}
+		if (
+			reservePolicy === "confirm" &&
+			health.state === "reserve" &&
+			this.#usageReserveApprovedSelector === currentSelector
+		) {
+			return false;
+		}
+		if (!this.#host.settings.get("retry.modelFallback")) return false;
+
+		const role = this.#activeRetryFallback?.role ?? this.resolveRetryFallbackRole(currentSelector, currentModel);
+		if (!role) return false;
+		let fallback: { selector: RetryFallbackSelector; apiKey: string } | undefined;
+		for (const candidate of this.findRetryFallbackCandidates(role, currentSelector, currentModel)) {
+			if (this.isRetryFallbackSelectorSuppressed(candidate)) continue;
+			const resolved = resolveModelOverride([candidate.raw], this.#host.modelRegistry, this.#host.settings);
+			const candidateModel = resolved.model ?? this.#host.modelRegistry.find(candidate.provider, candidate.id);
+			if (!candidateModel || !this.#host.modelRegistry.hasConfiguredAuth(candidateModel)) continue;
+			try {
+				const candidateHealth = await this.#host.modelRegistry.authStorage.getModelUsageHealth(
+					candidateModel.provider,
+					{
+						modelId: candidateModel.id,
+						sessionId: this.#host.sessionId(),
+						baseUrl: candidateModel.baseUrl,
+						reserveFraction: this.#host.settings.get("retry.usageReservePct") / 100,
+						signal,
+					},
+				);
+				if (signal.aborted) return false;
+				if (candidateHealth.state === "depleted" || candidateHealth.state === "reserve") continue;
+				if (candidateHealth.state === "healthy") {
+					const selected = candidateHealth.accounts.find(account => account.selected);
+					if (
+						selected &&
+						selected.state !== "healthy" &&
+						candidateHealth.accounts.some(account => account.state === "healthy")
+					) {
+						this.#host.modelRegistry.authStorage.releaseSessionCredentialForReselection(
+							candidateModel.provider,
+							this.#host.sessionId(),
+						);
+					}
+				}
+			} catch {
+				if (signal.aborted) return false;
+				// Unknown usage fails open for an otherwise valid fallback.
+			}
+			if (signal.aborted) return false;
+			let apiKey: string | undefined;
+			try {
+				apiKey = await this.#host.modelRegistry.getApiKey(candidateModel, this.#host.sessionId(), { signal });
+			} catch {
+				if (signal.aborted) return false;
+				continue;
+			}
+			if (signal.aborted) return false;
+			if (!apiKey) continue;
+			fallback = { selector: candidate, apiKey };
+			break;
+		}
+		if (!fallback) return false;
+
+		let shouldFallback = health.state === "depleted" || reservePolicy === "auto" || !confirmer;
+		if (!shouldFallback && health.state === "reserve" && confirmer) {
+			const remainingFraction =
+				selectedAccount?.remainingFraction ??
+				health.accounts.reduce<number | undefined>((minimum, account) => {
+					if (account.remainingFraction === undefined) return minimum;
+					return minimum === undefined ? account.remainingFraction : Math.min(minimum, account.remainingFraction);
+				}, undefined);
+			shouldFallback = await this.#confirmUsageFallback(
+				confirmer,
+				{
+					from: currentSelector,
+					to: fallback.selector.raw,
+					remainingPercent: remainingFraction === undefined ? undefined : Math.max(0, remainingFraction * 100),
+				},
+				signal,
+			);
+			if (signal.aborted) return false;
+		}
+		if (!shouldFallback) {
+			this.#usageReserveApprovedSelector = currentSelector;
+			return false;
+		}
+		this.#usageReserveApprovedSelector = undefined;
+		return this.applyRetryFallbackCandidate(role, fallback.selector, currentSelector, {
+			pinFallback: true,
+			apiKey: fallback.apiKey,
+			signal,
+		});
+	}
+
+	async #confirmUsageFallback(
+		confirmer: UsageFallbackConfirmer,
+		confirmation: UsageFallbackConfirmation,
+		signal: AbortSignal,
+	): Promise<boolean> {
+		if (signal.aborted) return false;
+		const aborted = Promise.withResolvers<boolean>();
+		const onAbort = () => aborted.resolve(false);
+		signal.addEventListener("abort", onAbort, { once: true });
+		try {
+			return await Promise.race([confirmer(confirmation, signal), aborted.promise]);
+		} finally {
+			signal.removeEventListener("abort", onAbort);
+		}
+	}
+
 	async applyRetryFallbackCandidate(
 		role: string,
 		selector: RetryFallbackSelector,
 		currentSelector: string,
 		options?: { pinFallback?: boolean; apiKey?: string; signal?: AbortSignal },
-	): Promise<void> {
+	): Promise<boolean> {
 		const resolved = resolveModelOverride([selector.raw], this.#host.modelRegistry, this.#host.settings);
 		const candidate = resolved.model ?? this.#host.modelRegistry.find(selector.provider, selector.id);
 		if (!candidate) {
 			throw new Error(`Retry fallback model not found: ${selector.raw}`);
 		}
 		const apiKey =
-			options?.apiKey ?? (await this.#host.modelRegistry.getApiKey(candidate, this.#host.sessionId(), options));
+			options?.apiKey ??
+			(await this.#host.modelRegistry.getApiKey(candidate, this.#host.sessionId(), { signal: options?.signal }));
 		if (!apiKey) {
 			throw new Error(`No API key for retry fallback ${selector.raw}`);
 		}
-		if (options?.signal?.aborted) return;
+		if (options?.signal?.aborted) return false;

 		// Capture the configured selector (auto-aware) so a fallback chain preserves
 		// `auto` instead of collapsing it to the level it resolved to this turn.
