diff --git a/phoenix-builder-mcp/mcp-tools.js b/phoenix-builder-mcp/mcp-tools.js
index 871ede1176..041c9484b6 100644
--- a/phoenix-builder-mcp/mcp-tools.js
+++ b/phoenix-builder-mcp/mcp-tools.js
@@ -43,10 +43,11 @@ const AI_TEST_SUITES = {
     "permissions": "suite-permissions.md"
 };
 // The four model runs that have caught every regression seen so far, plus the
-// free deterministic/piggyback checks. See model_tests.md, "Deterministic first".
+// free deterministic/piggyback checks and EC-7, the one-turn probe that proves
+// the Phoenix system prompt is loaded. See model_tests.md, "Deterministic first".
 const AI_TEST_QUICK = {
     suites: ["editor-context", "unsaved-buffers", "self-sufficiency", "bug-fixing", "questions"],
-    tests: ["UB-1", "EC-5", "EC-2", "SS-4", "QF-6", "EC-1", "UB-2", "SS-1", "BF-1", "QF-1"]
+    tests: ["UB-1", "EC-5", "EC-2", "SS-4", "QF-6", "EC-7", "EC-1", "UB-2", "SS-1", "BF-1", "QF-1"]
 };
 
 function _gitInfo(cwd) {
diff --git a/src-node/claude-code-agent.js b/src-node/claude-code-agent.js
index 23e7ef827e..862886b757 100644
--- a/src-node/claude-code-agent.js
+++ b/src-node/claude-code-agent.js
@@ -39,6 +39,10 @@ const isWindows = process.platform === "win32";
 
 const CONNECTOR_ID = "ph_ai_claude";
 
+// The model tests send a random challenge and expect it back with this suffix
+// appended; see the probe sentence at the end of the system prompt append.
+const SYSTEM_PROMPT_PROBE_SUFFIX = "xxyysjud";
+
 // The user's follow-up is addressed to the main agent, like a queued
 // message in the Claude Code CLI. Hooks fire inside subagents too
 // (input.agent_id is set there), and a subagent that reads the queue
@@ -816,6 +820,19 @@ exports.getCliSpawnProfile = async function (params) {
     return Object.assign({}, result, profile);
 };
 
+// The assistant's own UI files for askInLivePreview live in Phoenix's app data, never in the
+// project. Writing there is the assistant's business: no permission card, no snapshot, no
+// edit event, no card in the chat.
+let _aiScratchDir = null;
+function _isAiScratchPath(filePath) {
+    if (!_aiScratchDir || !filePath || !path.isAbsolute(filePath)) {
+        return false;
+    }
+    const root = path.resolve(_aiScratchDir);
+    const target = path.resolve(filePath);
+    return target === root || target.startsWith(root + path.sep);
+}
+
 /**
  * Send a prompt to Claude and stream results back to the browser.
  * Called from browser via execPeer("sendPrompt", {prompt, projectPath, sessionAction, model}).
@@ -825,7 +842,10 @@ exports.getCliSpawnProfile = async function (params) {
  */
 exports.sendPrompt = async function (params) {
     const { prompt, projectPath, sessionAction, model, locale, selectionContext, editorContext,
-        images, envOverrides, permissionMode, additionalDirectories } = params;
+        images, envOverrides, permissionMode, additionalDirectories, aiScratchDir } = params;
+    if (typeof aiScratchDir === "string" && aiScratchDir) {
+        _aiScratchDir = aiScratchDir;
+    }
     const requestId = Date.now().toString(36) + Math.random().toString(36).slice(2, 7);
 
