fix(hapi): consolidate approved web and Codex recovery fixes (#578)

cli/src/codex/codexRemoteLauncher.test.ts

@@ -12,7 +12,12 @@ const harness = vi.hoisted(() => ({
     interruptedTurns: [] as Array<{ threadId: string; turnId: string }>,
     compactThreadIds: [] as string[],
     suppressTurnCompletion: false,
-    remainingThreadSystemErrors: 0
+    remainingThreadSystemErrors: 0,
+    startTurnMessages: [] as string[],
+    failResumeThreadIds: [] as string[],
+    nextThreadSystemErrorMessage: null as string | null,
+    failNextCompact: false,
+    deferThreadStatusNotifications: false
 }));
 
 vi.mock('./codexAppServerClient', () => {
@@ -43,12 +48,29 @@ vi.mock('./codexAppServerClient', () => {
         async resumeThread(params?: { threadId?: string }): Promise<{ thread: { id: string }; model: string }> {
             const id = params?.threadId ?? 'thread-resumed';
             harness.resumeThreadIds.push(id);
+            if (harness.failResumeThreadIds.includes(id)) {
+                throw new Error('resume failed');
+            }
             return { thread: { id }, model: 'gpt-5.4' };
         }
 
-        async startTurn(params?: { threadId?: string }): Promise<{ turn: { id?: string } }> {
+        async compactThread(params?: { threadId?: string }): Promise<Record<string, never>> {
+            const threadId = params?.threadId ?? 'thread-unknown';
+            harness.compactThreadIds.push(threadId);
+            if (harness.failNextCompact) {
+                harness.failNextCompact = false;
+                throw new Error('compact failed');
+            }
+            const compacted = { threadId, turnId: `compact-${harness.compactThreadIds.length}` };
+            harness.notifications.push({ method: 'thread/compacted', params: compacted });
+            this.notificationHandler?.('thread/compacted', compacted);
+            return {};
+        }
+
+        async startTurn(params?: { threadId?: string; input?: Array<{ text?: string }>; message?: string; userMessage?: string }): Promise<{ turn: { id?: string } }> {
             const threadId = params?.threadId ?? 'thread-unknown';
             harness.startTurnThreadIds.push(threadId);
+            harness.startTurnMessages.push(params?.input?.[0]?.text ?? params?.message ?? params?.userMessage ?? '');
             const turnId = `turn-${harness.startTurnThreadIds.length}`;
             const started = { turn: { id: turnId } };
             harness.notifications.push({ method: 'turn/started', params: started });
@@ -58,10 +80,15 @@ vi.mock('./codexAppServerClient', () => {
                 harness.remainingThreadSystemErrors -= 1;
                 const failed = {
                     thread: { id: threadId },
-                    status: { type: 'systemError' }
+                    status: { type: 'systemError', ...(harness.nextThreadSystemErrorMessage ? { message: harness.nextThreadSystemErrorMessage } : {}) }
                 };
                 harness.notifications.push({ method: 'thread/status/changed', params: failed });
-                this.notificationHandler?.('thread/status/changed', failed);
+                const notify = () => this.notificationHandler?.('thread/status/changed', failed);
+                if (harness.deferThreadStatusNotifications) {
+                    setTimeout(notify, 0);
+                } else {
+                    notify();
+                }
                 return { turn: { id: turnId } };
             }
 
@@ -110,11 +137,6 @@ vi.mock('./codexAppServerClient', () => {
             return {};
         }
 
-        async compactThread(params?: { threadId?: string }): Promise<Record<string, never>> {
-            harness.compactThreadIds.push(params?.threadId ?? 'thread-unknown');
-            return {};
-        }
-
         async disconnect(): Promise<void> {}
     }
 
@@ -250,7 +272,12 @@ describe('codexRemoteLauncher', () => {
         harness.interruptedTurns = [];
         harness.compactThreadIds = [];
         harness.suppressTurnCompletion = false;
+        harness.startTurnMessages = [];
+        harness.failResumeThreadIds = [];
         harness.remainingThreadSystemErrors = 0;
+        harness.nextThreadSystemErrorMessage = null;
+        harness.failNextCompact = false;
+        harness.deferThreadStatusNotifications = false;
     });
 
     it('finishes a turn and emits ready when task lifecycle events include turn_id', async () => {
@@ -287,14 +314,17 @@ describe('codexRemoteLauncher', () => {
         expect(session.thinking).toBe(false);
     });
 
-    it('surfaces thread-level systemError as a visible failure and emits ready', async () => {
-        harness.remainingThreadSystemErrors = 1;
-        const { session, sessionEvents } = createSessionStub();
+    it('surfaces thread-level systemError only after same-thread retries are exhausted', async () => {
+        harness.remainingThreadSystemErrors = 4;
+        const { session, sessionEvents } = createSessionStub(['first message']);
 
         const exitReason = await codexRemoteLauncher(session as never);
 
         expect(exitReason).toBe('exit');
-        expect(harness.notifications.map((entry) => entry.method)).toEqual(['turn/started', 'thread/status/changed']);
+        expect(harness.startThreadIds).toEqual(['thread-1']);
+        expect(harness.resumeThreadIds).toEqual([]);
+        expect(harness.startTurnThreadIds).toEqual(['thread-1', 'thread-1', 'thread-1', 'thread-1']);
+        expect(harness.startTurnMessages).toEqual(['first message', 'first message', 'first message', 'first message']);
         expect(sessionEvents).toContainEqual({
             type: 'message',
             message: 'Task failed: Codex thread entered systemError'
@@ -303,17 +333,152 @@ describe('codexRemoteLauncher', () => {
         expect(session.thinking).toBe(false);
     });
 
