diff --git a/docs/mode-economics.md b/docs/mode-economics.md
index 0c2f982c..6b6e2df3 100644
--- a/docs/mode-economics.md
+++ b/docs/mode-economics.md
@@ -92,7 +92,7 @@ special-token spellings counted as ordinary text.
 Coverage: **75 of 75 local `skills/*/SKILL.md` files**.
 External `source.md` redirects and harness symlinks are excluded.
 
-Measurement manifest SHA-256: `026fe6f701d8b3c1050c01f3a7bc192b8996ae0f5f7702290cab4c5c052806d8`.
+Measurement manifest SHA-256: `4556129999018ce339eb0f7c8292e18a424d57716fadd8407f29d9c4a9decec3`.
 
 | Skill file | Measured tokens | Source SHA-256 (first 16 characters) |
 |---|---:|---|
@@ -160,9 +160,9 @@ Measurement manifest SHA-256: `026fe6f701d8b3c1050c01f3a7bc192b8996ae0f5f7702290
 | [security-tracker-stats-dashboard](../skills/security-tracker-stats-dashboard/SKILL.md) | 4,897 | `b52154deb8557ba4` |
 | [setup](../skills/setup/SKILL.md) | 8,724 | `82788542bb240309` |
 | [setup-isolated-setup-doctor](../skills/setup-isolated-setup-doctor/SKILL.md) | 7,950 | `3fa5d728fa080ed0` |
-| [setup-isolated-setup-install](../skills/setup-isolated-setup-install/SKILL.md) | 11,197 | `c046c45d2e176827` |
+| [setup-isolated-setup-install](../skills/setup-isolated-setup-install/SKILL.md) | 11,278 | `418ea9794077c6e9` |
 | [setup-isolated-setup-update](../skills/setup-isolated-setup-update/SKILL.md) | 5,069 | `dd56cf376cd14f55` |
-| [setup-isolated-setup-verify](../skills/setup-isolated-setup-verify/SKILL.md) | 8,409 | `3ba7f351ebfa32bd` |
+| [setup-isolated-setup-verify](../skills/setup-isolated-setup-verify/SKILL.md) | 8,502 | `6f0a2594801bdf27` |
 | [setup-override-upstream](../skills/setup-override-upstream/SKILL.md) | 4,012 | `fb583feb56b7f77c` |
 | [setup-privacy-llm](../skills/setup-privacy-llm/SKILL.md) | 2,145 | `0e27b542a1656846` |
 | [setup-shared-config-sync](../skills/setup-shared-config-sync/SKILL.md) | 4,357 | `d1dfcd7cdeb5f5a6` |
diff --git a/docs/setup/secure-agent-setup.md b/docs/setup/secure-agent-setup.md
index f696a664..b47eb49d 100644
--- a/docs/setup/secure-agent-setup.md
+++ b/docs/setup/secure-agent-setup.md
@@ -2182,11 +2182,29 @@ in the `Bash` matcher groups you already have:
         "hooks": [
           { "type": "command", "command": "~/.claude/scripts/gpg-touch-overlay.sh disarm" }
         ] }
+    ],
+    "PermissionDenied": [
+      { "matcher": "Bash",
+        "hooks": [
+          { "type": "command", "command": "~/.claude/scripts/gpg-touch-overlay.sh disarm" }
+        ] }
+    ],
+    "PostToolUseFailure": [
+      { "matcher": "Bash",
+        "hooks": [
+          { "type": "command", "command": "~/.claude/scripts/gpg-touch-overlay.sh disarm" }
+        ] }
     ]
   }
 }
 ```
 
+**Disarm is wired to three events, not one.**
+`PreToolUse` fires *before* the permission prompt, so a command the operator rejects has already armed a watcher that `PostToolUse` will never tear down.
+It then lives until `MAX_WAIT` — ten minutes — and because `signing_in_flight` is a machine-wide `pgrep` for `gpg` / `ssh-keygen` rather than something scoped to the armed context, any unrelated signature inside that window raises the window with nothing of the operator's pending.
+The touch that follows lands while no signature waits, which fires the key's OTP slot and types `cccc…` into whatever has focus.
+`PermissionDenied` and `PostToolUseFailure` are the events that fire when a Bash call does not run; `disarm` is idempotent and exits 0 with nothing armed, so the extra calls cost nothing.