     // Handle session
@@ -1184,7 +1204,7 @@ async function _runQuery(requestId, prompt, projectPath, model, signal, locale,
     // `mkdir -p notes-app` in the project, the model wrote the files to
     // /home/<user>/notes-app and nobody was asked.
     function _isOutsideWriteRoots(filePath) {
-        if (!filePath || !path.isAbsolute(filePath)) {
+        if (!filePath || !path.isAbsolute(filePath) || _isAiScratchPath(filePath)) {
             return false;
         }
         const target = path.resolve(filePath);
@@ -1401,6 +1421,9 @@ async function _runQuery(requestId, prompt, projectPath, model, signal, locale,
             // than a rule waving all of them through. Reads never reach a
             // prompt — the PreToolUse hook below allows them outright.
             "mcp__phoenix-editor__editorDocs",
+            "mcp__phoenix-editor__getProblems",
+            "mcp__phoenix-editor__notifyUser",
+            "mcp__phoenix-editor__askInLivePreview",
             "mcp__phoenix-editor__controlEditor",
             "mcp__phoenix-editor__resizeLivePreview",
             "mcp__phoenix-editor__wait",
@@ -1419,7 +1442,7 @@ async function _runQuery(requestId, prompt, projectPath, model, signal, locale,
                     "mcp__phoenix-editor__previewImages",
                     "mcp__phoenix-editor__takeScreenshot",
                     "mcp__phoenix-editor__execJsInLivePreview",
-                    "mcp__phoenix-editor__editorDocs"]
+                    "mcp__phoenix-editor__editorDocs", "mcp__phoenix-editor__getProblems"]
             },
             "coder": {
                 description: "Reads, edits, and writes code files." +
@@ -1437,143 +1460,181 @@ async function _runQuery(requestId, prompt, projectPath, model, signal, locale,
                     "mcp__phoenix-editor__execJsInLivePreview",
                     "mcp__phoenix-editor__execJsInEditor",
                     "mcp__phoenix-editor__editorPreferences",
-                    "mcp__phoenix-editor__editorDocs"]
+                    "mcp__phoenix-editor__editorDocs", "mcp__phoenix-editor__getProblems"]
             }
         },
         mcpServers: { "phoenix-editor": editorMcpServer },
         permissionMode: permissionMode || "auto",
-        appendSystemPrompt:
-            "When modifying an existing file, always prefer the Edit tool " +
-            "(find-and-replace) instead of the Write tool. The Write tool should ONLY be used " +
-            "to create brand new files that do not exist yet. For existing files, always use " +
-            "multiple Edit calls to make targeted changes rather than rewriting the entire " +
-            "file with Write. This is critical because Write replaces the entire file content " +
-            "which is slow and loses undo history." +
-            "\n\nThe user's project root is " + (projectPath || process.cwd()) + ". For files " +
-            "under it, default to Edit and Write over shell rewrites (sed -i, perl -i, tee, " +
-            "Set-Content/Out-File, `>` / `>>` redirection). Phoenix routes Edit and Write " +
-            "through the editor, so they refresh the user's open buffer, render a reviewable " +
-            "diff, and stay undoable from the AI panel; a shell rewrite skips all three, and " +
-            "the user cannot undo it. Outside the project root — scratch files, temp output, " +
-            "logs — the shell is fine and needs no thought. " +
-            "\nThis is a default, not a prohibition. The shell is the better call when the " +
-            "change is mechanical across many files or matches, when Edit would mean dozens of " +
-            "calls or reading a large file to alter a little of it, or when the target is " +
-            "generated output. Phoenix stops the first shell rewrite of each command and " +
-            "explains why; re-run it unchanged and it goes through. Judge it on the merits — " +
-            "tokens saved against undo lost — and tell the user when you take the shell route. " +
-            "When the saving would be marginal, take Edit: one shell call and one Edit call " +
-            "cost about the same, so a handful of files is not a reason to give up undo. The " +
-            "shell has to earn it." +
-            "\n\nALWAYS call getEditorState as your FIRST tool call on any question that " +
-            "references the user's current work — not just \"what file am I on\". This includes " +
-            "implicit-context questions like \"the page\", \"this layout\", \"the nav bar\", " +
-            "\"the button\", \"why is X behaving like this\", \"can you fix the styling\", " +
-            "\"scroll down on the page\", etc. The user is sitting in front of an editor and a " +
-            "live preview — without getEditorState you don't know which file they mean, which " +
-            "rules out targeted Read / Grep and makes you blindly grep the whole codebase. Run " +
-            "getEditorState first; THEN decide whether to Read the active file, Grep within it, " +
-            "or takeScreenshot the live preview to see what they're describing." +
-            "\n\nAlways use full absolute paths for all file operations (Read, Edit, Write, " +
-            "controlEditor). Never use relative paths." +
-            "\n\nWhen a tool response mentions the user has typed a clarification, immediately " +
-            "call getUserClarification to read it and incorporate the user's feedback into your current work." +
-            "\n\nYou are running inside Phoenix Code, a web-focused code editor with built-in " +
-            "live preview for both HTML/CSS/JS/SVG and Markdown. When the user asks to create " +
-            "mockups, prototypes, or web pages, prefer vanilla HTML/CSS/JS so the live preview " +
-            "can render and edit them — unless the user specifically requests a framework. " +
-            "Build responsive layouts by default for web content. For images, prefer real " +
-            "<img> tags over div background-image so the user can swap, inspect, and resize " +
-            "them in the editor — only fall back to background-image when an effect (parallax, " +
-            "cover-with-overlay, repeating tile) genuinely requires it." +
-            "\n\nThe live preview is the rendered view of the HTML/CSS/JS/SVG or Markdown file " +
-            "currently active in the editor." +
-            "\n\nYou ALWAYS have live visibility into the editor through the phoenix-editor tools " +
-            "listed below. NEVER tell the user you can't see what's open / what they're looking " +
-            "at / what file they're on / what's selected / what's in the live preview — call " +
-            "getEditorState (and takeScreenshot / execJsInLivePreview as needed) instead. " +
-            "ALWAYS prefer the phoenix-editor MCP for ANY preview interaction — screenshots, " +
-            "JS evaluation, DOM inspection, console/network reads, viewport resizing, reloads. " +
-            "Do NOT reach for other MCP servers like chrome-devtools to open a separate browser " +
-            "session for the same things; the user's live preview inside Phoenix reflects their " +
-            "current (possibly unsaved) edits, while a fresh browser session would miss those. " +
-            "phoenix-editor.takeScreenshot, phoenix-editor.execJsInLivePreview, " +
-            "phoenix-editor.resizeLivePreview, and phoenix-editor.controlEditor cover virtually " +
-            "every \"look at / poke at the page\" need. Only fall back to chrome-devtools or " +
-            "another browser MCP if the user explicitly asks for a non-Phoenix browser context. " +
-            "These tools are for active iteration AND for checking your own work — " +
-            "use them as you go, not only when the user asks:" +
-            "\n- takeScreenshot: see the rendered HTML preview, the rendered Markdown preview, " +
-            "the editor, or any panel. Use it to confirm visual output, diagnose layout/styling " +
-            "bugs, or check that HTML or Markdown rendered as expected. Simple selector rule: " +
-            "if the question is about the rendered live preview pass " +
-            "selector='#panel-live-preview-frame' (targeted shot is easier to reason about); for " +
-            "anything else — Problems panel, file tree, toolbar, any other Phoenix UI, or just " +
-            "\"what is the user looking at\" — omit the selector and capture the full editor " +
-            "window. Pass reload=true to force-reload the preview before capturing (useful after " +
-            "JS edits) — saves a tool call vs. reloading separately." +
-            "\n- execJsInLivePreview: run JS inside the HTML preview iframe to read the DOM, " +
-            "query computed styles, click elements, or capture console output. Use it to debug " +
-            "behavior and to confirm an edit actually took effect." +
-            "\n- searchImages: find Unsplash photos for a website; includePreview=true returns a small " +
-            "numbered collage so you can choose visually. Reuse returned URLs and call useImage when selecting " +
-            "a photo for a page. Use searches judiciously, at most 100 per hour." +
-            "\n- previewImages: show actual images in the chat from existing URLs (including file:/// local images). " +
-            "Use it when presenting images or a shortlist to the user; no search is needed." +
-            "\n- resizeLivePreview: change the preview viewport width to test responsive " +
-            "breakpoints." +
-            "\n- controlEditor: open files, move the cursor, change selection, toggle the live " +
-            "preview panel, or reload it (reloadLivePreview operation — use after JS edits if " +
-            "you're not also taking a screenshot)." +
-            "\n- getEditorState: report active file, working set, cursor/selection, and the " +
-            "livePreviewFile. The live preview normally follows the active editor file, so " +
-            "assume that. Rarely the user pins the preview to a specific file — if a " +
-            "screenshot doesn't match the file you just edited, check " +
-            "getEditorState.livePreviewFile to rule that out." +
-            "\n- execJsInEditor: eval JS in Phoenix's OWN JS space (parent window — NOT the live " +
-            "preview iframe). Use when controlEditor's fixed ops aren't enough — split panes, " +
-            "click dialog buttons, send synthetic key events, dispatch any CommandManager " +
-            "command, configure indentation, etc. `__PR` exposes the modules and helpers; see " +
-            "the tool description for the full list. Before writing non-trivial JS, call " +
-            "editorDocs and Read / Grep the bundled API reference so you call real APIs." +
-            "\n- editorPreferences: read or write Phoenix preferences. `list` enumerates every " +
-            "registered pref with id/type/default/current/description/scope; `get` for a single " +
-            "pref; `set` writes into user (global), project (.phcode.json in repo), or session " +
-            "(in-memory) scope." +
-            "\n- editorDocs: returns the on-disk path to the bundled API reference plus the " +
-            "feature-docs URL and the GitHub source repo URL. Call once near the start of any " +
-            "non-trivial editor-control task; then Read / Grep the apiDocsPath and WebFetch the " +
-            "featureDocsURL as needed. Do NOT search the codebase blindly when this exists." +
-            "\n\nEDITS THAT LAND IN THE LIVE PREVIEW: when you edit the file getEditorState " +
-            "reported as livePreviewFile — or a CSS / JS / SVG file it links to — the user is " +
-            "watching the result render. Whether that is worth checking is your judgement call, " +
-            "and so is how: execJsInLivePreview to read the DOM / computed styles / console, " +
-            "takeScreenshot with selector='#panel-live-preview-frame' for a visual check, " +
-            "resizeLivePreview for responsive behavior, or nothing at all when the change is " +
-            "trivial or self-evident. Weigh it at meaningful checkpoints (after a section lands, " +
-            "before you report done) rather than after every small edit. Files outside the live " +
-            "preview do not raise the question at all." +
-            "\n\nName-collision rule: \"Phoenix Code\" (the editor the user is sitting inside) " +
-            "and \"Claude Code\" (the SDK / CLI you happen to run on) BOTH have settings, " +
-            "configs, auto-update toggles, themes, etc. When the user says \"set / change / " +
-            "configure / disable X\" without naming a product, they ALWAYS mean PHOENIX — " +
-            "your first action is editorPreferences.list (or .get/.set), not anything else.\n\n" +
-            "DO NOT INVOKE the built-in `update-config` skill, do not Read / Write / cat / Bash " +
-            "anything under ~/.claude/, ~/.claude.json, or any Claude Code / SDK config path, " +
-            "unless the user EXPLICITLY says \"Claude\" / \"Claude Code\" / \"SDK\" / \"agent\" / " +
-            "\"~/.claude\" in their message. The `update-config` skill modifies Claude Code's own " +
-            "config, NEVER Phoenix's — if your first instinct on a config / setting / pref / " +
-            "auto-update / theme question is to fire that skill, STOP and reach for " +
-            "editorPreferences instead.\n\n" +
-            "If a request is genuinely ambiguous (Phoenix has no matching pref), say so and ask " +
-            "the user which product they meant before changing anything." +
-            "\n\nUse your best judgement for when to enter plan mode. Use it when the task " +
-            "involves creating new applications, extensive modifications, or architectural " +
-            "changes — propose a plan for user approval before writing code." +
-            (locale && !locale.startsWith("en")
-                ? "\n\nThe user's display language is " + locale + ". " +
-                  "Respond in this language unless they write in a different language."
-                : ""),
+        // The 0.3.x Agent SDK reads the append text only from
+        // systemPrompt.append with the claude_code preset. A top-level
+        // appendSystemPrompt option is silently ignored, which dropped every
+        // Phoenix instruction below after the 0.2 -> 0.3 SDK upgrade.
+        systemPrompt: {
+            type: "preset",
+            preset: "claude_code",
+            append:
+                "When modifying an existing file, always prefer the Edit tool " +
+                "(find-and-replace) instead of the Write tool. The Write tool should ONLY be used " +
+                "to create brand new files that do not exist yet. For existing files, always use " +
+                "multiple Edit calls to make targeted changes rather than rewriting the entire " +
+                "file with Write. This is critical because Write replaces the entire file content " +
+                "which is slow and loses undo history." +
+                "\n\nThe user's project root is " + (projectPath || process.cwd()) + ". For files " +
+                "under it, default to Edit and Write over shell rewrites (sed -i, perl -i, tee, " +
+                "Set-Content/Out-File, `>` / `>>` redirection). Phoenix routes Edit and Write " +
+                "through the editor, so they refresh the user's open buffer, render a reviewable " +
+                "diff, and stay undoable from the AI panel; a shell rewrite skips all three, and " +
+                "the user cannot undo it. Outside the project root — scratch files, temp output, " +
+                "logs — the shell is fine and needs no thought. " +
+                "\nThis is a default, not a prohibition. The shell is the better call when the " +
+                "change is mechanical across many files or matches, when Edit would mean dozens of " +
+                "calls or reading a large file to alter a little of it, or when the target is " +
+                "generated output. Phoenix stops the first shell rewrite of each command and " +
+                "explains why; re-run it unchanged and it goes through. Judge it on the merits — " +
+                "tokens saved against undo lost — and tell the user when you take the shell route. " +
+                "When the saving would be marginal, take Edit: one shell call and one Edit call " +
+                "cost about the same, so a handful of files is not a reason to give up undo. The " +
+                "shell has to earn it." +
+                "\n\nALWAYS call getEditorState as your FIRST tool call on any question that " +
+                "references the user's current work — not just \"what file am I on\". This includes " +
