diff --git a/docs/porting-from-pi-mono.md b/docs/porting-from-pi-mono.md
index 6a6381b45..241fa3b4d 100644
--- a/docs/porting-from-pi-mono.md
+++ b/docs/porting-from-pi-mono.md
@@ -5,12 +5,12 @@ Use it for any merge: single file, feature branch, or full release sync.
 
 ## Last Sync Point
 
-**Commit:** `11dd2f47`
+**Commit:** `f1b64b9d`
 **Date:** January 2026
 
 When starting a new sync, generate patches from this commit forward:
 ```bash
-git format-patch 11dd2f47..HEAD --stdout > changes.patch
+git format-patch f1b64b9d..HEAD --stdout > changes.patch
 ```
 
 ## 0) Define the scope
diff --git a/packages/coding-agent/CHANGELOG.md b/packages/coding-agent/CHANGELOG.md
index fb45b06b0..d60d3d3f5 100644
--- a/packages/coding-agent/CHANGELOG.md
+++ b/packages/coding-agent/CHANGELOG.md
@@ -1,6 +1,9 @@
 # Changelog
 
 ## [Unreleased]
+### Fixed
+
+- Fixed credential blocking logic to correctly check for remaining available credentials instead of always returning true
 
 ## [4.0.1] - 2026-01-10
 ### Added
diff --git a/packages/coding-agent/src/core/auth-storage.ts b/packages/coding-agent/src/core/auth-storage.ts
index 4814912cc..b7fcdbf9b 100644
--- a/packages/coding-agent/src/core/auth-storage.ts
+++ b/packages/coding-agent/src/core/auth-storage.ts
@@ -797,7 +797,15 @@ export class AuthStorage {
 		}
 
 		this.markCredentialBlocked(providerKey, sessionCredential.index, blockedUntil);
-		return true;
+
+		const remainingCredentials = this.getCredentialsForProvider(provider)
+			.map((credential, index) => ({ credential, index }))
+			.filter(
+				(entry): entry is { credential: AuthCredential; index: number } =>
+					entry.credential.type === sessionCredential.type && entry.index !== sessionCredential.index,
+			);
+
+		return remainingCredentials.some((candidate) => !this.isCredentialBlocked(providerKey, candidate.index));
 	}
 
 	/**