+
 On Linux this needs `python3` with PyGObject for the dimmed overlay;
 where that is missing it falls back to a `zenity` dialog. On macOS it
 needs a `python3` with Tk 8.6 or newer — a uv-managed python or
diff --git a/plugins/magpie-setup/skills/isolated-setup-install/SKILL.md b/plugins/magpie-setup/skills/isolated-setup-install/SKILL.md
index f28e4725..8d98a614 100644
--- a/plugins/magpie-setup/skills/isolated-setup-install/SKILL.md
+++ b/plugins/magpie-setup/skills/isolated-setup-install/SKILL.md
@@ -654,11 +654,16 @@ key. Leave the attestation slot alone. A slot already at `On` or
 `tools/agent-isolation/gpg-touch-overlay.sh`,
 `gpg-touch-overlay-window.py` and `gpg-touch-overlay-window-macos.py`
 into `~/.claude/scripts/`, `chmod +x` them, and wire a `PreToolUse`
-`Bash` hook running `gpg-touch-overlay.sh arm` and a `PostToolUse`
-`Bash` hook running `gpg-touch-overlay.sh disarm` into
-`~/.claude/settings.json` — merging into existing arrays with a diff
-the operator approves, exactly as for the bypass-warn hook. Install
-detail:
+`Bash` hook running `gpg-touch-overlay.sh arm` and a
+`gpg-touch-overlay.sh disarm` hook on **three** events —
+`PostToolUse`, `PermissionDenied` and `PostToolUseFailure`, each on
+the `Bash` matcher — into `~/.claude/settings.json`, merging into
+existing arrays with a diff the operator approves, exactly as for the
+bypass-warn hook. The last two matter because `PreToolUse` fires
+before the permission prompt: a command the operator rejects has
+already armed a watcher that `PostToolUse` never tears down, and it
+lives until `MAX_WAIT` raising the window for somebody else's
+signature. Install detail:
 [docs/setup/secure-agent-setup.md → Hardware-key touch overlay](../../../../docs/setup/secure-agent-setup.md#hardware-key-touch-overlay).
 
 **K.3 — Git from the operator's own terminal.** The hook covers only
diff --git a/plugins/magpie-setup/skills/isolated-setup-verify/SKILL.md b/plugins/magpie-setup/skills/isolated-setup-verify/SKILL.md
index 8aacdef8..15b084f8 100644
--- a/plugins/magpie-setup/skills/isolated-setup-verify/SKILL.md
+++ b/plugins/magpie-setup/skills/isolated-setup-verify/SKILL.md
@@ -348,8 +348,14 @@ Walk each in order:
 
     **10a — wiring and scripts.** User-scope `~/.claude/settings.json`
     has a `PreToolUse` `Bash` hook running
-    `gpg-touch-overlay.sh arm` and a `PostToolUse` `Bash` hook running
-    `gpg-touch-overlay.sh disarm`, and the scripts are present and
+    `gpg-touch-overlay.sh arm` and a `gpg-touch-overlay.sh disarm`
+    `Bash` hook on each of `PostToolUse`, `PermissionDenied` and
+    `PostToolUseFailure`. A missing `PostToolUse` disarm is ✗; a
+    missing `PermissionDenied` or `PostToolUseFailure` disarm is ⚠
+    with the reason — the overlay still works, but a rejected or
+    failed command leaves its watcher armed until `MAX_WAIT`, and any
+    unrelated signature in that window raises the window with nothing
+    pending. The scripts must also be present and
     executable: `~/.claude/scripts/gpg-touch-overlay.sh`, plus
     `gpg-touch-overlay-window.py` (Linux) or
     `gpg-touch-overlay-window-macos.py` (macOS) beside it. Compare
diff --git a/tools/spec-loop/specs/agent-isolation-sandbox.md b/tools/spec-loop/specs/agent-isolation-sandbox.md
index 7aeb7831..8c5835f8 100644
--- a/tools/spec-loop/specs/agent-isolation-sandbox.md
+++ b/tools/spec-loop/specs/agent-isolation-sandbox.md
@@ -47,7 +47,11 @@ existing sandbox grants can widen the baseline. See `docs/adapters/gemini.md`.
   signing key or ssh authentication key with a touch policy blocks
   waiting for a touch. Two entry points: `arm` /
   `disarm` as a `PreToolUse` / `PostToolUse` `Bash` hook around the
-  agent's git commands, and `wrap` as git's own signing program and ssh
+  agent's git commands — with `disarm` also on `PermissionDenied` and
+  `PostToolUseFailure`, because `PreToolUse` fires before the
+  permission prompt and a command that never runs would otherwise
+  leave its watcher armed until `MAX_WAIT`, raising the window for an
+  unrelated signature — and `wrap` as git's own signing program and ssh
   command (`gpg.ssh.program` / `gpg.program` through an argument-free
   `gpg-touch-wrap-<program>` symlink, `core.sshCommand … wrap ssh`) for
   the commits and pushes the operator makes by hand — no git hook type