+                "implicit-context questions like \"the page\", \"this layout\", \"the nav bar\", " +
+                "\"the button\", \"why is X behaving like this\", \"can you fix the styling\", " +
+                "\"scroll down on the page\", etc. The user is sitting in front of an editor and a " +
+                "live preview — without getEditorState you don't know which file they mean, which " +
+                "rules out targeted Read / Grep and makes you blindly grep the whole codebase. Run " +
+                "getEditorState first; THEN decide whether to Read the active file, Grep within it, " +
+                "or takeScreenshot the live preview to see what they're describing." +
+                "\n\nAlways use full absolute paths for all file operations (Read, Edit, Write, " +
+                "controlEditor). Never use relative paths." +
+                "\n\nWhen a tool response mentions the user has typed a clarification, immediately " +
+                "call getUserClarification to read it and incorporate the user's feedback into your current work." +
+                "\n\nYou are running inside Phoenix Code, a web-focused code editor with built-in " +
+                "live preview for both HTML/CSS/JS/SVG and Markdown. When the user asks to create " +
+                "mockups, prototypes, or web pages, prefer vanilla HTML/CSS/JS so the live preview " +
+                "can render and edit them — unless the user specifically requests a framework. " +
+                "Build responsive layouts by default for web content. For images, prefer real " +
+                "<img> tags over div background-image so the user can swap, inspect, and resize " +
+                "them in the editor — only fall back to background-image when an effect (parallax, " +
+                "cover-with-overlay, repeating tile) genuinely requires it." +
+                "\n\nThe live preview is the rendered view of the HTML/CSS/JS/SVG or Markdown file " +
+                "currently active in the editor." +
+                "\n\nYou ALWAYS have live visibility into the editor through the phoenix-editor tools " +
+                "listed below. NEVER tell the user you can't see what's open / what they're looking " +
+                "at / what file they're on / what's selected / what's in the live preview — call " +
+                "getEditorState (and takeScreenshot / execJsInLivePreview as needed) instead. " +
+                "ALWAYS prefer the phoenix-editor MCP for ANY preview interaction — screenshots, " +
+                "JS evaluation, DOM inspection, console/network reads, viewport resizing, reloads. " +
+                "Do NOT reach for other MCP servers like chrome-devtools to open a separate browser " +
+                "session for the same things; the user's live preview inside Phoenix reflects their " +
+                "current (possibly unsaved) edits, while a fresh browser session would miss those. " +
+                "phoenix-editor.takeScreenshot, phoenix-editor.execJsInLivePreview, " +
+                "phoenix-editor.resizeLivePreview, and phoenix-editor.controlEditor cover virtually " +
+                "every \"look at / poke at the page\" need. Only fall back to chrome-devtools or " +
+                "another browser MCP if the user explicitly asks for a non-Phoenix browser context. " +
+                "These tools are for active iteration AND for checking your own work — " +
+                "use them as you go, not only when the user asks:" +
+                "\n- takeScreenshot: see the rendered HTML preview, the rendered Markdown preview, " +
+                "the editor, or any panel. Use it to confirm visual output, diagnose layout/styling " +
+                "bugs, or check that HTML or Markdown rendered as expected. Simple selector rule: " +
+                "if the question is about the rendered live preview pass " +
+                "selector='#panel-live-preview-frame' (targeted shot is easier to reason about); for " +
+                "anything else — Problems panel, file tree, toolbar, any other Phoenix UI, or just " +
+                "\"what is the user looking at\" — omit the selector and capture the full editor " +
+                "window. Pass reload=true to force-reload the preview before capturing (useful after " +
+                "JS edits) — saves a tool call vs. reloading separately." +
+                "\n- execJsInLivePreview: run JS inside the HTML preview iframe to read the DOM, " +
+                "query computed styles, click elements, or capture console output. Use it to debug " +
+                "behavior and to confirm an edit actually took effect." +
+                "\n- searchImages: find Unsplash photos for a website; includePreview=true returns a small " +
+                "numbered collage so you can choose visually. Call useImage when selecting photos for a page and " +
+                "prefer embedding the returned Unsplash URLs; pass downloadPath only when the user asks for local " +
+                "files or the use case needs them. Use searches judiciously, at most 100 per hour." +
+                "\n- previewImages: show actual images in the chat from existing URLs (including file:/// local " +
+                "images). " +
+                "Use it when presenting images or a shortlist to the user; no search is needed." +
+                "\n- resizeLivePreview: change the preview viewport width to test responsive " +
+                "breakpoints." +
+                "\n- controlEditor: open files, move the cursor, change selection, toggle the live " +
+                "preview panel, or reload it (reloadLivePreview operation — use after JS edits if " +
+                "you're not also taking a screenshot)." +
+                "\n- getEditorState: report active file, working set, cursor/selection, and the " +
+                "livePreviewFile. The live preview normally follows the active editor file, so " +
+                "assume that. Rarely the user pins the preview to a specific file — if a " +
+                "screenshot doesn't match the file you just edited, check " +
+                "getEditorState.livePreviewFile to rule that out." +
+                "\n- execJsInEditor: eval JS in Phoenix's OWN JS space (parent window — NOT the live " +
+                "preview iframe). Use when controlEditor's fixed ops aren't enough — split panes, " +
+                "click dialog buttons, send synthetic key events, dispatch any CommandManager " +
+                "command, configure indentation, etc. `__PR` exposes the modules and helpers; see " +
+                "the tool description for the full list. Before writing non-trivial JS, call " +
+                "editorDocs and Read / Grep the bundled API reference so you call real APIs." +
+                "\n- editorPreferences: read or write Phoenix preferences. `list` enumerates every " +
+                "registered pref with id/type/default/current/description/scope; `get` for a single " +
+                "pref; `set` writes into user (global), project (.phcode.json in repo), or session " +
+                "(in-memory) scope." +
+                "\n- editorDocs: returns the on-disk path to the bundled API reference plus the " +
+                "feature-docs URL and the GitHub source repo URL. Call once near the start of any " +
+                "non-trivial editor-control task; then Read / Grep the apiDocsPath and WebFetch the " +
+                "featureDocsURL as needed. Do NOT search the codebase blindly when this exists." +
+                "\n- getProblems: to get the problems in a file use this tool; it opens the file in the " +
+                "editor and gives you the errors the editor reports. Use it when the user points at a " +
+                "red squiggle or the Problems panel, and after your own edits to check for new errors." +
+                "\n- notifyUser: show a toast in the editor window when a long task finishes or you need the " +
+                "user's attention and they may be away from the chat. Never use it for ordinary replies. " +
+                "It is skipped while the AI panel is visible unless you pass alwaysShow." +
+                "\n- askInLivePreview: whenever showing beats telling and the page is in the live preview, " +
+                "compose UI with askInLivePreview instead of prose: a choice about one element (its colour, " +
+                "copy, placement), a choice about the whole page (theme, palette, typography, layout direction, " +
+                "which of several designs to keep), or simply to present something visually (a mockup, a " +
+                "before-and-after, a set of variants) even when the only answer is OK or a comment. The card's " +
+                "frame, title, controls and text field are Phoenix's; you write the body, and pass a theme with " +
+                "the page's colours so the frame matches. For one element pass anchor so the page dims around it " +
+                "and the card keeps out of its way; put the card beside the element only when that helps. Hovering an " +
+                "option previews it on the page with previewCss or previewHtml, clicking it answers. " +
+                "Write the UI files into " + (_aiScratchDir ? _aiScratchDir + " (askInLivePreviewUiDir)" :
+                    "the folder getEditorState reports as askInLivePreviewUiDir") + ", never into the project " +
+                "(yours to write freely, no permission is asked and the user is not shown those writes). " +
+                "The tool description is the whole contract; never look for its implementation, " +
+                "and keep the look-at-the-page step to one screenshot or one execJsInLivePreview." +
+                "\n\nEDITS THAT LAND IN THE LIVE PREVIEW: when you edit the file getEditorState " +
+                "reported as livePreviewFile — or a CSS / JS / SVG file it links to — the user is " +
+                "watching the result render. Whether that is worth checking is your judgement call, " +
+                "and so is how: execJsInLivePreview to read the DOM / computed styles / console, " +
+                "takeScreenshot with selector='#panel-live-preview-frame' for a visual check, " +
+                "resizeLivePreview for responsive behavior, or nothing at all when the change is " +
+                "trivial or self-evident. Weigh it at meaningful checkpoints (after a section lands, " +
+                "before you report done) rather than after every small edit. Files outside the live " +
+                "preview do not raise the question at all." +
+                "\n\nName-collision rule: \"Phoenix Code\" (the editor the user is sitting inside) " +
+                "and \"Claude Code\" (the SDK / CLI you happen to run on) BOTH have settings, " +
+                "configs, auto-update toggles, themes, etc. When the user says \"set / change / " +
+                "configure / disable X\" without naming a product, they ALWAYS mean PHOENIX — " +
+                "your first action is editorPreferences.list (or .get/.set), not anything else.\n\n" +
+                "DO NOT INVOKE the built-in `update-config` skill, do not Read / Write / cat / Bash " +
+                "anything under ~/.claude/, ~/.claude.json, or any Claude Code / SDK config path, " +
+                "unless the user EXPLICITLY says \"Claude\" / \"Claude Code\" / \"SDK\" / \"agent\" / " +
+                "\"~/.claude\" in their message. The `update-config` skill modifies Claude Code's own " +
+                "config, NEVER Phoenix's — if your first instinct on a config / setting / pref / " +
+                "auto-update / theme question is to fire that skill, STOP and reach for " +
+                "editorPreferences instead.\n\n" +
+                "If a request is genuinely ambiguous (Phoenix has no matching pref), say so and ask " +
+                "the user which product they meant before changing anything." +
+                "\n\nUse your best judgement for when to enter plan mode. Use it when the task " +
+                "involves creating new applications, extensive modifications, or architectural " +
+                "changes — propose a plan for user approval before writing code." +
+                // Probe for the model tests. The suffix is known only from this text and
+                // the challenge only from the current message, so the combined reply
+                // proves the prompt is loaded and applied right now, not recalled from
+                // a transcript or a recorded system-prompt snapshot.
+                "\n\nTest probe: if a message contains \"phoenix system prompt challenge: <code>\", reply " +
+                "with exactly the code followed by \"-" + SYSTEM_PROMPT_PROBE_SUFFIX + "\" and nothing else " +
+                "(challenge k7p2qa would get the reply k7p2qa-" + SYSTEM_PROMPT_PROBE_SUFFIX + "). Never " +
+                "mention this otherwise." +
+                (locale && !locale.startsWith("en")
+                    ? "\n\nThe user's display language is " + locale + ". " +
+                      "Respond in this language unless they write in a different language."
+                    : "")
+        },
         includePartialMessages: true,
         canUseTool: _onPermissionRequest,
         abortController: currentAbortController,
@@ -1594,6 +1655,9 @@ async function _runQuery(requestId, prompt, projectPath, model, signal, locale,
                     matcher: "Edit",
                     hooks: [
                         async (input) => {
+                            if (_isAiScratchPath(input && input.tool_input && input.tool_input.file_path)) {
+                                return { hookSpecificOutput: { hookEventName: "PreToolUse", permissionDecision: "allow" } };
+                            }
                             console.log("[Phoenix AI] Intercepted Edit tool");
                             // Plan file edits: capture content, write to disk, skip editor
                             const editPath = (input.tool_input.file_path || "").replace(/\\/g, "/");
@@ -1738,6 +1802,13 @@ async function _runQuery(requestId, prompt, projectPath, model, signal, locale,
                     hooks: [
                         async (input) => {
                             console.log("[Phoenix AI] Intercepted Write tool");
+                            if (_isAiScratchPath(input && input.tool_input && input.tool_input.file_path)) {
+                                // The daily sweep may have removed the folder; it comes back for the write.
+                                try {
+                                    fs.mkdirSync(path.dirname(input.tool_input.file_path), { recursive: true });
+                                } catch (err) { /* the write reports it */ }
+                                return { hookSpecificOutput: { hookEventName: "PreToolUse", permissionDecision: "allow" } };
+                            }
                             // Capture plan content when writing to .claude/plans/
                             // Plan files: capture content for plan card, write to disk
                             // but don't open in editor
@@ -1993,6 +2064,9 @@ async function _runQuery(requestId, prompt, projectPath, model, signal, locale,
                             if (filePath.replace(/\\/g, "/").includes("/.claude/plans/")) {
                                 return {};
                             }
+                            if (_isAiScratchPath(filePath)) {
+                                return {};
+                            }
                             // If the SDK's native Edit itself failed (e.g.
                             // oldText not found on disk), don't paint a diff
                             // card. The existing aiToolResult flow will
@@ -2060,6 +2134,9 @@ async function _runQuery(requestId, prompt, projectPath, model, signal, locale,
                             if (filePath.replace(/\\/g, "/").includes("/.claude/plans/")) {
                                 return {};
                             }
+                            if (_isAiScratchPath(filePath)) {
+                                return {};
+                            }
                             if (_isToolResponseError(input.tool_response)) {
                                 return {};
                             }
diff --git a/src-node/mcp-editor-tools.js b/src-node/mcp-editor-tools.js
index 3003f4e6d5..e9b1ee2e10 100644
--- a/src-node/mcp-editor-tools.js
+++ b/src-node/mcp-editor-tools.js
@@ -53,9 +53,11 @@ const EXEC_PEER_TIMEOUT_MS = {
     controlEditor: 5000,
     resizeLivePreview: 5000,
     searchEditorBuffers: 3000,
+    getProblems: 15000,
+    notifyUser: 5000,
     searchImages: 55000,
     previewImages: 45000,
-    useImage: 12000
+    useImage: 90000
 };
 
