diff --git a/apps/desktop/src/app/chat/sidebar/index.tsx b/apps/desktop/src/app/chat/sidebar/index.tsx
index 28df8b93e143..8f7e1420a57d 100644
--- a/apps/desktop/src/app/chat/sidebar/index.tsx
+++ b/apps/desktop/src/app/chat/sidebar/index.tsx
@@ -93,11 +93,10 @@ import {
   $sessions,
   $sessionsLoading,
   $sessionsTotal,
-  $workingSessionIds,
   sessionPinId,
   setCurrentCwd
 } from '@/store/session'
-import { $focusedStoredSessionId, type SplitDir } from '@/store/session-states'
+import { $focusedStoredSessionId, $workingSessionIds, type SplitDir } from '@/store/session-states'
 
 import {
   type AppView,
diff --git a/apps/desktop/src/app/chat/sidebar/session-row.tsx b/apps/desktop/src/app/chat/sidebar/session-row.tsx
index 2bc61403586a..bf63369c4036 100644
--- a/apps/desktop/src/app/chat/sidebar/session-row.tsx
+++ b/apps/desktop/src/app/chat/sidebar/session-row.tsx
@@ -15,8 +15,8 @@ import { handoffOriginSource, sessionSourceLabel } from '@/lib/session-source'
 import { coarseElapsed } from '@/lib/time'
 import { cn } from '@/lib/utils'
 import { $backgroundRunningSessionIds } from '@/store/composer-status'
-import { $attentionSessionIds, $unreadFinishedSessionIds } from '@/store/session'
-import { openSessionTile } from '@/store/session-states'
+import { $unreadFinishedSessionIds } from '@/store/session'
+import { $attentionSessionIds, openSessionTile } from '@/store/session-states'
 import { canOpenSessionWindow, openSessionInNewWindow } from '@/store/windows'
 
 import { SidebarRowBody, SidebarRowGrab, SidebarRowLabel, SidebarRowLead, SidebarRowShell } from './chrome'
diff --git a/apps/desktop/src/app/contrib/hooks/use-pet-bridge.ts b/apps/desktop/src/app/contrib/hooks/use-pet-bridge.ts
index 2d8a17eb52ba..9dc3dbc60536 100644
--- a/apps/desktop/src/app/contrib/hooks/use-pet-bridge.ts
+++ b/apps/desktop/src/app/contrib/hooks/use-pet-bridge.ts
@@ -3,7 +3,8 @@ import { useEffect, useRef } from 'react'
 import { setPetActivity } from '@/store/pet'
 import { setPetScale } from '@/store/pet-gallery'
 import { setPetOverlayOpenAppHandler, setPetOverlayScaleHandler, setPetOverlaySubmitHandler } from '@/store/pet-overlay'
-import { $attentionSessionIds, $sessions } from '@/store/session'
+import { $sessions } from '@/store/session'
+import { $attentionSessionIds } from '@/store/session-states'
 import { isSecondaryWindow } from '@/store/windows'
 
 import type { GatewayRequester } from '../types'
diff --git a/apps/desktop/src/app/gateway/hooks/use-gateway-boot.ts b/apps/desktop/src/app/gateway/hooks/use-gateway-boot.ts
index 2fdba29f5680..93ec2c5d7714 100644
--- a/apps/desktop/src/app/gateway/hooks/use-gateway-boot.ts
+++ b/apps/desktop/src/app/gateway/hooks/use-gateway-boot.ts
@@ -28,18 +28,16 @@ import { notify, notifyError } from '@/store/notifications'
 import { $activeGatewayProfile, normalizeProfileKey, touchActiveGatewayBackend } from '@/store/profile'
 import {
   $activeSessionId,
-  $attentionSessionIds,
   $connection,
   $currentCwd,
   $sessions,
-  $workingSessionIds,
   ensureDefaultWorkspaceCwd,
   setConnection,
   setCurrentBranch,
   setCurrentCwd,
   setSessionsLoading
 } from '@/store/session'
-import { resetTileRuntimeBindings } from '@/store/session-states'
+import { $attentionSessionIds, $workingSessionIds, resetTileRuntimeBindings } from '@/store/session-states'
 import type { RpcEvent } from '@/types/hermes'
 
 // After this many consecutive failed reconnects (≈45s with the 1→15s backoff)
diff --git a/apps/desktop/src/app/session-switcher.tsx b/apps/desktop/src/app/session-switcher.tsx
index 6b5f932d79db..eb8df9136c1c 100644
--- a/apps/desktop/src/app/session-switcher.tsx
+++ b/apps/desktop/src/app/session-switcher.tsx
@@ -5,7 +5,8 @@ import { useNavigate } from 'react-router-dom'
 
 import { sessionTitle } from '@/lib/chat-runtime'
 import { cn } from '@/lib/utils'
-import { $attentionSessionIds, $unreadFinishedSessionIds, $workingSessionIds } from '@/store/session'
+import { $unreadFinishedSessionIds } from '@/store/session'
+import { $attentionSessionIds, $workingSessionIds } from '@/store/session-states'
 import { $switcherIndex, $switcherOpen, $switcherSessions, closeSwitcher } from '@/store/session-switcher'
 
 import { HUD_ITEM, HUD_POSITION, HUD_SURFACE, HUD_TEXT } from './floating-hud'
diff --git a/apps/desktop/src/app/session/hooks/use-background-queue-drain.test.tsx b/apps/desktop/src/app/session/hooks/use-background-queue-drain.test.tsx
index e6cd960c142d..9f5589b816f4 100644
--- a/apps/desktop/src/app/session/hooks/use-background-queue-drain.test.tsx
+++ b/apps/desktop/src/app/session/hooks/use-background-queue-drain.test.tsx
@@ -2,8 +2,9 @@ import { act, cleanup, render, waitFor } from '@testing-library/react'
 import type { MutableRefObject } from 'react'
 import { afterEach, beforeEach, describe, expect, it, vi } from 'vitest'
 
+import { createClientSessionState } from '@/lib/chat-runtime'
 import { $queuedPromptsBySession, enqueueQueuedPrompt, getQueuedPrompts } from '@/store/composer-queue'
-import { $workingSessionIds } from '@/store/session'
+import { clearAllSessionStates, publishSessionState } from '@/store/session-states'
 
 import { useBackgroundQueueDrain } from './use-background-queue-drain'
 import type { SubmitTextOptions } from './use-prompt-actions/utils'
@@ -32,6 +33,7 @@ function Harness({
 describe('useBackgroundQueueDrain', () => {
   beforeEach(() => {
     vi.useRealTimers()
+    clearAllSessionStates()
   })
 
   afterEach(() => {
@@ -39,7 +41,7 @@ describe('useBackgroundQueueDrain', () => {
     vi.restoreAllMocks()
     vi.useRealTimers()
     $queuedPromptsBySession.set({})
-    $workingSessionIds.set([])
+    clearAllSessionStates()
   })
 
   it('drains an idle queued prompt for a non-selected background session', async () => {
@@ -47,7 +49,7 @@ describe('useBackgroundQueueDrain', () => {
     const submitText = vi.fn(async () => true)
 
     enqueueQueuedPrompt('stored-session-a', { text: 'continue in the background', attachments: [] })
-    $workingSessionIds.set([])
+    clearAllSessionStates()
 
     render(<Harness runtimeMap={runtimeMap} submitText={submitText} />)
 