-    it('starts a fresh thread for the next queued message after thread-level systemError', async () => {
+    it('retries a thread-level systemError on the same thread without starting a fresh thread', async () => {
+        harness.remainingThreadSystemErrors = 1;
+        const { session, sessionEvents } = createSessionStub(['first message']);
+
+        const exitReason = await codexRemoteLauncher(session as never);
+
+        expect(exitReason).toBe('exit');
+        expect(harness.startThreadIds).toEqual(['thread-1']);
+        expect(harness.resumeThreadIds).toEqual([]);
+        expect(harness.startTurnThreadIds).toEqual(['thread-1', 'thread-1']);
+        expect(harness.startTurnMessages).toEqual(['first message', 'first message']);
+        expect(session.sessionId).toBe('thread-1');
+        expect(sessionEvents).not.toContainEqual({
+            type: 'message',
+            message: 'Task failed: Codex thread entered systemError'
+        });
+        expect(session.thinking).toBe(false);
+    });
+
+    it('compacts the same thread before retrying context-window overflow', async () => {
+        harness.remainingThreadSystemErrors = 1;
+        harness.nextThreadSystemErrorMessage = "Codex ran out of room in the model's context window. Start a new thread or clear earlier history before retrying.";
+        const { session, sessionEvents } = createSessionStub(['first message']);
+
+        const exitReason = await codexRemoteLauncher(session as never);
+
+        expect(exitReason).toBe('exit');
+        expect(harness.startThreadIds).toEqual(['thread-1']);
+        expect(harness.compactThreadIds).toEqual(['thread-1']);
+        expect(harness.startTurnThreadIds).toEqual(['thread-1', 'thread-1']);
+        expect(harness.startTurnMessages).toEqual(['first message', 'first message']);
+        expect(session.sessionId).toBe('thread-1');
+        expect(sessionEvents).not.toContainEqual({
+            type: 'message',
+            message: "Task failed: Codex ran out of room in the model's context window. Start a new thread or clear earlier history before retrying."
+        });
+        expect(session.thinking).toBe(false);
+    });
+
+    it('retries asynchronous thread-level systemError notifications on the same thread', async () => {
+        harness.remainingThreadSystemErrors = 1;
+        harness.deferThreadStatusNotifications = true;
+        const { session, sessionEvents } = createSessionStub(['first message']);
+
+        const exitReason = await codexRemoteLauncher(session as never);
+
+        expect(exitReason).toBe('exit');
+        expect(harness.startThreadIds).toEqual(['thread-1']);
+        expect(harness.resumeThreadIds).toEqual([]);
+        expect(harness.startTurnThreadIds).toEqual(['thread-1', 'thread-1']);
+        expect(harness.startTurnMessages).toEqual(['first message', 'first message']);
+        expect(session.sessionId).toBe('thread-1');
+        expect(sessionEvents).not.toContainEqual({
+            type: 'message',
+            message: 'Task failed: Codex thread entered systemError'
+        });
+        expect(session.thinking).toBe(false);
+    });
+
+    it('compacts before retrying asynchronous context-window overflow notifications', async () => {
+        harness.remainingThreadSystemErrors = 1;
+        harness.deferThreadStatusNotifications = true;
+        harness.nextThreadSystemErrorMessage = "Codex ran out of room in the model's context window. Start a new thread or clear earlier history before retrying.";
+        const { session, sessionEvents } = createSessionStub(['first message']);
+
+        const exitReason = await codexRemoteLauncher(session as never);
+
+        expect(exitReason).toBe('exit');
+        expect(harness.startThreadIds).toEqual(['thread-1']);
+        expect(harness.compactThreadIds).toEqual(['thread-1']);
+        expect(harness.startTurnThreadIds).toEqual(['thread-1', 'thread-1']);
+        expect(harness.startTurnMessages).toEqual(['first message', 'first message']);
+        expect(session.sessionId).toBe('thread-1');
+        expect(sessionEvents).not.toContainEqual({
+            type: 'message',
+            message: "Task failed: Codex ran out of room in the model's context window. Start a new thread or clear earlier history before retrying."
+        });
+        expect(session.thinking).toBe(false);
+    });
+
+    it('does not create a new thread when same-conversation compact fails', async () => {
+        harness.remainingThreadSystemErrors = 1;
+        harness.nextThreadSystemErrorMessage = "Codex ran out of room in the model's context window. Start a new thread or clear earlier history before retrying.";
+        harness.failNextCompact = true;
+        const { session, sessionEvents } = createSessionStub(['first message']);
+
+        const exitReason = await codexRemoteLauncher(session as never);
+
+        expect(exitReason).toBe('exit');
+        expect(harness.startThreadIds).toEqual(['thread-1']);
+        expect(harness.compactThreadIds).toEqual(['thread-1']);
+        expect(harness.startTurnThreadIds).toEqual(['thread-1']);
+        expect(session.sessionId).toBe('thread-1');
+        expect(sessionEvents).toContainEqual({
+            type: 'message',
+            message: 'Task failed: context window overflow and same-conversation compact failed'
+        });
+        expect(session.thinking).toBe(false);
+    });
+
+    it('keeps using the old thread for later messages after same-thread retries are exhausted', async () => {
+        harness.remainingThreadSystemErrors = 4;
+        const { session } = createSessionStub(['first message', 'second message']);
+
+        const exitReason = await codexRemoteLauncher(session as never);
+
+        expect(exitReason).toBe('exit');
+        expect(harness.startThreadIds).toEqual(['thread-1']);
+        expect(harness.resumeThreadIds).toEqual([]);
+        expect(harness.startTurnThreadIds).toEqual(['thread-1', 'thread-1', 'thread-1', 'thread-1', 'thread-1']);
+        expect(harness.startTurnMessages).toEqual(['first message', 'first message', 'first message', 'first message', 'second message']);
+        expect(session.sessionId).toBe('thread-1');
+        expect(session.thinking).toBe(false);
+    });
+
+    it('does not create a new thread when an existing conversation cannot be resumed', async () => {
+        harness.failResumeThreadIds = ['thread-old'];
+        const { session, sessionEvents } = createSessionStub(['first message']);
+        session.sessionId = 'thread-old';
+
+        const exitReason = await codexRemoteLauncher(session as never);
+
+        expect(exitReason).toBe('exit');
+        expect(harness.resumeThreadIds).toEqual(['thread-old']);
+        expect(harness.startThreadIds).toEqual([]);
+        expect(harness.startTurnThreadIds).toEqual([]);
+        expect(session.sessionId).toBe('thread-old');
+        expect(sessionEvents).toContainEqual({
+            type: 'message',
+            message: 'Task failed: Codex conversation thread-old could not be resumed; no new conversation was created'
+        });
+        expect(session.thinking).toBe(false);
+    });
+
+    it('does not start a fresh thread for the next queued message after thread-level systemError', async () => {
         harness.remainingThreadSystemErrors = 1;
         const { session } = createSessionStub(['first message', 'second message']);
 