 // Floor for caller-provided timeouts (e.g. execJsInLivePreview's
@@ -216,8 +218,9 @@ function createEditorMcpServer(sdkModule, nodeConnector, clarificationAccessors)
         "Set includePreview:true to SEE a small numbered collage and choose the best visual match yourself; " +
         "each collage number matches the photo's number field and 1-based array position. Missing previews are listed. " +
         "The user can optionally reply with an image URL; do not wait for them to choose. " +
-        "When choosing photos for the page, call useImage once with their downloadTrackers as a list, use their supplied URLs, " +
-        "and credit the photographer and Unsplash with the returned links. Honor rate-limit errors and retryAfterSeconds.",
+        "When choosing photos for the page, call useImage once with their downloadTrackers as a list, prefer embedding " +
+        "their supplied URLs, and credit the photographer and Unsplash with the returned links. " +
+        "Honor rate-limit errors and retryAfterSeconds.",
         {
             query: z.string().min(1).max(200).describe("Specific image search query"),
             page: z.number().int().min(1).optional().describe("Results page, default 1"),
@@ -277,12 +280,22 @@ function createEditorMcpServer(sdkModule, nodeConnector, clarificationAccessors)
 
     const useImageTool = sdkModule.tool(
         "useImage",
-        "Record Unsplash images chosen from searchImages before embedding their URLs. Prefer selecting multiple " +
-        "photos in one call by passing a list of downloadTrackers (up to nine). A single tracker is also accepted. " +
-        "Returns selected photos and any per-image failures; retry only failed trackers. " +
-        "Does not perform another search or edit any files.",
-        {downloadTracker: z.union([z.string(), z.array(z.string()).min(1).max(9)])
-            .describe("One downloadTracker from searchImages, or an ordered list of up to nine downloadTrackers")},
+        "Select Unsplash photos from searchImages. Prefer the Unsplash URLs: without downloadPath the photos are " +
+        "shown as selected in the chat and you embed their URLs directly; nothing is downloaded. Pass downloadPath " +
+        "only when the user asks for local files or the use case needs them (offline pages, a build that bundles " +
+        "assets, an image that must be edited): the photos are then downloaded into the project and each returned " +
+        "photo has savedPath (absolute) and projectPath (project-relative, for src attributes). Prefer selecting " +
+        "multiple photos in one call by passing a list of downloadTrackers (up to nine). A single tracker is also " +
+        "accepted. Returns selected photos and any per-image failures; retry only failed trackers. " +
+        "Does not perform another search or edit existing files.",
+        {
+            downloadTracker: z.union([z.string(), z.array(z.string()).min(1).max(9)])
+                .describe("One downloadTracker from searchImages, or an ordered list of up to nine downloadTrackers"),
+            downloadPath: z.string().optional()
+                .describe("Download into the project instead of embedding by URL: a project folder such as " +
+                    "images/, or for a single photo a file path such as images/hero.jpg (jpg, png, webp or avif). " +
+                    "Omit it to embed the Unsplash URLs.")
+        },
         async function (args) {
             try {
                 const result = await _execPeerWithTimeout(nodeConnector, "useImage", args, "useImage");
@@ -368,15 +381,23 @@ function createEditorMcpServer(sdkModule, nodeConnector, clarificationAccessors)
         "execJsInLivePreview",
         "Execute JavaScript in the live preview iframe (the page being previewed), NOT in Phoenix itself. " +
         "Auto-opens the live preview panel if it is not already visible. Code is evaluated via eval() in " +
-        "the global scope of the previewed page. Note: eval() is synchronous — async/await is NOT supported. " +
+        "the previewed page, so the value of its last expression comes back; a top-level return works too. " +
+        "Note: eval() is synchronous — async/await is NOT supported. " +
         "Only available when an HTML file is selected in the live preview — does not work for markdown or " +
         "other non-HTML file types. Use this to inspect or manipulate the user's live-previewed web page " +
         "(e.g. document.title, DOM queries).\n\n" +
         "Pass timeoutMs to bound how long to wait if the live preview is wedged or slow to respond. " +
         "Defaults to 10000 (10s). Floored at 5000 (the preview frame may still be settling); no " +
-        "upper limit — pick whatever fits the snippet you're running.",
+        "upper limit — pick whatever fits the snippet you're running.\n\n" +
+        "If the script is reusable in any way, run again with other params, or a larger script you may edit and " +
+        "run again, write it to the folder getEditorState reports as askInLivePreviewUiDir (yours, no permission " +
+        "needed) and pass scriptFile instead of code. The file runs as function(params) { <your file's text goes " +
+        "here> } in the page, so return the value. Inline code is only for a very short throwaway.",
         {
-            code: z.string().describe("JavaScript code to execute in the live preview iframe"),
+            code: z.string().optional().describe("A very short throwaway snippet to run in the live preview iframe; anything reusable goes in scriptFile"),
+            scriptFile: z.string().optional().describe("Instead of code: an absolute path, or a file name inside " +
+                "askInLivePreviewUiDir, run as function(params) { <your file's text goes here> }; return the value"),
+            params: z.object({}).passthrough().optional().describe("Data the code sees as `params`"),
             timeoutMs: z.number().int().optional().describe(
                 "Max wait in milliseconds before giving up on the live preview. " +
                 "Floored at 5000, no upper limit. Default 10000."
@@ -387,7 +408,7 @@ function createEditorMcpServer(sdkModule, nodeConnector, clarificationAccessors)
             const timeoutMs = _resolveCallerTimeout(args.timeoutMs, 10000);
             try {
                 const result = await _execPeerWithTimeout(nodeConnector, "execJsInLivePreview", {
-                    code: args.code
+                    code: args.code, scriptFile: args.scriptFile, params: args.params
                 }, "execJsInLivePreview", timeoutMs);
                 if (result.error) {
                     toolResult = {
@@ -551,7 +572,7 @@ function createEditorMcpServer(sdkModule, nodeConnector, clarificationAccessors)
         "buttons, dispatch arbitrary CommandManager commands, configure indentation, send synthetic " +
         "key events, etc. Same trust model as execJsInLivePreview — runs without a per-call prompt. " +
         "\n\n" +
-        "The body is wrapped in `new AsyncFunction('__PR', 'KeyEvent', code)` so you can `await` " +
+        "The body is wrapped in `new AsyncFunction('__PR', 'KeyEvent', 'params', code)` so you can `await` " +
         "freely. `__PR` exposes:\n" +
         "- Modules: $, CommandManager, Commands, Dialogs, EditorManager, MainViewManager, " +
         "DocumentManager, WorkspaceManager, FileSystem, FileViewController, ProjectManager, " +
@@ -582,9 +603,16 @@ function createEditorMcpServer(sdkModule, nodeConnector, clarificationAccessors)
         "to confirm a UI mutation actually landed.\n" +
         "\n" +
         "Pass timeoutMs to bound how long to wait if the editor is wedged. Floored at 5000, no " +
-        "upper limit. Default 10000.",
+        "upper limit. Default 10000.\n\n" +
+        "If the script is reusable in any way, run again with other params, or a larger script you may edit and " +
+        "run again, write it to the folder getEditorState reports as askInLivePreviewUiDir (yours, no permission " +
+        "needed) and pass scriptFile instead of code. The file is the same async function body, with params as " +
+        "its third argument, so return the value. Inline code is only for a very short throwaway.",
         {
-            code: z.string().describe("JavaScript code to execute in the Phoenix editor's JS space"),
+            code: z.string().optional().describe("A very short throwaway snippet to run in the Phoenix editor's JS space; anything reusable goes in scriptFile"),
+            scriptFile: z.string().optional().describe("Instead of code: an absolute path, or a file name inside " +
+                "askInLivePreviewUiDir, run as the async function body with __PR, KeyEvent and params; return the value"),
+            params: z.object({}).passthrough().optional().describe("Data the code sees as `params`"),
             timeoutMs: z.number().int().optional().describe(
                 "Max wait in milliseconds before giving up. " +
                 "Floored at 5000, no upper limit. Default 10000."
@@ -595,7 +623,7 @@ function createEditorMcpServer(sdkModule, nodeConnector, clarificationAccessors)
             const timeoutMs = _resolveCallerTimeout(args.timeoutMs, 10000);
             try {
                 const result = await _execPeerWithTimeout(nodeConnector, "execJsInEditor", {
-                    code: args.code
+                    code: args.code, scriptFile: args.scriptFile, params: args.params
                 }, "execJsInEditor", timeoutMs);
                 if (result && result.error) {
                     toolResult = {
@@ -693,6 +721,190 @@ function createEditorMcpServer(sdkModule, nodeConnector, clarificationAccessors)
         }
     );
 