@@ -1101,7 +1279,14 @@ export class TurnRecovery {
 				? requestedThinkingLevel
 				: clampThinkingLevelToCeiling(candidate, requestedThinkingLevel, this.#host.thinkingLevelCeiling());
 		const candidateSelector = formatModelStringWithRouting(candidate);
+		const previousModel = this.#host.model();
 		await this.#host.setModelWithProviderSessionReset(candidate);
+		if (options?.signal?.aborted) {
+			if (previousModel && this.#host.model() === candidate) {
+				await this.#host.setModelWithProviderSessionReset(previousModel);
+			}
+			return false;
+		}
 		this.#host.sessionManager.appendModelChange(candidateSelector, EPHEMERAL_MODEL_CHANGE_ROLE);
 		this.#host.settings.getStorage()?.recordModelUsage(candidateSelector);
 		this.#host.setThinkingLevel(nextThinkingLevel);
@@ -1123,6 +1308,7 @@ export class TurnRecovery {
 			to: selector.raw,
 			role,
 		});
+		return true;
 	}

 	async #tryRetryModelFallback(currentSelector: string, options?: { pinFallback?: boolean }): Promise<boolean> {
@@ -1140,8 +1326,7 @@ export class TurnRecovery {
 			if (ceiling !== undefined && !modelSupportsEffortCeiling(candidate, ceiling)) continue;
 			const apiKey = await this.#host.modelRegistry.getApiKey(candidate, this.#host.sessionId());
 			if (!apiKey) continue;
-			await this.applyRetryFallbackCandidate(role, selector, currentSelector, options);
-			return true;
+			return this.applyRetryFallbackCandidate(role, selector, currentSelector, options);
 		}

 		return false;
@@ -1167,6 +1352,7 @@ export class TurnRecovery {
 		const model = this.#activeFireworksFastModel();
 		if (!model) return false;
 		if (message.stopReason !== "error") return false;
+		if (this.#isUsagePreflightBlocked(message)) return false;
 		if (this.#hasReplayUnsafeOutput(message)) return false;
 		// A content refusal/sensitivity stop is the model's decision, not a route
 		// failure — switching to the base model would just re-trigger it.
@@ -1190,6 +1376,7 @@ export class TurnRecovery {
 	 */
 	isHardErrorFallbackEligible(message: AssistantMessage): boolean {
 		if (message.stopReason !== "error") return false;
+		if (this.#isUsagePreflightBlocked(message)) return false;
 		const model = this.#host.model();
 		if (!model) return false;
 		const retrySettings = this.#host.settings.getGroup("retry");
@@ -166,9 +166,11 @@ function resolveSubagentRetryFallbackCandidates(
 ): SubagentRetryFallbackCandidate[] {
 	const candidates: SubagentRetryFallbackCandidate[] = [];
 	const seen = new Set<string>();
+	const disabledProviders = new Set(settings.get("disabledProviders"));
 	for (const pattern of modelPatterns) {
 		const resolved = resolveModelOverride([pattern], modelRegistry, settings);
 		if (!resolved.model) continue;
+		if (disabledProviders.has(resolved.model.provider)) continue;
 		const selector = resolved.explicitThinkingLevel
 			? formatModelSelectorValue(formatModelStringWithRouting(resolved.model), resolved.thinkingLevel)
 			: formatModelStringWithRouting(resolved.model);
@@ -179,7 +181,10 @@ function resolveSubagentRetryFallbackCandidates(
 	return candidates;
 }

-function resolveSubagentDefaultRetryFallbackChain(settings: Settings): string[] | undefined {
+function resolveSubagentDefaultRetryFallbackChain(
+	settings: Settings,
+	modelRegistry: ModelRegistry,
+): string[] | undefined {
 	const fallbackChain = settings.get("retry.fallbackChains")?.default;
 	if (
 		!Array.isArray(fallbackChain) ||
@@ -188,7 +193,11 @@ function resolveSubagentDefaultRetryFallbackChain(settings: Settings): string[]
 	) {
 		return undefined;
 	}
-	return fallbackChain;
+	const disabledProviders = new Set(settings.get("disabledProviders"));
+	return fallbackChain.filter(entry => {
+		const resolved = resolveModelOverride([entry], modelRegistry, settings);
+		return !resolved.model || !disabledProviders.has(resolved.model.provider);
+	});
 }

 function installSubagentRetryFallbackChain(args: {
@@ -2766,7 +2775,7 @@ export async function runSubprocess(options: ExecutorOptions): Promise<SingleRes
 			const configuredModelPatterns = resolveConfiguredModelPatterns(modelPatterns, settings);
 			const defaultRetryFallbackChain =
 				configuredModelPatterns.length === 1
-					? resolveSubagentDefaultRetryFallbackChain(subagentSettings)
+					? resolveSubagentDefaultRetryFallbackChain(subagentSettings, modelRegistry)
 					: undefined;
 			const {
 				model,
@@ -2800,7 +2809,7 @@ export async function runSubprocess(options: ExecutorOptions): Promise<SingleRes
 			const retryFallbackRole = installSubagentRetryFallbackChain({
 				settings: subagentSettings,
 				id,
-				candidates: resolveSubagentRetryFallbackCandidates(modelPatterns, modelRegistry, settings),
+				candidates: resolveSubagentRetryFallbackCandidates(modelPatterns, modelRegistry, subagentSettings),
 				defaultFallbackChain: defaultRetryFallbackChain,
 				model,
 				authFallbackUsed,
@@ -1,13 +1,14 @@
 import { afterAll, afterEach, beforeAll, beforeEach, describe, expect, it, vi } from "bun:test";