@@ -68,7 +70,7 @@ describe('useBackgroundQueueDrain', () => {
     const submitText = vi.fn(async () => true)
 
     enqueueQueuedPrompt('stored-session-a', { text: 'visible queue entry', attachments: [] })
-    $workingSessionIds.set([])
+    clearAllSessionStates()
 
     render(<Harness runtimeMap={runtimeMap} selectedStoredSessionId="stored-session-a" submitText={submitText} />)
 
@@ -83,7 +85,8 @@ describe('useBackgroundQueueDrain', () => {
     const submitText = vi.fn(async () => true)
 
     enqueueQueuedPrompt('stored-session-a', { text: 'wait for current turn', attachments: [] })
-    $workingSessionIds.set(['stored-session-a'])
+    // Mark the session as working (busy) so the drain should skip it
+    publishSessionState('rt-session-a', { ...createClientSessionState('stored-session-a'), busy: true })
 
     render(<Harness runtimeMap={runtimeMap} submitText={submitText} />)
 
diff --git a/apps/desktop/src/app/session/hooks/use-background-queue-drain.ts b/apps/desktop/src/app/session/hooks/use-background-queue-drain.ts
index 83d389e9767b..8d98df149313 100644
--- a/apps/desktop/src/app/session/hooks/use-background-queue-drain.ts
+++ b/apps/desktop/src/app/session/hooks/use-background-queue-drain.ts
@@ -12,7 +12,7 @@ import {
   shouldAutoDrain
 } from '@/store/composer-queue'
 import { notify } from '@/store/notifications'
-import { $workingSessionIds } from '@/store/session'
+import { $workingSessionIds } from '@/store/session-states'
 
 import type { SubmitTextOptions } from './use-prompt-actions/utils'
 
diff --git a/apps/desktop/src/app/session/hooks/use-session-list-actions.ts b/apps/desktop/src/app/session/hooks/use-session-list-actions.ts
index 6e4cbb7cc021..f3c88be43aa0 100644
--- a/apps/desktop/src/app/session/hooks/use-session-list-actions.ts
+++ b/apps/desktop/src/app/session/hooks/use-session-list-actions.ts
@@ -15,9 +15,7 @@ import {
   $messagingSessions,
   $selectedStoredSessionId,
   $sessions,
-  $workingSessionIds,
   CRON_SECTION_LIMIT,
-  getRecentlySettledSessionIds,
   mergeSessionPage,
   MESSAGING_SECTION_LIMIT,
   setCronSessions,
@@ -29,6 +27,7 @@ import {
   setSessionsLoading,
   setSessionsTotal
 } from '@/store/session'
+import { $workingSessionIds, getRecentlySettledSessionIds } from '@/store/session-states'
 
 // The recents list is local-only: cron rows have their own section, and each
 // messaging platform (telegram, discord, …) is fetched separately into its own
diff --git a/apps/desktop/src/app/session/hooks/use-session-state-cache.ts b/apps/desktop/src/app/session/hooks/use-session-state-cache.ts
index 75b535835acc..2faa1091c54f 100644
--- a/apps/desktop/src/app/session/hooks/use-session-state-cache.ts
+++ b/apps/desktop/src/app/session/hooks/use-session-state-cache.ts
@@ -6,24 +6,18 @@ import { preserveLocalAssistantErrors } from '@/lib/chat-messages'
 import { createClientSessionState } from '@/lib/chat-runtime'
 import { setMutableRef } from '@/lib/mutable-ref'
 import {
-  $activeSessionId,
   $busy,
   $messages,
-  noteSessionActivity,
-  onSessionWatchdogClear,
-  setActiveSessionStoredId,
   setCurrentFastMode,
   setCurrentModel,
   setCurrentPersonality,
   setCurrentProvider,
   setCurrentReasoningEffort,
   setCurrentServiceTier,
-  setSessionAttention,
-  setSessionWorking,
   setTurnStartedAt,
   setYoloActive
 } from '@/store/session'
-import { publishSessionState } from '@/store/session-states'
+import { publishSessionState, setWatchdogClearFn } from '@/store/session-states'
 
 import type { ClientSessionState } from '../../types'
 
@@ -103,33 +97,20 @@ export function useSessionStateCache({
     const existing = sessionStateByRuntimeIdRef.current.get(sessionId)
 
     if (existing) {
-      if (storedSessionId !== undefined) {
-        const previousStoredSessionId = existing.storedSessionId
-        existing.storedSessionId = storedSessionId
+      if (storedSessionId !== undefined && storedSessionId !== existing.storedSessionId) {
+        // Stored id changed (e.g. auto-compression rotated it). Create a NEW
+        // state object rather than mutating in place — updateSessionState needs
+        // the PREVIOUS state to detect transitions (busy→idle, id rotation).
+        const updated = { ...existing, storedSessionId }
+
+        sessionStateByRuntimeIdRef.current.set(sessionId, updated)
 
         if (storedSessionId) {
           runtimeIdByStoredSessionIdRef.current.set(storedSessionId, sessionId)
-
-          if (existing.busy) {
-            setSessionWorking(storedSessionId, true)
-          }
-        }
-
-        if (previousStoredSessionId && previousStoredSessionId !== storedSessionId) {
-          setSessionWorking(previousStoredSessionId, false)
-
-          // Auto-compression rotated the stored id on the active session. Signal
-          // the route-following effect in use-session-actions so the URL + selection
-          // re-anchor to the continuation id — otherwise the next send hits a stale
-          // stored→runtime mapping (getRuntimeIdForStoredSession returns null) and
-          // triggers a full thread reload via resumeStoredSession.
-          if (sessionId === $activeSessionId.get()) {
-            setActiveSessionStoredId(storedSessionId)
-          }
         }
       }
 
-      return existing
+      return sessionStateByRuntimeIdRef.current.get(sessionId)!
     }
 
     const created = createClientSessionState(storedSessionId ?? null)
@@ -267,38 +248,14 @@ export function useSessionStateCache({
   )
 
   const updateSessionState = useCallback(
-    (
-      sessionId: string,
-      updater: (state: ClientSessionState) => ClientSessionState,
-      storedSessionId?: string | null
-    ) => {
+    (sessionId: string, updater: (state: ClientSessionState) => ClientSessionState, storedSessionId?: string | null) => {
       const previous = ensureSessionState(sessionId, storedSessionId)
       const next = updater({ ...previous, messages: previous.messages })
       sessionStateByRuntimeIdRef.current.set(sessionId, next)
-      // Mirror into the reactive multi-session store — session tiles (and any
-      // other non-primary surface) subscribe per runtime id there instead of
-      // through the single active $messages view.
+      // Publishing to $sessionStates automatically fires transition side-effects
+      // (watchdog, settle grace, unread marker, compression id rotation) inside
+      // publishSessionState — no manual transition call needed.
       publishSessionState(sessionId, next)
-
-      if (previous.storedSessionId !== next.storedSessionId || !next.busy) {
-        setSessionWorking(previous.storedSessionId, false)
-      }
-
-      if (previous.storedSessionId !== next.storedSessionId || !next.needsInput) {
-        setSessionAttention(previous.storedSessionId, false)
-      }
-
-      setSessionWorking(next.storedSessionId, next.busy)
-      setSessionAttention(next.storedSessionId, next.needsInput)
-
-      // Every state update is effectively a "still alive" heartbeat for
-      // streaming events. The session-store watchdog uses this to keep the
-      // working flag alive during long-running turns and to clear it once
-      // the stream goes silent.
-      if (next.busy) {
-        noteSessionActivity(next.storedSessionId)
-      }
-
       syncSessionStateToView(sessionId, next)
 
       return next
@@ -318,30 +275,32 @@ export function useSessionStateCache({
     return runtimeState?.storedSessionId === storedSessionId ? runtimeId : null
   }, [])
 