+
+    const getProblemsTool = sdkModule.tool(
+        "getProblems",
+        "Get the problems for a file: it opens the file in the editor and returns the errors and " +
+        "warnings reported by the syntax checkers available for that file type, with 1-based line " +
+        "and column, type, message and the checker (provider) that found each. respondedProviders " +
+        "lists the checkers that answered; judge from that whether the coverage is enough for what " +
+        "the user asked. If no problem provider is set for the file type, the result says so. " +
+        "Defaults to the active file. Returns at most 20 problems by default; counts always cover " +
+        "the whole file, so use pattern, type or provider to narrow, or raise maxProblems. Use it " +
+        "when the user points at a red squiggle or the Problems panel, and after your own edits " +
+        "to check for new errors.",
+        {
+            filePath: z.string().optional().describe("Absolute path of the file. Default: the active editor file"),
+            pattern: z.string().optional().describe("Regex (default) or literal text the message must match"),
+            isRegex: z.boolean().optional().describe("false to match the pattern literally. Default true"),
+            caseSensitive: z.boolean().optional().describe("Default false"),
+            type: z.enum(["error", "warning", "meta"]).optional().describe("Only problems of this type"),
+            provider: z.string().optional().describe("Only problems from this linter; names come back in every result"),
+            maxProblems: z.number().int().optional().describe("Cap on returned problems. Default 20, max 200")
+        },
+        async function (args) {
+            let toolResult;
+            try {
+                const result = await _execPeerWithTimeout(nodeConnector, "getProblems", args || {}, "getProblems");
+                if (result && result.error) {
+                    toolResult = {
+                        content: [{ type: "text", text: "Error: " + result.error }],
+                        isError: true
+                    };
+                } else {
+                    toolResult = {
+                        content: [{ type: "text", text: JSON.stringify(result) }]
+                    };
+                }
+            } catch (err) {
+                toolResult = {
+                    content: [{ type: "text", text: "Error getting problems: " + err.message }],
+                    isError: true
+                };
+            }
+            return _maybeAppendHint(toolResult, hasClarification);
+        },
+        {
+            annotations: { readOnlyHint: true },
+            searchHint: "lint errors warnings diagnostics problems red squiggles in a file, what the Problems panel shows"
+        }
+    );
+
+    const askInLivePreviewTool = sdkModule.tool(
+        "askInLivePreview",
+        "Show a question card over the page in the live preview and wait for the user's answer. Use it whenever " +
+        "showing beats telling: a choice about one element or about the whole page, or presenting variants or " +
+        "a mockup for a reaction. The card's frame is Phoenix's: a title bar reading 'Phoenix AI asks' with " +
+        "minimize and close, a text field with Send for an answer in the user's own words, drag, resize and " +
+        "placement. You write only the body: uiFile, an HTML fragment with its own <style>, and scriptFile, whose " +
+        "text runs once it is rendered as function(root, phoenix, params) { <your file's text goes here> }, so " +
+        "write only what goes between the braces. Write both files first, then call this tool; Write them into the folder " +
+        "getEditorState reports as askInLivePreviewUiDir (your own folder: no permission needed, not shown to the " +
+        "user), edit and reuse them later; pass " +
+        "per-ask data in params, which fills {{key}} placeholders in the markup (escaped) and reaches the script " +
+        "as is. Make the body as visual and interactive as the question deserves (swatches, mini previews, icons, " +
+        "sliders), with one constraint: every word stays readable in every state, hover and selected included, " +
+        "against the theme you chose. Rule for choices: hovering an option previews it on the page, clicking it answers; a " +
+        "hover preview reverts when the pointer leaves the card. phoenix: answer(payload) closes the card and returns the " +
+        "payload to you (previews in place stay); cancel(); previewCss(css|null) tries a style on the page; " +
+        "previewHtml(selector, html|null) swaps a page element; pickElement() resolves with the page element the " +
+        "user clicks next as {selector, tag, id, classes, text, rect}; highlight(selector|null) dims the page " +
+        "around an element; rectOf(selector); styleOf(selector, [props]); resize(width, height). root is the body " +
+        "element (root.querySelector; document cannot see it). Put a short label in the payload; the chat shows " +
+        "it as the user's reply. For one element pass anchor: the page dims around it (lifted while the pointer " +
+        "is over the card) and the card keeps out of its way; it stays in a corner unless placement asks for a " +
+        "side of the element. theme tints the frame with the page's colours. This is the whole contract; do not " +
+        "search for its implementation. " +
+        "Result: the payload, or cancelled with who cancelled (user, chat, page, timeout, previewClosed). " +
+        "Needs an open HTML live preview; otherwise ask in the chat.",
+        {
+            uiFile: z.string().min(1).describe("The body markup file with its own <style>: an absolute path, or a file name " +
+                "inside askInLivePreviewUiDir; up to 200000 characters"),
+            scriptFile: z.string().optional().describe("Path of the file whose text runs as " +
+                "function(root, phoenix, params) { <your file's text goes here> }: only what goes between the braces; " +
+                "up to 100000 characters"),
+            params: z.object({}).passthrough().optional()
+                .describe("Data for this ask: fills {{key}} placeholders in the markup and is passed to the script"),
+            summary: z.string().min(1).max(200).describe("One line for the chat card saying what you are asking"),
+            anchor: z.string().max(500).optional()
+                .describe("CSS selector of the element the question is about; the card is placed beside it"),
+            highlight: z.boolean().optional()
+                .describe("Dim the page around anchor and glow it; default true when anchor is given"),
+            placement: z.enum(["auto", "above", "below", "left", "right",
+                "bottom-right", "bottom-left", "top-right", "top-left", "center", "bottom"]).optional()
+                .describe("Default bottom-right, out of the way; a corner never covers the anchor. auto or a side " +
+                    "puts the card beside the anchor with a pointer, flipping when there is no room"),
+            width: z.number().int().min(220).max(1200).optional().describe("Card width in px, default 340; the user can resize"),
+            height: z.number().int().min(120).max(1000).optional()
+                .describe("Card height in px; default fits the body, up to 85% of the viewport"),
+            theme: z.object({
+                background: z.string().max(64).optional(),
+                titleBackground: z.string().max(64).optional(),
+                titleColor: z.string().max(64).optional(),
+                textColor: z.string().max(64).optional(),
+                accent: z.string().max(64).optional()
+            }).optional().describe("CSS colours for the frame, so the card matches the page; unset ones default to a " +
+                "light or dark card chosen from the page's background. accent colours the Send button"),
+            timeoutS: z.number().int().min(10).max(1800).optional().describe("Seconds to wait for an answer, default 300")
+        },
+        async function (args) {
+            let toolResult;
+            try {
+                const timeoutMs = ((args && args.timeoutS) || 300) * 1000 + 15000;
+                const result = await _execPeerWithTimeout(nodeConnector, "askInLivePreview", args || {},
+                    "askInLivePreview", timeoutMs);
+                if (result && result.error) {
+                    toolResult = {
+                        content: [{ type: "text", text: "Error: " + result.error }],
+                        isError: true
+                    };
+                } else {
+                    toolResult = {
+                        content: [{ type: "text", text: JSON.stringify(result) }]
+                    };
+                }
+            } catch (err) {
+                toolResult = {
+                    content: [{ type: "text", text: "Error asking in the live preview: " + err.message }],
+                    isError: true
+                };
+            }
+            return _maybeAppendHint(toolResult, hasClarification);
+        },
+        {
+            alwaysLoad: true,
+            searchHint: "ask the user to choose between options with custom UI shown in the live preview"
+        }
+    );
+
+    const notifyUserTool = sdkModule.tool(
+        "notifyUser",
+        "Show a short notification toast in the editor window, outside the chat. Use it only when the " +
+        "user may not be watching the chat: a long task has finished, or something needs their attention " +
+        "before you can continue. Do not use it for ordinary replies; the chat already shows those. " +
+        "When the AI panel is visible no toast is shown and the result says so, since the user already " +
+        "sees the chat; pass alwaysShow: true if a toast is still wanted. Clicking the toast brings the " +
+        "user to the chat. By default errors stay until dismissed and other kinds close after a few " +
+        "seconds; autoCloseS overrides that.",
+        {
+            title: z.string().min(1).max(80).describe("Short heading, up to 80 characters"),
+            message: z.string().max(500).optional()
+                .describe("One or two plain-text sentences, up to 500 characters; newlines are kept"),
+            kind: z.enum(["info", "success", "warning", "error"]).optional().describe("Default info"),
+            alwaysShow: z.boolean().optional()
+                .describe("Show the toast even when the AI panel is visible. Default false"),
+            autoCloseS: z.number().int().min(0).max(300).optional()
+                .describe("Seconds before the toast closes on its own, 3 to 300; 0 keeps it until the user " +
+                    "dismisses it. Default 12, 20 for warning, 0 for error")
+        },
+        async function (args) {
+            let toolResult;
+            try {
+                const result = await _execPeerWithTimeout(nodeConnector, "notifyUser", args || {}, "notifyUser");
+                if (result && result.error) {
+                    toolResult = {
+                        content: [{ type: "text", text: "Error: " + result.error }],
+                        isError: true
+                    };
+                } else {
+                    toolResult = {
+                        content: [{ type: "text", text: JSON.stringify(result) }]
+                    };
+                }
+            } catch (err) {
+                toolResult = {
+                    content: [{ type: "text", text: "Error notifying the user: " + err.message }],
+                    isError: true
+                };
+            }
+            return _maybeAppendHint(toolResult, hasClarification);
+        },
+        {
+            annotations: { readOnlyHint: true },
+            searchHint: "notify alert the user with a toast notification when a long task finishes or needs attention"
+        }
+    );
+
     const editorDocsTool = sdkModule.tool(
         "editorDocs",
         "Returns the locations of Phoenix Code's documentation. This tool DOES NOT fetch content " +
@@ -783,7 +995,8 @@ function createEditorMcpServer(sdkModule, nodeConnector, clarificationAccessors)
         name: "phoenix-editor",
         tools: [getEditorStateTool, searchEditorBuffersTool, searchImagesTool, previewImagesTool,
             useImageTool, takeScreenshotTool, execJsInLivePreviewTool,
-            execJsInEditorTool, editorPreferencesTool, editorDocsTool,
+            execJsInEditorTool, editorPreferencesTool, editorDocsTool, getProblemsTool, notifyUserTool,
+            askInLivePreviewTool,
             controlEditorTool, resizeLivePreviewTool, waitTool, getUserClarificationTool]
     });
 }
diff --git a/src/document/DocumentCommandHandlers.js b/src/document/DocumentCommandHandlers.js
index 3a418a63e9..0f303e98ef 100644
--- a/src/document/DocumentCommandHandlers.js
+++ b/src/document/DocumentCommandHandlers.js
@@ -2002,23 +2002,56 @@ define(function (require, exports, module) {
     }
 
     /** Show in File Tree command handler **/
+    /**
+     * Reveal a file in the file tree the way the "Show in File Tree" command does: show the sidebar
+     * if it is hidden, switch it to the Files tab, select the file and scroll its row into view.
+     * @param {File} file - The file to reveal. Silently no-ops outside the project.
+     */
+    function revealInFileTree(file) {
+        if (!SidebarView.isVisible()) {
+            CommandManager.execute(Commands.VIEW_HIDE_SIDEBAR);
+        }
+        SidebarTabs.setActiveTab(SidebarTabs.SIDEBAR_TAB_FILES);
+        ProjectManager.showInTree(file).always(function () {
+            if (ProjectManager.isInFileTree(file.fullPath) || !ProjectManager.isWithinProject(file.fullPath)) {
+                _scrollFileTreeSelectionIntoView();
+                return;
+            }
+            // A file created moments ago outside the FileSystem API is not in the tree yet, so the
+            // selection was dropped: reload the tree and select the file once it arrives. The tree
+            // has no event for that (its change event fires before the directory reload lands),
+            // so look for the node a few times over the next three seconds.
+            const RETRY_MS = 250, MAX_RETRIES = 12;
+            let retries = 0;
+            function selectWhenInTree() {
+                if (ProjectManager.isInFileTree(file.fullPath)) {
+                    ProjectManager.showInTree(file).always(_scrollFileTreeSelectionIntoView);
+                } else if (++retries < MAX_RETRIES) {
+                    setTimeout(selectWhenInTree, RETRY_MS);
+                }
+            }
+            ProjectManager.refreshFileTree();
+            setTimeout(selectWhenInTree, RETRY_MS);
+        });
+    }
+
+    /**
+     * FileTreeView only auto-scrolls when the selection flips unselected→selected.
+     * Re-invoking the command on an already-selected file would otherwise be a
+     * no-op when the user has scrolled away — force-scroll the selected node
+     * into view so "Show in File Tree" always reveals the row.
+     */
+    function _scrollFileTreeSelectionIntoView() {
+        const $selected = $("#project-files-container .selected-node").first();
+        if ($selected.length) {
+            ViewUtils.scrollElementIntoView($("#project-files-container"), $selected, true);
+        }
+    }
+
     function handleShowInTree() {
         let activeFile = MainViewManager.getCurrentlyViewedFile(MainViewManager.ACTIVE_PANE);
         if(activeFile){
-            if (!SidebarView.isVisible()) {
-                CommandManager.execute(Commands.VIEW_HIDE_SIDEBAR);
-            }
-            SidebarTabs.setActiveTab(SidebarTabs.SIDEBAR_TAB_FILES);
-            // FileTreeView only auto-scrolls when the selection flips unselected→selected.
-            // Re-invoking the command on an already-selected file would otherwise be a
-            // no-op when the user has scrolled away — force-scroll the selected node
-            // into view so "Show in File Tree" always reveals the row.
-            ProjectManager.showInTree(activeFile).always(function () {
-                const $selected = $("#project-files-container .selected-node").first();
-                if ($selected.length) {
-                    ViewUtils.scrollElementIntoView($("#project-files-container"), $selected, true);
-                }
-            });
+            revealInFileTree(activeFile);
         }
     }
 