         const exitReason = await codexRemoteLauncher(session as never);
 
         expect(exitReason).toBe('exit');
-        expect(harness.startThreadIds).toEqual(['thread-1', 'thread-2']);
+        expect(harness.startThreadIds).toEqual(['thread-1']);
         expect(harness.resumeThreadIds).toEqual([]);
-        expect(harness.startTurnThreadIds).toEqual(['thread-1', 'thread-2']);
-        expect(session.sessionId).toBe('thread-2');
+        expect(harness.startTurnThreadIds).toEqual(['thread-1', 'thread-1', 'thread-1']);
+        expect(harness.startTurnMessages).toEqual(['first message', 'first message', 'second message']);
+        expect(session.sessionId).toBe('thread-1');
         expect(session.thinking).toBe(false);
     });
 

cli/src/codex/codexRemoteLauncher.ts

@@ -26,6 +26,35 @@ import {
 type HappyServer = Awaited<ReturnType<typeof buildHapiMcpBridge>>['server'];
 type QueuedMessage = { message: string; mode: EnhancedMode; isolate: boolean; hash: string };
 
+const SAME_THREAD_RETRYABLE_ERROR_PATTERNS = [
+    'selected model is at capacity',
+    'codex thread entered systemerror'
+];
+const CONTEXT_COMPACT_RETRYABLE_ERROR_PATTERNS = [
+    'ran out of room in the model',
+    'context window',
+    'clear earlier history'
+];
+const SAME_THREAD_MAX_RETRIES = 3;
+const SAME_THREAD_MAX_COMPACT_RETRIES = 1;
+const SAME_THREAD_COMPACT_TIMEOUT_MS = 10 * 60 * 1000;
+
+function isSameThreadRetryableCodexError(error: string | null): boolean {
+    if (!error) {
+        return false;
+    }
+    const normalized = error.toLowerCase();
+    return SAME_THREAD_RETRYABLE_ERROR_PATTERNS.some((pattern) => normalized.includes(pattern));
+}
+
+function isContextCompactRetryableCodexError(error: string | null): boolean {
+    if (!error) {
+        return false;
+    }
+    const normalized = error.toLowerCase();
+    return CONTEXT_COMPACT_RETRYABLE_ERROR_PATTERNS.some((pattern) => normalized.includes(pattern));
+}
+
 class CodexRemoteLauncher extends RemoteLauncherBase {
     private readonly session: CodexSession;
     private readonly appServerClient: CodexAppServerClient;
@@ -243,6 +272,117 @@ class CodexRemoteLauncher extends RemoteLauncherBase {
         let turnInFlight = false;
         let allowAnonymousTerminalEvent = false;
         let invalidThreadId: string | null = null;
+        let activeMessage: QueuedMessage | null = null;
+        let sameThreadRetryAttempt = 0;
+        let sameThreadCompactAttempt = 0;
+        let recoveryInFlight = false;
+        let compactRecovery: {
+            threadId: string;
+            message: QueuedMessage;
+            timeout: ReturnType<typeof setTimeout> | null;
+        } | null = null;
+        let loopWakeWaiter: (() => void) | null = null;
+
+        const wakeLoop = () => {
+            const waiter = loopWakeWaiter;
+            if (!waiter) {
+                return;
+            }
+            loopWakeWaiter = null;
+            waiter();
+        };
+
+        const waitForTurnOrRecovery = (signal: AbortSignal): Promise<void> => new Promise((resolve) => {
+            if (!turnInFlight && !recoveryInFlight) {
+                resolve();
+                return;
+            }
+
+            const finish = () => {
+                if (loopWakeWaiter === finish) {
+                    loopWakeWaiter = null;
+                }
+                signal.removeEventListener('abort', finish);
+                resolve();
+            };
+
+            loopWakeWaiter = finish;
+            signal.addEventListener('abort', finish, { once: true });
+        });
+
+        const clearCompactRecovery = (recovery: typeof compactRecovery) => {
+            if (!recovery) {
+                return;
+            }
+            if (recovery.timeout) {
+                clearTimeout(recovery.timeout);
+            }
+            if (compactRecovery === recovery) {
+                compactRecovery = null;
+            }
+            recoveryInFlight = false;
+            wakeLoop();
+        };
+
+        const failCompactRecovery = (recovery: typeof compactRecovery, message: string) => {