-  // When the store watchdog force-clears a stuck session (8 min of stream
-  // silence — a hung or looping turn that never delivered its terminal event),
-  // also drop that session's busy/awaiting flags here. Clearing the sidebar dot
-  // alone leaves the composer wedged on "Thinking"/Stop; updateSessionState
-  // re-syncs `$busy` when the healed session is the one on screen.
-  useEffect(
-    () =>
-      onSessionWatchdogClear(storedSessionId => {
-        const runtimeId = runtimeIdByStoredSessionIdRef.current.get(storedSessionId)
-        const state = runtimeId ? sessionStateByRuntimeIdRef.current.get(runtimeId) : undefined
+  // Wire the watchdog's force-clear callback to our cache. When the watchdog
+  // fires (8 min of stream silence — a hung or looping turn that never
+  // delivered its terminal event), it calls this to clear the session's busy
+  // state. Clearing the sidebar dot alone would leave the composer wedged on
+  // "Thinking"/Stop; updateSessionState propagates the clear to $sessionStates
+  // → $workingSessionIds (computed) follows automatically, and
+  // syncSessionStateToView re-syncs $busy when the healed session is the one
+  // on screen.
+  useEffect(() => {
+    setWatchdogClearFn(runtimeId => {
+      const state = sessionStateByRuntimeIdRef.current.get(runtimeId)
 
-        if (!runtimeId || !state?.busy) {
-          return
-        }
+      if (!state?.busy) {
+        return
+      }
 
-        updateSessionState(runtimeId, current => ({
-          ...current,
-          awaitingResponse: false,
-          busy: false,
-          needsInput: false
-        }))
-      }),
-    [updateSessionState]
-  )
+      updateSessionState(runtimeId, current => ({
+        ...current,
+        awaitingResponse: false,
+        busy: false,
+        needsInput: false
+      }))
+    })
+
+    return () => setWatchdogClearFn(null)
+  }, [updateSessionState])
 
   return {
     activeSessionIdRef,
diff --git a/apps/desktop/src/store/gateway-switch.ts b/apps/desktop/src/store/gateway-switch.ts
index e728d57d46f0..0d1414adad00 100644
--- a/apps/desktop/src/store/gateway-switch.ts
+++ b/apps/desktop/src/store/gateway-switch.ts
@@ -3,8 +3,8 @@ import { atom } from 'nanostores'
 import { queryClient } from '@/lib/query-client'
 import { resetSessionsLimit } from '@/store/layout'
 import {
+  $unreadFinishedSessionIds,
   setActiveSessionId,
-  setAttentionSessionIds,
   setCronSessions,
   setFreshDraftReady,
   setMessages,
@@ -15,10 +15,9 @@ import {
   setSessionProfileTotals,
   setSessions,
   setSessionsLoading,
-  setSessionsTotal,
-  setUnreadFinishedSessionIds,
-  setWorkingSessionIds
+  setSessionsTotal
 } from '@/store/session'
+import { clearAllSessionStates } from '@/store/session-states'
 
 // True while a soft gateway-mode apply is mid-flight (wipe → re-dial). Lets the
 // boot hook suppress the backend-exit toast and keeps the cold-boot CONNECTING
@@ -45,9 +44,11 @@ export function wipeSessionListsForGatewaySwitch(): void {
   setMessagingSessions([])
   setMessagingPlatformTotals({})
   setMessagingTruncated(false)
-  setWorkingSessionIds([])
-  setAttentionSessionIds([])
-  setUnreadFinishedSessionIds([])
+  // Clearing $sessionStates automatically clears $workingSessionIds and
+  // $attentionSessionIds (they're computed from it). $unreadFinishedSessionIds
+  // is separate (transient, not computable) so wipe it explicitly.
+  clearAllSessionStates()
+  $unreadFinishedSessionIds.set([])
   setSessionsLoading(true)
   resetSessionsLimit()
 
diff --git a/apps/desktop/src/store/session-states.ts b/apps/desktop/src/store/session-states.ts
index 43e5e21978f8..2ecf22882fef 100644
--- a/apps/desktop/src/store/session-states.ts
+++ b/apps/desktop/src/store/session-states.ts
@@ -30,7 +30,7 @@ import {
 import { readJson, writeJson } from '@/lib/storage'
 
 import { $activeGatewayProfile, normalizeProfileKey } from './profile'
-import { $activeSessionId, $selectedStoredSessionId } from './session'
+import { $activeSessionId, $selectedStoredSessionId, $unreadFinishedSessionIds, setActiveSessionStoredId } from './session'
 import { isSecondaryWindow } from './windows'
 
 // ---------------------------------------------------------------------------
@@ -39,12 +39,110 @@ import { isSecondaryWindow } from './windows'
 
 export const $sessionStates = atom<Record<string, ClientSessionState>>({})
 