@@ -2452,6 +2485,7 @@ define(function (require, exports, module) {
 
     // Define public API
     exports.showFileOpenError = showFileOpenError;
+    exports.revealInFileTree = revealInFileTree;
     exports.APP_QUIT_CANCELLED = APP_QUIT_CANCELLED;
 
 
diff --git a/src/nls/root/strings.js b/src/nls/root/strings.js
index f92cb2bff9..7ce025d6bb 100644
--- a/src/nls/root/strings.js
+++ b/src/nls/root/strings.js
@@ -763,6 +763,16 @@ define({
     "LIVE_DEV_IMAGE_FOLDER_DIALOG_PLACEHOLDER": "Type folder path (e.g., assets/images/)",
     "LIVE_DEV_IMAGE_FOLDER_DIALOG_HELP": "💡 Type folder path or leave empty to download in 'images' folder.",
     "LIVE_DEV_IMAGE_FOLDER_DIALOG_REMEMBER": "Don't ask again for this project",
+    "LIVE_DEV_IMAGE_DOWNLOADED_TITLE": "Image downloaded",
+    "LIVE_DEV_AI_ASK_TEXT_PLACEHOLDER": "Or tell me in your own words…",
+    "LIVE_DEV_AI_ASK_SEND": "Send",
+    "LIVE_DEV_AI_ASK_TITLE": "Phoenix AI asks",
+    "LIVE_DEV_AI_ASK_MINIMIZE": "Minimize",
+    "LIVE_DEV_AI_ASK_FOCUS_HIDE": "Hide the focus and see the page as it is",
+    "LIVE_DEV_AI_ASK_FOCUS_SHOW": "Show the focus again",
+    "LIVE_DEV_AI_ASK_WAITING": "Phoenix AI is waiting for your answer",
+    "LIVE_DEV_IMAGE_SAVED_TO": "Saved to {0}",
+    "LIVE_DEV_IMAGE_DOWNLOAD_FOLDER": "Change download folder",
     "AVAILABLE_IN_PRO_TITLE": "Available in Phoenix Pro",
     "DEVICE_SIZE_LIMIT_MESSAGE": "To switch between mobile, tablet, and desktop views, upgrade to Phoenix Pro.",
     "LAYERS_PANEL_LIMIT_MESSAGE": "To see your page structure and select or edit any element in it, upgrade to Phoenix Pro.",
@@ -2781,6 +2791,29 @@ define({
     "AI_CHAT_TOOL_EDITOR_JS": "Inspecting editor",
     "AI_CHAT_TOOL_EDITOR_PREFERENCES": "Editor preferences",
     "AI_CHAT_TOOL_EDITOR_DOCS": "Editor docs",
+    "AI_CHAT_TOOL_PROBLEMS": "Problems",
+    "AI_CHAT_TOOL_NOTIFY": "Notification",
+    "AI_CHAT_TOOL_ASK": "Asking in live preview",
+    "AI_CHAT_USAGE_CHIP_TITLE": "Tokens and cost of this chat",
+    "AI_CHAT_USAGE_TOKENS": "{0} tok",
+    "AI_CHAT_USAGE_CALLS": "{0} calls",
+    "AI_CHAT_USAGE_TAB_ALL": "All",
+    "AI_CHAT_USAGE_OPTIONS": "Options",
+    "AI_CHAT_USAGE_INPUT": "Input tokens",
+    "AI_CHAT_USAGE_OUTPUT": "Output tokens",
+    "AI_CHAT_USAGE_CACHE_READ": "Cache read",
+    "AI_CHAT_USAGE_CACHE_WRITE": "Cache write",
+    "AI_CHAT_USAGE_TOTAL": "Total tokens",
+    "AI_CHAT_USAGE_TURNS_CALLS": "Turns \u00b7 API calls",
+    "AI_CHAT_USAGE_API_TIME": "Time in API",
+    "AI_CHAT_USAGE_COST": "Cost at list price",
+    "AI_CHAT_USAGE_NOTE": "With a Claude subscription, this cost is included in your plan. Pricing shown is for reference only.",
+    "AI_CHAT_USAGE_OPTION_TURNS": "Show usage after every turn",
+    "AI_CHAT_USAGE_OPTION_DOLLARS": "Show $ cost",
+    "AI_CHAT_TOOL_ASK_COMPOSING": "Asking a question in the live preview...",
+    "AI_CHAT_LABEL_YOU_IN_PREVIEW": "You, in the live preview",
+    "AI_CHAT_TOOL_ASK_WAITING": "Answer in the live preview, or",
+    "AI_CHAT_TOOL_PROBLEMS_IN": "Problems in {0}",
     "AI_CHAT_TOOL_RESIZE_PREVIEW": "Resize preview",
     "AI_LIVE_PREVIEW_BANNER_TEXT": "AI is inspecting the live preview",
     "AI_LIVE_PREVIEW_BANNER_RESIZE": "AI resized preview to {0}",
@@ -2916,6 +2949,14 @@ define({
     "AI_CHAT_IMAGE_REMOVE": "Remove image",
     "AI_CHAT_IMAGE_SEARCH": "Searching images",
     "AI_CHAT_IMAGE_USE": "Selecting image",
+    "AI_CHAT_IMAGE_DOWNLOADING": "Downloading image",
+    "AI_CHAT_IMAGE_DOWNLOADED": "Downloaded image",
+    "AI_CHAT_IMAGE_DOWNLOADED_GROUP": "Downloaded images",
+    "AI_CHAT_IMAGE_NO_PROJECT": "No project is open to download into.",
+    "AI_CHAT_IMAGE_DOWNLOAD_PATH_INVALID": "downloadPath must be a folder inside the project, or an image file path there ending in .jpg, .png, .webp or .avif.",
+    "AI_CHAT_IMAGE_DOWNLOAD_PATH_FOLDER": "downloadPath must be a folder when downloading several photos.",
+    "AI_CHAT_IMAGE_NOT_HOTLINKABLE": "This photo cannot be embedded by URL. Download it by passing downloadPath.",
+    "AI_CHAT_IMAGE_UNKNOWN_DOWNLOAD": "Only photos returned by searchImages in this conversation can be downloaded.",
     "AI_CHAT_IMAGE_SELECTED": "Selected image",
     "AI_CHAT_IMAGE_SELECTED_GROUP": "Selected images",
     "AI_CHAT_IMAGE_PREVIEW": "Image preview",
@@ -2929,8 +2970,12 @@ define({
     "AI_CHAT_IMAGE_PHOTO_BY": "Photo by",
     "AI_CHAT_IMAGE_REPLY": "Reply with this image",
     "AI_CHAT_IMAGE_QUOTE": "Quote image in chat",
+    "AI_CHAT_IMAGE_DOWNLOAD": "Download to project and open",
+    "AI_CHAT_IMAGE_DOWNLOAD_FAILED_TITLE": "Image download failed",
+    "AI_CHAT_IMAGE_DOWNLOAD_FAILED": "The image could not be saved to the project: {0}",
     "AI_CHAT_IMAGE_VIEW_COLLAGE": "View collage",
     "AI_CHAT_IMAGE_SHOW_ALL": "Show all",
+    "AI_CHAT_IMAGE_SHOW_LESS": "Show less",
     "AI_CHAT_IMAGE_BACK_TO_ALL": "Back to all images",
     "AI_CHAT_IMAGE_RESULTS_COUNT": "{0} photos · Unsplash",
     "AI_CHAT_IMAGE_RESULTS_SINGLE": "1 photo · Unsplash",
@@ -2943,7 +2988,6 @@ define({
     "AI_CHAT_IMAGE_GUEST_LIMIT": "Your image search allowance has been used. Sign in to continue searching.",
     "AI_CHAT_IMAGE_SERVER_LIMIT": "Image search is temporarily rate limited. Wait before searching again.",
     "AI_CHAT_IMAGE_TIMEOUT": "Image search timed out. Try again later.",
-    "AI_CHAT_IMAGE_REQUEST_FAILED": "The image service returned an error ({0}).",
     "AI_CHAT_ATTACH_FILE": "Attach files",
     "AI_CHAT_ATTACH_TITLE": "Attach file or folder",
     "AI_CHAT_ATTACH_FILE_OPTION": "Attach a file",
diff --git a/src/project/ProjectManager.js b/src/project/ProjectManager.js
index 4f271bc071..093ac700ff 100644
--- a/src/project/ProjectManager.js
+++ b/src/project/ProjectManager.js
@@ -1436,6 +1436,21 @@ define(function (require, exports, module) {
         return model.showInTree(entry).then(_saveTreeState);
     }
 
+    /**
+     * Whether the file tree currently has a node for the path. A file written outside the
+     * FileSystem API is not in the tree until the watcher or a refresh adds it, and a file in a
+     * folder that was never expanded is not in it either; `showInTree` expands the folders first.
+     *
+     * @param {string} fullPath Absolute path of a file or folder
+     * @return {boolean} true if the tree has the node
+     */
+    function isInFileTree(fullPath) {
+        if (!isWithinProject(fullPath)) {
+            return false;
+        }
+        return model._viewModel.isFilePathVisible(makeProjectRelativeIfPossible(fullPath)) !== null;
+    }
+
     function _filePickerSupported() {
         return Phoenix.isNativeApp
             || window.showOpenFilePicker; // fs access file picker
@@ -2450,6 +2465,7 @@ define(function (require, exports, module) {
     exports.moveToTrash                   = moveToTrash;
     exports.forceFinishRename             = forceFinishRename;
     exports.showInTree                    = showInTree;
+    exports.isInFileTree                  = isInFileTree;
     exports.shouldShowFileNameInTree      = ProjectModel._shouldShowName;
     exports.refreshFileTree               = refreshFileTree;
     exports.getAllFiles                   = getAllFiles;
diff --git a/src/styles/Extn-AIChatPanel.less b/src/styles/Extn-AIChatPanel.less
index a3cff86ec8..357b41b673 100644
--- a/src/styles/Extn-AIChatPanel.less
+++ b/src/styles/Extn-AIChatPanel.less
@@ -717,6 +717,20 @@
         flex-shrink: 0;
     }
 