+            if (!recovery || compactRecovery !== recovery) {
+                return;
+            }
+            logger.warn(`[Codex] ${message}`);
+            messageBuffer.addMessage(message, 'status');
+            session.sendSessionEvent({ type: 'message', message });
+            activeMessage = null;
+            clearCompactRecovery(recovery);
+        };
+
+        const completeCompactRecovery = (threadId: string | null) => {
+            const recovery = compactRecovery;
+            if (!recovery) {
+                return false;
+            }
+            if (!threadId || threadId !== recovery.threadId) {
+                return false;
+            }
+            if (!this.shouldExit && this.currentThreadId === recovery.threadId) {
+                pending = recovery.message;
+                const message = 'Context compacted; retrying same conversation';
+                messageBuffer.addMessage(message, 'status');
+                session.sendSessionEvent({ type: 'message', message });
+            }
+            clearCompactRecovery(recovery);
+            return true;
+        };
+
+        const beginCompactRecovery = (threadId: string, messageToRetry: QueuedMessage, error: string | null) => {
+            sameThreadCompactAttempt += 1;
+            recoveryInFlight = true;
+            const recovery = {
+                threadId,
+                message: messageToRetry,
+                timeout: null as ReturnType<typeof setTimeout> | null
+            };
+            compactRecovery = recovery;
+            recovery.timeout = setTimeout(() => {
+                failCompactRecovery(
+                    recovery,
+                    'Task failed: context window overflow and same-conversation compact timed out'
+                );
+            }, SAME_THREAD_COMPACT_TIMEOUT_MS);
+            recovery.timeout.unref?.();
+
+            logger.debug(
+                `[Codex] Compacting retryable context failure on same thread ` +
+                `(attempt ${sameThreadCompactAttempt}/${SAME_THREAD_MAX_COMPACT_RETRIES}): ${error ?? 'unknown error'}`
+            );
+            void appServerClient.compactThread({ threadId }, { signal: this.abortController.signal })
+                .catch((compactError) => {
+                    logger.warn('[Codex] Failed to start app-server thread compact before retry:', compactError);
+                    failCompactRecovery(
+                        recovery,
+                        'Task failed: context window overflow and same-conversation compact failed'
+                    );
+                });
+        };
 
         const handleCodexEvent = (msg: Record<string, unknown>) => {
             const msgType = asString(msg.type);
@@ -260,6 +400,11 @@ class CodexRemoteLauncher extends RemoteLauncherBase {
                 return;
             }
 
+            if (msgType === 'thread_compacted') {
+                completeCompactRecovery(eventThreadId);
+                return;
+            }
+
             if (msgType === 'task_started') {
                 const turnId = eventTurnId;
                 if (turnId) {
@@ -271,6 +416,18 @@ class CodexRemoteLauncher extends RemoteLauncherBase {
             }
 
             const isThreadStatusFailure = msgType === 'task_failed' && msg.terminal_source === 'thread_status';
+            const error = msgType === 'task_failed' ? asString(msg.error) : null;
+            const shouldCompactAndRetrySameThread = msgType === 'task_failed'
+                && isContextCompactRetryableCodexError(error)
+                && Boolean(activeMessage)
+                && Boolean(this.currentThreadId)
+                && sameThreadCompactAttempt < SAME_THREAD_MAX_COMPACT_RETRIES;
+            const shouldRetrySameThread = msgType === 'task_failed'
+                && !shouldCompactAndRetrySameThread
+                && isSameThreadRetryableCodexError(error)
+                && Boolean(activeMessage)
+                && Boolean(this.currentThreadId)
+                && sameThreadRetryAttempt < SAME_THREAD_MAX_RETRIES;
 