-/** Publish one session's state (immutable per-key — slices stay stable). */
+// --- Watchdog: force-clears busy after 8 min of stream silence -------------
+const SESSION_WATCHDOG_TIMEOUT_MS = 8 * 60 * 1000
+const sessionWatchdogTimers = new Map<string, ReturnType<typeof setTimeout>>()
+
+type WatchdogClearFn = (runtimeId: string) => void
+let watchdogClearFn: WatchdogClearFn | null = null
+
+export function setWatchdogClearFn(fn: WatchdogClearFn | null) {
+  watchdogClearFn = fn
+}
+
+function armWatchdog(runtimeId: string) {
+  const existing = sessionWatchdogTimers.get(runtimeId)
+
+  if (existing) {clearTimeout(existing)}
+  sessionWatchdogTimers.set(
+    runtimeId,
+    setTimeout(() => {
+      sessionWatchdogTimers.delete(runtimeId)
+      watchdogClearFn?.(runtimeId)
+    }, SESSION_WATCHDOG_TIMEOUT_MS)
+  )
+}
+
+function clearWatchdog(runtimeId: string) {
+  const t = sessionWatchdogTimers.get(runtimeId)
+
+  if (t) {
+    clearTimeout(t)
+    sessionWatchdogTimers.delete(runtimeId)
+  }
+}
+
+// --- Settle grace: keeps a just-finished session in the sidebar merge set ---
+const SESSION_SETTLE_GRACE_MS = 30 * 1000
+const settledExpiry = new Map<string, number>()
+
+function markSettled(storedId: string) {
+  settledExpiry.set(storedId, Date.now() + SESSION_SETTLE_GRACE_MS)
+}
+
+function clearSettled(storedId: string) {
+  settledExpiry.delete(storedId)
+}
+
+/** Stored ids whose turn ended within the grace window. Prunes expired. */
+export function getRecentlySettledSessionIds(now: number = Date.now()): string[] {
+  const live: string[] = []
+
+  for (const [id, expiry] of settledExpiry) {
+    if (expiry > now) {live.push(id)}
+    else {settledExpiry.delete(id)}
+  }
+
+  return live
+}
+
+// --- Transition detection (called automatically from publishSessionState) ---
+function handleTransition(previous: ClientSessionState | null, next: ClientSessionState, runtimeId: string) {
+  // Compression id rotation: signal the route-follow effect.
+  if (previous?.storedSessionId && next.storedSessionId && previous.storedSessionId !== next.storedSessionId) {
+    if (runtimeId === $activeSessionId.get()) {setActiveSessionStoredId(next.storedSessionId)}
+    clearSettled(previous.storedSessionId)
+  }
+
+  // Watchdog: arm on any busy publish, disarm on idle.
+  if (next.busy) {armWatchdog(runtimeId)}
+  else {clearWatchdog(runtimeId)}
+
+  const storedId = next.storedSessionId
+
+  if (!storedId) {return}
+  const wasWorking = previous?.busy ?? false
+
+  if (next.busy && !wasWorking) {
+    clearSettled(storedId)
+  } else if (!next.busy && wasWorking) {
+    markSettled(storedId)
+
+    if (storedId !== $selectedStoredSessionId.get()) {
+      const cur = $unreadFinishedSessionIds.get()
+
+      if (!cur.includes(storedId)) {$unreadFinishedSessionIds.set([...cur, storedId])}
+    }
+  }
+}
+
+/** Publish one session's state. Automatically fires transition side-effects
+ *  (watchdog arm/disarm, settle grace, unread marker, compression id rotation)
+ *  by diffing previous vs next — callers never need to manually call a
+ *  transition handler. */
 export function publishSessionState(runtimeId: string, state: ClientSessionState) {
+  const prev = $sessionStates.get()[runtimeId] ?? null
   $sessionStates.set({ ...$sessionStates.get(), [runtimeId]: state })
+  handleTransition(prev, state, runtimeId)
 }
 
 export function dropSessionState(runtimeId: string) {
+  // Disarm the watchdog — a dropped runtime must not fire a stale clear later.
+  // Settle-grace entries are keyed by stored id and self-expire; leave them so
+  // a just-finished session's row survives merge eviction even if its tile or
+  // cached runtime is dropped in the meantime.
+  clearWatchdog(runtimeId)
+
   const current = $sessionStates.get()
 
   if (!(runtimeId in current)) {
@@ -55,6 +153,38 @@ export function dropSessionState(runtimeId: string) {
   $sessionStates.set(rest)
 }
 
+/** Drop every cached session state — used on soft gateway-mode apply so the
+ *  computed working / attention sets drain to empty alongside the session list.
+ *  Also disarms every watchdog timer and drops all settle-grace entries: a
+ *  wiped gateway's sessions must not fire stale clears or linger in the
+ *  sidebar merge keep-set after the switch. */
+export function clearAllSessionStates() {
+  for (const timer of sessionWatchdogTimers.values()) {
+    clearTimeout(timer)
+  }
+
+  sessionWatchdogTimers.clear()
+  settledExpiry.clear()
+  $sessionStates.set({})
+}
+
+// Derived per-session status sets. `$sessionStates` already holds `busy` and
+// `needsInput` for every runtime session (written by updateSessionState); these
+// are pure projections of it, not independently maintained atoms. This keeps the
+// data flow one-directional: gateway event → cache → $sessionStates → computed
+// views, eliminating the "projection atom out of sync with cache" bug class.
+export const $workingSessionIds = computed($sessionStates, states =>
+  Object.values(states)
+    .filter(s => s.busy && s.storedSessionId)
+    .map(s => s.storedSessionId!)
+)
+
+export const $attentionSessionIds = computed($sessionStates, states =>
+  Object.values(states)
+    .filter(s => s.needsInput && s.storedSessionId)
+    .map(s => s.storedSessionId!)
+)
+
 // ---------------------------------------------------------------------------
 // Session tiles.
 // ---------------------------------------------------------------------------
diff --git a/apps/desktop/src/store/session-watchdog.test.ts b/apps/desktop/src/store/session-watchdog.test.ts
index 75be2f203ca7..b4b7ca52303b 100644
--- a/apps/desktop/src/store/session-watchdog.test.ts
+++ b/apps/desktop/src/store/session-watchdog.test.ts
@@ -1,59 +1,286 @@
 import { afterEach, beforeEach, describe, expect, it, vi } from 'vitest'
 
-import { $workingSessionIds, onSessionWatchdogClear, setSessionWorking, setWorkingSessionIds } from './session'
+import type { ClientSessionState } from '@/app/types'
+import { createClientSessionState } from '@/lib/chat-runtime'
+
+import { $activeSessionId, $selectedStoredSessionId, $unreadFinishedSessionIds } from './session'
+import {
+  $attentionSessionIds,
+  $sessionStates,
+  $workingSessionIds,
+  clearAllSessionStates,
+  getRecentlySettledSessionIds,
+  publishSessionState,
+  setWatchdogClearFn
+} from './session-states'
 
 const WATCHDOG_MS = 8 * 60 * 1000
 
-describe('session watchdog', () => {
+function state(over: Partial<ClientSessionState> = {}): ClientSessionState {
+  return { ...createClientSessionState(null), storedSessionId: 's1', ...over }
+}
+
+describe('session status transitions', () => {
   beforeEach(() => {
     vi.useFakeTimers()
-    setWorkingSessionIds(() => [])
+    vi.setSystemTime(0)
+    // clearAllSessionStates also disarms watchdog timers + drops settle-grace
+    // entries, so no leftover state can leak in from a previous test.
+    clearAllSessionStates()
+    $unreadFinishedSessionIds.set([])
+    $selectedStoredSessionId.set(null)
+    $activeSessionId.set(null)
   })
 
   afterEach(() => {
     vi.runOnlyPendingTimers()
     vi.useRealTimers()
+    clearAllSessionStates()
+    $unreadFinishedSessionIds.set([])
+    $selectedStoredSessionId.set(null)
+    $activeSessionId.set(null)
   })
 
-  it('drops a stuck session and notifies listeners once the silence window elapses', () => {
-    const cleared: string[] = []
-    const off = onSessionWatchdogClear(id => cleared.push(id))
+  it('adds a session to $workingSessionIds when busy transitions to true', () => {
+    const s = state({ busy: false, storedSessionId: 's1' })
+    publishSessionState('rt1', s)
+
+    // idle → working
+    const next = { ...s, busy: true }
+    publishSessionState('rt1', next)
+
+    expect($workingSessionIds.get()).toContain('s1')
+  })
+
+  it('removes a session from $workingSessionIds when busy transitions to false', () => {
+    const s = state({ busy: true, storedSessionId: 's1' })
+    publishSessionState('rt1', s)
+    // Simulate the working state being set
+    const working = { ...s, busy: true }
+    publishSessionState('rt1', working)
 