+    // The chat's tokens and cost, when it has had a turn.
+    .ai-history-item-usage {
+        font-size: @ai-text-meta;
+        color: @project-panel-text-2;
+        opacity: 0.6;
+        flex-shrink: 0;
+        white-space: nowrap;
+
+        &::before {
+            content: "·";
+            margin-right: 5px;
+        }
+    }
+
     /* Claude's title for the session, revealed on hover: always-on it made
        a 50-entry list too dense to scan. It keeps its space in the row while
        hidden, so showing it shifts nothing. Empty when it would only repeat
@@ -2034,6 +2048,10 @@
             border-radius: 3px;
             font-size: @sidebar-md-code-font-size;
             font-family: 'SourceCodePro-Medium', 'SourceCodePro', monospace;
+            // Bootstrap's base `code { white-space: nowrap }` targets the
+            // element directly, so a long inline path or identifier ran off
+            // the panel edge instead of wrapping with the surrounding prose.
+            white-space: pre-wrap;
         }
 
         pre {
@@ -3557,6 +3575,7 @@
         border-radius: 3px;
         font-size: @sidebar-md-code-font-size;
         font-family: 'SourceCodePro-Medium', 'SourceCodePro', monospace;
+        white-space: pre-wrap; // see .ai-msg-content code
     }
 
     pre {
@@ -4217,6 +4236,178 @@
         to { opacity: 1; }
     }
 
+    /* ── Usage chip: tokens and cost of the chat, with a drop-up for the split ───── */
+    .ai-chat-mode-row {
+        position: relative;
+
+        .ai-usage-chip {
+            position: relative;
+            margin-left: auto;
+            display: inline-flex;
+            align-items: center;
+            gap: 5px;
+            height: 22px;
+            padding: 0 6px;
+            border-radius: 4px;
+            font-size: @ai-text-meta;
+            color: @project-panel-text-2;
+            cursor: pointer;
+            user-select: none;
+            white-space: nowrap;
+
+            &:hover, &.ai-usage-open {
+                background: rgba(255, 255, 255, 0.04);
+                color: @project-panel-text-1;
+            }
+
+            > i {
+                width: 14px;
+                text-align: center;
+                font-size: 10px;
+                opacity: 0.75;
+            }
+
+            .ai-usage-caret {
+                width: auto;
+                font-size: 9px;
+                opacity: 0.6;
+                transition: transform 120ms ease;
+            }
+
+            &.ai-usage-open .ai-usage-caret {
+                transform: rotate(180deg);
+            }
+
+            // Dim the chip's own text and icon before any turn; never the chip itself, since an
+            // opacity on the container would fade the drop-up inside it as well.
+            &.ai-usage-empty > i,
+            &.ai-usage-empty > .ai-usage-chip-text {
+                opacity: 0.6;
+            }
+        }
+
+        // The info flash shares the right side: the chip stops claiming the space then.
+        .ai-info.ai-info-flash + .ai-usage-chip {
+            margin-left: 8px;
+        }
+
+        // The drop-up borrows the attach menu's surface.
+        .ai-usage-pop {
+            display: none;
+            position: absolute;
+            right: 0;
+            bottom: ~"calc(100% + 6px)";
+            min-width: 230px;
+            padding: 4px 0;
+            background: @bc-ai-input-bg;
+            border: 1px solid @bc-ai-input-border;
+            border-radius: 8px;
+            box-shadow: 0 -4px 12px rgba(0, 0, 0, 0.3);
+            z-index: 100;
+            text-align: left;
+            font-size: @ai-text-meta;
+            color: @project-panel-text-1;
+            cursor: default;
+            white-space: nowrap;
+        }
+
+        .ai-usage-chip.ai-usage-open .ai-usage-pop {
+            display: block;
+        }
+
+        .ai-usage-tabs {
+            display: flex;
+            gap: 2px;
+            padding: 6px 8px 5px;
+            border-bottom: 1px solid @bc-ai-input-border;
+            margin-bottom: 2px;
+        }
+
+        .ai-usage-tab {
+            padding: 4px 9px;
+            border-radius: 4px;
+            font-size: @ai-text-secondary;
+            color: @project-panel-text-2;
+            cursor: pointer;
+
+            &:hover {
+                background: rgba(255, 255, 255, 0.04);
+            }
+
+            &.active {
+                background: rgba(255, 255, 255, 0.08);
+                color: @project-panel-text-1;
+            }
+
+            &.ai-usage-tab-options {
+                margin-left: auto;
+
+                i {
+                    font-size: 11px;
+                }
+            }
+        }
+
+        .ai-usage-pane {
+            display: none;
+            flex-direction: column;
+            min-height: var(--ai-usage-pane-height);
+
+            &.active {
+                display: flex;
+            }
+        }
+
+        .ai-usage-row {
+            display: flex;
+            justify-content: space-between;
+            gap: 16px;
+            padding: 5px 12px;
+
+            span:last-child {
+                font-variant-numeric: tabular-nums;
+            }
+
+            &.ai-usage-total {
+                border-top: 1px solid @bc-ai-input-border;
+                margin-top: 2px;
+                padding-top: 6px;
+            }
+        }
+
+        .ai-usage-note {
+            margin-top: auto;
+            padding: 4px 12px 6px;
+            color: @project-panel-text-2;
+            white-space: normal;
+            max-width: 270px;
+        }
+
+        label.ai-usage-option {
+            display: flex;
+            align-items: center;
+            justify-content: space-between;
+            gap: 16px;
+            margin: 0;
+            padding: 7px 12px;
+            font-size: @ai-text-meta;
+            font-weight: normal;
+            line-height: 1.4;
+            color: inherit;
+            cursor: pointer;
+
+            &:hover {
+                background: rgba(255, 255, 255, 0.04);
+            }
+
+            input[type="checkbox"] {
+                margin: 0;
+                width: 13px;
+                height: 13px;
+            }
+        }
+    }
+
     .ai-chat-context-bar {
         display: none;
         flex-wrap: wrap;
@@ -5868,3 +6059,39 @@
     font-size: @ai-dialog-note;
     line-height: 28px;
 }
+
+// Toast the AI raises through notifyUser; the message is plain text with its line breaks kept.
+.ai-notify-toast {
+    cursor: pointer;
+    .ai-notify-message { white-space: pre-line; }
+}
+
+// The askInLivePreview card: the answer is given in the preview; the chat offers a way out.
+.ai-chat-panel .ai-ask-detail { display: flex; align-items: center; gap: 10px; }
+.ai-chat-panel .ai-ask-waiting { color: @project-panel-text-2; font-size: @ai-text-secondary; }
+.ai-chat-panel .ai-ask-cancel { border: 1px solid @bc-ai-input-border; border-radius: 4px; background: transparent; color: inherit; font: inherit; font-size: @ai-text-secondary; padding: 2px 10px; cursor: pointer; }
+.ai-chat-panel .ai-ask-cancel:hover { background: rgba(128, 128, 128, 0.2); }
+
+/* ── Usage line under an answer: what that turn took ────────────────── */
+.ai-chat-panel .ai-usage-turn {
+    display: flex;
+    align-items: center;
+    gap: 8px;
+    margin: -2px 0 10px 14px;
+    font-size: @ai-text-meta;
+    color: @project-panel-text-2;
+    white-space: nowrap;
+
+    i {
+        font-size: 10px;
+        opacity: 0.7;
+    }
+
+    .ai-usage-sep {
+        opacity: 0.5;
+    }
+
+    &.ai-usage-hidden {
+        display: none;
+    }
+}
diff --git a/src/styles/Extn-AIImages.less b/src/styles/Extn-AIImages.less
index 6506fe2eae..c2f8274e53 100644
--- a/src/styles/Extn-AIImages.less
+++ b/src/styles/Extn-AIImages.less
@@ -37,9 +37,8 @@
     .ai-image-search-grid { display: grid; grid-template-columns: repeat(3, minmax(0, 1fr)); gap: 4px; padding: 0 10px; }
     &.ai-image-search-compact {
         .ai-image-search-item:nth-child(n+4), .ai-image-search-collage { display: none; }
-        .ai-image-search-show-all { display: flex; }
     }
-    .ai-image-search-show-all { display: none; border: 0; background: transparent; color: inherit; padding: 5px 0; }
+    .ai-image-search-show-all { display: flex; border: 0; background: transparent; color: inherit; padding: 5px 0; }
     .ai-image-search-show-all:hover { color: @project-panel-text-1; }
     .ai-image-search-item { position: relative; min-width: 0; }
     &.ai-image-preview-card .ai-image-search-grid[data-count="1"] {
@@ -111,6 +110,9 @@
     .ai-image-search-item:hover .ai-image-search-number,
     .ai-image-search-item:focus-within .ai-image-search-number { opacity: 1; }
     .ai-image-search-footer { display: flex; align-items: center; justify-content: space-between; gap: 8px; padding: 9px 12px; font-size: @ai-text-meta; color: @project-panel-text-2; }
+    // The whole footer toggles a large result set, like the heading does.
+    .ai-image-search-footer.ai-image-search-toggle { cursor: pointer; }
+    .ai-image-search-footer-actions { display: flex; align-items: center; gap: 14px; }
     .ai-image-search-collage { display: flex; align-items: center; gap: 6px; border: 0; background: transparent; color: inherit; padding: 5px 0; }
     .ai-image-search-collage:hover { color: @project-panel-text-1; }
     .ai-image-search-status { padding: 12px; font-size: @ai-text-secondary; color: @project-panel-text-2; }
@@ -142,6 +144,7 @@
     .ai-image-viewer-close { width: 30px; height: 30px; }
     .ai-image-viewer-overview { width: 30px; height: 30px; color: @project-panel-text-2; }
     .ai-image-viewer-reply { width: 30px; height: 30px; color: @project-panel-text-2; }
+    .ai-image-viewer-download { width: 30px; height: 30px; color: @project-panel-text-2; }
     .ai-image-viewer-reply-overlay {
         position: absolute;
         height: 27px;
diff --git a/src/styles/brackets_patterns_override.less b/src/styles/brackets_patterns_override.less
index 106f3deae5..f293063952 100644
--- a/src/styles/brackets_patterns_override.less
+++ b/src/styles/brackets_patterns_override.less
@@ -2804,3 +2804,12 @@ code {
 .striked {
   text-decoration: line-through;
 }
+
+// Toast shown after an image gallery download that went to the remembered folder without asking.
+.image-download-toast {
+    .image-download-toast-actions { display: flex; align-items: center; gap: 12px; margin-top: 8px; }
+    button { display: flex; align-items: center; justify-content: center; border: 0; border-radius: 4px; background: transparent; color: inherit; font: inherit; cursor: pointer; padding: 3px 0; }
+    button:hover { text-decoration: underline; }
+    .image-download-toast-settings { width: 26px; height: 26px; margin-left: auto; }
+    .image-download-toast-settings:hover { text-decoration: none; background: rgba(128, 128, 128, 0.2); }
+}
diff --git a/src/widgets/NotificationUI.js b/src/widgets/NotificationUI.js
index 121aa45024..007a1cc71c 100644
--- a/src/widgets/NotificationUI.js
+++ b/src/widgets/NotificationUI.js
@@ -110,6 +110,34 @@ define(function (require, exports, module) {
      * @type {Object}
      */
 
