diff --git a/agent/anthropic_adapter.py b/agent/anthropic_adapter.py
index 76761e262..59e7622fb 100644
--- a/agent/anthropic_adapter.py
+++ b/agent/anthropic_adapter.py
@@ -74,8 +74,11 @@ def _get_anthropic_max_output(model: str) -> int:
     model IDs (claude-sonnet-4-5-20250929) and variant suffixes (:1m, :fast)
     resolve correctly.  Longest-prefix match wins to avoid e.g. "claude-3-5"
     matching before "claude-3-5-sonnet".
+
+    Normalizes dots to hyphens so that model names like
+    ``anthropic/claude-opus-4.6`` match the ``claude-opus-4-6`` table key.
     """
-    m = model.lower()
+    m = model.lower().replace(".", "-")
     best_key = ""
     best_val = _ANTHROPIC_DEFAULT_OUTPUT_LIMIT
     for key, val in _ANTHROPIC_OUTPUT_LIMITS.items():
diff --git a/cli.py b/cli.py
index 659fa9741..221976ad2 100644
--- a/cli.py
+++ b/cli.py
@@ -2308,17 +2308,59 @@ class HermesCLI:
         # Append to a pre-filter buffer first
         self._stream_prefilt = getattr(self, "_stream_prefilt", "") + text
 
-        # Check if we're entering a reasoning block
+        # Check if we're entering a reasoning block.
+        # Only match tags that appear at a "block boundary": start of the
+        # stream, after a newline (with optional whitespace), or when nothing
+        # but whitespace has been emitted on the current line.
+        # This prevents false positives when models *mention* tags in prose
+        # like "(/think not producing <think> tags)".
+        #
+        # _stream_last_was_newline tracks whether the last character emitted
+        # (or the start of the stream) is a line boundary.  It's True at
+        # stream start and set True whenever emitted text ends with '\n'.
+        if not hasattr(self, "_stream_last_was_newline"):
+            self._stream_last_was_newline = True  # start of stream = boundary
+
         if not getattr(self, "_in_reasoning_block", False):
             for tag in _OPEN_TAGS:
-                idx = self._stream_prefilt.find(tag)
-                if idx != -1:
-                    # Emit everything before the tag
-                    before = self._stream_prefilt[:idx]
-                    if before:
-                        self._emit_stream_text(before)
-                    self._in_reasoning_block = True
-                    self._stream_prefilt = self._stream_prefilt[idx + len(tag):]
+                search_start = 0
+                while True:
+                    idx = self._stream_prefilt.find(tag, search_start)
+                    if idx == -1:
+                        break
+                    # Check if this is a block boundary position
+                    preceding = self._stream_prefilt[:idx]
+                    if idx == 0:
+                        # At buffer start — only a boundary if we're at
+                        # a line start (stream start or last emit ended
+                        # with newline)
+                        is_block_boundary = getattr(self, "_stream_last_was_newline", True)
+                    else:
+                        # Find last newline in the buffer before the tag
+                        last_nl = preceding.rfind("\n")
+                        if last_nl == -1:
+                            # No newline in buffer — boundary only if
+                            # last emit was a newline AND only whitespace
+                            # has accumulated before the tag
+                            is_block_boundary = (
+                                getattr(self, "_stream_last_was_newline", True)
+                                and preceding.strip() == ""
+                            )
+                        else:
+                            # Text between last newline and tag must be
+                            # whitespace-only
+                            is_block_boundary = preceding[last_nl + 1:].strip() == ""
+                    if is_block_boundary:
+                        # Emit everything before the tag
+                        if preceding:
+                            self._emit_stream_text(preceding)
+                            self._stream_last_was_newline = preceding.endswith("\n")
+                        self._in_reasoning_block = True
+                        self._stream_prefilt = self._stream_prefilt[idx + len(tag):]
+                        break
+                    # Not a block boundary — keep searching after this occurrence
+                    search_start = idx + 1
+                if getattr(self, "_in_reasoning_block", False):
                     break
 
             # Could also be a partial open tag at the end — hold it back
@@ -2332,6 +2374,7 @@ class HermesCLI:
                             break
                 if safe:
                     self._emit_stream_text(safe)
+                    self._stream_last_was_newline = safe.endswith("\n")
                     self._stream_prefilt = self._stream_prefilt[len(safe):]
                 return
 