-    setSessionWorking('s1', true)
     expect($workingSessionIds.get()).toContain('s1')
 
+    // Now transition to idle
+    const idle = { ...working, busy: false }
+    publishSessionState('rt1', idle)
+
+    expect($workingSessionIds.get()).not.toContain('s1')
+  })
+
+  it('adds a session to $attentionSessionIds when needsInput is true', () => {
+    const s = state({ busy: true, needsInput: false, storedSessionId: 's1' })
+    publishSessionState('rt1', s)
+
+    const next = { ...s, needsInput: true }
+    publishSessionState('rt1', next)
+
+    expect($attentionSessionIds.get()).toContain('s1')
+  })
+
+  it('marks a background session unread when its turn finishes', () => {
+    $selectedStoredSessionId.set('other-session')
+
+    const working = state({ busy: true, storedSessionId: 's1' })
+    publishSessionState('rt1', working)
+
+    const idle = { ...working, busy: false }
+    publishSessionState('rt1', idle)
+
+    expect($unreadFinishedSessionIds.get()).toEqual(['s1'])
+  })
+
+  it('does NOT mark unread when the finishing session is the active one', () => {
+    $selectedStoredSessionId.set('s1')
+
+    const working = state({ busy: true, storedSessionId: 's1' })
+    publishSessionState('rt1', working)
+
+    const idle = { ...working, busy: false }
+    publishSessionState('rt1', idle)
+
+    expect($unreadFinishedSessionIds.get()).toEqual([])
+  })
+
+  it('does NOT mark unread on idle→idle re-asserts (no prior working state)', () => {
+    $selectedStoredSessionId.set('other-session')
+
+    const idle = state({ busy: false, storedSessionId: 's1' })
+    publishSessionState('rt1', idle)
+
+    expect($unreadFinishedSessionIds.get()).toEqual([])
+  })
+
+  it('grants settle grace when a working session goes idle', () => {
+    $selectedStoredSessionId.set('other')
+
+    const working = state({ busy: true, storedSessionId: 's1' })
+    publishSessionState('rt1', working)
+
+    const idle = { ...working, busy: false }
+    publishSessionState('rt1', idle)
+
+    expect(getRecentlySettledSessionIds()).toEqual(['s1'])
+  })
+
+  it('does not grant grace on idle→idle re-asserts', () => {
+    const idle = state({ busy: false, storedSessionId: 's1' })
+    publishSessionState('rt1', idle)
+    expect(getRecentlySettledSessionIds()).toEqual([])
+  })
+
+  it('clears settle grace when the session goes busy again', () => {
+    $selectedStoredSessionId.set('other')
+
+    const working = state({ busy: true, storedSessionId: 's2' })
+    publishSessionState('rt1', working)
+
+    const idle = { ...working, busy: false }
+    publishSessionState('rt1', idle)
+
+    expect(getRecentlySettledSessionIds()).toEqual(['s2'])
+
+    // New turn for the same session
+    const workingAgain = { ...idle, busy: true }
+    publishSessionState('rt1', workingAgain)
+
+    expect(getRecentlySettledSessionIds()).toEqual([])
+  })
+})
+
+describe('session watchdog', () => {
+  beforeEach(() => {
+    vi.useFakeTimers()
+    clearAllSessionStates()
+    $unreadFinishedSessionIds.set([])
+    $selectedStoredSessionId.set(null)
+    $activeSessionId.set(null)
+  })
+
+  afterEach(() => {
+    vi.runOnlyPendingTimers()
+    vi.useRealTimers()
+    clearAllSessionStates()
+    $unreadFinishedSessionIds.set([])
+    $selectedStoredSessionId.set(null)
+    $activeSessionId.set(null)
+  })
+
+  it('drops a stuck session from $workingSessionIds once the silence window elapses', () => {
+    // Wire a clear fn like use-session-state-cache does in the real app: the
+    // watchdog hands us the runtime id, we publish the busy:false state.
+    const clearedRuntimeIds: string[] = []
+    setWatchdogClearFn(runtimeId => {
+      clearedRuntimeIds.push(runtimeId)
+      const current = $sessionStates.get()[runtimeId]
+
+      if (current) {
+        publishSessionState(runtimeId, { ...current, busy: false, needsInput: false })
+      }
+    })
+
+    const working = state({ busy: true, storedSessionId: 's1' })
+    publishSessionState('rt1', working)
+
+    expect($workingSessionIds.get()).toContain('s1')
+
+    // Watchdog fires after 8 min of silence → the wired clear fn runs and the
+    // computed working set drops the session. This asserts the timer→callback
+    // wiring, not just the projection.
     vi.advanceTimersByTime(WATCHDOG_MS)
 
-    // Both the sidebar dot AND the busy-clearing signal fire — the contract
-    // that lets the composer recover from a hung/looping turn, not just the dot.
+    expect(clearedRuntimeIds).toEqual(['rt1'])
     expect($workingSessionIds.get()).not.toContain('s1')
-    expect(cleared).toEqual(['s1'])
 
-    off()
+    setWatchdogClearFn(null)
   })
 
   it('never fires for a session that settles before the window', () => {
-    const cleared: string[] = []
-    const off = onSessionWatchdogClear(id => cleared.push(id))
+    const clearedRuntimeIds: string[] = []
+    setWatchdogClearFn(runtimeId => clearedRuntimeIds.push(runtimeId))
 
-    setSessionWorking('s2', true)
-    setSessionWorking('s2', false)
+    const working = state({ busy: true, storedSessionId: 's2' })
+    publishSessionState('rt2', working)
+
+    // Session settles before the watchdog window
+    const idle = { ...working, busy: false }
+    publishSessionState('rt2', idle)
 
     vi.advanceTimersByTime(WATCHDOG_MS)
 
-    expect(cleared).toEqual([])
+    // The watchdog was disarmed — the clear fn never ran.
+    expect(clearedRuntimeIds).toEqual([])
+    expect($workingSessionIds.get()).not.toContain('s2')
 
-    off()
+    setWatchdogClearFn(null)
   })
 
-  it('stops notifying after unsubscribe', () => {
-    const cleared: string[] = []
-    const off = onSessionWatchdogClear(id => cleared.push(id))
-    off()
+  it('does not fire after clearAllSessionStates disarms every timer', () => {
+    const clearedRuntimeIds: string[] = []
+    setWatchdogClearFn(runtimeId => clearedRuntimeIds.push(runtimeId))
+
+    publishSessionState('rt1', state({ busy: true, storedSessionId: 's1' }))
+    clearAllSessionStates()
 
-    setSessionWorking('s3', true)
     vi.advanceTimersByTime(WATCHDOG_MS)
 