 import * as path from "node:path";
 import { scheduler } from "node:timers/promises";
-import { Agent } from "@oh-my-pi/pi-agent-core";
+import { Agent, type AgentTool } from "@oh-my-pi/pi-agent-core";
 import {
 	type AssistantMessage,
 	Effort,
 	type Model,
 	type ModelUsageHealth,
 	type ProviderSessionState,
+	z,
 } from "@oh-my-pi/pi-ai";
 import { createMockModel } from "@oh-my-pi/pi-ai/providers/mock";
 import { buildModel } from "@oh-my-pi/pi-catalog/build";
@@ -96,6 +97,7 @@ describe("AgentSession retry fallback", () => {
 		authStorage = await AuthStorage.create(path.join(tempDir.path(), "testauth.db"));
 		authStorage.setRuntimeApiKey("anthropic", "anthropic-test-key");
 		authStorage.setRuntimeApiKey("openai", "openai-test-key");
+		authStorage.setRuntimeApiKey("fireworks", "fireworks-test-key");
 		authStorage.setRuntimeApiKey("google", "google-test-key");
 		authStorage.setRuntimeApiKey("google-vertex", "google-vertex-test-key");
 		authStorage.setRuntimeApiKey("openrouter", "openrouter-test-key");
@@ -290,9 +292,15 @@ describe("AgentSession retry fallback", () => {
 							{
 								credentialId: 1,
 								credentialType: "oauth",
+								state: "reserve",
+								remainingFraction: 0.08,
+							},
+							{
+								credentialId: 2,
+								credentialType: "oauth",
 								selected: true,
 								state: "reserve",
-								remainingFraction: 0.05,
+								remainingFraction: 0.02,
 							},
 						],
 					}
@@ -308,15 +316,72 @@ describe("AgentSession retry fallback", () => {
 		session.setUsageFallbackConfirmer(confirmFallback);
 		await session.prompt("Keep working on the same task");
 		await session.waitForIdle();
-		expect(confirmFallback).toHaveBeenCalledWith({
-			from: `${primaryModel.provider}/${primaryModel.id}`,
-			to: `${fallbackModel.provider}/${fallbackModel.id}`,
-			remainingPercent: 5,
-		});
+		expect(confirmFallback).toHaveBeenCalledWith(
+			{
+				from: `${primaryModel.provider}/${primaryModel.id}`,
+				to: `${fallbackModel.provider}/${fallbackModel.id}`,
+				remainingPercent: 2,
+			},
+			expect.any(AbortSignal),
+		);
 		expect(requestedModels).toEqual([`${fallbackModel.provider}/${fallbackModel.id}`]);
 		expect(session.messages.some(message => message.role === "user")).toBe(true);
 	});

+	it("honors a live fail-closed policy after reserve spending was approved", async () => {
+		const primaryModel = getBundledModel("anthropic", "claude-sonnet-4-5");
+		const fallbackModel = getBundledModel("openai", "gpt-4o-mini");
+		if (!primaryModel || !fallbackModel) throw new Error("Expected bundled reserve policy models");
+		const mock = createMockModel({ responses: [{ content: ["stayed on primary"] }] });
+		const agent = new Agent({
+			getApiKey: model => `${model.provider}-test-key`,
+			initialState: { model: primaryModel, systemPrompt: ["Test"], tools: [], messages: [] },
+			streamFn: mock.stream,
+		});
+		const settings = Settings.isolated({
+			"compaction.enabled": false,
+			"retry.usageAwareFallback": true,
+			"retry.usageReservePolicy": "confirm",
+			"retry.fallbackChains": {
+				default: [`${fallbackModel.provider}/${fallbackModel.id}`],
+			},
+		});
+		settings.setModelRole("default", `${primaryModel.provider}/${primaryModel.id}`);
+		const usageHealth = vi
+			.spyOn(modelRegistry.authStorage, "getModelUsageHealth")
+			.mockImplementation(async provider =>
+				provider === primaryModel.provider
+					? {
+							state: "reserve",
+							accounts: [
+								{
+									credentialId: 1,
+									credentialType: "oauth",
+									state: "reserve",
+									remainingFraction: 0.05,
+								},
+							],
+						}
+					: { state: "healthy", accounts: [] },
+			);
+		const confirmFallback = vi.fn(async () => false);
+		session = new AgentSession({
+			agent,
+			sessionManager: SessionManager.inMemory(),
+			settings,
+			modelRegistry,
+		});
+		session.setUsageFallbackConfirmer(confirmFallback);
+
+		await session.prompt("Stay on the primary");
+		await session.waitForIdle();
+		settings.override("retry.usageReservePolicy", "fail-closed");
+		expect(settings.get("retry.usageReservePolicy")).toBe("fail-closed");
+
+		await expect(session.prompt("Do not spend reserve")).rejects.toThrow("reserve policy is fail-closed");
+		expect(confirmFallback).toHaveBeenCalledTimes(1);
+		expect(usageHealth).toHaveBeenCalledTimes(3);
+	});
 	it("reselects a healthy same-provider account before considering a model fallback", async () => {
 		const primaryModel = getBundledModel("anthropic", "claude-sonnet-4-5");
 		const fallbackModel = getBundledModel("openai", "gpt-4o-mini");
@@ -485,6 +550,565 @@ describe("AgentSession retry fallback", () => {
 		expect(requestedModels).toEqual([]);
 	});

+	it("cancels a pending reserve confirmation without dispatching the prompt", async () => {
+		const primaryModel = getBundledModel("anthropic", "claude-sonnet-4-5");
+		const fallbackModel = getBundledModel("openai", "gpt-4o-mini");