             if (isTerminalEvent) {
                 if (shouldIgnoreTerminalEvent({
@@ -290,12 +447,24 @@ class CodexRemoteLauncher extends RemoteLauncherBase {
                     );
                     return;
                 }
+                if (shouldCompactAndRetrySameThread) {
+                    const threadId = this.currentThreadId;
+                    const messageToRetry = activeMessage;
+                    if (threadId && messageToRetry) {
+                        beginCompactRecovery(threadId, messageToRetry, error);
+                    }
+                } else if (shouldRetrySameThread) {
+                    sameThreadRetryAttempt += 1;
+                    pending = activeMessage;
+                    logger.debug(
+                        `[Codex] Retrying retryable failure on same thread ` +
+                        `(attempt ${sameThreadRetryAttempt}/${SAME_THREAD_MAX_RETRIES}): ${error ?? 'unknown error'}`
+                    );
+                }
                 this.currentTurnId = null;
                 allowAnonymousTerminalEvent = false;
-                if (isThreadStatusFailure) {
-                    invalidThreadId = eventThreadId ?? this.currentThreadId;
-                    this.currentThreadId = null;
-                    hasThread = false;
+                if (isThreadStatusFailure && !shouldRetrySameThread && !shouldCompactAndRetrySameThread) {
+                    logger.warn(`[Codex] Thread-level failure on ${eventThreadId ?? this.currentThreadId ?? 'unknown thread'}; preserving same conversation`);
                 }
             }
 
@@ -327,10 +496,23 @@ class CodexRemoteLauncher extends RemoteLauncherBase {
             } else if (msgType === 'turn_aborted') {
                 messageBuffer.addMessage('Turn aborted', 'status');
             } else if (msgType === 'task_failed') {
-                const error = asString(msg.error);
-                const message = error ? `Task failed: ${error}` : 'Task failed';
-                messageBuffer.addMessage(message, 'status');
-                session.sendSessionEvent({ type: 'message', message });
+                if (shouldCompactAndRetrySameThread) {
+                    const retryMessage = error
+                        ? `Task failed: ${error}; compacting same conversation before retry (${sameThreadCompactAttempt}/${SAME_THREAD_MAX_COMPACT_RETRIES})`
+                        : `Task failed; compacting same conversation before retry (${sameThreadCompactAttempt}/${SAME_THREAD_MAX_COMPACT_RETRIES})`;
+                    messageBuffer.addMessage(retryMessage, 'status');
+                    session.sendSessionEvent({ type: 'message', message: retryMessage });
+                } else if (shouldRetrySameThread) {
+                    const retryMessage = error
+                        ? `Task failed: ${error}; retrying same conversation (${sameThreadRetryAttempt}/${SAME_THREAD_MAX_RETRIES})`
+                        : `Task failed; retrying same conversation (${sameThreadRetryAttempt}/${SAME_THREAD_MAX_RETRIES})`;
+                    messageBuffer.addMessage(retryMessage, 'status');
+                    session.sendSessionEvent({ type: 'message', message: retryMessage });
+                } else {
+                    const message = error ? `Task failed: ${error}` : 'Task failed';
+                    messageBuffer.addMessage(message, 'status');
+                    session.sendSessionEvent({ type: 'message', message });
+                }
             }
 
             if (msgType === 'task_started') {
@@ -353,6 +535,7 @@ class CodexRemoteLauncher extends RemoteLauncherBase {
                 }
                 diffProcessor.reset();
                 appServerEventConverter.reset();
+                wakeLoop();
             }
 
             if (isTerminalEvent && !turnInFlight) {
@@ -361,6 +544,14 @@ class CodexRemoteLauncher extends RemoteLauncherBase {
                 scheduleReadyAfterTurn?.();
             }
 
+            if (msgType === 'task_complete') {
+                sameThreadRetryAttempt = 0;
+                sameThreadCompactAttempt = 0;
+                recoveryInFlight = false;
+                clearCompactRecovery(compactRecovery);
+                activeMessage = null;
+            }
+
             if (msgType === 'agent_reasoning_section_break') {
                 reasoningProcessor.handleSectionBreak();
             }
@@ -625,7 +816,7 @@ class CodexRemoteLauncher extends RemoteLauncherBase {
             readyAfterTurnTimer = setTimeout(() => {
                 readyAfterTurnTimer = null;
                 emitReadyIfIdle({
-                    pending,
+                    pending: pending ?? (recoveryInFlight ? activeMessage : null),
                     queueSize: () => session.queue.size(),
                     shouldExit: this.shouldExit,
                     sendReady
@@ -753,9 +944,22 @@ class CodexRemoteLauncher extends RemoteLauncherBase {
 
         while (!this.shouldExit) {
             logActiveHandles('loop-top');
+            if (!pending && (turnInFlight || recoveryInFlight) && session.queue.size() === 0) {
+                await waitForTurnOrRecovery(this.abortController.signal);
+                if (this.abortController.signal.aborted && !this.shouldExit) {
+                    logger.debug('[codex]: Internal wait aborted while turn/recovery was active; continuing');
+                    continue;
+                }
+                continue;
+            }
+
             let message: QueuedMessage | null = pending;
+            const isRetryMessage = Boolean(message);
             pending = null;
             if (!message) {
+                sameThreadRetryAttempt = 0;
+                sameThreadCompactAttempt = 0;
+                activeMessage = null;
                 const waitSignal = this.abortController.signal;
                 const batch = await session.queue.waitForMessagesAndGetAsString(waitSignal);
                 if (!batch) {
@@ -773,7 +977,10 @@ class CodexRemoteLauncher extends RemoteLauncherBase {
                 break;
             }
 