@@ -2421,6 +2464,14 @@ class HermesCLI:
 
     def _flush_stream(self) -> None:
         """Emit any remaining partial line from the stream buffer and close the box."""
+        # If we're still inside a "reasoning block" at end-of-stream, it was
+        # a false positive — the model mentioned a tag like <think> in prose
+        # but never closed it.  Recover the buffered content as regular text.
+        if getattr(self, "_in_reasoning_block", False) and getattr(self, "_stream_prefilt", ""):
+            self._in_reasoning_block = False
+            self._emit_stream_text(self._stream_prefilt)
+            self._stream_prefilt = ""
+
         # Close reasoning box if still open (in case no content tokens arrived)
         self._close_reasoning_box()
 
@@ -2443,6 +2494,7 @@ class HermesCLI:
         self._stream_text_ansi = ""
         self._stream_prefilt = ""
         self._in_reasoning_block = False
+        self._stream_last_was_newline = True
         self._reasoning_box_opened = False
         self._reasoning_buf = ""
         self._reasoning_preview_buf = ""
diff --git a/run_agent.py b/run_agent.py
index 448b0004b..9a684d17f 100644
--- a/run_agent.py
+++ b/run_agent.py
@@ -5610,20 +5610,20 @@ class AIAgent:
         if self.max_tokens is not None:
             if not self._is_qwen_portal():
                 api_kwargs.update(self._max_tokens_param(self.max_tokens))
-        elif self._is_openrouter_url() and "claude" in (self.model or "").lower():
-            # OpenRouter translates requests to Anthropic's Messages API,
-            # which requires max_tokens as a mandatory field.  When we omit
-            # it, OpenRouter picks a default that can be too low — the model
-            # spends its output budget on thinking and has almost nothing
-            # left for the actual response (especially large tool calls like
-            # write_file).  Sending the model's real output limit ensures
-            # full capacity.  Other providers handle the default fine.
+        elif (self._is_openrouter_url() or "nousresearch" in self._base_url_lower) and "claude" in (self.model or "").lower():
+            # OpenRouter and Nous Portal translate requests to Anthropic's
+            # Messages API, which requires max_tokens as a mandatory field.
+            # When we omit it, the proxy picks a default that can be too
+            # low — the model spends its output budget on thinking and has
+            # almost nothing left for the actual response (especially large
+            # tool calls like write_file).  Sending the model's real output
+            # limit ensures full capacity.
             try:
                 from agent.anthropic_adapter import _get_anthropic_max_output
                 _model_output_limit = _get_anthropic_max_output(self.model)
                 api_kwargs["max_tokens"] = _model_output_limit
             except Exception:
-                pass  # fail open — let OpenRouter pick its default
+                pass  # fail open — let the proxy pick its default
 
         extra_body = {}
 
@@ -9116,6 +9116,11 @@ class AIAgent:
 
                     self._execute_tool_calls(assistant_message, messages, effective_task_id, api_call_count)
 