+		if (!primaryModel || !fallbackModel) throw new Error("Expected bundled confirmation cancellation models");
+		const requestedModels: string[] = [];
+		const agent = new Agent({
+			getApiKey: model => `${model.provider}-test-key`,
+			initialState: { model: primaryModel, systemPrompt: ["Test"], tools: [], messages: [] },
+			streamFn: (model, context, options) => {
+				requestedModels.push(`${model.provider}/${model.id}`);
+				return createMockModel().stream(model, context, options);
+			},
+		});
+		const settings = Settings.isolated({
+			"compaction.enabled": false,
+			"retry.usageAwareFallback": true,
+			"retry.fallbackChains": {
+				default: [`${fallbackModel.provider}/${fallbackModel.id}`],
+			},
+		});
+		settings.setModelRole("default", `${primaryModel.provider}/${primaryModel.id}`);
+		vi.spyOn(modelRegistry.authStorage, "getModelUsageHealth").mockImplementation(async provider =>
+			provider === primaryModel.provider
+				? {
+						state: "reserve",
+						accounts: [
+							{
+								credentialId: 1,
+								credentialType: "oauth",
+								state: "reserve",
+								remainingFraction: 0.05,
+							},
+						],
+					}
+				: { state: "healthy", accounts: [] },
+		);
+		const confirmationStarted = Promise.withResolvers<void>();
+		const pendingConfirmation = Promise.withResolvers<boolean>();
+		const confirmationAborted = Promise.withResolvers<void>();
+		session = new AgentSession({
+			agent,
+			sessionManager: SessionManager.inMemory(),
+			settings,
+			modelRegistry,
+		});
+		session.setUsageFallbackConfirmer(async (_confirmation, signal) => {
+			confirmationStarted.resolve();
+			signal.addEventListener("abort", () => confirmationAborted.resolve(), { once: true });
+			return pendingConfirmation.promise;
+		});
+
+		const prompt = session.prompt("Do not send after confirmation cancellation");
+		await confirmationStarted.promise;
+		await session.abort();
+		await confirmationAborted.promise;
+		await prompt;
+
+		expect(requestedModels).toEqual([]);
+	});
+
+	it("defers usage fallback for a queued steer until the active stream finishes", async () => {
+		const primaryModel = getBundledModel("anthropic", "claude-sonnet-4-5");
+		const fallbackModel = getBundledModel("openai", "gpt-4o-mini");
+		if (!primaryModel || !fallbackModel) throw new Error("Expected bundled queued fallback models");
+		const requestedModels: string[] = [];
+		const streamStarted = Promise.withResolvers<void>();
+		const firstResponse = Promise.withResolvers<{ content: string[] }>();
+		const mock = createMockModel({
+			responses: [
+				async () => {
+					streamStarted.resolve();
+					return firstResponse.promise;
+				},
+				{ content: ["queued steer completed"] },
+			],
+		});
+		const agent = new Agent({
+			getApiKey: model => `${model.provider}-test-key`,
+			initialState: { model: primaryModel, systemPrompt: ["Test"], tools: [], messages: [] },
+			streamFn: (model, context, options) => {
+				requestedModels.push(`${model.provider}/${model.id}`);
+				return mock.stream(model, context, options);
+			},
+		});
+		const settings = Settings.isolated({
+			"compaction.enabled": false,
+			"retry.usageAwareFallback": true,
+			"retry.usageReservePolicy": "auto",
+			"retry.fallbackChains": {
+				default: [`${fallbackModel.provider}/${fallbackModel.id}`],
+			},
+		});
+		settings.setModelRole("default", `${primaryModel.provider}/${primaryModel.id}`);
+		let useReserve = false;
+		const usageHealth = vi
+			.spyOn(modelRegistry.authStorage, "getModelUsageHealth")
+			.mockImplementation(async provider =>
+				provider === primaryModel.provider
+					? useReserve
+						? {
+								state: "reserve",
+								accounts: [
+									{
+										credentialId: 1,
+										credentialType: "oauth",
+										state: "reserve",
+										remainingFraction: 0.05,
+									},
+								],
+							}
+						: {
+								state: "healthy",
+								accounts: [
+									{
+										credentialId: 1,
+										credentialType: "oauth",
+										state: "healthy",
+										remainingFraction: 0.8,
+									},
+								],
+							}
+					: { state: "healthy", accounts: [] },
+			);
+		session = new AgentSession({
+			agent,
+			sessionManager: SessionManager.inMemory(),
+			settings,
+			modelRegistry,
+		});
+
+		const firstPrompt = session.prompt("Keep the primary stream active");
+		await streamStarted.promise;
+		useReserve = true;
+		await session.sendUserMessage("Queue this steer", { deliverAs: "steer" });
+
+		expect(usageHealth).toHaveBeenCalledTimes(1);
+		expect(session.model?.id).toBe(primaryModel.id);
+
+		firstResponse.resolve({ content: ["primary stream completed"] });
+		await firstPrompt;
+		await session.waitForIdle();
+
+		expect(requestedModels).toEqual([
+			`${primaryModel.provider}/${primaryModel.id}`,
+			`${fallbackModel.provider}/${fallbackModel.id}`,
+		]);
+	});
+
+	it("cancels queued-turn usage confirmation when post-prompt work is disposed", async () => {
+		const primaryModel = getBundledModel("anthropic", "claude-sonnet-4-5");