-    expect(cleared).toEqual([])
+    expect(clearedRuntimeIds).toEqual([])
+
+    setWatchdogClearFn(null)
+  })
+})
+
+describe('computed $workingSessionIds', () => {
+  beforeEach(() => {
+    clearAllSessionStates()
+  })
+
+  afterEach(() => {
+    clearAllSessionStates()
+  })
+
+  it('is empty when no sessions are busy', () => {
+    expect($workingSessionIds.get()).toEqual([])
+  })
+
+  it('reflects sessions with busy=true and a storedSessionId', () => {
+    publishSessionState('rt1', state({ busy: true, storedSessionId: 's1' }))
+    publishSessionState('rt2', state({ busy: false, storedSessionId: 's2' }))
+    publishSessionState('rt3', state({ busy: true, storedSessionId: null }))
+
+    expect($workingSessionIds.get()).toEqual(['s1'])
+  })
+
+  it('updates when session state changes', () => {
+    publishSessionState('rt1', state({ busy: true, storedSessionId: 's1' }))
+    expect($workingSessionIds.get()).toEqual(['s1'])
+
+    publishSessionState('rt1', state({ busy: false, storedSessionId: 's1' }))
+    expect($workingSessionIds.get()).toEqual([])
+  })
+})
+
+describe('computed $attentionSessionIds', () => {
+  beforeEach(() => {
+    clearAllSessionStates()
+  })
+
+  afterEach(() => {
+    clearAllSessionStates()
+  })
+
+  it('reflects sessions with needsInput=true and a storedSessionId', () => {
+    publishSessionState('rt1', state({ needsInput: true, storedSessionId: 's1' }))
+    publishSessionState('rt2', state({ needsInput: false, storedSessionId: 's2' }))
+
+    expect($attentionSessionIds.get()).toEqual(['s1'])
+  })
+
+  it('clears when $sessionStates is cleared', () => {
+    publishSessionState('rt1', state({ needsInput: true, storedSessionId: 's1' }))
+    expect($attentionSessionIds.get()).toEqual(['s1'])
+
+    clearAllSessionStates()
+    expect($attentionSessionIds.get()).toEqual([])
   })
 })
diff --git a/apps/desktop/src/store/session.test.ts b/apps/desktop/src/store/session.test.ts
index 7ff12111e70d..a3c816c762f6 100644
--- a/apps/desktop/src/store/session.test.ts
+++ b/apps/desktop/src/store/session.test.ts
@@ -1,24 +1,28 @@
 import { afterEach, beforeEach, describe, expect, it, vi } from 'vitest'
 
+import type { ClientSessionState } from '@/app/types'
+import { createClientSessionState } from '@/lib/chat-runtime'
 import type { SessionInfo } from '@/types/hermes'
 
 import {
   $activeSessionId,
-  $attentionSessionIds,
   $connection,
   $currentCwd,
+  $selectedStoredSessionId,
   $unreadFinishedSessionIds,
-  $workingSessionIds,
   applyConfiguredDefaultProjectDir,
-  getRecentlySettledSessionIds,
   mergeSessionPage,
   sessionPinId,
   setCurrentCwd,
   setSelectedStoredSessionId,
-  setSessionAttention,
-  setSessionWorking,
   workspaceCwdForNewSession
 } from './session'
+import {
+  $attentionSessionIds,
+  clearAllSessionStates,
+  getRecentlySettledSessionIds,
+  publishSessionState
+} from './session-states'
 
 const session = (over: Partial<SessionInfo>): SessionInfo => ({
   archived: false,
@@ -39,30 +43,32 @@ const session = (over: Partial<SessionInfo>): SessionInfo => ({
   ...over
 })
 
-describe('setSessionAttention', () => {
-  it('adds and removes a session id without duplicating it', () => {
-    $attentionSessionIds.set([])
-
-    setSessionAttention('s1', true)
-    setSessionAttention('s1', true)
-    expect($attentionSessionIds.get()).toEqual(['s1'])
-
-    setSessionAttention('s2', true)
-    expect($attentionSessionIds.get()).toEqual(['s1', 's2'])
-
-    setSessionAttention('s1', false)
-    expect($attentionSessionIds.get()).toEqual(['s2'])
-
-    $attentionSessionIds.set([])
+describe('computed $attentionSessionIds', () => {
+  beforeEach(() => {
+    clearAllSessionStates()
   })
 
-  it('ignores empty ids and no-op clears', () => {
-    $attentionSessionIds.set([])
+  afterEach(() => {
+    clearAllSessionStates()
+  })
 
-    setSessionAttention(null, true)
-    setSessionAttention(undefined, true)
-    setSessionAttention('', true)
-    setSessionAttention('missing', false)
+  it('reflects sessions with needsInput=true and a storedSessionId', () => {
+    publishSessionState('rt1', { ...createClientSessionState('s1'), needsInput: true })
+    publishSessionState('rt2', { ...createClientSessionState('s2'), needsInput: false })
+
+    expect($attentionSessionIds.get()).toEqual(['s1'])
+  })
+
+  it('updates when needsInput changes', () => {
+    publishSessionState('rt1', { ...createClientSessionState('s1'), needsInput: true })
+    expect($attentionSessionIds.get()).toEqual(['s1'])
+
+    publishSessionState('rt1', { ...createClientSessionState('s1'), needsInput: false })
+    expect($attentionSessionIds.get()).toEqual([])
+  })
+
+  it('ignores sessions without a storedSessionId', () => {
+    publishSessionState('rt1', { ...createClientSessionState(null), needsInput: true })
     expect($attentionSessionIds.get()).toEqual([])
   })
 })
@@ -242,25 +248,36 @@ describe('workspaceCwdForNewSession', () => {
   })
 })
 
+function makeState(over: Partial<ClientSessionState> = {}): ClientSessionState {
+  return { ...createClientSessionState('s1'), ...over }
+}
+
 describe('getRecentlySettledSessionIds', () => {
+  beforeEach(() => {
+    vi.useFakeTimers()
+    vi.setSystemTime(0)
+    // clearAllSessionStates also drops settle-grace entries + watchdog timers,
+    // so nothing leaks in from a previous test.
+    clearAllSessionStates()
+    $selectedStoredSessionId.set(null)
+    $unreadFinishedSessionIds.set([])
+  })
+
   afterEach(() => {
     vi.useRealTimers()
-    $workingSessionIds.set([])
-
-    // Drain anything left in the grace map so tests stay isolated.
-    for (const id of getRecentlySettledSessionIds(Number.MAX_SAFE_INTEGER)) {
-      void id
-    }
+    clearAllSessionStates()
+    $selectedStoredSessionId.set(null)
+    $unreadFinishedSessionIds.set([])
   })
 
   it('keeps a session for the grace window after its turn settles, then drops it', () => {
-    vi.useFakeTimers()
-    vi.setSystemTime(0)
-    $workingSessionIds.set([])
-
     // A turn starts then ends: the working→idle transition grants grace.
-    setSessionWorking('s1', true)
-    setSessionWorking('s1', false)
+    const working = makeState({ busy: true, storedSessionId: 's1' })
+    publishSessionState('rt1', working)
+
+    const idle = { ...working, busy: false }
+    publishSessionState('rt1', idle)
+
     expect(getRecentlySettledSessionIds()).toEqual(['s1'])
 