+                    # Reset per-turn retry counters after successful tool
+                    # execution so a single truncation doesn't poison the
+                    # entire conversation.
+                    truncated_tool_call_retries = 0
+
                     # Signal that a paragraph break is needed before the next
                     # streamed text.  We don't emit it immediately because
                     # multiple consecutive tool iterations would stack up
diff --git a/tests/cli/test_stream_delta_think_tag.py b/tests/cli/test_stream_delta_think_tag.py
new file mode 100644
index 000000000..e7c406b37
--- /dev/null
+++ b/tests/cli/test_stream_delta_think_tag.py
@@ -0,0 +1,138 @@
+"""Tests for _stream_delta's handling of <think> tags in prose vs real reasoning blocks."""
+import sys
+import os
+sys.path.insert(0, os.path.join(os.path.dirname(__file__), "..", ".."))
+
+import pytest
+
+
+def _make_cli_stub():
+    """Create a minimal HermesCLI-like object with stream state."""
+    from cli import HermesCLI
+
+    cli = HermesCLI.__new__(HermesCLI)
+    cli.show_reasoning = False
+    cli._stream_buf = ""
+    cli._stream_started = False
+    cli._stream_box_opened = False
+    cli._stream_prefilt = ""
+    cli._in_reasoning_block = False
+    cli._reasoning_stream_started = False
+    cli._reasoning_box_opened = False
+    cli._reasoning_buf = ""
+    cli._reasoning_preview_buf = ""
+    cli._deferred_content = ""
+    cli._stream_text_ansi = ""
+    cli._stream_needs_break = False
+    cli._emitted = []
+
+    # Mock _emit_stream_text to capture output
+    def mock_emit(text):
+        cli._emitted.append(text)
+    cli._emit_stream_text = mock_emit
+
+    # Mock _stream_reasoning_delta
+    cli._reasoning_emitted = []
+    def mock_reasoning(text):
+        cli._reasoning_emitted.append(text)
+    cli._stream_reasoning_delta = mock_reasoning
+
+    return cli
+
+
+class TestThinkTagInProse:
+    """<think> mentioned in prose should NOT trigger reasoning suppression."""
+
+    def test_think_tag_mid_sentence(self):
+        """'(/think not producing <think> tags)' should pass through."""
+        cli = _make_cli_stub()
+        tokens = [
+            "  1. Fix reasoning mode in eval ",
+            "(/think not producing ",
+            "<think>",
+            " tags — ~2% gap)",
+            "\n  2. Launch production",
+        ]
+        for t in tokens:
+            cli._stream_delta(t)
+        assert not cli._in_reasoning_block, "<think> in prose should not enter reasoning block"
+        full = "".join(cli._emitted)
+        assert "<think>" in full, "The literal <think> tag should be in the emitted text"
+        assert "Launch production" in full
+
+    def test_think_tag_after_text_on_same_line(self):
+        """'some text <think>' should NOT trigger reasoning."""
+        cli = _make_cli_stub()
+        cli._stream_delta("Here is the <think> tag explanation")
+        assert not cli._in_reasoning_block
+        full = "".join(cli._emitted)
+        assert "<think>" in full
+
+    def test_think_tag_in_backticks(self):
+        """'`<think>`' should NOT trigger reasoning."""
+        cli = _make_cli_stub()
+        cli._stream_delta("Use the `<think>` tag for reasoning")
+        assert not cli._in_reasoning_block
+
+
+class TestRealReasoningBlock:
+    """Real <think> tags at block boundaries should still be caught."""
+
+    def test_think_at_start_of_stream(self):
+        """'<think>reasoning</think>answer' should suppress reasoning."""
+        cli = _make_cli_stub()
+        cli._stream_delta("<think>")
+        assert cli._in_reasoning_block
+        cli._stream_delta("I need to analyze this")
+        cli._stream_delta("</think>")
+        assert not cli._in_reasoning_block
+        cli._stream_delta("Here is my answer")
+        full = "".join(cli._emitted)
+        assert "Here is my answer" in full
+        assert "I need to analyze" not in full  # reasoning was suppressed
+
+    def test_think_after_newline(self):
+        """'text\\n<think>' should trigger reasoning block."""
+        cli = _make_cli_stub()
+        cli._stream_delta("Some preamble\n<think>")
+        assert cli._in_reasoning_block
+        full = "".join(cli._emitted)
+        assert "Some preamble" in full
+
+    def test_think_after_newline_with_whitespace(self):
+        """'text\\n  <think>' should trigger reasoning block."""
+        cli = _make_cli_stub()
+        cli._stream_delta("Some preamble\n  <think>")
+        assert cli._in_reasoning_block
+
+    def test_think_with_only_whitespace_before(self):
+        """'   <think>' (whitespace only prefix) should trigger."""
+        cli = _make_cli_stub()
+        cli._stream_delta("   <think>")
+        assert cli._in_reasoning_block
+
+
+class TestFlushRecovery:
+    """_flush_stream should recover content from false-positive reasoning blocks."""
+
+    def test_flush_recovers_buffered_content(self):
+        """If somehow in reasoning block at flush, content is recovered."""
+        cli = _make_cli_stub()
+        # Manually set up a false-positive state
+        cli._in_reasoning_block = True
+        cli._stream_prefilt = " tags — ~2% gap)\n  2. Launch production"
+        cli._stream_box_opened = True
+
+        # Mock _close_reasoning_box and box closing
+        cli._close_reasoning_box = lambda: None
+
+        # Call flush
+        from unittest.mock import patch
+        import shutil
+        with patch.object(shutil, "get_terminal_size", return_value=os.terminal_size((80, 24))):
+            with patch("cli._cprint"):
+                cli._flush_stream()
+
+        assert not cli._in_reasoning_block
+        full = "".join(cli._emitted)
+        assert "Launch production" in full