-            messageBuffer.addMessage(message.message, 'user');
+            if (!isRetryMessage) {
+                messageBuffer.addMessage(message.message, 'user');
+            }
+            activeMessage = message;
 
             try {
                 if (await handleSpecialCommand(message)) {
@@ -788,9 +995,7 @@ class CodexRemoteLauncher extends RemoteLauncherBase {
                         cliOverrides: session.codexCliOverrides
                     });
 
-                    const resumeCandidate = session.sessionId && session.sessionId !== invalidThreadId
-                        ? session.sessionId
-                        : null;
+                    const resumeCandidate = session.sessionId ?? null;
                     let threadId: string | null = null;
 
                     if (resumeCandidate) {
@@ -807,7 +1012,12 @@ class CodexRemoteLauncher extends RemoteLauncherBase {
                             applyResolvedModel(resumeRecord?.model);
                             logger.debug(`[Codex] Resumed app-server thread ${threadId}`);
                         } catch (error) {
-                            logger.warn(`[Codex] Failed to resume app-server thread ${resumeCandidate}, starting new thread`, error);
+                            logger.warn(`[Codex] Failed to resume app-server thread ${resumeCandidate}; preserving old conversation boundary`, error);
+                            const failureMessage = `Task failed: Codex conversation ${resumeCandidate} could not be resumed; no new conversation was created`;
+                            messageBuffer.addMessage(failureMessage, 'status');
+                            session.sendSessionEvent({ type: 'message', message: failureMessage });
+                            pending = null;
+                            continue;
                         }
                     }
 
@@ -891,7 +1101,7 @@ class CodexRemoteLauncher extends RemoteLauncherBase {
                     session.onThinkingChange(false);
                     clearReadyAfterTurnTimer?.();
                     emitReadyIfIdle({
-                        pending,
+                        pending: pending ?? (recoveryInFlight ? activeMessage : null),
                         queueSize: () => session.queue.size(),
                         shouldExit: this.shouldExit,
                         sendReady

cli/src/codex/utils/appServerEventConverter.test.ts

@@ -389,4 +389,41 @@ describe('AppServerEventConverter', () => {
 
         expect(events).toEqual([{ type: 'task_failed', error: 'fatal' }]);
     });
+
+    it('maps thread/compacted notifications', () => {
+        const converter = new AppServerEventConverter();
+        const events = converter.handleNotification('thread/compacted', {
+            threadId: 'thread-1',
+            turnId: 'turn-compact'
+        });
+
+        expect(events).toEqual([{
+            type: 'thread_compacted',
+            thread_id: 'thread-1',
+            turn_id: 'turn-compact'
+        }]);
+    });
+
+    it('ignores compacted notifications without thread ids', () => {
+        const converter = new AppServerEventConverter();
+
+        expect(converter.handleNotification('thread/compacted', { turnId: 'turn-compact' })).toEqual([]);
+        expect(converter.handleNotification('codex/event/context_compacted', {
+            msg: { type: 'context_compacted', turn_id: 'turn-compact' }
+        })).toEqual([]);
+    });
+
+    it('unwraps context_compacted events', () => {
+        const converter = new AppServerEventConverter();
+        const events = converter.handleNotification('codex/event/context_compacted', {
+            msg: { type: 'context_compacted', thread_id: 'thread-1', turn_id: 'turn-compact' }
+        });
+
+        expect(events).toEqual([{
+            type: 'thread_compacted',
+            thread_id: 'thread-1',
+            turn_id: 'turn-compact'
+        }]);
+    });
+
 });

cli/src/codex/utils/appServerEventConverter.ts

@@ -276,13 +276,25 @@ export class AppServerEventConverter {
             return extractPlanUpdate(msg);
         }
 
+        if (msgType === 'context_compacted') {
+            const threadId = asString(msg.thread_id ?? msg.threadId);
+            if (!threadId) {
+                return [];
+            }
+            const turnId = asString(msg.turn_id ?? msg.turnId);
+            return [{
+                type: 'thread_compacted',
+                thread_id: threadId,
+                ...(turnId ? { turn_id: turnId } : {})
+            }];
+        }
+
         if (
             msgType === 'mcp_startup_update' ||
             msgType === 'mcp_startup_complete' ||
             msgType === 'skills_update_available' ||
             msgType === 'stream_error' ||
             msgType === 'warning' ||
-            msgType === 'context_compacted' ||
             msgType === 'terminal_interaction' ||
             msgType === 'user_message'
         ) {
@@ -304,7 +316,21 @@ export class AppServerEventConverter {
             return extractPlanUpdate(paramsRecord);
         }
 
-        if (method === 'account/rateLimits/updated' || method === 'thread/compacted') {
+        if (method === 'account/rateLimits/updated') {
+            return events;
+        }
+
+        if (method === 'thread/compacted') {
+            const threadId = asString(paramsRecord.threadId ?? paramsRecord.thread_id);
+            if (!threadId) {
+                return events;
+            }
+            const turnId = asString(paramsRecord.turnId ?? paramsRecord.turn_id);
+            events.push({
+                type: 'thread_compacted',
+                thread_id: threadId,
+                ...(turnId ? { turn_id: turnId } : {})
+            });
             return events;
         }
 

cli/src/utils/spawnHappyCLI.test.ts

@@ -1,7 +1,17 @@
 import { beforeAll, afterAll, beforeEach, describe, expect, it, vi } from 'vitest';
 import type { SpawnOptions } from 'child_process';
 