+		const fallbackModel = getBundledModel("openai", "gpt-4o-mini");
+		if (!primaryModel || !fallbackModel) throw new Error("Expected bundled queued cancellation models");
+		const requestedModels: string[] = [];
+		const agent = new Agent({
+			getApiKey: model => `${model.provider}-test-key`,
+			initialState: { model: primaryModel, systemPrompt: ["Test"], tools: [], messages: [] },
+			streamFn: (model, context, options) => {
+				requestedModels.push(`${model.provider}/${model.id}`);
+				return createMockModel().stream(model, context, options);
+			},
+		});
+		const settings = Settings.isolated({
+			"compaction.enabled": false,
+			"retry.usageAwareFallback": true,
+			"retry.fallbackChains": {
+				default: [`${fallbackModel.provider}/${fallbackModel.id}`],
+			},
+		});
+		settings.setModelRole("default", `${primaryModel.provider}/${primaryModel.id}`);
+		vi.spyOn(modelRegistry.authStorage, "getModelUsageHealth").mockImplementation(async provider =>
+			provider === primaryModel.provider
+				? {
+						state: "reserve",
+						accounts: [
+							{
+								credentialId: 1,
+								credentialType: "oauth",
+								state: "reserve",
+								remainingFraction: 0.05,
+							},
+						],
+					}
+				: { state: "healthy", accounts: [] },
+		);
+		const confirmationStarted = Promise.withResolvers<void>();
+		const pendingConfirmation = Promise.withResolvers<boolean>();
+		session = new AgentSession({
+			agent,
+			sessionManager: SessionManager.inMemory(),
+			settings,
+			modelRegistry,
+		});
+		session.setUsageFallbackConfirmer(async () => {
+			confirmationStarted.resolve();
+			return pendingConfirmation.promise;
+		});
+
+		await session.sendUserMessage("Queue this turn", { deliverAs: "steer" });
+		await confirmationStarted.promise;
+		await session.dispose();
+		session = undefined;
+
+		expect(requestedModels).toEqual([]);
+	});
+
+	it("does not reschedule a queued drain after a dequeue hook rejects", async () => {
+		const primaryModel = getBundledModel("anthropic", "claude-sonnet-4-5");
+		if (!primaryModel) throw new Error("Expected bundled queued-drain model");
+		const requestedModels: string[] = [];
+		const agent = new Agent({
+			getApiKey: model => `${model.provider}-test-key`,
+			initialState: { model: primaryModel, systemPrompt: ["Test"], tools: [], messages: [] },
+			streamFn: (model, context, options) => {
+				requestedModels.push(`${model.provider}/${model.id}`);
+				return createMockModel().stream(model, context, options);
+			},
+		});
+		const settings = Settings.isolated({ "compaction.enabled": false });
+		session = new AgentSession({
+			agent,
+			sessionManager: SessionManager.inMemory(),
+			settings,
+			modelRegistry,
+		});
+		const hookRan = Promise.withResolvers<void>();
+		let attempts = 0;
+		const failingHook = vi.fn(() => {
+			hookRan.resolve();
+			if (++attempts === 1) throw new Error("blocked before dequeue");
+		});
+		agent.addBeforeQueuedMessageDequeueHook(failingHook);
+
+		await session.sendUserMessage("Keep this queued", { deliverAs: "steer" });
+		await hookRan.promise;
+		await session.waitForIdle();
+
+		expect(failingHook).toHaveBeenCalledTimes(1);
+		expect(agent.hasQueuedMessages()).toBe(true);
+		expect(requestedModels).toEqual([]);
+	});
+
+	it("enforces fail-closed usage health when model fallback is disabled", async () => {
+		const primaryModel = getBundledModel("anthropic", "claude-sonnet-4-5");
+		if (!primaryModel) throw new Error("Expected bundled fail-closed model");
+		const agent = new Agent({
+			getApiKey: model => `${model.provider}-test-key`,
+			initialState: { model: primaryModel, systemPrompt: ["Test"], tools: [], messages: [] },
+			streamFn: createMockModel().stream,
+		});
+		const settings = Settings.isolated({
+			"compaction.enabled": false,
+			"retry.modelFallback": false,
+			"retry.usageAwareFallback": true,
+			"retry.usageReservePolicy": "fail-closed",
+		});
+		vi.spyOn(modelRegistry.authStorage, "getModelUsageHealth").mockResolvedValue({
+			state: "reserve",
+			accounts: [
+				{
+					credentialId: 1,
+					credentialType: "oauth",
+					state: "reserve",
+					remainingFraction: 0.05,
+				},
+			],
+		});
+		session = new AgentSession({
+			agent,
+			sessionManager: SessionManager.inMemory(),
+			settings,
+			modelRegistry,
+		});
+
+		await expect(session.prompt("Do not spend reserve")).rejects.toThrow("reserve policy is fail-closed");
+	});
+
+	it("does not degrade Fireworks Fast or retry a chain after queued fail-closed preflight", async () => {
+		const primaryModel = getBundledModel("fireworks", "kimi-k2.6-fast");
+		const fallbackModel = getBundledModel("openai", "gpt-4o-mini");
+		if (!primaryModel || !fallbackModel) throw new Error("Expected bundled queued fail-closed models");
+		const requestedModels: string[] = [];
+		const streamStarted = Promise.withResolvers<void>();
+		const firstResponse = Promise.withResolvers<{ content: string[] }>();
+		const mock = createMockModel({
+			responses: [
+				async () => {