     // Still inside the window.
@@ -273,74 +290,87 @@ describe('getRecentlySettledSessionIds', () => {
   })
 
   it('does not grant grace when the session was never working (idle re-asserts)', () => {
-    vi.useFakeTimers()
-    vi.setSystemTime(0)
-    $workingSessionIds.set([])
-
-    // updateSessionState re-asserts `false` for idle sessions on every tick;
-    // these must not pin an idle chat into the keep-set indefinitely.
-    setSessionWorking('idle', false)
-    setSessionWorking('idle', false)
+    const idle = makeState({ busy: false, storedSessionId: 'idle' })
+    publishSessionState('rt1', idle)
     expect(getRecentlySettledSessionIds()).toEqual([])
   })
 
   it('clears the grace timer when the session goes busy again', () => {
-    vi.useFakeTimers()
-    vi.setSystemTime(0)
-    $workingSessionIds.set([])
+    const working = makeState({ busy: true, storedSessionId: 's2' })
+    publishSessionState('rt1', working)
+
+    const idle = { ...working, busy: false }
+    publishSessionState('rt1', idle)
 
-    setSessionWorking('s2', true)
-    setSessionWorking('s2', false)
     expect(getRecentlySettledSessionIds()).toEqual(['s2'])
 
     // A new turn for the same session is "working" again — drop it from the
     // settled set so it's tracked as working, not recently-finished.
-    setSessionWorking('s2', true)
+    const workingAgain = { ...idle, busy: true }
+    publishSessionState('rt1', workingAgain)
+
     expect(getRecentlySettledSessionIds()).toEqual([])
   })
 })
 
 describe('unread finished sessions', () => {
   beforeEach(() => {
+    clearAllSessionStates()
     $unreadFinishedSessionIds.set([])
-    $workingSessionIds.set([])
-    setSelectedStoredSessionId(() => null)
+    $selectedStoredSessionId.set(null)
   })
 
   afterEach(() => {
-    $workingSessionIds.set([])
+    clearAllSessionStates()
     $unreadFinishedSessionIds.set([])
-    setSelectedStoredSessionId(() => null)
+    $selectedStoredSessionId.set(null)
   })
 
   it('marks a session unread when its turn finishes in the background', () => {
-    setSelectedStoredSessionId(() => 'other-session')
-    setSessionWorking('s1', true)
-    setSessionWorking('s1', false)
+    $selectedStoredSessionId.set('other-session')
+
+    const working = makeState({ busy: true, storedSessionId: 's1' })
+    publishSessionState('rt1', working)
+
+    const idle = { ...working, busy: false }
+    publishSessionState('rt1', idle)
+
     expect($unreadFinishedSessionIds.get()).toEqual(['s1'])
   })
 
   it('does NOT mark unread when the finishing session is the active one', () => {
-    setSelectedStoredSessionId(() => 's1')
-    setSessionWorking('s1', true)
-    setSessionWorking('s1', false)
+    $selectedStoredSessionId.set('s1')
+
+    const working = makeState({ busy: true, storedSessionId: 's1' })
+    publishSessionState('rt1', working)
+
+    const idle = { ...working, busy: false }
+    publishSessionState('rt1', idle)
+
     expect($unreadFinishedSessionIds.get()).toEqual([])
   })
 
   it('does NOT mark unread on idle→idle re-asserts (no prior working state)', () => {
-    setSelectedStoredSessionId(() => 'other-session')
-    setSessionWorking('s1', false)
-    setSessionWorking('s1', false)
+    $selectedStoredSessionId.set('other-session')
+
+    const idle = makeState({ busy: false, storedSessionId: 's1' })
+    publishSessionState('rt1', idle)
+
     expect($unreadFinishedSessionIds.get()).toEqual([])
   })
 
   it('clears unread when the user opens the session', () => {
-    setSelectedStoredSessionId(() => 'other')
-    setSessionWorking('s1', true)
-    setSessionWorking('s1', false)
+    $selectedStoredSessionId.set('other')
+
+    const working = makeState({ busy: true, storedSessionId: 's1' })
+    publishSessionState('rt1', working)
+
+    const idle = { ...working, busy: false }
+    publishSessionState('rt1', idle)
+
     expect($unreadFinishedSessionIds.get()).toEqual(['s1'])
 
-    setSelectedStoredSessionId(() => 's1')
+    setSelectedStoredSessionId('s1')
     expect($unreadFinishedSessionIds.get()).toEqual([])
   })
 })
diff --git a/apps/desktop/src/store/session.ts b/apps/desktop/src/store/session.ts
index d32231bf84b2..67e8dfdbaa8c 100644
--- a/apps/desktop/src/store/session.ts
+++ b/apps/desktop/src/store/session.ts
@@ -245,7 +245,6 @@ export const $messagingTruncated = atom<boolean>(false)
 // one. Empty for single-profile users (fall back to $sessionsTotal).
 export const $sessionProfileTotals = atom<Record<string, number>>({})
 export const $sessionsLoading = atom(true)
-export const $workingSessionIds = atom<string[]>([])
 export const $activeSessionId = atom<string | null>(null)
 export const $selectedStoredSessionId = atom<string | null>(null)
 // Reactive signal for when the active session's stored id rotates (auto-
@@ -326,17 +325,20 @@ export const setMessagingTruncated = (next: Updater<boolean>) => updateAtom($mes
 export const setSessionProfileTotals = (next: Updater<Record<string, number>>) =>
   updateAtom($sessionProfileTotals, next)
 export const setSessionsLoading = (next: Updater<boolean>) => updateAtom($sessionsLoading, next)
-export const setWorkingSessionIds = (next: Updater<string[]>) => updateAtom($workingSessionIds, next)
 export const setActiveSessionId = (next: Updater<string | null>) => updateAtom($activeSessionId, next)
 export const setActiveSessionStoredId = (next: Updater<string | null>) => updateAtom($activeSessionStoredId, next)
 
+// Transient: a background session finished and the user hasn't opened it since.
+// Written by session-states.ts (handleTransition), cleared here on session open.
+export const $unreadFinishedSessionIds = atom<string[]>([])
+
 export const setSelectedStoredSessionId = (next: Updater<string | null>) => {
   updateAtom($selectedStoredSessionId, next)
   // Opening a session clears its unread state — the user is now looking at it.
   const id = $selectedStoredSessionId.get()
 
   if (id && $unreadFinishedSessionIds.get().includes(id)) {
-    toggleMembership(setUnreadFinishedSessionIds, id, false)
+    $unreadFinishedSessionIds.set($unreadFinishedSessionIds.get().filter(x => x !== id))
   }
 }
 
