diff --git a/apps/desktop/electron/backend-start-failure.test.ts b/apps/desktop/electron/backend-start-failure.test.ts
index 0888d65fbc41..36d352d66cc2 100644
--- a/apps/desktop/electron/backend-start-failure.test.ts
+++ b/apps/desktop/electron/backend-start-failure.test.ts
@@ -2,7 +2,7 @@ import assert from 'node:assert/strict'
 
 import { test } from 'vitest'
 
-import { shouldLatchBackendStartFailure } from './backend-start-failure'
+import { shouldLatchBackendStartFailure, shouldLatchRemoteReauthFailure } from './backend-start-failure'
 
 test('latches a LOCAL backend failure so the install-retry loop is broken', () => {
   assert.equal(shouldLatchBackendStartFailure({ attemptedRemote: false }), true)
@@ -21,3 +21,32 @@ test('the two branches are mutually exclusive (a failure either latches or stays
     assert.equal(latched, !attemptedRemote)
   }
 })
+
+test('latches a CONFIRMED remote reauth failure so the overlay stays clickable', () => {
+  // Without this the non-latching remote path re-runs startHermes on every
+  // getConnection/api call, re-emits running:true, and the overlay hides
+  // itself — the "Sign in" button flickers away before it can be clicked.
+  assert.equal(shouldLatchRemoteReauthFailure({ attemptedRemote: true, isReauth: true }), true)
+})
+
+test('does not latch a transient remote failure as reauth', () => {
+  // A mint timeout or a host unreachable across sleep must still self-heal.
+  assert.equal(shouldLatchRemoteReauthFailure({ attemptedRemote: true, isReauth: false }), false)
+})
+
+test('never latches a LOCAL failure as reauth (that is backendStartFailure job)', () => {
+  assert.equal(shouldLatchRemoteReauthFailure({ attemptedRemote: false, isReauth: true }), false)
+  assert.equal(shouldLatchRemoteReauthFailure({ attemptedRemote: false, isReauth: false }), false)
+})
+
+test('the two latches never fire for the same failure', () => {
+  // They are complementary, not overlapping: local failures latch via
+  // backendStartFailure, confirmed remote reauth latches via its own flag.
+  for (const attemptedRemote of [true, false]) {
+    for (const isReauth of [true, false]) {
+      const start = shouldLatchBackendStartFailure({ attemptedRemote })
+      const reauth = shouldLatchRemoteReauthFailure({ attemptedRemote, isReauth })
+      assert.ok(!(start && reauth), `both latched for remote=${attemptedRemote} reauth=${isReauth}`)
+    }
+  }
+})
diff --git a/apps/desktop/electron/backend-start-failure.ts b/apps/desktop/electron/backend-start-failure.ts
index 4998b0164a70..3c5ffdbcad91 100644
--- a/apps/desktop/electron/backend-start-failure.ts
+++ b/apps/desktop/electron/backend-start-failure.ts
@@ -39,3 +39,34 @@ export interface BackendStartFailureContext {
 export function shouldLatchBackendStartFailure(context: BackendStartFailureContext): boolean {
   return !context.attemptedRemote
 }
+
+export interface RemoteReauthFailureContext {
+  /** True when the boot that just failed was dialing a REMOTE (or cloud) backend. */
+  attemptedRemote: boolean
+  /**
+   * True when the failure was a CONFIRMED auth rejection (a credentialed
+   * probe got 401/403), not a transient connectivity fault.
+   */
+  isReauth: boolean
+}
+
+/**
+ * Whether a failed remote boot should latch as a reauth failure.
+ *
+ * This is the deliberate counterpart to `shouldLatchBackendStartFailure`,
+ * which never latches a remote failure because remote faults are usually
+ * transient and must stay retryable. A *confirmed* reauth rejection is the
+ * exception: it cannot self-heal, because nothing will change until the user
+ * signs in again.
+ *
+ * Without a latch, the non-latching remote path actively prevents recovery.
+ * Every subsequent `getConnection`/`api` call re-runs `startHermes`, re-emits
+ * `running: true`, and the boot-failure overlay (`visible = Boolean(boot.error)
+ * && !boot.running`) hides itself — so the "Sign in" button flickers out from
+ * under the user before they can click it. Latching holds the overlay still
+ * and clickable. Cleared on every recovery path (reset, repair, apply-config,
+ * and a confirmed sign-in) so a fresh session boots normally.
+ */
+export function shouldLatchRemoteReauthFailure(context: RemoteReauthFailureContext): boolean {
+  return context.attemptedRemote && context.isReauth
+}