+					streamStarted.resolve();
+					return firstResponse.promise;
+				},
+				{ content: ["must not run"] },
+			],
+		});
+		const agent = new Agent({
+			getApiKey: model => `${model.provider}-test-key`,
+			initialState: { model: primaryModel, systemPrompt: ["Test"], tools: [], messages: [] },
+			streamFn: (model, context, options) => {
+				requestedModels.push(`${model.provider}/${model.id}`);
+				return mock.stream(model, context, options);
+			},
+		});
+		const settings = Settings.isolated({
+			"compaction.enabled": false,
+			"retry.usageAwareFallback": true,
+			"retry.usageReservePolicy": "fail-closed",
+			"retry.fallbackChains": {
+				default: [`${fallbackModel.provider}/${fallbackModel.id}`],
+			},
+		});
+		settings.setModelRole("default", `${primaryModel.provider}/${primaryModel.id}`);
+		let useReserve = false;
+		const usageHealth = vi.spyOn(modelRegistry.authStorage, "getModelUsageHealth").mockImplementation(async () =>
+			useReserve
+				? {
+						state: "reserve",
+						accounts: [
+							{
+								credentialId: 1,
+								credentialType: "oauth",
+								state: "reserve",
+								remainingFraction: 0.05,
+							},
+						],
+					}
+				: {
+						state: "healthy",
+						accounts: [
+							{
+								credentialId: 1,
+								credentialType: "oauth",
+								state: "healthy",
+								remainingFraction: 0.8,
+							},
+						],
+					},
+		);
+		session = new AgentSession({
+			agent,
+			sessionManager: SessionManager.inMemory(),
+			settings,
+			modelRegistry,
+		});
+
+		const firstPrompt = session.prompt("Keep the primary stream active");
+		await streamStarted.promise;
+		useReserve = true;
+		await session.sendUserMessage("Queue blocked work", { deliverAs: "steer" });
+		firstResponse.resolve({ content: ["primary stream completed"] });
+		await firstPrompt;
+		await session.waitForIdle();
+
+		expect(usageHealth).toHaveBeenCalledTimes(2);
+		expect(requestedModels).toEqual([`${primaryModel.provider}/${primaryModel.id}`]);
+		expect(session.model?.id).toBe(primaryModel.id);
+		expect(agent.hasQueuedMessages()).toBe(true);
+	});
+
+	it("rechecks fail-closed usage health before an internally scheduled continuation", async () => {
+		const primaryModel = getBundledModel("anthropic", "claude-sonnet-4-5");
+		if (!primaryModel) throw new Error("Expected bundled scheduled continuation model");
+		const requestedModels: string[] = [];
+		let useReserve = false;
+		const mock = createMockModel({
+			responses: [
+				async () => {
+					useReserve = true;
+					return { content: [], stopReason: "stop" };
+				},
+				{ content: ["must not run"] },
+			],
+		});
+		const agent = new Agent({
+			getApiKey: model => `${model.provider}-test-key`,
+			initialState: { model: primaryModel, systemPrompt: ["Test"], tools: [], messages: [] },
+			streamFn: (model, context, options) => {
+				requestedModels.push(`${model.provider}/${model.id}`);
+				return mock.stream(model, context, options);
+			},
+		});
+		const settings = Settings.isolated({
+			"compaction.enabled": false,
+			"retry.usageAwareFallback": true,
+			"retry.usageReservePolicy": "fail-closed",
+		});
+		settings.setModelRole("default", `${primaryModel.provider}/${primaryModel.id}`);
+		const usageHealth = vi.spyOn(modelRegistry.authStorage, "getModelUsageHealth").mockImplementation(async () =>
+			useReserve
+				? {
+						state: "reserve",
+						accounts: [
+							{
+								credentialId: 1,
+								credentialType: "oauth",
+								state: "reserve",
+								remainingFraction: 0.05,
+							},
+						],
+					}
+				: {
+						state: "healthy",
+						accounts: [
+							{
+								credentialId: 1,
+								credentialType: "oauth",
+								state: "healthy",
+								remainingFraction: 0.8,
+							},
+						],
+					},
+		);
+		session = new AgentSession({
+			agent,
+			sessionManager: SessionManager.inMemory(),
+			settings,
+			modelRegistry,
+		});
+
+		await session.prompt("Retry this empty response");
+		await session.waitForIdle();
+
+		expect(usageHealth).toHaveBeenCalledTimes(2);
+		expect(requestedModels).toEqual([`${primaryModel.provider}/${primaryModel.id}`]);
+	});
+
+	it("rechecks fail-closed usage health before a same-turn tool continuation", async () => {
+		const primaryModel = getBundledModel("anthropic", "claude-sonnet-4-5");
+		if (!primaryModel) throw new Error("Expected bundled tool-continuation model");
+		const requestedModels: string[] = [];
+		let useReserve = false;
+		const toolSchema = z.object({ value: z.string() });
+		const tool: AgentTool<typeof toolSchema, { value: string }> = {
+			name: "consume",
+			label: "Consume",
+			description: "Consume plan quota",
+			parameters: toolSchema,
+			async execute(_toolCallId, params) {
+				useReserve = true;
+				return { content: [{ type: "text", text: params.value }], details: params };
+			},
+		};
+		const mock = createMockModel({
+			responses: [
+				{ content: [{ type: "toolCall", id: "tool-1", name: "consume", arguments: { value: "done" } }] },