-const spawnMock = vi.fn((..._args: any[]) => ({ pid: 12345 } as any));
+const {
+  spawnMock,
+  existsSyncMock,
+  isBunCompiledMock,
+  projectPathMock
+} = vi.hoisted(() => ({
+  spawnMock: vi.fn((..._args: any[]) => ({ pid: 12345 }) as any),
+  existsSyncMock: vi.fn((path: string) => !path.includes('missing-hapi.exe')),
+  isBunCompiledMock: vi.fn(() => false),
+  projectPathMock: vi.fn(() => process.cwd())
+}));
 
 vi.mock('child_process', async () => {
   const actual = await vi.importActual<typeof import('child_process')>('child_process');
@@ -11,8 +21,22 @@ vi.mock('child_process', async () => {
   };
 });
 
+vi.mock('node:fs', async () => {
+  const actual = await vi.importActual<typeof import('node:fs')>('node:fs');
+  return {
+    ...actual,
+    existsSync: existsSyncMock
+  };
+});
+
+vi.mock('@/projectPath', () => ({
+  isBunCompiled: isBunCompiledMock,
+  projectPath: projectPathMock
+}));
+
 const originalPlatformDescriptor = Object.getOwnPropertyDescriptor(process, 'platform');
 const originalInvokedCwd = process.env.HAPI_INVOKED_CWD;
+const originalCliExecutable = process.env.HAPI_CLI_EXECUTABLE;
 
 function setPlatform(value: string) {
   Object.defineProperty(process, 'platform', {
@@ -40,11 +64,20 @@ describe('spawnHappyCLI windowsHide behavior', () => {
 
   beforeEach(() => {
     vi.clearAllMocks();
+    vi.resetModules();
+    existsSyncMock.mockImplementation((path: string) => !path.includes('missing-hapi.exe'));
+    isBunCompiledMock.mockReturnValue(false);
+    projectPathMock.mockReturnValue(process.cwd());
     if (originalInvokedCwd === undefined) {
       delete process.env.HAPI_INVOKED_CWD;
     } else {
       process.env.HAPI_INVOKED_CWD = originalInvokedCwd;
     }
+    if (originalCliExecutable === undefined) {
+      delete process.env.HAPI_CLI_EXECUTABLE;
+    } else {
+      process.env.HAPI_CLI_EXECUTABLE = originalCliExecutable;
+    }
   });
 
   afterAll(() => {
@@ -104,13 +137,61 @@ describe('spawnHappyCLI windowsHide behavior', () => {
     expect(command.command).toBe(process.execPath);
     if (isBunRuntime) {
       expect(command.args[0]).toBe('--cwd');
-      expect(command.args[1].replace(/\\/g, '/')).toMatch(/\/hapi\/cli$/);
-      expect(command.args[2].replace(/\\/g, '/')).toMatch(/\/hapi\/cli\/src\/index\.ts$/);
+      expect(command.args[1].replace(/\\/g, '/')).toMatch(/\/cli$/);
+      expect(command.args[2].replace(/\\/g, '/')).toMatch(/\/cli\/src\/index\.ts$/);
     } else {
-      expect(command.args.some((arg) => arg.replace(/\\/g, '/').endsWith('/hapi/cli/src/index.ts'))).toBe(true);
+      expect(command.args.some((arg) => arg.replace(/\\/g, '/').endsWith('/cli/src/index.ts'))).toBe(true);
     }
   });
 
+  it('uses an inherited compiled CLI executable override when it points to an existing binary', async () => {
+    isBunCompiledMock.mockReturnValue(true);
+    process.env.HAPI_CLI_EXECUTABLE = 'C:\\Users\\Administrator\\.hapi\\patched\\hapi.exe';
+    const { getHappyCliCommand, resolveHappyCliExecutable } = await import('./spawnHappyCLI');
+
+    const command = getHappyCliCommand(['mcp', '--url', 'http://127.0.0.1:1234/']);
+
+    expect(resolveHappyCliExecutable()).toBe(process.env.HAPI_CLI_EXECUTABLE);
+    expect(command.command).toBe(process.env.HAPI_CLI_EXECUTABLE);
+  });
+
+  it('falls back to a real argv0 executable before process.execPath in compiled mode', async () => {
+    isBunCompiledMock.mockReturnValue(true);
+    const previousArgv0 = process.argv[0];
+    process.argv[0] = 'C:\\Users\\Administrator\\.hapi\\patched\\resume-recovery-0.17.2\\hapi.exe';
+    const { resolveHappyCliExecutable } = await import('./spawnHappyCLI');
+
+    try {
+      expect(resolveHappyCliExecutable()).toBe(process.argv[0]);
+    } finally {
+      process.argv[0] = previousArgv0;
+    }
+  });
+
+  it('ignores an inherited compiled CLI executable override when the binary is missing', async () => {
+    isBunCompiledMock.mockReturnValue(true);
+    process.env.HAPI_CLI_EXECUTABLE = 'C:\\Users\\Administrator\\.hapi\\patched\\missing-hapi.exe';
+    const { getHappyCliCommand } = await import('./spawnHappyCLI');
+
+    const command = getHappyCliCommand(['mcp', '--url', 'http://127.0.0.1:1234/']);
+
+    expect(command.command).toBe(process.execPath);
+  });
+
+  it('passes the resolved compiled executable to child HAPI processes', async () => {
+    isBunCompiledMock.mockReturnValue(true);
+    process.env.HAPI_CLI_EXECUTABLE = 'C:\\Users\\Administrator\\.hapi\\patched\\hapi.exe';
+    const { spawnHappyCLI } = await import('./spawnHappyCLI');
+
+    spawnHappyCLI(['mcp', '--url', 'http://127.0.0.1:1234/'], {
+      stdio: 'ignore'
+    });
+
+    const [command, _args, options] = spawnMock.mock.calls[0] as unknown[] | undefined ?? [];
+    expect(command).toBe(process.env.HAPI_CLI_EXECUTABLE);
+    expect((options as SpawnOptions | undefined)?.env?.HAPI_CLI_EXECUTABLE).toBe(process.env.HAPI_CLI_EXECUTABLE);
+  });
+
   it('passes invoked workspace cwd to child processes when cwd is provided', async () => {
     const { spawnHappyCLI } = await import('./spawnHappyCLI');
     const childCwd = 'C:\\workspace\\project';