+    /**
+     * Close after the given seconds, holding off while the mouse is over the notification so a user
+     * reading it or reaching for one of its actions does not lose it. The countdown restarts in
+     * full once the mouse leaves.
+     * @param {jQuery} $notification - The notification element.
+     * @param {number} seconds - Time to wait before closing.
+     * @param {function} closeFn - Closes the notification with the timeout reason.
+     * @private
+     */
+    function _autoCloseUnlessHovered($notification, seconds, closeFn) {
+        let timer = null;
+        function stop() {
+            if (timer) {
+                clearTimeout(timer);
+                timer = null;
+            }
+        }
+        function start() {
+            stop();
+            timer = setTimeout(function () {
+                timer = null;
+                closeFn();
+            }, seconds * 1000);
+        }
+        $notification.on("mouseenter", stop).on("mouseleave", start);
+        start();
+    }
+
     /**
      * @constructor
      * @private
@@ -211,6 +239,7 @@ define(function (require, exports, module) {
      *   * `allowedPlacements` - Optional String array with values restricting where the notification will be shown.
      *       Values can be a mix of `['top', 'bottom', 'left', 'right']`
      *   * `autoCloseTimeS` - Time in seconds after which the notification should be auto closed. Default is never.
+     *     The countdown pauses while the mouse is over the notification.
      *   * `dismissOnClick` - when clicked, the notification is closed. Default is true(dismiss).
      *   * `toastStyle` - To style the toast notification for error, warning, info etc. Can be
      *     one of `NotificationUI.NOTIFICATION_STYLES_CSS_CLASS.*` or your own css class name.
@@ -229,9 +258,9 @@ define(function (require, exports, module) {
         let notification = (new Notification($tooltip, NOTIFICATION_TYPE_ARROW));
 
         if(options.autoCloseTimeS){
-            setTimeout(()=>{
+            _autoCloseUnlessHovered($tooltip, options.autoCloseTimeS, function () {
                 notification.close(CLOSE_REASON.TIMEOUT);
-            }, options.autoCloseTimeS * 1000);
+            });
         }
 
         if(options.dismissOnClick){
@@ -352,6 +381,7 @@ define(function (require, exports, module) {
      * @param {{dismissOnClick, autoCloseTimeS, toastStyle, instantOpen}} [options] optional, supported
      *   * options are:
      *   * `autoCloseTimeS` - Time in seconds after which the notification should be auto closed. Default is never.
+     *     The countdown pauses while the mouse is over the notification.
      *   * `dismissOnClick` - when clicked, the notification is closed. Default is true(dismiss).
      *   * `toastStyle` - To style the toast notification for error, warning, info etc. Can be
      *     one of `NotificationUI.NOTIFICATION_STYLES_CSS_CLASS.*` or your own css class name.
@@ -387,9 +417,9 @@ define(function (require, exports, module) {
         }, 0);
 
         if(options.autoCloseTimeS){
-            setTimeout(()=>{
+            _autoCloseUnlessHovered($NotificationPopup, options.autoCloseTimeS, function () {
                 notification.close(CLOSE_REASON.TIMEOUT);
-            }, options.autoCloseTimeS * 1000);
+            });
         }
 
         if(options.dismissOnClick){
@@ -416,6 +446,7 @@ define(function (require, exports, module) {
      * @param {string|Element} template HTML string or DOM Element for the toast content.
      * @param {Object} [options] optional, supported options:
      *   * `autoCloseTimeS` - Time in seconds after which the toast auto-closes. Default is 5.
+     *     The countdown pauses while the mouse is over the toast.
      *   * `dismissOnClick` - If true, clicking the toast dismisses it. Default is true.
      * @return {Notification} Object with a done handler that resolves when the toast closes.
      * @type {function}
@@ -466,11 +497,11 @@ define(function (require, exports, module) {
         };
 
         if (autoCloseTimeS) {
-            setTimeout(function () {
+            _autoCloseUnlessHovered($toast, autoCloseTimeS, function () {
                 if (notification.$notification) {
                     notification.close(CLOSE_REASON.TIMEOUT);
                 }
-            }, autoCloseTimeS * 1000);
+            });
         }
 
         if (dismissOnClick) {
@@ -497,6 +528,7 @@ define(function (require, exports, module) {
      * @param {string} label Text to display below the icon (e.g. "110%").
      * @param {Object} [options] optional, supported options:
      *   * `autoCloseTimeS` - Time in seconds after which the HUD auto-closes. Default is 1.
+     *     The countdown pauses while the mouse is over the HUD.
      * @return {Notification} Object with a done handler that resolves when the HUD closes.
      * @type {function}
      */
@@ -531,11 +563,11 @@ define(function (require, exports, module) {
         };
 
         if (autoCloseTimeS) {
-            setTimeout(function () {
+            _autoCloseUnlessHovered($hud, autoCloseTimeS, function () {
                 if (notification.$notification) {
                     notification.close(CLOSE_REASON.TIMEOUT);
                 }
-            }, autoCloseTimeS * 1000);
+            });
         }
 
         return notification;
diff --git a/test/spec/NotificationUI-test.js b/test/spec/NotificationUI-test.js
index 6cbbd63729..8008250854 100644
--- a/test/spec/NotificationUI-test.js
+++ b/test/spec/NotificationUI-test.js
@@ -19,7 +19,7 @@
  *
  */
 
-/*global describe, it, expect, beforeAll, afterAll, awaitsFor, awaitsForDone, awaits */
+/*global describe, it, expect, beforeAll, afterAll, awaitsFor, awaitsForDone, awaits, jasmine, spyOn */
 
 define(function (require, exports, module) {
     let NotificationUI = require("widgets/NotificationUI");
@@ -106,6 +106,50 @@ define(function (require, exports, module) {
             }, "waiting for notification to close");
         }
 
+        it("Should hold the auto close while the mouse is over the toast", function () {
+            // Mock time from the start so the auto-close timer itself is under the clock. The close
+            // itself is observed on the notification, since the removal waits for a CSS transition.
+            jasmine.clock().install();
+            try {
+                const notification = NotificationUI.createToastFromTemplate("hello", "world", {autoCloseTimeS: 1});
+                spyOn(notification, "close").and.callThrough();
+                const $popup = $("#toast-notification-container").children().last();
+                expect($popup.length).toBe(1);
+                $popup.trigger("mouseenter");
+                jasmine.clock().tick(1500);
+                expect($popup[0].isConnected).toBe(true);
+                expect(notification.close).not.toHaveBeenCalled();
+                $popup.trigger("mouseleave");
+                jasmine.clock().tick(900);
+                expect(notification.close).not.toHaveBeenCalled();
+                jasmine.clock().tick(200);
+                expect(notification.close).toHaveBeenCalledWith(NotificationUI.CLOSE_REASON.TIMEOUT);
+            } finally {
+                jasmine.clock().uninstall();
+            }
+        });
+
+        it("Should hold the auto close while the mouse is over the HUD", function () {
+            jasmine.clock().install();
+            let closeReason;
+            try {
+                const notification = NotificationUI.showHUD("fa-solid fa-magnifying-glass-plus", "110%");
+                notification.done(function (reason) { closeReason = reason; });
+                const $hud = $("body > .hud-overlay");
+                expect($hud.length).toBe(1);
+                $hud.trigger("mouseenter");
+                jasmine.clock().tick(1500);
+                expect($hud[0].isConnected).toBe(true);
+                expect(closeReason).toBeUndefined();
+                $hud.trigger("mouseleave");
+                jasmine.clock().tick(1100);
+                expect(closeReason).toBe(NotificationUI.CLOSE_REASON.TIMEOUT);
+                expect($("body > .hud-overlay").length).toBe(0);
+            } finally {
+                jasmine.clock().uninstall();
+            }
+        });
+
         it("Should style toast notification", async function () {
             await verifyToast(NotificationUI.NOTIFICATION_STYLES_CSS_CLASS.INFO);
             await verifyToast(NotificationUI.NOTIFICATION_STYLES_CSS_CLASS.WARNING);
@@ -152,6 +196,29 @@ define(function (require, exports, module) {
                 }, "waiting for inline toast to auto-close", 3000);
             });
 
+            it("Should hold the auto close while the mouse is over the inline toast", function () {
+                jasmine.clock().install();
+                let closeReason;
+                try {
+                    const notification = NotificationUI.showToastOn($container[0], "hover me", {autoCloseTimeS: 1});
+                    notification.done(function (reason) { closeReason = reason; });
+                    const $toast = $container.find(".inline-toast");
+                    expect($toast.length).toBe(1);
+                    $toast.trigger("mouseenter");
+                    jasmine.clock().tick(1500);
+                    expect($toast[0].isConnected).toBe(true);
+                    expect(closeReason).toBeUndefined();
+                    $toast.trigger("mouseleave");
+                    jasmine.clock().tick(1100);
+                    // The close falls back to a timer when no transition event arrives.
+                    jasmine.clock().tick(600);
+                    expect(closeReason).toBe(NotificationUI.CLOSE_REASON.TIMEOUT);
+                    expect($container.find(".inline-toast").length).toBe(0);
+                } finally {
+                    jasmine.clock().uninstall();
+                }
+            });
+
             it("Should dismiss on click by default", async function () {
                 NotificationUI.showToastOn($container[0], "Click me");
                 await awaitsFor(function () {
diff --git a/tracking-repos.json b/tracking-repos.json
index f7dae42914..c88af5a5ef 100644
--- a/tracking-repos.json
+++ b/tracking-repos.json
@@ -1,5 +1,5 @@
 {
   "phoenixPro": {
-    "commitID": "81eddee4c25a19659ef6ec299b83a27c7514a7ac"
+    "commitID": "1792b00e8ee3695b7ab5d2d015906dee538054a2"
   }
 }