+				{ content: ["must not run"] },
+			],
+		});
+		const agent = new Agent({
+			getApiKey: model => `${model.provider}-test-key`,
+			initialState: { model: primaryModel, systemPrompt: ["Test"], tools: [tool], messages: [] },
+			streamFn: (model, context, options) => {
+				requestedModels.push(`${model.provider}/${model.id}`);
+				return mock.stream(model, context, options);
+			},
+		});
+		const settings = Settings.isolated({
+			"compaction.enabled": false,
+			"retry.usageAwareFallback": true,
+			"retry.usageReservePolicy": "fail-closed",
+		});
+		settings.setModelRole("default", `${primaryModel.provider}/${primaryModel.id}`);
+		const usageHealth = vi.spyOn(modelRegistry.authStorage, "getModelUsageHealth").mockImplementation(async () =>
+			useReserve
+				? {
+						state: "reserve",
+						accounts: [
+							{
+								credentialId: 1,
+								credentialType: "oauth",
+								state: "reserve",
+								remainingFraction: 0.05,
+							},
+						],
+					}
+				: {
+						state: "healthy",
+						accounts: [
+							{
+								credentialId: 1,
+								credentialType: "oauth",
+								state: "healthy",
+								remainingFraction: 0.8,
+							},
+						],
+					},
+		);
+		session = new AgentSession({
+			agent,
+			sessionManager: SessionManager.inMemory(),
+			settings,
+			modelRegistry,
+		});
+
+		await session.prompt("Use the tool");
+		await session.waitForIdle();
+
+		expect(usageHealth).toHaveBeenCalledTimes(2);
+		expect(requestedModels).toEqual([`${primaryModel.provider}/${primaryModel.id}`]);
+	});
+	it("rechecks fail-closed usage health when prompt setup changes the model", async () => {
+		const primaryModel = getBundledModel("anthropic", "claude-sonnet-4-5");
+		const setupTarget = getBundledModel("anthropic", "claude-sonnet-4-6");
+		if (!primaryModel || !setupTarget) throw new Error("Expected bundled setup-handoff models");
+		const requestedModels: string[] = [];
+		const usageChecks: string[] = [];
+		const mock = createMockModel({ responses: [{ content: ["must not run"] }] });
+		const agent = new Agent({
+			getApiKey: model => `${model.provider}-test-key`,
+			initialState: { model: primaryModel, systemPrompt: ["Test"], tools: [], messages: [] },
+			streamFn: (model, context, options) => {
+				requestedModels.push(`${model.provider}/${model.id}`);
+				return mock.stream(model, context, options);
+			},
+		});
+		const settings = Settings.isolated({
+			"compaction.enabled": false,
+			"retry.usageAwareFallback": true,
+			"retry.usageReservePolicy": "fail-closed",
+		});
+		settings.setModelRole("default", `${primaryModel.provider}/${primaryModel.id}`);
+		const usageHealth = vi
+			.spyOn(modelRegistry.authStorage, "getModelUsageHealth")
+			.mockImplementation(async (_provider, options) => {
+				usageChecks.push(options.modelId ?? "");
+				const reserve = options.modelId === setupTarget.id;
+				return {
+					state: reserve ? "reserve" : "healthy",
+					accounts: [
+						{
+							credentialId: 1,
+							credentialType: "oauth",
+							state: reserve ? "reserve" : "healthy",
+							remainingFraction: reserve ? 0.05 : 0.8,
+						},
+					],
+				};
+			});
+		const extensionRunner = {
+			emit: vi.fn().mockResolvedValue(undefined),
+			hasHandlers: vi.fn().mockReturnValue(false),
+			emitBeforeAgentStart: vi.fn(async () => {
+				if (!session) throw new Error("Expected active session");
+				await session.setModelTemporary(setupTarget, undefined, { ephemeral: true });
+				return undefined;
+			}),
+		} as unknown as ExtensionRunner;
+		session = new AgentSession({
+			agent,
+			sessionManager: SessionManager.inMemory(),
+			settings,
+			modelRegistry,
+			extensionRunner,
+		});
+
+		await session.prompt("Change models during setup");
+
+		expect(usageHealth).toHaveBeenCalledTimes(2);
+		expect(usageChecks).toEqual([primaryModel.id, setupTarget.id]);
+		expect(requestedModels).toEqual([]);
+	});
+
 	it("continues a startup-owned role fallback chain from the active fallback", async () => {
 		const firstFallback = getBundledModel("openai", "gpt-4o-mini");
 		const secondFallback = getBundledModel("openai", "gpt-4o");
@@ -208,10 +208,8 @@ test("omp models prints invalid models.yml schema errors before listing output",
 		`providers:
  myprovider:
    baseUrl: http://localhost:8000/v1
-    api: openai-completions
+    api: invalid-api
    auth: none
-    compat:
-      thinkingFormat: deepseek
    models:
      - id: my-model
        name: My Model
@@ -248,8 +246,8 @@ test("omp models prints invalid models.yml schema errors before listing output",

 		const output = captured.join("");
 		expect(output).toContain("Warning: models.yml validation failed — custom providers disabled");
-		expect(output).toContain("providers.myprovider.compat.thinkingFormat");
-		expect(output).toContain("deepseek");
+		expect(output).toContain("providers.myprovider.api");
+		expect(output).toContain("invalid-api");
 	} finally {
 		authStorage.close();
 	}