cli/src/utils/spawnHappyCLI.ts

@@ -32,6 +32,8 @@ import { isBunCompiled, projectPath } from '@/projectPath';
 import { logger } from '@/ui/logger';
 import { existsSync } from 'node:fs';
 
+const HAPI_CLI_EXECUTABLE_ENV = 'HAPI_CLI_EXECUTABLE';
+
 /**
  * Resolve the TypeScript entrypoint for development mode.
  */
@@ -71,11 +73,30 @@ function resolveInvokedCwd(cwd: SpawnOptions['cwd']): string {
   return process.cwd();
 }
 
+export function resolveHappyCliExecutable(): string {
+  const override = process.env[HAPI_CLI_EXECUTABLE_ENV]?.trim();
+  if (override && isCrossPlatformAbsolutePath(override) && existsSync(override)) {
+    return override;
+  }
+
+  const argv0 = process.argv[0]?.trim();
+  if (argv0 && isCrossPlatformAbsolutePath(argv0) && existsSync(argv0)) {
+    return argv0;
+  }
+
+  const bunArgv0 = globalThis.Bun?.argv?.[0]?.trim();
+  if (bunArgv0 && isCrossPlatformAbsolutePath(bunArgv0) && existsSync(bunArgv0)) {
+    return bunArgv0;
+  }
+
+  return process.execPath;
+}
+
 export function getHappyCliCommand(args: string[]): HappyCliCommand {
   // Compiled binary mode: just use the executable directly
   if (isBunCompiled()) {
     return {
-      command: process.execPath,
+      command: resolveHappyCliExecutable(),
       args
     };
   }
@@ -118,10 +139,11 @@ export function spawnHappyCLI(args: string[], options: SpawnOptions = {}): Child
   const fullCommand = `hapi ${args.join(' ')}`;
   logger.debug(`[SPAWN HAPI CLI] Spawning: ${fullCommand} in ${directory}`);
   
+  const compiledMode = isBunCompiled();
   const { command: spawnCommand, args: spawnArgs } = getHappyCliCommand(args);
 
   // Sanity check that the entrypoint path exists
-  if (!isBunCompiled()) {
+  if (!compiledMode) {
     const entrypoint = spawnArgs.find((arg) => arg.endsWith('index.ts'));
     if (entrypoint && !existsSync(entrypoint)) {
       const errorMessage = `Entrypoint ${entrypoint} does not exist`;
@@ -133,8 +155,12 @@ export function spawnHappyCLI(args: string[], options: SpawnOptions = {}): Child
   // On Windows, detached processes allocate a new console window by default.
   // windowsHide: true suppresses this to prevent cmd windows from accumulating.
   const finalOptions: SpawnOptions = { ...options };
-  if (!isBunCompiled()) {
-    const finalEnv = { ...process.env, ...options.env };
+  const finalEnv = { ...process.env, ...options.env };
+  let shouldSetEnv = false;
+  if (compiledMode) {
+    finalEnv[HAPI_CLI_EXECUTABLE_ENV] = spawnCommand;
+    shouldSetEnv = true;
+  } else {
     const invokedCwd = finalEnv.HAPI_INVOKED_CWD?.trim();
     const hasExplicitCwd = 'cwd' in options && options.cwd !== undefined;
     finalEnv.HAPI_INVOKED_CWD = hasExplicitCwd
@@ -142,6 +168,9 @@ export function spawnHappyCLI(args: string[], options: SpawnOptions = {}): Child
       : invokedCwd && isCrossPlatformAbsolutePath(invokedCwd)
         ? invokedCwd
         : resolveInvokedCwd(options.cwd);
+    shouldSetEnv = true;
+  }
+  if (shouldSetEnv) {
     finalOptions.env = finalEnv;
   }
   if (process.platform === 'win32' && options.detached) {