diff --git a/tools/delegate_tool.py b/tools/delegate_tool.py
index 02a52afcd..f6dccb8c6 100644
--- a/tools/delegate_tool.py
+++ b/tools/delegate_tool.py
@@ -849,6 +849,7 @@ def _build_child_agent(
         parent_id=parent_subagent_id,
         depth=tui_depth,
         model=effective_model_for_cb,
+        toolsets=child_toolsets,
     )
 
     # Each subagent gets its own iteration budget capped at max_iterations
diff --git a/tui_gateway/server.py b/tui_gateway/server.py
index e6519afab..50cfa966a 100644
--- a/tui_gateway/server.py
+++ b/tui_gateway/server.py
@@ -1753,6 +1753,42 @@ def _spawn_tree_session_dir(session_id: str):
     return d
 
 
+# Per-session append-only index of lightweight snapshot metadata.  Read by
+# `spawn_tree.list` so scanning doesn't require reading every full snapshot
+# file (Copilot review on #14045).  One JSON object per line.
+_SPAWN_TREE_INDEX = "_index.jsonl"
+
+
+def _append_spawn_tree_index(session_dir, entry: dict) -> None:
+    try:
+        with (session_dir / _SPAWN_TREE_INDEX).open("a", encoding="utf-8") as f:
+            f.write(json.dumps(entry, ensure_ascii=False) + "\n")
+    except OSError as exc:
+        # Index is a cache — losing a line just means list() falls back
+        # to a directory scan for that entry.  Never block the save.
+        logger.debug("spawn_tree index append failed: %s", exc)
+
+
+def _read_spawn_tree_index(session_dir) -> list[dict]:
+    index_path = session_dir / _SPAWN_TREE_INDEX
+    if not index_path.exists():
+        return []
+    out: list[dict] = []
+    try:
+        with index_path.open("r", encoding="utf-8") as f:
+            for line in f:
+                line = line.strip()
+                if not line:
+                    continue
+                try:
+                    out.append(json.loads(line))
+                except json.JSONDecodeError:
+                    continue
+    except OSError:
+        return []
+    return out
+
+
 @method("spawn_tree.save")
 def _(rid, params: dict) -> dict:
     session_id = str(params.get("session_id") or "").strip()
@@ -1780,6 +1816,15 @@ def _(rid, params: dict) -> dict:
     except OSError as exc:
         return _err(rid, 5000, f"spawn_tree.save failed: {exc}")
 
+    _append_spawn_tree_index(d, {
+        "path": str(path),
+        "session_id": session_id,
+        "started_at": payload["started_at"],
+        "finished_at": payload["finished_at"],
+        "label": label,
+        "count": len(subagents),
+    })
+
     return _ok(rid, {"path": str(path), "session_id": session_id})
 
 
@@ -1789,19 +1834,27 @@ def _(rid, params: dict) -> dict:
     limit = int(params.get("limit") or 50)
     cross_session = bool(params.get("cross_session"))
 
-    roots = []
     if cross_session:
         root = _spawn_trees_root()
         roots = [p for p in root.iterdir() if p.is_dir()]
     else:
         roots = [_spawn_tree_session_dir(session_id or "default")]
 
-    entries = []
+    entries: list[dict] = []
     for d in roots:
+        indexed = _read_spawn_tree_index(d)
+        if indexed:
+            # Skip index entries whose snapshot file was manually deleted.
+            entries.extend(e for e in indexed if (p := e.get("path")) and Path(p).exists())
+            continue
+
+        # Fallback for legacy (pre-index) sessions: full scan.  O(N) reads
+        # but only runs once per session until the next save writes the index.
         for p in d.glob("*.json"):
+            if p.name == _SPAWN_TREE_INDEX:
+                continue
             try:
                 stat = p.stat()
-                # Peek at the header for label/counts without parsing the full list.
                 try:
                     raw = json.loads(p.read_text(encoding="utf-8"))
                 except Exception:
diff --git a/ui-tui/src/app/createGatewayEventHandler.ts b/ui-tui/src/app/createGatewayEventHandler.ts
index 31d64f54c..cb9cd74b6 100644
--- a/ui-tui/src/app/createGatewayEventHandler.ts
+++ b/ui-tui/src/app/createGatewayEventHandler.ts
@@ -138,7 +138,13 @@ export function createGatewayEventHandler(ctx: GatewayEventHandlerContext): (ev:
     }, ms)
   }
 
-  const keepCompletedElseRunning = (s: SubagentProgress['status']) => (s === 'completed' ? s : 'running')
+  // Terminal statuses are never overwritten by late-arriving live events —
+  // otherwise a stale `subagent.start` / `spawn_requested` can clobber a
+  // `failed` or `interrupted` terminal state (Copilot review #14045).
+  const isTerminalStatus = (s: SubagentProgress['status']) =>
+    s === 'completed' || s === 'failed' || s === 'interrupted'
+
+  const keepTerminalElseRunning = (s: SubagentProgress['status']) => (isTerminalStatus(s) ? s : 'running')
 
   const handleReady = (skin?: GatewaySkin) => {
     if (skin) {
@@ -381,7 +387,7 @@ export function createGatewayEventHandler(ctx: GatewayEventHandlerContext): (ev:
       case 'subagent.spawn_requested':
         // Child built but not yet running (waiting on ThreadPoolExecutor slot).
         // Preserve completed state if a later event races in before this one.
-        turnController.upsertSubagent(ev.payload, c => (c.status === 'completed' ? {} : { status: 'queued' }))
+        turnController.upsertSubagent(ev.payload, c => (isTerminalStatus(c.status) ? {} : { status: 'queued' }))
 
