diff --git a/PROJECT_CONTEXT.md b/PROJECT_CONTEXT.md
index 48e95cf..b810f78 100644
--- a/PROJECT_CONTEXT.md
+++ b/PROJECT_CONTEXT.md
@@ -75,6 +75,9 @@ access. Pulls runtimes + server jars from zlh-artifacts (VM 1003).
 - Provenance: `.zlh_metadata.json` — source is `null` if not set
 - Status transport model: poll-based (`/status`), not push-based
 - State transitions: `idle`, `installing`, `starting`, `running`, `stopping`, `crashed`, `error`
+- Crash recovery: backoff 30s/60s/120s, resets if uptime ≥ 30s, `error` state after repeated failures
+- Crash observability: exit code, signal, uptime, log tail, classification (oom/mod_error/missing_dep/nonzero/unexpected)
+- Structured logging across provisioning, installs, file ops, control plane
 
 ---
 
@@ -85,36 +88,31 @@ access. Pulls runtimes + server jars from zlh-artifacts (VM 1003).
 - runtime root: `/opt/zlh/runtimes/<runtime>/<version>`
 - dev identity: `dev:dev`
 - workspace root: `/home/dev/workspace`
+- shell env: `HOME`, `USER`, `LOGNAME`, `TERM` set correctly
 - code-server install path: `/opt/zlh/services/code-server`
 - code-server port: `6000`
+- code-server lifecycle: `POST /dev/codeserver/start|stop|restart`
+- code-server detection: `/proc/*/cmdline` scan
 - agent port: `18888`
 
-Confirmed:
-
-- code-server process launches and binds to `0.0.0.0:6000`
-- frontend host/console state updates correctly via API status endpoint
-
-**Pending agent change:** code-server must be relaunched with `--auth none --base-path /api/dev/<vmid>/ide`
+**Current blocking issue:** code-server missing `--base-path /api/dev/<vmid>/ide`
+in launch args. Causes WS 1006, filesystem provider failure, extension host crash.
+Fix is one line in the agent launch script.
 
 ---
 
 ## Dev Container Access Model
 
-### Browser IDE (Implemented)
+### Browser IDE (API implemented, agent fix pending)
 
 ```
-Browser
-  ↓
-Portal
-  ↓
-API proxy (/api/dev/:id/ide)
-  ↓
-container:6000
+Browser → Portal → API (/api/dev/:id/ide) → container:6000
 ```
 
-Portal calls `POST /api/dev/:id/ide-token` first, then opens the returned URL in a new tab. Token is short-lived (300s), signed by API. Proxy accepts token via `Authorization: Bearer` or `?token=` query param. WebSocket upgrades validated with same token.
-
-Containers are never publicly exposed.
+Portal calls `POST /api/dev/:id/ide-token`, opens returned URL in new tab.
+Token TTL: 300s. Proxy accepts `Authorization: Bearer` or `?token=`.
+WebSocket upgrades validated with same token.
+Containers never publicly exposed.
 
 ### Local Developer Access (Future)
 
@@ -124,8 +122,8 @@ Constraints: no exit nodes, `magic_dns: false`.
 
 ### Removed
 
-DNS-per-container + Traefik dynamic routing approach was abandoned.
-Code removed from API: `devRouting.js`, `devDePublisher.js`, Traefik file writes.
+DNS-per-container + Traefik dynamic routing abandoned.
+Removed from API: `devRouting.js`, `devDePublisher.js`, Traefik file writes.
 `proxyClient.js` retained — still used by game edge publish path.
 
 ---
@@ -176,8 +174,8 @@ Revenue multiplier: 1 developer → ~10 players → $147.50/mo total.
 
 ## Open Threads
 
-1. Agent: update code-server launch args (`--auth none`, `--base-path /api/dev/<vmid>/ide`)
-2. Portal: "Open IDE" button calling `/api/dev/:id/ide-token`
+1. **Agent:** fix code-server `--base-path /api/dev/<vmid>/ide` — unblocks IDE
+2. **Portal:** "Open IDE" button calling `/api/dev/:id/ide-token`
 3. Confirm Headscale `zlh-ctl` VM status
 4. Curated provenance — tracking install origin