@@ -512,6 +512,33 @@ describe("createAgentSession deferred model pattern resolution", () => {
 		}
 	});

+	test("rejects a depleted terminal fallback after startup skips the primary", async () => {
+		const settings = Settings.isolated({
+			"retry.usageAwareFallback": true,
+			"retry.usageReservePolicy": "confirm",
+		});
+		settings.setModelRole("task", "runtime-provider/runtime-model,runtime-provider/runtime-reasoning-model");
+		const options = await buildSessionOptions("task");
+		const usageHealth = vi.spyOn(options.authStorage, "getModelUsageHealth").mockResolvedValue({
+			state: "depleted",
+			accounts: [{ credentialId: 1, credentialType: "oauth", state: "depleted" }],
+		});
+
+		const { session, modelFallbackMessage } = await createAgentSession({
+			...options,
+			modelPatternFallbackRole: "subagent:usage-aware-terminal",
+			settings,
+			hasUI: false,
+		});
+		try {
+			expect(usageHealth).toHaveBeenCalledTimes(2);
+			expect(session.model).toBeUndefined();
+			expect(modelFallbackMessage).toContain("not found");
+		} finally {
+			await session.dispose();
+		}
+	});
+
 	test("defers ACP reserve fallback until prompt-time capabilities are configured", async () => {
 		const settings = Settings.isolated({
 			"retry.usageAwareFallback": true,
@@ -95,6 +95,98 @@ describe("TurnRecovery replay-unsafe output classification", () => {
 		tempDir.removeSync();
 	});

+	it("rolls back a usage fallback cancelled during model reconciliation", async () => {
+		const fallback = getBundledModel("openai", "gpt-4o-mini");
+		if (!fallback) throw new Error("Expected bundled fallback model");
+		let activeModel = model;
+		const fallbackApplied = Promise.withResolvers<void>();
+		const releaseReconciliation = Promise.withResolvers<void>();
+		const modelChanges: string[] = [];
+		const emittedEvents: string[] = [];
+		const host = createHost(model, modelRegistry);
+		host.model = () => activeModel;
+		host.sessionManager = {
+			appendModelChange: (selector: string) => modelChanges.push(selector),
+		} as never;
+		host.setModelWithProviderSessionReset = async nextModel => {
+			activeModel = nextModel;
+			if (nextModel.provider === fallback.provider && nextModel.id === fallback.id) {
+				fallbackApplied.resolve();
+				await releaseReconciliation.promise;
+			}
+		};
+		host.emitSessionEvent = async event => {
+			emittedEvents.push(event.type);
+		};
+		const recovery = new TurnRecovery(host);
+		const controller = new AbortController();
+		const applying = recovery.applyRetryFallbackCandidate(
+			"default",
+			{
+				raw: `${fallback.provider}/${fallback.id}`,
+				provider: fallback.provider,
+				id: fallback.id,
+				thinkingLevel: undefined,
+			},
+			`${model.provider}/${model.id}`,
+			{ pinFallback: true, apiKey: "test-key", signal: controller.signal },
+		);
+
+		await fallbackApplied.promise;
+		controller.abort();
+		releaseReconciliation.resolve();
+		const committed = await applying;
+
+		expect(committed).toBe(false);
+		expect(activeModel).toBe(model);
+		expect(modelChanges).toEqual([]);
+		expect(emittedEvents).toEqual([]);
+	});
+	it("keeps a committed fallback when cancellation arrives during applied-event delivery", async () => {
+		const fallback = getBundledModel("openai", "gpt-4o-mini");
+		if (!fallback) throw new Error("Expected bundled fallback model");
+		let activeModel = model;
+		const eventStarted = Promise.withResolvers<void>();
+		const releaseEvent = Promise.withResolvers<void>();
+		const modelChanges: string[] = [];
+		const host = createHost(model, modelRegistry);
+		host.model = () => activeModel;
+		host.sessionManager = {
+			appendModelChange: (selector: string) => modelChanges.push(selector),
+		} as never;
+		host.setModelWithProviderSessionReset = async nextModel => {
+			activeModel = nextModel;
+		};
+		host.emitSessionEvent = async event => {
+			if (event.type !== "retry_fallback_applied") return;
+			eventStarted.resolve();
+			await releaseEvent.promise;
+		};
+		const recovery = new TurnRecovery(host);
+		const controller = new AbortController();
+		const applying = recovery.applyRetryFallbackCandidate(
+			"default",
+			{
+				raw: `${fallback.provider}/${fallback.id}`,
+				provider: fallback.provider,
+				id: fallback.id,
+				thinkingLevel: undefined,
+			},
+			`${model.provider}/${model.id}`,
+			{ pinFallback: true, apiKey: "test-key", signal: controller.signal },
+		);
+
+		await eventStarted.promise;
+		controller.abort();
+		releaseEvent.resolve();
+		const committed = await applying;
+
+		expect(committed).toBe(true);
+		expect(activeModel.provider).toBe(fallback.provider);
+		expect(activeModel.id).toBe(fallback.id);
+		expect(modelChanges).toEqual([`${fallback.provider}/${fallback.id}`]);
+	});
+
 	it("treats a failed turn with partial non-whitespace text as NOT retriable", () => {
 		const recovery = new TurnRecovery(createHost(model, modelRegistry));
 		const message = makeMessage([{ type: "text", text: "Here is the first part of my answer" }], model);