         // Prime the status-bar HUD: fetch caps (once every 5s) so we can
         // warn as depth/concurrency approaches the configured ceiling.
@@ -394,7 +400,7 @@ export function createGatewayEventHandler(ctx: GatewayEventHandlerContext): (ev:
         return
 
       case 'subagent.start':
-        turnController.upsertSubagent(ev.payload, c => (c.status === 'completed' ? {} : { status: 'running' }))
+        turnController.upsertSubagent(ev.payload, c => (isTerminalStatus(c.status) ? {} : { status: 'running' }))
 
         return
       case 'subagent.thinking': {
@@ -405,7 +411,7 @@ export function createGatewayEventHandler(ctx: GatewayEventHandlerContext): (ev:
         }
 
         turnController.upsertSubagent(ev.payload, c => ({
-          status: keepCompletedElseRunning(c.status),
+          status: keepTerminalElseRunning(c.status),
           thinking: pushThinking(c.thinking, text)
         }))
 
@@ -419,7 +425,7 @@ export function createGatewayEventHandler(ctx: GatewayEventHandlerContext): (ev:
         )
 
         turnController.upsertSubagent(ev.payload, c => ({
-          status: keepCompletedElseRunning(c.status),
+          status: keepTerminalElseRunning(c.status),
           tools: pushTool(c.tools, line)
         }))
 
@@ -435,7 +441,7 @@ export function createGatewayEventHandler(ctx: GatewayEventHandlerContext): (ev:
 
         turnController.upsertSubagent(ev.payload, c => ({
           notes: pushNote(c.notes, text),
-          status: keepCompletedElseRunning(c.status)
+          status: keepTerminalElseRunning(c.status)
         }))
 
         return
diff --git a/ui-tui/src/components/appChrome.tsx b/ui-tui/src/components/appChrome.tsx
index 1e46272de..2fe2e6a5b 100644
--- a/ui-tui/src/components/appChrome.tsx
+++ b/ui-tui/src/components/appChrome.tsx
@@ -8,7 +8,7 @@ import { FACES } from '../content/faces.js'
 import { VERBS } from '../content/verbs.js'
 import { fmtDuration } from '../domain/messages.js'
 import { stickyPromptFromViewport } from '../domain/viewport.js'
-import { buildSubagentTree, treeTotals } from '../lib/subagentTree.js'
+import { buildSubagentTree, treeTotals, widthByDepth } from '../lib/subagentTree.js'
 import { fmtK } from '../lib/text.js'
 import type { Theme } from '../theme.js'
 import type { Msg, Usage } from '../types.js'
@@ -82,10 +82,14 @@ function SpawnHud({ t }: { t: Theme }) {
   const depth = Math.max(0, totals.maxDepthFromHere)
   const active = totals.activeCount
 
-  // Concurrency here is "concurrent top-level spawns per parent at the
-  // tightest branch" — approximated by the widest level in the tree.
+  // `max_concurrent_children` is a per-parent cap, not a global one.
+  // `activeCount` sums every running agent across the tree and would
+  // over-warn for multi-orchestrator runs.  The widest level of the tree
+  // is a closer proxy to "most concurrent spawns that could be hitting a
+  // single parent's slot budget".
+  const widestLevel = widthByDepth(tree).reduce((a, b) => Math.max(a, b), 0)
   const depthRatio = maxDepth ? depth / maxDepth : 0
-  const concRatio = maxConc ? active / maxConc : 0
+  const concRatio = maxConc ? widestLevel / maxConc : 0
   const ratio = Math.max(depthRatio, concRatio)
 
   const color = delegation.paused || ratio >= 1 ? t.color.error : ratio >= 0.66 ? t.color.warn : t.color.dim
@@ -101,8 +105,13 @@ function SpawnHud({ t }: { t: Theme }) {
     pieces.push(`d${depthLabel}`)
 
     if (active > 0) {
-      const concLabel = maxConc ? `${active}/${maxConc}` : `${active}`
-      pieces.push(`⚡${concLabel}`)
+      // Label pairs the widest-level count (drives concRatio above) with
+      // the total active count for context.  `W/cap` triggers the warn,
+      // `+N` is everything else currently running across the tree.
+      const extra = Math.max(0, active - widestLevel)
+      const widthLabel = maxConc ? `${widestLevel}/${maxConc}` : `${widestLevel}`
+      const suffix = extra > 0 ? `+${extra}` : ''
+      pieces.push(`⚡${widthLabel}${suffix}`)
     }
   }