@@ -427,176 +429,3 @@ export const setIntroSeed = (next: Updater<number>) => updateAtom($introSeed, ne
 export const setContextSuggestions = (next: Updater<ContextSuggestion[]>) => updateAtom($contextSuggestions, next)
 export const setModelPickerOpen = (next: Updater<boolean>) => updateAtom($modelPickerOpen, next)
 export const setSessionPickerOpen = (next: Updater<boolean>) => updateAtom($sessionPickerOpen, next)
-
-// Watchdog tracking — when does a "working" session count as stuck?
-// Long-running tool calls (LLM inference, long shell commands, web fetches)
-// can take a few minutes legitimately. We allow 8 minutes of complete
-// silence on the stream before clearing the working flag; in practice this
-// catches gateway hangs and dropped streams without false-positive-clearing
-// real long turns.
-const SESSION_WATCHDOG_TIMEOUT_MS = 8 * 60 * 1000
-const sessionWatchdogTimers = new Map<string, ReturnType<typeof setTimeout>>()
-
-// Notified (with the stored session id) whenever the watchdog force-clears a
-// stuck session. The session-state cache subscribes to also drop that session's
-// busy/awaiting flags — clearing `$workingSessionIds` alone only removes the
-// sidebar dot, leaving the composer stuck on "Thinking"/Stop for a hung or
-// looping turn that never streamed its terminal event.
-type SessionWatchdogListener = (storedSessionId: string) => void
-const sessionWatchdogListeners = new Set<SessionWatchdogListener>()
-
-export function onSessionWatchdogClear(listener: SessionWatchdogListener): () => void {
-  sessionWatchdogListeners.add(listener)
-
-  return () => void sessionWatchdogListeners.delete(listener)
-}
-
-function armSessionWatchdog(sessionId: string) {
-  const existing = sessionWatchdogTimers.get(sessionId)
-
-  if (existing) {
-    clearTimeout(existing)
-  }
-
-  const timer = setTimeout(() => {
-    sessionWatchdogTimers.delete(sessionId)
-
-    // Re-check the latest state at fire-time. If the user already navigated
-    // away or the session genuinely finished, the timer is a no-op.
-    if ($workingSessionIds.get().includes(sessionId)) {
-      setWorkingSessionIds(current => current.filter(id => id !== sessionId))
-    }
-
-    for (const listener of sessionWatchdogListeners) {
-      listener(sessionId)
-    }
-  }, SESSION_WATCHDOG_TIMEOUT_MS)
-
-  sessionWatchdogTimers.set(sessionId, timer)
-}
-
-function clearSessionWatchdog(sessionId: string) {
-  const existing = sessionWatchdogTimers.get(sessionId)
-
-  if (existing) {
-    clearTimeout(existing)
-    sessionWatchdogTimers.delete(sessionId)
-  }
-}
-
-// A session's "working" flag clears the instant its turn ends, but the
-// cross-profile aggregator (listSessions with min_messages=1) only sees the
-// just-persisted first turn a beat later. The active chat is shielded from that
-// race by sessionsToKeep(), but a brand-new session that finished *while you
-// were viewing a different chat* is, at the next refresh, neither working,
-// pinned, nor active — so mergeSessionPage() evicts it. Nothing re-fetches
-// afterward, so it stays gone until the app restarts. (Repro: start a new chat,
-// then click another session before the first reply lands.)
-//
-// To bridge that window we keep a session in the merge keep-set for a short
-// grace period after its turn settles, giving the aggregator time to catch up.
-// Entries auto-expire, so this never accumulates and can't resurrect a deleted
-// session (mergeSessionPage only revives rows still present in the in-memory
-// list, which optimistic delete/archive already drops).
-const SESSION_SETTLE_GRACE_MS = 30 * 1000
-const settledSessionExpiry = new Map<string, number>()
-
-function markSessionSettled(sessionId: string) {
-  settledSessionExpiry.set(sessionId, Date.now() + SESSION_SETTLE_GRACE_MS)
-}
-
-function clearSessionSettled(sessionId: string) {
-  settledSessionExpiry.delete(sessionId)
-}
-
-/** Stored ids of sessions whose turn ended within the grace window. Prunes
- *  expired entries as it reads, so it stays bounded without a timer. */
-export function getRecentlySettledSessionIds(now: number = Date.now()): string[] {
-  const live: string[] = []
-
-  for (const [id, expiry] of settledSessionExpiry) {
-    if (expiry > now) {
-      live.push(id)
-    } else {
-      settledSessionExpiry.delete(id)
-    }
-  }
-
-  return live
-}
-
-/** Call when a streaming event for a session lands. Refreshes the watchdog
- *  so the session keeps its "working" status as long as data keeps coming. */
-export function noteSessionActivity(sessionId: string | null | undefined) {
-  if (!sessionId || !$workingSessionIds.get().includes(sessionId)) {
-    return
-  }
-
-  armSessionWatchdog(sessionId)
-}
-
-// Toggle an id's membership in a string-set atom, no-op when unchanged (keeps
-// the same array reference so subscribers don't churn).
-const toggleMembership = (set: (next: Updater<string[]>) => void, id: string, on: boolean) =>
-  set(current => {
-    const present = current.includes(id)
-
-    if (on) {
-      return present ? current : [...current, id]
-    }
-
-    return present ? current.filter(x => x !== id) : current
-  })
-
-// Stored session ids whose most recent turn finished while the user was
-// looking at a different session. The sidebar renders a steady green dot for
-// these so the user can tab back and find newly-completed work. Cleared on
-// session open (setSelectedStoredSessionId) and on gateway-mode wipe.
-export const $unreadFinishedSessionIds = atom<string[]>([])
-export const setUnreadFinishedSessionIds = (next: Updater<string[]>) => updateAtom($unreadFinishedSessionIds, next)
-
-// Stored session ids with a blocking prompt (clarify) waiting on the user.
-// Separate from $workingSessionIds: a session can be "working" (turn running)
-// AND need input. The sidebar row reads this for a persistent indicator that,
-// unlike a toast, survives window blur / alt-tab.
-export const $attentionSessionIds = atom<string[]>([])
-export const setAttentionSessionIds = (next: Updater<string[]>) => updateAtom($attentionSessionIds, next)
-
-export function setSessionAttention(sessionId: string | null | undefined, needsInput: boolean) {
-  if (sessionId) {
-    toggleMembership(setAttentionSessionIds, sessionId, needsInput)
-  }
-}
-
-export function setSessionWorking(sessionId: string | null | undefined, working: boolean) {
-  if (!sessionId) {
-    return
-  }
-
-  const wasWorking = $workingSessionIds.get().includes(sessionId)
-
-  toggleMembership(setWorkingSessionIds, sessionId, working)
-
-  // Bookend the watchdog: arm on enter, disarm on leave. A later
-  // noteSessionActivity() from a streaming event refreshes the timer.
-  if (working) {
-    clearSessionSettled(sessionId)
-    armSessionWatchdog(sessionId)
-  } else {
-    clearSessionWatchdog(sessionId)
-
-    // Only grant grace on a real working→idle transition (updateSessionState
-    // re-asserts `false` on every state tick, which must not keep extending the
-    // window). This keeps the just-finished session visible long enough for the
-    // aggregator to return its now-persisted row.
-    if (wasWorking) {
-      markSessionSettled(sessionId)
-
-      // Mark unread when a background session finishes — only if the user
-      // isn't currently viewing it. The active session's finish is seen live.
-      if (sessionId !== $selectedStoredSessionId.get()) {
-        toggleMembership(setUnreadFinishedSessionIds, sessionId, true)
-      }
-    }
-  }
-}